Upload
others
View
2
Download
0
Embed Size (px)
Citation preview
Dairy’s Bottom Line
PROFESSIONAL
DAIRY
PRODUCERS OF
WISCONSIN
1-800-WIS-PDPW
Volume 9: Issue 1
January 2007
As the dairy industry contin-ues to change, many dairy pro-ducers are expanding their opera-tions. With this evolution, manyfarm owners are finding them-selves managing people, ratherthan just cows.
Dr. Chip Hunter, associateprofessor of management andhuman resources with the Schoolof Business at UW-Madison,offers some advice to dairy man-agers needing to conserve timeand resources and get the mostout of an interview.
Know what you’re looking for In order to get the right
employee for the job, you need toknow what knowledge, skills andabilities are required in that posi-tion, Hunter explains.
When preparing a job descrip-tion, the dominant idea is to por-tray a realistic idea of the job.There is no reason not to commu-nicate the job duties, Hunterexplains. A vague or falsedescription of the position willonly hinder the process of findingthe right employee. On the otherhand, Hunter says that informa-tion that is hard to explain or maybe misinterpreted should be leftout of the job description and canbe saved for the interview.
The application is a goodplace to gain objective knowl-edge about the job applicants.Work history, including where thecandidate was employed, theposition and the duration, is goodobjective criteria to consider.Education is another criteria thatcan help rate applicants.
Hunter warns to be especiallysure that any question includedon the application be relevant tothe job. If the question is not rele-vant, it shouldn’t be asked
because it will likely not be usefulanyway. Irrelevant questions canalso sometimes bring forthgrounds for discrimination.
After reviewing the applica-tions for the open position,choosing how many people tointerview can be a challenge.Hunter recommends evaluatinghow vital the position is to thebusiness. A more important posi-tion on a dairy farm, like theherdsman, will likely require hir-ing someone who can not onlyjust do the job, but also go aboveand beyond the simple tasksrequired. This type of positiongenerally should require moreinterviews, while a less signifi-cant job can likely be filled withfewer interviews.
Research has proven thatmost interviewers are less effec-tive at choosing a great employeethan they think they are, Huntersays. Most hirers can effectivelyweed out the people they don’twant to hire, but struggle withsorting out the best person for thejob.
Interviews don’t work well tosort candidates unless you arebasing judgment on consistentcriteria from candidate to candi-date. This criteria should beobjective and related to the job,both to protect yourself from adiscriminatory situation and toalso conduct the most effectiveinterview for the value of yourtime and the open position.
Hunter recommends that thesame person or persons conductall of the interviews to maintainconsistency of the questions andthe evaluation. It is probably bestto have the person who will endup being responsible for the newemployee’s performance doingthe interview – so long as that
person is willing to carryout theproper interviewing steps. If theyaren’t willing to do the interview,they should at least meet theapplicants and “buy in” on thedecision-making, as they willneed to work with the newemployee. Hunter does recom-mend allowing the applicant talkwith current employees. Thisallows the applicant to get a bet-ter feel for the job and the com-pany, and allows the employer tolet his employees evaluate thecandidate for any potential “redflags”.
The interview should be heldin a professional environment in aroom with minimal distractions.However a farm tour is veryappropriate, Hunter explains, toallow the applicant to get a goodfeel for the work environmentand the job. It will also allow theinterviewer to get a feel for howthe applicant handles himself orherself around cattle and in yourparticular farming operation.
The key part of any sit-downinterview or farm tour interviewis to maintain consistency. Have alist of questions that pertain tothe particular job written downand ask them with the same atti-tude and purpose for each appli-cant. Also important, Huntersays, is to have a method ofrecording the answers, other thanby memory. This is especiallyimportant, although not alwayseasy, when taking a farm tourwith the applicant.
When thinking of questionsthat will help evaluate theprospective employee, keep themrelevant to the job. Building rap-port is a good thing, but youshouldn’t judge the candidate
See Interview, on Page 8
Consistency Essential When Interviewing Potential Employees
Ag teacher’s educational effortsextend beyond classroom.
Page 3••••
Start the New Year rightwith transition planning.
Page 11••••
Make it a resolution to developa qualified nutrient management plan.
Page 18••••
Let the numbers do the talkingfor your business analysis.
Page 19••••
Join PDPW for business training youcan use on your dairy.
Page 28••••
Get a sneak peek at PDPW’s AnnualBusiness Conference, March 13-14.
Page 16••••
Inside this issue...
Sharing ideas, solutions, resources and experiences that help dairy producers succeed.
Treating animals withrespect and compassion is partof every dairy producer’s her-itage. We share a commonfoundation based on care andrespect for our cows, and aconcern for their comfort andwell-being.
As producers, we under-stand that animal well-beinghas to be the most importantconcern on our dairy farms.Taking good care of our cows,ensuring their health and com-fort leads to higher productionof safe and wholesome milk.Without content and healthycows, we couldn’t sustain adairy business. What’s good forthe animal is also good for ourbottom line. I think that nobodyhas more concern for the well-being of our animals, than doesthe producer.
We also have to rememberthough, that the majority ofAmericans are at least threegenerations removed from thefarm. People just don’t knowanymore how their meat, milk,or eggs are produced. Andwhen they’re exposed to pro-duction agriculture, they mayview some practices as cruel orunnecessary.
In animal agriculture, wehave come to lean heavily on“science,” to prove to thosewith questions that our prac-tices are good. But customersand consumers don’t want dataand scientific, jargon-ladenexplanations. What they reallywant to know is if we’re doingthe right thing. They want toknow that we care.
We choose to leadSociety has increasingly
come to see animal welfare as amoral issue, not a scientific oreconomic issue, Dr. WesJamison, with the University ofFlorida, recently told attendeesat PDPW’s Dairy PolicySummit. “Animal agriculturehas not begun to answer themoral question of why not ani-mal rights,” he said. “The ques-tion of the future is why is whatyou do morally right?”
As producers, we mustembrace our moral obligationto care for our animals in a
humane manner, treat themwith respect, find ways tomeasure what we’re doing andthen be more aggressive incommunicating that informa-tion to the general public.
PDPW has been workingon the issue of dairy animalwelfare strategy for over a yearnow. Participants at the 2005PDPW Manager’s Academyidentified dairy animal welfareas a critical matter. This nation-al, high-level conference isattended by CEOs who are pro-ducers, dairy managers, indus-try directors, processors, mar-keters and distributors through-out the food chain. An over-whelming majority of theseindustry leaders identified ani-mal welfare as the most impor-tant issue the dairy industryneeds to address.
PDPW has taken the leadon animal welfare efforts inWisconsin by developing a pilotproject to help producers posi-tion our industry as proactivein managing the health and wellbeing of their animals.
PDPW is also serving as anindustry catalyst and facilitatoron a national level and lastOctober convened an animalwelfare stakeholder strategymeeting. At the meeting thestakeholders, in agreementwith the PDPW Board ofDirectors, agreed that animalwelfare is not a state or evenregional issue, it is a nationalissue and we must work togeth-
er for the long term good. While we are encouraged
by the interest and willingnessof other dairy industry leadersacross the country to worktogether, we’ve entered ourleadership on this issue withsome apprehension. My worri-some side asks questions like,“what if animal welfare in thedairy industry really isn’t anissue?” “What will an initiativelike this cost?” “Could this justblow over if we ignore it, orpretend it is not out there?”
And then reality sinks in.While it would be wonderful ifevery consumer had the goodfortune to grow up on a dairyfarm, where animal care wasthe center of everyday activi-ties, that’s not reality. Most con-sumers have no idea whatgood, humane care involves.
Today more consumersform their opinions on animalcare and treatment by watchinga (sometimes activist-fueledand not accurate) story on thenightly news rather thanthrough actual experiences. Asan industry we can’t turn awayfrom the realities of activismand growing consumer ques-tions. We must work quicklyand effectively within the foodsystem with partners to helpdefine animal well-being forour industry.
In January, the secondnational discussion on develop-
See Welfare, on Page 26
PDPW
Board of DirectorsPresident
Kevin GriswoldIxonia
Vice PresidentDean Strauss
Sheboygan Falls920-467-1357
SecretaryEllen Killian
Independence715-985-3351
TreasurerJim KrugerWestfield
Marion BarlassJanesville
Doug KnoepkeDurand
John RuedingerVan Dyne
Jay RichardsonSpring Valley
Joe ThomeMalone
Contact PDPW at:P.O. Box 2
Fox Lake, WI [email protected]
EditorialKaren Topel
AdvertisingBrenda Murphy608-250-4157
Dairy’s Bottom Line is publishedsix times a year by PDPW withcooperation from Agri-View.
Cover photos by WMMB and Agri-View
Shelly MayerSlinger
Kim Brown PorkornyWaupun
Julie GabrisFox Lake
Susan OrthCommunication Specialist
Eric LiebetrauFond du Lac
Frank FriarBaraboo
Pete GiacominiVerona
Jim LoeferValders
PDPW AdvisorsPDPW Staff
from the board with Shelly Mayer
What Is Right Versus What Is Easy: Animal Welfare Is Our Test
2 PDPW - Dairy’s Bottom Line • January 2007ST
‘Above & Beyond’
Dolph’s Educational Efforts Extend Beyond Ag ClassroomGwen Dolph believes in
Wisconsin agriculture and isgoing “above and beyond” toshape its future by educatingboth the non-farm public andtomorrow’s leaders in theindustry.
Dolph, a second-year aginstructor at DeForest HighSchool, says she wouldn’t bethe person she is if it weren’tfor a strong work ethic instilledon her home farm near LakeMills. Today, she’s driven bythat on-farm work ethic cou-pled with an excitement “aboutthe food industry in general” tocontribute in multiple ways tothe well-being of her belovedindustry.
For instance, she steppedforward to host theProfessional Dairy Producersof Wisconsin Youth LeadershipDerby in November atDeForest High School. At theweekend lock-in, students fromall over the state, as well as
other states, gained self-confi-dence, honed leadership skillsand explored careers within thedairy industry. There werehands-on labs, workshops byindustry personnel and a moti-vational speaker.
Equally important, this highschool teacher says they got achance to meet other studentsalso looking forward to careersin production agriculture.Friendships forged during thePDPW Youth Derby are apt toresult in what will possiblybecome key career-long con-tacts within the industry. Shewas impressed how some stu-dents who find it difficult to“step out of the box” not onlymet new people but were “dis-cussing and brainstormingideas” for their futures in farm-ing.
Dolph willingly went theextra mile to secure a site for
See Dolph, on Page 14
Opportunities AboundDeForest Ag Instructor Gwen Dolph incorporates the edu-
cation she receives from PDPW into the classroom. She
also volunteered to host PDPW’s Youth Derby this fall to
better acquaint youth with opportunities available in the
industry. Here, Dolph (right) discusses some of those possi-
bilities with DeForest FFA President Wade Kessenich.
January 2007 • PDPW - Dairy’s Bottom Line 3ST
To enhance your milk quality program with superiorprotection, call your ABS Representative or 1-800-ABS-STUD today.
Chlorine dioxide uddercare products fromABS are proven to be more effective thaniodine in killing mastitis causing organisms.
©2006 ABS Global , Inc . , 1525 River Road, DeForest , WI 53532 • Phone: 800-227-7883 • Fax: 608-846-6392 • www.absglobal .com
Step Aside Iodine…Step Aside Iodine…Sometimes getting ahead means leaving tradition behind
Because Quality Counts
Producer Profile
One of the six founding members of PDPW, Joe Draxler,53, Glenwood City, has seen the organization grow togreat strengths. Although Draxler, a fourth generationfarmer, recently sold the 600 cow farm he bought from hisdad in 1982 to two of his sons, he plans to stay an activepart of the dairy farm. Draxler is employed by IndianheadInsurance Agency, Inc. in Menomonie as a crop and farminsurance agent. The Annual Business Conference isDraxler’s favorite PDPW event. “There are good speakers,lots of displays,” he says. “PDPW is deep rooted, with a lotof resources. I think we’ve really just touched the tip of theiceberg.”
Dairy’s Bottom Line photo by Sarah Watson
Draxler Enjoys Conference
4 PDPW - Dairy’s Bottom Line • January 2007ST
www.alliantenergy.com/farmwiring
If you’re like most farmers, the last thing on your mind is electrical
wires. But just because your electrical system works doesn’t mean
it’s working as it should. If your wiring hasn’t been professionally
updated in the last 20 years, you are at serious risk for electrical fires,
stray voltage and surge
damage.
Affordably upgrade
your wiring today with
Alliant Energy-WP&L’s
Farm Wiring program.
It pays the first $1,000 of your farm wiring project plus
50 percent of the remaining cost, up to $10,000. That means for
$10,000 in upgrades, you’d pay $4,500 (which could qualify for Alliant
Energy-WP&L’s three percent financing). For bigger projects, you
can finance up to $20,000*.
Safe, efficient farm wiring at little-to-no upfront cost — now that’s
a smart investment. To learn more, call 1-800-ALLIANT or visit
www.alliantenergy.com/farmwiring.
© 2006 Alliant Energy 112831 12/6 JS
Update your farm wiring for
little-to-no upfront cost with Alliant
Energy’s Farm Wiring program.
*Farms or ag-related businesses are eligible if Alliant
Energy-WP&L provides the electricity or natural gas on a
retail rate basis for the applicable technology.
MPB Builders Inc.
are your total dairy
system contractors,
We will assist with
your design and
building needs.
GIVE US A CALL TODAY!
MPB BUILDERS INC.
Contact:
Visit our Website @
http://www.mpbbuilders.com
654 E. Oshkosh St.
Ripon, WI 54971
1-800-782-9632
®
THE MILK COOLING SYSTEMS SPECIALISTS™
©2006 Paul Mueller Company 392
Whether your dairy farm operation is large or small, you need plenty of hot water for equipment cleanup, cow
prepping, and feeding calves. What better way is there to meet your everyday needs than free hot water? The Mueller®
Fre-Heater® recovers wasted heat from your milk cooler’s condensing unit and uses it to heat water you can use for
feeding calves and cleaning. Adding a Fre-Heater to your milk cooling system will drastically reduce the cost of hot
water in your operation, thereby lowering your cost of production and enhancing your profitability.
Contact your local Mueller dealer listed below for more details.
DORCHESTER
Bob’s Dairy
Supply715-654-5252
FRIESLAND
Cliff’s Incorporated920-348-5153
JUNEAU
Central Ag.
Supply, Inc.920-386-2611
LANCASTER
Fuller’s Milker Center800-887-4634
LUXEMBURG
Kudick’s
Kooling920-845-5725
MARATHON / LOYAL
Dairy Services, Inc.715-443-3132 or 800-221-3947
PLAIN
Ederer Dairy
Equipment608-546-3713
SPARTA
Preston Dairy Equip608-269-3830
STEVENS POINT
Brilowski’s
Dairy Supply Co.715-342-0205
UNION CENTER
Preston Sales & Service608-462-8279
Professional Dairy Producers of WisconsinCalendar of Events
Professional Dairy Producers of WisconsinCalendar of Events
Professional Dairy Producers of WisconsinCalendar of Events
Human Resource Seminar Madison Jan. 23A one-day interactive seminar focusing on attracting, hiring, growing and motivating employees for increased productivity andretention.
Financial & Transition Mngt. Symposium Madison Feb. 13 & 14A two-day interactive conference that focuses on financial and transition management and how they add up to helping yourbusiness achieve superior performance.
Annual Business Conference Alliant Center, Madison March 13 & 14PDPW’s hallmark, business-management conference aligning high-reaching dairy producers and industry representatives toshare ideas, solutions, resources and experiences.
Foot Health Seminar TBD April 10 & 11A one-day seminar showcasing new strategies in foot health that will help producers improve on-farm profitability throughincreased mobility, production, and longevity.
6 PDPW - Dairy’s Bottom Line • January 2007ST
Continued from Page 1
first on how comfortable theinterviewer is with that per-son, Hunter says. However,be careful what kinds ofquestions are casuallybrought up as certain ques-tions that you may not thinkare offensive can potentiallyoffend the applicant and leadto discriminatory problems.
A very popular type of
question in interviews today
is a situational question,
Hunter explains. This type of
question poses a certain cir-
cumstance to the applicant,
like “You noticed a cow hav-
ing difficulty calving,” and
then asks the applicant,
“What would you do?” The
interviewer can also ask the
applicant to give an example
of a job related situation they
were in and how they han-
dled it. When asking this type
of question, Hunter recom-
mends that the interviewer
scale the answers from one
to five, with some notes
about what kind of answer
represents each score, so
comparing all of the candi-
dates is simple.
Hunter recommends that
the interviewer doesn’t ask
anything that is not job relat-
ed. It is a waste of time and
can brush with the equal
employment laws. He says to
be especially careful of ques-
tions that are related to pro-
tected groups, such as race,
religion, sex, sexual orienta-
tion and age.
Oftentimes dairy produc-
ers have immigrants applying
for jobs on their dairy farms.
Hunter explains that the
employer is responsible for
not discriminating, but needs
to have people eligible for
employment in the United
States. Some smaller busi-
nesses may be exempt from
these kinds of laws, but
Hunter recommends being
safe and following them any-
way. He adds that it is per-
fectly legal and wise to ask,
“Are you legally able to work
in this country and are their
any restrictions I should
know about?”
It is illegal to directly ask
job candidates about disabili-
ties. However, it is wise to
inquire about the candidate’s
ability to perform key job
tasks. It is also okay for
employers to say something
general like “any individual
with a disability may request
an accommodation in
advance of any interviews or
tests,” but this is not legally
required. Generally, the dis-
abled person is responsible
for informing the employer
that accommodations are
needed. Hunter also notes
that while this question is
allowed, it’s not necessarily
going to be all that effective.
If the interviewer is con-
cerned about an applicant
that may have an alcohol or
drug problem, he/she can ask
every candidate a question
like “Do you think it is okay
to drink alcohol at work?” If
asked to every candidate, this
avoids accusation, but gives
the interviewer an opportuni-
ty to evaluate the applicant’s
values of the job. This type of
question is especially valu-
able for a job that requires
operating heavy equipment.
Hunter also says that a drug
screening of applicants is
much easier to do than test-
ing those already employed.
The applicant will likely
ask questions of the inter-
viewer during the interview-
ing process. Hunter says that
the interviewer should
answer questions like those
regarding the success of the
company and potential to
move up, as honestly as pos-
sible and don’t make any
promises. However, ques-
tions regarding the number of
people that applied for the
open position and their
chances at gaining the posi-
tion should be left answered
only in very general terms,
Hunter adds.
Salary can be a challeng-
ing issue when hiring a new
employee. Hunter says that
the employer should have a
good idea of what the job
should pay going into the
interview. Typically when
asked the interviewer should
throw out the lowest amount
they are willing to pay for the
job, but also add that they are
willing to pay a higher range
based on ability and experi-
ence.
Hunter recommends that
the process of hiring a new
employee, from posting the
job to hiring, should be as
compressed as possible. The
more the situation drags out,
the more chance the appli-
cants have to find another
job somewhere else.
However, the employer
should be courteous and
expect about two weeks for
the new hire to wrap up
things with their current
employer.
Hire Right, Get Results
Overall, Hunter recom-
mends maintaining consisten-
cy throughout the interview-
ing process. Also, don’t use
the interview to do too much;
use it to chose who is best
for the job.
The Professional Dairy
Producers of Wisconsin are
hosting a human resources
training seminar with Hunter
on Jan. 23. This daylong sem-
inar will provide advice not
only for establishing job
requirements and interview-
ing effectively, but also for
training employees correctly
and giving productive feed-
back.
By Crystal McNett
Interview
8 PDPW - Dairy’s Bottom Line • January 2007ST
Priority is Changing How Dairy Cows are Fed
Their genomic DNA research is pioneering the next generation ofdigestive technology such as proprietary hybrid A4000h.
The P-One Program* Prevents VMS
Variable Manure Syndrome (VMS) indicatespoor digestive function and rumen pH
instability. VMS leads to health andreproductive challenges.
Cost-Effective Solutions
The P-One Program’s technol-ogy maximizes starch utilization,promotes a healthy rumen, andimproves feed cost efficiencies.
®
To learn more, or
to start feeding:
888-444-2030
www.PriorityIAC.com
*U.S. Patents Pending.
SCIENCE ADVANCES P-ONE PROGRAM—
Producer Profile
Long-standing PDPW members, Bill and Mona Averbeck
are passing along a family tradition from one generation
to the next. Their Fond du Lac farm, which has been in the
family for over 150 years now, consists of 220 milk cows
that boast a 24,000-pound herd average at twice-a-day
milking. Bill and Mona think PDPW is a forward, progres-
sive organization that helps “broaden your horizons,”
Mona says. Bill especially benefited from the Franklin
Covey business courses this summer. “It keyed me into
what a good manager does,” he says, noting it helped him
prioritize his goals.
Dairy’s Bottom Line photo by Karen Topel
PDPW Broadens Horizons
10 PDPW - Dairy’s Bottom Line • January 2007ST
Building On Our Heritage. Mastering Our Future.
TheStrength of A Master
Blending a heritage of expertise and commitment to
quality, Alto’s strength is exemplified by our Master
Cheesemakers and practiced by each Alto Dairy
member-owner and employee.
9 2 0 . 3 4 6 . 2 2 1 5 | w w w . a l t o d a i r y . c o m
H Here When You Need Us!
When you team up with AgStar,
you’ll work with professionals
who know as much about dairy
production as they do about
finance. For more informa-
tion about the many financial
services offered, contact an
AgStar office near you.
Rice Lake: 800-584-9492
Baldwin: 800-584-8475
www.agstar.com
We help you see what’s next.
We proudly
support
Professional
Dairy Producers
of Wisconsin!
Even a brilliant mind is no match for
www.digi-star.com
(800) 225-7695
“Faster and more accurate
than humanly possible!”
Wireless data transfer between
TMR® Tracker Software and
the mixer indicator.
Provides instant read and
control from inside the loader
cab for greater accuracy and
efficiency.
A powerful feed management
system that gets the right mix
to the right cattle at the
right time.
The holiday season heraldsthoughts of peace, goodwilland family gatherings. Nowthat many of you have cometogether to celebrate the bless-ings of the past year, discus-sions of how the dairy businesswill operate in the future maybe pertinent.
Transition planning is oftenput on the “back burner”because it can be complicatedand emotional. Despite this, atransition plan is extremelyimportant because it clearlyidentifies a strategy, transferprocess and timetable for allthose involved. Having a writ-ten plan in place, and knowingthat everyone understands thisplan, increases the likelihoodthat the transition will gosmoothly and successfully.
Communication is key Open, honest and up-front
family communication is essen-tial to a successful farm transi-tion. It can help maintain good-will and cooperation amongfamily members and others forgenerations to come. Althoughit may be difficult to discussthe farm’s future, it is importantto get issues out into the openbefore a plan is made. Openand frank discussions can beextremely helpful in under-standing why certain decisionsare being considered and howbest to reach a reasonablecompromise.
If disagreements are likely,consider inviting a farm con-sultant or other professional tohelp mediate. Another option isto hold the meeting in a neutrallocation, which helps limitinterruptions. The bottom lineis that everyone involved in atransition process needs tohave patience, an open mindand a solid commitment to thecontinuation of the farmingoperation.
Developing a planThe first step in developing
any farm transition plan is adiscussion between the farm’scurrent owners about thingssuch as: when/if they plan toretire; the type of retirementthey want; what they believe
should happen to the farm; ifthey want to live on the farmafter retiring; the cash flowneeded during retirementyears; goals for their children;and what should be gifted ver-sus what should be sold.
The next step is to have ameeting to learn the wishes,desires and expectations of allthose involved, family and oth-erwise. Transition meetings area key element in making a tran-sition plan work since theyallow owners to determine ifthe others have the same goalsas they do. For example,although the children may beinterested in running the farm,they may not want the mainfocus to be dairy and milkingcows. Or a child whom the par-ents assumed would be themain successor may admit thathe/she does not want to oper-ate the farm and wishes to pur-sue another career. Althoughthese things may be hard tohear, it is better to have a realis-tic understanding of the situa-tion in advance. This allows fordevelopment of a transitionplan that works well for all par-ties.
Once everyone has settledon a plan of action, a writtentransition plan should be draft-ed and signed. While manytransition plans concentrateheavily on legal and economicrequirements and tax ramifica-tions, they should not be themain driving force. It is impor-tant to consider the emotionalaspects of farm transitioning,as well. Failure to do so canjeopardize even the best transi-tion plans. Often a farm advi-sor, accountant or attorney canprovide helpful analysis of theplan. It may also help to havethese individuals attend the ini-tial farm transition meeting.He/she will ask the right ques-tions, address the topics every-one is trying to avoid and helpto focus the discussion on thetopic at hand.
Finally, the transition planneeds to be implemented. If itrequires transferring realestate to a trust, changing the
See Transition, on Page 26
‘Living the Mission’
Transition Planning Starts the Year Right
January 2007 • PDPW - Dairy’s Bottom Line 11ST
While you’re at it ,
how ‘bout a Johne’s test?
Call 1.800.631.3510 and we’ll make all the arrangements with your
local DHI to obtain your milk samples and test for Johne’s disease.
1.800.631.3510 www.antelbio.com*
Tandem Products, Inc.3444 Dight Ave S, Mpls, MN 55406
• Less Labor • Self-Cleaning Design
• Healthier Environment
• Proven Durability
See These Dealers For Top Performing
NK Brand ProductsAdell CooperativeAdell
Agri-Tech Services -BloomerBloomer
Agri-Tech Services -Chippewa FallsChippewa Falls
AgriLand Coop -Fond du LacFond du Lac
Agriliance AgronomyCenter - Bloomington Bloomington
Agriliance AgronomyCenter - FennimoreFennimore
Agriliance AgronomyCenter - Hazel GreenHazel Green
Agriliance AgronomyCenter - LancasterLancaster
Agriliance AgronomyCenter - PlattevillePlatteville
Arcadia CoopArcadia
Badger AgronomyBelmont
Badger Hatchery Inc.Howards Grove
Bill CreaserMenomonie
Bowers Feed & GrainWrightstown
Central WisconsinCooperative - AuburndaleStratford
Central WisconsinCooperative - StratfordStratford
Chilton Co-opChilton
Chuck DreesOconto
Cloverleaf Farm SupplyCadott
Coop Country Partners -BarabooBaraboo
Coop Country Partners -Prairie Du SacPrairie Du Sac
Coop Country Partners -ReedsburgReedsburg
Cooperative Plus Inc -East TroyEast Troy
Cooperative Plus, Inc.Whitewater
Cooperative Plus, Inc. -Genoa CityGenoa City
Cooperative ServicesDenmark
Country Horizons Coop - KielKiel
Country HorizonsCooperativeManitowoc
Country HorizonsCooperative - ReedsvilleReedsville
Countryside Coop -DurandDurand
Countryside Coop -ElmwoodElmwood
Countryside Coop -Fall CreekFall Creek
Countryside Coop -MondoviMondovi
Countryside Coop -OsseoOsseo
Crossroads Ag LLCElk Mound
Customer One CooperativeMarathon
Dave JeanquartLuxemburg
Dennis SchopfSturgeon Bay
Door County CooperativeSturgeon Bay
Farmers Coop - GalesvilleGalesville
Farmers Coop -West SalemWest Salem
Farmers Cooperative OilHixton
Farmers ElevatorCompany LTDWaupun
Federation CoopBlack River Falls
Frontier FSJefferson
Frontier FS - MarshfieldMarshfield
Frontier FS - WautomaWautoma
Gallis SchmitzNorwalk
Gary Kropp Seed SalesSeymour
General Farm SupplySpencer
Grand River Co-opMarkesan
Gundrum Brothers -West Bend & EdenWest Bend
Harmony Country Co-opUnity
Harold StrasserTurtle Lake
Heartland Coop Services- AthensDorchester
Heartland Coop Services- DorchesterDorchester
Heartland Coop Services - OwenDorchester
Hegg Seed SalesEttrick
John KringsArkansaw
Kettle Lakes CooperativeRandom Lake
Kris Charpata(Charapata Seed Sales)Peshtigo
Larsen CooperativeNew London
Larson Feed, Inc.Thorp
Leroy Feed MillBrussels
Maribel Grain CompanyMaribel
Medford Cooperative, Inc.Medford
Melvin BaneckSeed ServiceRipon
Merlin Reierson AtM & J FarmsRio
Merlin SutterFountain City
Northside ElevatorLoyal
Olsen's Mill Inc.Berlin
Olsens Crop ServiceStevens Point
Precision Ag ServicesEllsworth
Precision Ag ServicesMilltown
Precision Ag ServicesNew Richmond
Progressive FarmersCooperativeGreenleaf
Pulaski ChaseCooperativePulaski
Rice LakeFarmers UnionRice Lake
Richard KammRoberts
Ridgeland/ChetekCooperativeRidgeland
Rio Creek Feed MillAlgoma
Robert BiadaszAmherst
Servco FS CooperativeAntigo
Sheldon Coop ServicesSheldon
Sherwood ElevatorSherwood
Shirley Feed Mills Inc.DePere
Sparta Co-op ServicesSparta
The DeLong CompanyClinton
Tisch Mills Farm CenterTisch Mills
Tom HerrmannLarsen
Tom's Seed Service Amery
Tomah CooperativeServicesTomah
Ulrich Feeds, Inc.Stratford
United CooperativeBeaver Dam
Valders CoopValders
Western WisconsinAg SupplyBeldenville
William Hoyer Seed SalesBrillion
Wisconsin RiverAgronomy LLC - AdamsAdams
Zeitler Agri-CenterColeman
For Maximum Yield and Profitabillity
SELECT NK® BRAND SILAGE HYBRIDS.Use the NK Brand Ration Fit™ System to Selectthe Best Silage Hybrid for Your Operation
Select the NK Brand silage hybrid that best matchesyour ration needs for maximum return from every acre.
• All NK Brand silage hybrids are characterized for ration fit suitability.
• Silage-only NutriCrop® hybrids deliver high forage yields and high digestibility
• Ration Fit Select™ hybrids offer flexibility for silage or grain harvest
NK®, Agrisure™, Ration Fit™, Ration Fit Select™, and the Syngenta logo are trademarks of aSyngenta Group Company. © 2006 Syngenta Seeds, Inc., Minneapolis, MN, 55440, 1-800-445-0956. www.nk-us.com
DEALER IMPRINT
N00-X0• Lorem ipsum dolor sit amet• Con sect etur adiscing linb to• Sed diam non umy elias mod
N00-X0• Lorem ipsum dolor sit amet• Con sect etur adiscing linb to• Sed diam non umy elias mod
NK ® Brand – Backed by the Resources and Research of Syngenta™
N33-H6 Silage RM 93• NutriCrop� hybrid tops for dairy• Unique forage quality• Outstanding agronomics• Conventional hybrid
N49-E3 Silage RM 97• NutriCrop� hybrid for high NDF• Unique forage quality• Use in higher plant populations• Conventional hybrid
N58-L8 Silage RM 100• High-yielding Ration Fit Select hybrid• Good silage quality• Excellent drought tolerance• Agrisure GT hybrid
For Maximum Yield and Profitability
Continued from Page 3the recent Derby because shealso “strongly believes inPDPW,” its “goals and program-ming.” “PDPW does an excel-lent job of dairy education,” sheremarks. Dolph herself hasgone through PDPW communi-cations training and attendedits annual conference, whereshe sources some of the samespeakers to address her agclasses. She’s also used PDPW-generated material on risk man-agement in those classes.
Her home farm is an activePDPW member, with familymembers serving on producerpanels. Dolph Dairy LLC isoperated by her folks, Donaldand Patricia Dolph, and herbrother and sister-in-law, Chetand Patty Dolph. They’re milk-ing 350 Holsteins (registeredand grade cattle) following arecent expansion from 250 lastyear. The goal is to go to 450milking. The farm has five full-time and six part-time employ-ees and operates 800 acres
(owned and rented). Dolph fillsin for milking and does commu-nications work and neighborrelations for the farm.
She graduated from LakeMills High School and wasactive in FFA. She was pro-foundly influenced by the lateLyle Wallace, who was her agteacher her first year in highschool. Wallace was killed in acar accident. He opened hereyes to “what I could do” and“inspired” her to teach agricul-ture.
In 2005, Dolph graduatedfrom UW-Madison with degreesin ag education and life sci-ences communication (alsoknown as ag journalism). Whilein college, she was active withthe Association for Women inAgriculture (AWA), BadgerDairy Club, NAMA (NationalAgri-Marketing Association),and Collegiate FFA. She wasalso on the Wisconsin AlumniStudent Board, linking past,present and future students,planning university-wide non-
alcohol events, recruiting per-spective students and the like.
She’s still recruiting for agri-culture. “I want students toknow the opportunities theyhave” in the industry, saysDolph, and “be proud” if farm-ing is their chosen path. She’sdoing her part to close therural/urban knowledge-of-farm-ing gap by attracting studentswho typically wouldn’t take anag course. For instance, sheprovides a course focused onequine science and companionanimals. She emphasizes veteri-nary science, as well as naturalresources, conservation andforestry.
Dolph is working on secur-ing an advanced placementcourse in environmental sci-ences for students at DeForest,so they might earn college cred-its while still in high school.Already, students can earn elec-tives at Madison Area TechnicalCollege’s vet tech programwhile learning about veterinaryscience in DeForest’s ag pro-gram.
Outside the classroom,Dolph does her part to educatethe public about agricultureand “bridge the gap we havebetween the general public andthe dairy industry” by servingon the “Cows on theConcourse” committee over-seeing vendors and event spon-sor exhibits. This is the thirdyear she’s been working on thatJune Dairy Month-related eventon Madison’s Capitol Square.She gets her high school stu-dents involved, too, both volun-teering at the event and stuffing7,000 some bags of dairy pro-motional literature handed outto people who attend.
Dolph also continues towork with the Dairy BusinessInnovation Center (DBIC),housed within the WisconsinDepartment of Agriculture,Trade and ConsumerProtection in Madison. Sheinterned there in college, andnow does consultant-type workfor the center, which concen-trates on helping the cheeseand processing side of theindustry grow and modernize.Start-up ventures are also fos-tered.
As part of her work withDBIC, Dolph is writing a cheeseprocessing curriculum in con-junction with a movie titled,“Living On the Wedge.” Thathour-long documentary fea-tures Wisconsin cheesemakersand on-farm processors. (Seewww.livingonthewedge. comfor more information). Early in2007, all high school ag pro-grams in the state will receive afree DVD and curriculum for atwo-week unit on Wisconsin’sdairy processing industry.
She says that facet of thedairy industry is “not wellunderstood” by students. Thiseffort shows the “care and sci-ence” that goes into makingcheese, and how there’s a grow-ing market for locally grownfoods, including niche cheeseand other dairy products.
At her own high school,Dolph is one of two ag instruc-tors. There are 120 high schoolFFA members and nearly 210students taking ag classes.She’s working on establishingan advisory council of industryprofessionals, including pro-ducers, which will analyze andevaluate ag programming at thehigh school to make sure stu-dents are receiving what theyneed to go onto further educa-tion or directly into the work-place. She wants to better meettheir educational needs asfuture university or vocationalstudents or employees.
Dolph worries that “somany people are loosing touchwith this industry” and thatthere’s misunderstandingregarding farming today, evi-denced in part by non-farmneighbor complaints aboutsound farming practices.
“So many people don’tunderstand agriculture – thathow we treat our animals andsoil is directly correlated to ourprofits,” she remarks. Restassured, Dolph is diligentlyworking to increase theirunderstanding and narrow theeducational chasm. While edu-cating agriculture’s own youth,this young woman is goingabove and beyond to informnon-farmers about the industryshe loves.
By Jane Fyksen
Dolph
14 PDPW - Dairy’s Bottom Line • January 2007ST
Twohig, Rietbrock& SchneiderAttorneys for Agriculture
102 N.Madison Street, Chilton, WI 53014
TM
Proud to be a part of PDPW andWisconsin’s agricultural community.
(920) 849-4999
16 PDPW - Dairy’s Bottom Line • January 2007ST
Your field is our first priority, as it has been since our company was founded more than 95 years ago.Discover the value of research. Visit www.dairylandseed.com or call us at 800-236-0163.
Dairyland Seed • Where research gets results
Push the boundaries of your field’s potential.
Contact your local Dairyland representative:
Right now, on farms throughout the
Midwest, HybriForce-400 hybrid alfalfa
is delivering an extra ton of hay. Are
you getting yours? More than 3,000
on-farm, strip-plot harvests across nine
states show HybriForce averaged 15
percent higher yields than conventional
alfalfas. That equals one extra ton or
more. In dollars, it means $375 more per
acre when calculated over three pro-
duction years at a hay value of
$125 per ton. The same potential
exists in your field, but you have to be
willing to try it. Read the data that
gives us so much confidence. Call
Dairyland Seed at 1-800-236-0163 or
visit www.dairylandseed.com. Find
that extra ton in your field.
DANE
Kenneth Hefty
608-437-4940
DODGE
Daniel Bohn
920-925-3413
William Buske
920-269-4834
Alvin Hildebrandt
920-349-3762
BillJean Holsteins
920-261-7212
Claude Rex
920-485-2191
Don Charapata, DSM
920-948-3517
FOND DU LAC
Farmers Elevator
920-324-3593
Steve Sabel
920-795-4075
FOND DU LAC
Len Scharf
920-583-3082
Fairwater Feed & Supply
920-346-5694
Chad Staudinger, DSM
920-398-1317
GRANT
Francis Miesen
608-568-3120
Louis Wachter
608-988-4161
JEFFERSON
Lloyd Schuld, Jr
920-674-4279
David Stelse
920-674-2193
Waterloo Ag
920-478-3672
KENOSHA
Emil Mravec
262-279-6605
LA CROSSE
Howard Niedfeldt
608-486-4107
Advantage Ag
608-781-0107
Gary Dvoracek, DSM
608-792-7523
LAFAYETTE
Alan Crompton
608-776-3577
Badger Agronomy
608-762-6989
ROCK
Delong Co.
608-676-2255
Marv Berke, DSM
815-988-4706
WALWORTH
Mike Cerny
262-736-9413
WAUSHARA
Olsen’s Mill Inc.
920-361-4854
WASHINGTON
Sport Wings, Inc.
414-378-2344
When I talk about nutrientmanagement planning a fewquestions usually come up.These questions include: whendo I need a plan; what happensif I don’t have one; and who isqualified to write a plan? Wejust finished a set of classeswith county staff who workwith producers and consultantson writing and implementingnutrient management plans. Iwould like to try and providean answer to at least some ofthese questions.
I can’t think of a singleoperation that doesn’t havesome type of fertilizer programalready in place. Okay, it’s notdocumented in a three ringbinder or on a computer some-where, but there is a system inplace that outlines how manypounds of fertilizer or manureare applied to fields going intovarious cropping systems. Asound nutrient managementplan simply accounts for the
nutrient needs of a crop andcredits the various sources(soil, manure, legumes, etc.).Just like balancing your check-book, this accounting insuresthat you don’t over apply nutri-ents; it saves you money andreduces the risk of nutrientsnegatively impacting the envi-ronment. The fact is that noteveryone balances their check-book, but I think we can agreethat it’s a good idea.
So, everyone probably hasa nutrient management plan ofsome sort, but it might notcomply with state requirementsor be the most organized planin the world. As you’re imple-menting your New Year’s reso-lutions, maybe one of yourgoals should be to evaluate theuse of nutrients on your farm todetermine if your applicationrates, methods and timing areappropriate based on cropneeds. You should also checkto insure that you have identi-
fied critical sites and locationson your operation where thepotential for loss is high (sinkholes, shallow soils, nearstreams, lakes etc.).
Will someone come to yourdoor demanding to see yourplan? That depends on howyou apply manure and othernutrients to your fields andwhether there is a significantrunoff event. If you applymanure that runs off a field andimpacts a stream or lake, then Iwouldn’t be surprised if some-one asks for your plan. If youhave one and can documentthat you are following it youwill be able to determinewhether or not your manage-ment practices were appropri-ate. Some runoff events arecaused by producer error andothers by unforeseen weatherevents. Without documentationyou have nothing to justify yourmanagement decisions.
That leaves the question of
what is a qualified NutrientManagement Plan and who isqualified to write one? A quali-fied plan is one that meets therequirements outlined in theNutrient Management PlanChecklist in ATCP 50. You canget copies of this checklistfrom your local conservationoffice or online at the DATCPwebsite under nutrient manage-ment planning. Here is the web-site: www.datcp.state.wi.us/arm/agriculture/land-water/con-servation/nutrient-mngmt/plan-ning.jsp. The key is that a planis qualified if it meets therequirement on this checklist. Aplan developed by a profession-al that has training or certifica-tion may not be qualified if therecommendations are outsideof requirements on the check-list.
What about producer writ-ten plans? Producers can devel-
See Plans, on Page 24
‘Discovery Farms’
Creating Qualified Nutrient Management Plans
18 PDPW - Dairy’s Bottom Line • January 2007ST
The following is a quickprimer discussing the dollarsand sense of the business bythe numbers. Financial ratioscan be useful tools for man-agement in decision-making,goal setting and benchmark-ing. Lenders and other credi-tors can use the same infor-mation to evaluate credit risk.
The Farm FinancialStandards Council identifiedthe following five criticalareas for analyzing financialperformance:
• Repayment ability orcapacity
• Liquidity• Solvency and collateral• Profitability• Financial efficiencyFive common ratios will
be detailed and the correlat-ing benchmarks presented interms of green, yellow andred lights. A green light repre-sents low risk, a yellow lightcorresponds to moderaterisk, and a red light means
high risk. A green light does-n’t guarantee success, nordoes a red light imply failure.A weakness in one area maybe overcome by strengths inother areas.
Repayment analysisThe essence of repayment
analysis is comparing theearnings available to meetdebt obligations to the totalof annual debt payments andcapital investments. A com-mon benchmark used toexamine repayment ability isthe term debt and lease cov-erage ratio. Exhibit 1 showsthe data needed and proce-dure used to calculate theratio. Experience indicatesthe greater the net earnings tocover debt payments, the eas-ier an operation can handleunforeseen expenses, whichlowers the risk. Thus, a ratiogreater than 150 percent is alow risk, or green light. Aratio between 110 percent
and 150 percent is acceptable,but riskier, and is a yellowlight. A ratio less than 110percent is a high risk and ared light. The lower the cov-erage ratio, the more impor-
tant risk management toolsbecome, such as crop insur-ances, hedging, options, orcontracted production.
See Numbers, on Page 23
Let the Numbers Do the Talking1. Net Farm Income From Operations $ 43,7502. Plus: Non-Farm Earnings + 36,5003. Subtotal = 80,2504. Plus: Depreciation Expense & Interest Paid on Term Debt and Capital Leases + 59,0005. Earnings Available for Family Living,Income Taxes, Interest & PrincipalPayments and New Investments = 139,2506. Minus: Family Living Withdrawals andIncome Taxes - 58,0007. Capacity Available for Interest,Principal Payments and New Investments = 81,2508. Scheduled Interest and PrincipalPayments on Term Debt and Capital Leases $ 60,7009. Term Debt and Lease Coverage Ratio(Line 7/Line 8) 134%
Exhibit 1. Repayment Analysis
January 2007 • PDPW - Dairy’s Bottom Line 19ST
thegoldstandardagain.comSoyPlus|SoyChlor, dairy nutrition products of West Central.
MOST INSURANCE AGENTS
SEE A NEW TRACTOR.
WE SEE YOUR LIFELINE
COME HARVEST TIME.
At Rural Mutual Insurance, you’re not just a customer,
you’re a friend and neighbor. Because we know you
as more than just a policy number, we can provide the
best business insurance to fit your needs. To learn
more, give us a call.
Your local agent is listed
in the Yellow Pages.
www.ruralins.com
20 PDPW - Dairy’s Bottom Line • January 2007ST
K.S.I. Supply, Inc.1-800-472-6422
•SILAGE BAGSThe Strongest, Most Durable
•SILAGE BUNKER COVERS5 & 6 Mil.Statewide Delivery Available Dealer Inquiries
•TIRE SIDEWALLS
Toll Free:1-888-265-8389
E-mail: [email protected]
Website: www.heiferquest.com
DAYTONA...Now +2.14 PTAT, +2.03 UDC, and +3.07 FLC
ZADE...+6.0 PL, +2.81 UDC, and +489 NM$
BREEZE...+1587 TPI and
+1304 PTAM
DARBY...new young sire!!
Sired by O-man
+6.5 PL and +639 NM$
NICE NOVEMBER NUMBERS!!
Since 1912
Russ Kuehl (920) 583-3747cell: (920) 960-1148
W2189 Hwy “Y” Lomira (Knowles) WI 53048
www.KnowlesProduce.com
“we rent & sell baggers”
KNOWLES PRODUCE & TRADING CO.
Hwy 151, Chilton, WI 53014
www.ddequipment.com
920-849-9304
West of
Chilton
MANITOU’SNew Models
• MLT 634
• MLT 741
• MLT 940
*Call For Information*
New Features
1-800-858-5974 www.nobull.net
“ A greatproduct!”- Tom Reese
“ Best piece ofequipment onmy farm”- Kenneth Newton
• Delayed Castration• Tail Docking• De-Horning
VALLEYBUILDING SYSTEMS
1400 Rosehill Rd., Little Chute, WI 54140 (920) 766-0271200 S. Wisconsin Ave., Stratford, WI 54484 (920) 766-0271
- Design/Build Contractor -• FREESTALL BARNS-Wood or Steel framing • MILKING PARLORS
• VENTILATION SYSTEMS • CONCRETE - Flatwork, pits & walls• BARN EQUIPMENT-freestalls, mattresses, waterers, headlocks & rubber mats.• COMMERCIAL-Wood or Steel framing • MACHINE SHEDS
• POST FRAME CONSTRUCTION-Agricultural, Commercial, Suburban & Mini-storage • SOLID CORE PRE-ENGINEERED BUILDINGS-Commercial & Suburban• PANELIZED STEEL STRUCTURES-Pre-engineered, galvanized members for longevity• CURTAINS-Manual, fully automatic & electronically controlled
January 2007 • PDPW - Dairy’s Bottom Line 21ST
ALTON D. BLOCK, CAC
President
AGRI-MANAGEMENT GROUP, Ltd.Consultants to Agriculture
NEW SERVICES:• Help in Reducing Turnovers • Personality Profiling• Starting a New Employee • Exit Interviews
Ph: 608-221-3213e-mail: [email protected] 800-551-9230http://www.agri-man.com Fax: 608-221-3263
3215 Harbor Village Rd, Suite 2
Middleton, WI 53562-1914
Scheunemann Bagging
Equipment & Supply LLC262-689-3695 or eve. 262-675-2276
E-mail: [email protected]
Authorized, Experienced, Specialized
Rental &Sales - KellyRyan & Versa
Machines
❋ Kelly Ryan Equipment
❋ Versa Intertnal Density System
❋ Baleage Storage Equipment
❋ Silage Bags, Bunker Sheeting, Baleage Tubes
❋ Dura Guard Bale Wrap
LET US TAKE CARE OF...all of your liquid waste dispersal needs!
CUSTOM LIQUID WASTE DISPERSAL - CALL US TODAY!
Hose Injection • Manure Tanker w/Injectors • Long Distance Semi Trucks
RUSSELL ROBAIDEK • (715) 758-8505 • Pulaski, WI
LOWER YOUR SCC NATURALLY• Lower your SCC 40-80% or more in 2-6 weeks.
• No withholding & safe for pregnant cows &
organic applications.
• Increases milk production 8%, improves conception.
• Also treats & prevents mastitis, calf & hoof problems.
• Easy to use in TMR or top dress - 8#/cow.
• Low SCC semen also. • Used all across USA & Canada.
“32 Years Of Serving the USA & Canada. We Care!”
ALPHAGENETICS, INC.Call Today! 1-800-876-2500
920-650-1631 (mobile)
www.ddequipment.com
920-849-9304
820 West Main P.O. Box 31 Chilton, WI 53014920-849-9304 • FAX 920-849-9160 • E-mail [email protected]
Penta TMRMixersCall for Demo’s!
Low Profile w/flotation tires
All stainless steel conveyors
Tight turning walking tandems
240 cu. ft. to 1300 cu. ft.
single screw & twin screw
trailer & stationary
Producer Profile
Jay Binversie milks 580 cows and farms 1,350 acres of land
near Kiel. He also raises all of their wet calves, including
bulls; and 500 steers. Binversie is one of six partners in
Heifer Authority. His heifers, ages 5 to 18 months, are
raised by this group in Colorado. He enjoys meeting other
producers in similar situations through PDPW. He likes
sharing ideas at the Annual Business Conference and feed-
ing off of the high energy that sends him back to the farm
motivated. Binversie says the optimism and positive atti-
tude even shine in a year of bad milk prices.
Dairy’s Bottom Line photo by Karen Topel
PDPW Energizes Binversie
22 PDPW - Dairy’s Bottom Line • January 2007ST
Woolover Calf CoversProtect Your Investment
Protect the future of your dairy by keeping yournewborn calves warm and dry even when it’s cold,wet and windy outside. Woolover calf covers helpget calves off to a warm, dry, healthy start duringwinter weather.
Calves wearing Woolover calf covers during thefirst three weeks after birth are better able to:
� Use nutrients for improved growth rates� Fight illness and prevent scours� Recover from sickness more quickly� Retain natural body heat
Contact your Select Sires representative for more information today!
Serving northern WI: Northstar Cooperative800.631.3510
Serving southern WI: East Central/Select Sires800.288.7473
She depends on you for She depends on you for a balanced feeding a balanced feeding
program.program.
Make sure yours is Make sure yours is Supervised.Supervised.
• Easily changedry matter %
• Fine tune feedcosts
• Reduce shrink• Regulate
rations • Manage
employees • Track DMI• Transfer data
effortlessly with wirelesstransfer option
� � � �
Manage Your
Feeding Program
(888) 259-8949 www.feedsupervisor.com
Continued from Page 19
Liquidity analysisLiquidity is defined as the
availability of cash and near-cash assets to cover short-termobligations without disruptingnormal business operations.This measure is particularlyimportant in the volatile dairyindustry.
The Working Capital Ruleexpresses working capital as apercent of business expenses(Exhibit 2). This ratio allows anoperation to assess the adequa-cy of its working capital thatcan be generated internally. Abenchmark to strive for is tohave working capital equivalentto at least 20 percent of totalannual operating expenses.Less than 10 percent is a signthat any business adversityneeds to be offset by risk man-agement tools such as insur-ances and marketing practices.
Solvency analysisThe equity-to-asset ratio,
which is calculated by divid-ing total equity by totalassets, measures the owner’sinvestment level in the busi-ness. Factors, such as man-agement skill and debt struc-ture, impact how ratiosshould be interpreted. Thereasons for equity growthshould also be examined. Forexample, growth throughearnings is looked upon morefavorably than growth frominflation or inheritance.Growth generated from theprofits should be identified toaccurately gauge the realprogress of a business and itsfuture potential. A ratio above70 percent is strong, whileless than 33 percent is acause for concern.
Profitability analysisProfitability compares
business revenues against alleconomic costs and evaluateshow productively a businessis utilizing its resources, bothcapital and human. The most
common ratio used to accom-plish this is the return onassets (ROA) measure. Thisratio, which indicates howwell capital and human assetsare producing profits, is cal-culated by dividing net farmincome from operations,adjusted for interest and fam-ily living expenses, by aver-age total farm assets (seeExhibit 4).
Benchmarks for opera-tions with mostly owned
assets show ROA ratios ofgreater than 8 percent to bevery good, or a green light,ratios from 1 percent to 7 per-cent as average, or a yellowlight, and ratios less than 1percent are very weak, or ared light. Businesses thatmostly rent production assetsrequire higher ROA ratios ineach category to remain com-petitive. At a minimum, ROA
See Analysis, on Page 24
Working Capital 111,200(Current Assets - Current Liabilities) - 62,240
48,960
Working Capital Rule 48,960(Working Capital / Total Expenses) 236,250
21%
Exhibit 2. Liquidity Analysis
Numbers
Equity to Asset Ratio 538,000(Total Equity/Total Assets) 965,100
56%
Exhibit 3. Solvency Analysis
January 2007 • PDPW - Dairy’s Bottom Line 23ST
! !
!E1<9DI!E1<9DI!E1<9DI!E1<9DI!E1<9DI B935 B935 B935 B935 B935
You Don�tHave ToChoose!
When You Choose
IS KELLER.THE ANSWERWhen The Question Is About Construction
KellerPlanners l Architects l Builders
1.800.236.2534 lllll 920.766.5795 l l l l l www.kellerbuilds.com
We�re not the new guys on the block. Keller has been around and serving the agindustry for over 45 years. We understand what it takes to give you a qualitybuilding project...the planning, design, the construction are all kept to a sched-ule and overseen by project managers and supervisors. We use only the highestquality materials and stand behind our work long after it�s completed. Becausewe�re an employee owned company, each of us takes great pride in our work foryou. From our concrete crews to our steel shop, from our construction crews toour support staff, we each have a vested interest in making sure your project iscompleted to your satisfaction and within your budget.
When considering your next building project, we encourage you to comparematerials used, quality of construction, knowledge of the industry, and longterm commitment to customer satisfaction and we know that you�ll find Keller isthe answer to your construction questions.
Keller. A better system delivered in a better way by better people.
Continued from Page 23should be higher than theinterest rate on debt.
Financial efficiency analysisThe key ratio used to
measure financial efficiencyis the operating expense/rev-enue ratio. This ratio answersthe question, “How muchdoes it cost this operation togenerate $1.00 of revenue?”The ratio is calculated bydividing total operatingexpenses (excluding totalinterest costs and deprecia-tion) by gross revenue (seeExhibit 5). A very efficientoperation would have a ratioof less than 65 percent for agreen light. An average opera-tion would have a ratio of 65percent to 80 percent for a
yellow light and less efficientoperations would have a ratioabove 80 percent for a redlight. A higher ratio is accept-able if a large portion of theoperation is rented or leased,as lease payments are a trade-off for principal and interestpayments.
In summary, financialratios and benchmarks aretools that management andothers can use to analyze abusiness’ financial conditionand past financial perform-ance. By using multiple yearsof consistent balance sheetand earnings figures, trendsin key ratios can be observed,and management strategiescan be developed forimprovement.
By Dr. David Kohl
1. Net Farm Income From Operations $ 43,7502. Plus: Farm Interest + 31,0003. Subtotal = 74,7504. Minus: Operator Management Fee orLiving Expense - 26,5005. Subtotal = 48,2506. Total Farm Assets $965,1007. Rate of Return on Assets (Line 5/Line 6) 5.00%
Exhibit 4. Profitability Analysis
Operating Expense / Revenue Ratio 177,250(Total Operating Expense Excluding 280,000Interest and Depreciation / Gross Revenues) 63%
Exhibit 5. Financial Efficiency
Analysis
Plans Continued from Page 18op their own nutrient manage-ment plans if they have beenthrough a training program andthe plans they developed meetthe checklist. This doesn’tmean that you need a license tospread manure or nutrients onyour farm, it means that if youattend a training programoffered you can become quali-fied to write your own nutrientmanagement plan.
Which is better, writingyour own plans or workingwith a consultant to develop aplan for your operation? That’s
up to you, but the best plan isone that you understand andcan implement on your farmwithout having to call someoneevery time something changeson your operation. Whetheryou go to the training programto become qualified to write aplan or attend so that youunderstand the importance ofimplementing a nutrient man-agement plan that someoneelse develops for you, it’s agreat idea to participate in thetraining program.
By Dennis Frame
24 PDPW - Dairy’s Bottom Line • January 2007ST
2K63
52-P
C
Think of your We Energies field representative as part of your agriculture team.
We have tools and resources that add to the bottom line of your business including:
■ Stray voltage investigations
■ Re-wiring projects
■ Energy efficiency incentives
We are here to help you use electricity safely and efficiently on your farm.
Contact us whenever we can assist you with your energy service.
800-714-7777
we-energies.com/agricultureservices
Achieve higher milk output through amino acid balancing with Mepron®. Mepron is anencapsulated, rumen-stable methioninesource that helps provide the nutritionalrequirements dairy cows need to producemilk. Formulating with Mepron helps cutcrude protein intake, decreasing the
amount of nitrogen waste excreted by thecow. In the end, Mepron helps enhancemilk production in a manner that is moreefficient and less demanding on theenvironment. To find out more aboutMepron, call us at 678-797-4300 or sendan email to [email protected].
Visit us at the PDPWAnnual Business Conference
March 13-14
www.makemilknotmanure.com
Continued from Page 11beneficiary on a life insuranceplan or opening a checkingaccount for a newly createdPartnership, Corporation orLLC, these tasks need to becompleted in a timely fashion.Many excellent transitionplans have been rendered use-less because the family mem-bers or their advisors failed toeffectively implement the plan.In these instances, the timeand money invested to developthe transition plan are all fornaught.
Keep in mind the transitionplan should be reexaminedwhenever there is a change incircumstances, i.e. birth, mar-riage, divorce, death, seriousillness or unforeseen opportu-nity. Also, when a major tax orfarm law is passed the planshould be revisited to deter-mine if terms of the plan aregreatly affected. In the eventthat a plan needs alteration, anamendment to the documentor an attachment to a Willcalled a “Codicil” can updatethe plan easily and inexpen-
sively.
Wrap upIt is highly recommended
that some type of help or coun-sel be sought when developinga transition plan since it is acomplex process. Ideally, aspecialist who understandsagriculture, real estate law,estate tax law, elder-law, farmgovernment programs andfamily dynamics should helpdraft the plan. Contact yourlocal Farm Credit office to talkwith an estate planning spe-cialist or for more informationon additional resources.
Farm Credit Wisconsin, acollaborative effort of theFarm Credit associationsserving Wisconsin, is com-mitted to supporting thestate’s dairy industry andwas the first-ever PDPWMission Sponsor. Its memberassociations include AgStarFinancial Services,Badgerland Farm CreditServices, FCS FinancialServices and GreenStoneFarm Credit Services.
Transition
Welfare Continued from Page 2ing an animal welfare strategyis scheduled with a broad rangeof stakeholders. In addition toproducers, leading restaurantsand retailers; food companies,processors and other criticalstakeholders will engage in thedairy industry’s animal welfarediscussion. The ultimate goal isto develop solutions that areacceptable to customers, con-sumers and producers. Wemust agree to: 1) embrace themoral obligation of animal wel-fare for the dairy industry; 2)begin a process to establishmeaningful standards for dairycow care, and create a systemto measure performanceagainst these standards; and 3)aggressively communicate thevalue of this system to all seg-ments of the food chain, includ-ing consumers.
Dairy producers must takethe lead the animal welfare dis-cussion and define animal wel-fare ourselves, rather than wait-ing for the extremists or unin-
formed to paint their dramatic,ugly and ill-informed portraitsof our industry. We need todrive the debate on animal wel-fare and that’s the part that willbe the most uncomfortable foran industry that has traditional-ly minded its business and onlyacted once it was forced todefend itself.
Animal welfare is an issuefor the entire dairy industry andPDPW is working to facilitatethe discussion, while alsoensuring that dairy producersshape the issue, control thedebate, and design a systemthat we will be held mostaccountable for. When weweigh the pros and cons ofbeing involved with the animalwelfare discussion, it is clearthat working proactively andaggressively for the good of theindustry is the only place to be.
Leaders tackle the toughissues and in order to ultimate-ly shape their own destinies. Asan industry we must lead theanimal welfare discussions.
26 PDPW - Dairy’s Bottom Line • January 2007ST
1.800.255.1181 animart.com
Beaver Dam WI
POLYDOME CALF WARMERThe POLYDOME CALF WARMER provides a comfortable environment for newborn calves. Includes a deluxe, high-performance, 110V heater with 3 heat settings and 2 fan settings for proper regulation in all conditions. Top section is hinged and removable for calf entry. Floor is raised and slotted for optimum heat circulation. Includes vent/peep hole for proper ventilation and viewing the calf without opening the unit. reg $455- SPECIAL $435- CALF JACKETS For warmer, drier, healthier calves, a CALF JACKET should always be athand to provide a barrier against wet bedding, drafts, and cold air, allowingthe calf to put its energy into growth. Animart carries a wide selection ofjackets for your calves� winter wardrobe. NEW Economy Style Jersey & Reg Holstein Reg $ 29- SPECIAL 6 @ $24 XL Holstein Reg $ 32- SPECIAL 6 @ $27 KOZY KALF SLED Take Your Calves Sledding this Winter! A gentle, humane way to haul calves. The KOZY KALF SLED pulls over slush, snow, mud, ice, rocks, and grass. Reinforced skids for long life and easy towing. There is no need to tie the calf, and the Kozy Kalf Sled allows the mother to see and smell her calf. Polyethylene construction. Sled comes with net, rope, and cable ties.
800-236-3276www.landmark.coop
Turn to the PAS-certified
nutritional staff of Landmark
Services Cooperative
Learn more at the Forage
Solutions Conference -
January 24th - Alliant Energy
Center in Madison
Toll Free: 866-524-6575www.advancedcomforttechnology.com
Advanced Comfort Technology, Inc.
• Hoof Traction In AnyDirection
• Does Not Stretch
• Will Not Buckle or Pull
Apart When Cleaned
With A Skid Steer or
Alley Scrapper
Use In Free Stallalk Ways
Use In Free StallWalk Ways
Use In ParlorHolding AreasUse In ParlorHolding Areas
Use In OpenFeed LotsUse In OpenFeed Lots
Will Not BuckleWill Not Buckle
Dairymen across the nation
say that the Dual Chamber
Waterbeds . . .
Cow ComfortTechnologyDual ChamberWaterbedsCow Comfort Cushion
• Offer Superior
Cow Comfort
• Use Less Bedding
• Stay Drier• Keep Cows Cleaner
• Do Not Pack
• Lower Your Somatic Cell Count
• Reduce Mastitis Incidences
• Will Not Harbor or Grow Bacteria
• And Most Of All -
They Are Long Lasting U.S. Patent No. 6,935,273
For a FREE VIDEO and a list of dairymen in your areathat have installed dual chamber cow comfort
cushion waterbeds call...
MANURE
ALLEY
SCRAPERSIn 6, 7 & 8 Foot Widths
Rugged, Reliable Economical
FEED
ALLEY
SCRAPERS
Drs. Kohl and Ionovicmake a Wisconsin “house call”and draw upon their combinedhalf-century of expertise work-ing in the agricultural field.Join PDPW for a high levelmanagement session that pro-vides business managementtraining at a MBA level youcan utilize on your dairy. Thesymposium is highly interac-tive using case-study scenariosthat carry throughout bothdynamic days. It will be heldFeb. 13-14 at the Crowne Plazain Madison. The symposiumstarts at 8:45 a.m. with regis-tration on Tuesday and con-cludes at 4 p.m. on Wednesday.
Fasten your seat belts andget ready for a power packedtwo-day MBA-level sympo-sium that will be lecture, casestudy and discussion based. Itwill provide you with a formatto analyze your business’future from a financial, man-agement and business transi-tion standpoint.
Day one
Day one will be led by atriple team of speakers includ-ing Dr. Kohl, the academic;Sam Miller, who represents thebanking and lending side fromM&I Bank; and Linda Hodorff,an entrepreneur and dairy pro-ducer from Eden, who alsohas professional financialtraining background.
Bring your partner, spouse,son or daughter to come hearstraight talk and a three-dimensional perspective con-cerning your finance and busi-ness management practices.Through group interaction,networking and informationpresented you will be given atemplate for business analysisto launch your strategic, finan-cial and business planning for2007 and beyond.
Dr. David Kohl is the mas-termind behind this sympo-sium. He’s worked closely withPDPW for years and is themost requested resource thatPDPW offers. Kohl brings tothe table 30 years of experi-
ence working with bankers,producers, and other agribusi-ness leaders. He’ll cover keyratios and financial perform-ance indicators, personalfinancial benchmarks andinvestment strategies.
Kohl delivers this upbeatpresentation that takes num-bers and incorporates themwith the psychology of financ-ing. His presentations makeyou think and are very fast-paced.
Kohl passes to you“beyond the edge” informationbased upon his many years ofacademic research and experi-ence of working with commer-cial banks and agri-lendersthroughout the world. He’straveled over 5.7 million milesthroughout his professionalcareer, conducted more than3,500 agricultural workshopsand published four books andover 400 articles on financialand business-related topics injournals and other popularpublications.
Sam Miller is the seniorvice-president of agribusinessbanking for M&I Marshall &Ilsley Bank. He coordinatesand leads production agricul-ture and agribusiness bankingactivities. M&I is the largestagricultural bank in Wisconsinand the ninth largest in theUnited States. Miller has 23years of agricultural bankingexperience, the past 19 at M&I.He’s a board member of theWisconsin Dairy 2020 Council;member of the AmericanBankers AssociationAgriculture and Rural AffairsCommittee; school director forthe Wisconsin BankersAdvanced Ag Banking School;and a board member of theDairy Business InnovationCenter.
Linda Hodorff is a greatleader in our industry. Hodorff,from Eden, has proven thatshe knows cows, knows thenumber side of dairying,knows how to work with a
See Symposium, on Page 30
PDPW Offers Financial, BusinessTransition Symposium Feb. 13-14
28 PDPW - Dairy’s Bottom Line • January 2007ST
What is�What is�♦9898% Fat Free*
♦Very nury nutrtritiouitious♦Naturally higrally high in calcium in calcium♦Helplpful in buildl in building strong strong bng bones nes ♦A cA cancer preveer preventativetive� con� contains CLains CLA�, a, a natu natural l
aid d inin pre preventing ting certain types ocertain types of cancer f cancer ♦Deliciouous h hot�t� or cor coldld
Drink Drink allall you wantyou want and we�ll helpand we�ll help mak make mo more! re! That�s our job.
DRINK MILK & THANK A DAIRY PRODUCER EVERY DAY*Two percent milk is 98% fat free – making milk a healthy source of protein, calcium,
and other nutrients needed by the human body.�Conjugated Linoleic Acid (CLA) is predominantly found in dairy products
and has been found to reduce the risk of certain types of cancer.
We are committed to quality nutrition for dairy cows, so you can drink more milk and enjoy a healthy, fulfilled life. Treat yourself to milk!
After all, you deserve it.
RRREEENNNAAAIIISSSSSSAAANNNCCCEEE NNNUUUTTTRRRIIITTTIIIOOONNNP.O. Box 229 � Roaring Spring, PA 16673
1.800.346.3649 www.rennut.com
MMMiiilllkkk ~~~ fffooorrr aaa hhheeeaaalllttthhhyyy,,, ppprrroooddduuuccctttiiivvveee llliiifffeee!!!
Producing quality milk is how we make our living!At Renaissance, we support your efforts every
day. We are happy to feature this ad in publications nationally, so we can continue to
grow our dairy industry… together.
MAKE MORE MILK! MAKE A DIFFERENCE.
Your field is our first priority, as it has been since our company was founded more than 95 years ago.Discover the value of research. Visit www.dairylandseed.com or call us at 800-236-0163.
Dairyland Seed • Where research gets results
Contact your local Dairyland representative:
Push the boundaries of your field’s potential.
Right now, on farms throughout the
Midwest, HybriForce-400 hybrid alfalfa
is delivering an extra ton of hay. Are
you getting yours? More than 3,000
on-farm, strip-plot harvests across nine
states show HybriForce averaged 15
percent higher yields than conventional
alfalfas. That equals one extra ton or
more. In dollars, it means $375 more per
acre when calculated over three pro-
duction years at a hay value of
$125 per ton. The same potential
exists in your field, but you have to be
willing to try it. Read the data that
gives us so much confidence. Call
Dairyland Seed at 1-800-236-0163 or
visit www.dairylandseed.com. Find
that extra ton in your field.
BARRON
Gene Hoard
715-455-1985
BROWN
Frank’s Feed Mill
920-837-7442
Mazna Farms
920-863-5179
BUFFALO
Klein’s Feed & Seed
715-926-3531
Tony Pyka
715-985-3859
Schmitt Bros.
608-687-8245
BURNETT
Burnett Dairy Coop
715-689-2467
CLARK
Melvin Dux
715-743-3824
Randy Kitzhaber
715-267-7488
DOOR
Mike Henschel
920-743-1906
KEWAUNEE
Robert Baudhuin
920-837-7572
Rolling Hill Dairy
920-845-5080
MANITOWOC
Gerald Borgwardt
920-758-2493
Maribel Grain
920-776-2120
Poplar Farm Sales
920-758-2961
Erwin Waack
920-772-4229
MARATHON
Bronsteatter & Sons
715-536-8891
MARINETTE
Daniel Van De Walle
715-789-2192
MARINETTE
Leland Van De Walle
715-854-2449
OCONTO
Jagiello Farms
920-829-6162
OUTAGAMIE
Kevin Naze, DSM
920-309-0255
PORTAGE
Harlyn Schulke
715-366-7104
SHAWANO
Adam Hagel
715-758-7459
Brad Krueger
715-526-5671
Alan Leidel
920-822-1322
David Race
715-524-2280
SHEBOYGAN
Boyd Hoffmann, DSM
920-946-3440
ST. CROIX
Mark Maes, DSM
715-684-9353
TREMPEALEAU
Bill Borgwardt
715-985-3070
WAUPACA
Ray Dusel
920-596-3292
Jeff Zabel
920-867-3386
Matt Honken, DSM
715-498-0919
Tom Abraham, RSM
920-570-3852
Continued from Page 28variety of people and knowswhat it takes to be successfulin the dairy business.
Hodorff and husbandDoug along with their son,Corey, and his wife Tammy,operate Second-LookHolsteins. Together they haveexpanded their herd of regis-tered Holsteins from 40 to 800head. Hodorff has been hon-ored as the Industry Woman ofthe Year by the World DairyExpo and is a founding boardmember of PDPW. Hodorff’sdairy business, financialexpertise and experiencebrings to this symposium a“reality” that only a top-notchprofessional in the dairy busi-ness can offer.
Day two
Now’s the time to dive intoserious business transition!This session provides you with
the strategies, tools and edu-cational armor for navigatingthrough business governanceand transition. Dr. DonaldJonovic, Ph.D., will dive intohow you can leave the ulti-mate legacy. He will focus youon how closely-held and high-performing businesses achievereal purpose and continuity.
Day two will cover theexact moment farm manage-ment or ownership transfersoccur is more likely to be driv-en by uncontrollable eventsthan great planning. As busi-ness managers, your job is tobe sure those “unexpected”transitions are more pre-dictable and go as smoothly aspossible.
A successful transitionstrengthens business (withnon-relatives as well as withfamily) harmony and pre-serves asset value. Good plan-ning also focuses as much on
assuring a high quality of lifebefore, during, and after tran-sition as on minimizing tax.This program focuses on the“what” and “how” of achievingall those goals and on helpingyou get started, plan, and getthe job done.
Jonovic has been a busi-ness advisor since 1973. Hefocuses on the unique issuesrelated to management devel-opment, growth and owner-ship transition in the success-ful owner-managed business.His professional consultingpractice includes industrialand agricultural clientsthroughout North Americaranging in size from one mil-lion to one billion with anemphasis on companies transi-tioning to management teams,including those with signifi-cant proportion of non-familykey managers.
Jonovic has written seven
books about business owner-ship, family-business transi-tion and the management ofchange and is president ofJamieson Press. Jonovic haslectured at universitiesthroughout North America.
Registration is limited tothe first 100 participants and isdue by Feb. 5. Walk-ins willnot be permitted.
The enrollment rate forPDPW members is $175. Non-members are also welcome fora enrollment fee of $250.
Register online atwww.pdpw.org, call Julie at800-947-7379 or send yourcheck to PDPW, Financial/Transition Symposium, POBox 2, Fox Lake, WI 53933.
To reserve a room at theCrowne Plaza, Madison-EastTowne, 4402 E. WashingtonStreet, Madison, call CrownePlaza at 608-244-4703 and askfor the PDPW block.
Symposium
30 PDPW - Dairy’s Bottom Line • January 2007ST
On average, the investment to build an energy-
efficient farm operation pays for itself within two years by
saving energy and money. And right now, you can save even more.
Contact your agricultural and energy efficiency experts from We Energies and
Focus on Energy to learn about our increased rebates on energy efficiency equipment.
Focus on Energy (800) 762-7077 we-energies.com/agricultureservices
© 2006 Wisconsin Focus on Energy BP-8011-1105
• 109+ Scientists• 55 Meat, milk and egg quality trials• 37 Reproduction/Fertility trials• 35 Performance trials• 29 Efficacy/Stability trials• 15 Bioavailability trials
• 12 Antioxidant function trials• 10 Immunity trials • 7 Safety/toxicity trials• 7 Years through FDA review• 6 Patents applied for• 3 Production facilities
Alltech Wisconsin • (920) 386-9651 • www.Sel-Plex.com
The world’s largest database on a single nutrient: Sel-Plex®
No other product can provide this much support:
You will find Solaris brand products at Badger State Ethanol, Monroe, WI
Solaris
ProBran™
ProBran is the highly
anticipated new feed
ingredient from QTI, Inc.
Produced at Badger State
Ethanol, ProBran has great
potential for top dairy
producers. Probran will be
available pelleted and the
added solubles make it
extremely palatable.
If you are looking for a
cost-effective substitute for
citrus or beet pulp, look at
ProBran!
• MORE PROFITS — cost savings
help profitability
• NUTRIENTS — proteins and
B vitamins
• LOW FAT — use more ProBran
in your cow’s diet
• HIGHLY DIGESTIBLE NDF —
more energy per pound
Get on our mailing list to make
sure you can be one of the
first ones to benefit by putting
ProBran in your herd’s ration.
www.solarisquality.com
608-329-3900
SP
B 0
2-0
1/0
7c
20
07
Q
UA
LIT
Y T
EC
HN
OL
OG
Y I
NT
ER
NA
TIO
NA
L, IN
C.