Dairying across the pond

Dairying in Ireland was an irresistible topic to a writer who grew up working at the Gerhold Brother’s Dairy of Castlewood, South Dakota. While on vacation in Ireland, Frank Costello, the gentleman that rented a beautiful cottage to us, put me in touch with a local dairy farmer named Tom Clesham. One phone call and a couple of texts later, I was on my way to visit the Clesham Farm in County Mayo, near Cong.

dairying
It was so much fun to talk to Tom Clesham, a dairy farmer from Cong, Ireland. I hadn’t been on a dairy farm in years. He was very kind and easygoing to visit with and had a lot to be proud of at his farm. (Photo by Dr. Greg Bourgond)

The 96-acre dairy farm stretches back several generations through his family tree. However, Toms’ father, Tim, and the rest of the Clesham family milked cows until 1990, when Tim switched to beef cattle. Over the next several years, the father-son farmers bred pedigree Limousine cattle alongside their commercial beef herd after leaving dairying.

But Tom became frustrated with the volatility of the Irish beef sector, something American beef farmers know all too well. So, looking at the books, Tom felt it wasn’t financially doable to keep raising beef animals. After 23 years, it was time to go back to dairying, and the work began in 2013.

“The process wasn’t too bad because a lot of the milking facility was still here,” Clesham recalled as the milk truck pulled into the yard. “Originally, when we took the equipment out, we filled the pit with clay, put plastic over it, and then covered that with cement. When we went back to dairying, I just undid that process.”

He runs a six-unit parlor that Clesham would like to make larger as he plans to expand his herd. When he redid the milking parlor, Clesham planned ahead by leaving room for a total of eight units. Once the cows are inside the parlor, Clesham hits a button to dispense feed into the automatic feeders to keep the cows busy while they give their milk.

“Every time I hit the button, I know they’re getting .6 kilos of ‘nuts,’” he said. “It’s a dairy pellet ration, or a ‘nut,’ as I like to call it, with a load of different ingredients. The cows are currently getting a 14 percent protein nut called ‘Grass Match,’ and is for feeding at lower levels while still giving a higher level of minerals and things for when they’re out on the grass.”

Tom Clesham’s six-unit milking parlor can be converted into an eight-unit stall when he’s ready to make the move. (Photo by Dr. Greg Bourgond)

“At the end of the year, I’ll start giving a little more protein in their pellets because they won’t be out on the grass as much,” Clesham added.

Cows get wiped pre-milking with a paper towel, and he’ll pre-draw them to check the cows, milk them, and then he applies teat dip from a spray bottle. “It’s also got a peppermint smell to it, and I think that helps with the flies,” he added. 

As American dairy farmers know firsthand, expanding a parlor is a big undertaking. Clesham bought secondhand Pyrex parlor equipment over 20 years ago. The steelwork in the parlor will stay, but he plans on replacing everything else, including his milk pump, which is a diaphragm, in favor of an electric pump.

“It really wouldn’t be a difficult process, but it will be an expensive one,” the 40-year-old farmer said with a grin. “I got the equipment you see here off a well-known online platform in Ireland called ‘Done Deals.’”

From the first discussion about returning to dairying to the first milking, Clesham estimates it took two years to complete that particular journey. He spent a lot of time in meetings with the local milk cooperative on the way to running a full-time dairy and is quick to credit his father Tim’s knowledge of the business in getting it running.

“I also have a neighbor down the road named Martin Jennings who’s about the same age as I am and was a great help to me,” he added. “He’s a great friend of mine and is always at the end of the phone to ring him up and ask him about things I didn’t understand. Mark was a great help in that regard.”

dairying
During the conversation with Tom Clesham, the local milkman showed up to drain his bulk tank. Clesham has won national awards over the past couple of years due to low Somatic Cell Count in his milk production. (Photo by Dr. Greg Bourgond)

It was at this point in the conversation that the milk truck was backing into the yard to hook up to the bulk tank. For the last few years, the milk coming out of the Clesham’s bulk tank won awards from Animal Health Ireland for its low Somatic Cell Count. “It doesn’t make you any more money,” he said with a smile, “but the cows stay healthy, and that’s important in dairying.”

 Clesham credits that success to the cleaning routine and the drying-off process he uses for the cows. “Last year, I started doing a few culture tests on the cows,” he recalled. “That’s going along with my veterinarian and knowing what sort of bacteria we may be fighting by getting the right antibiotics.

“I’ve also been fairly strict when it comes to drying off cows,” Clesham says. “I won’t do too many at a time. I also never dry off cows in the evening; I dry them off in the morning. They’re standing up for a bit longer in the day and seal up. We treat them with dry cow therapy and teat sealers. If we do it in the evening, they’re probably laying down for the night soon afterward.”

Irish dairy farmer Tom Clesham has put in eight years of hard work to return to dairy farming after he and his father, Tim, left the beef industry due to price volatility. (Photo by Chad Smith)

With a big smile, Clesham added, ”Some people may say you’re daft, but it’s just the silly things I do.” Each of his dairy cows has a minimum of eight weeks when they’re dried off, not milked, and can recover to put on condition to calve again.

Calving season on the Clesham farm usually begins around the first of February. He gets the bull out to the cows and aims for them to calve in a six-week period. “I generally try to have the cows dried off by December,” he added, “and they’re off in January and hopefully calving by the first of February.

“I breed all my replacement cows,” Clesham said. “The only calves I keep for myself are Friesian females. All the rest of the calves will get sold.

“There’s a push now in Ireland that emphasizes the welfare of dairy-born calves that will be finished and put into beef,” he says. “The push says that that the animals are worth something even if they won’t bring you a lot of money. Family farmers in Ireland will still call the vet for a sick bull calf even if that might cost more than what he’s worth.”

Ireland has new regulations in place to ensure proper animal care for its 1.55 million dairy cows, including one that prohibits farmers from selling calves until they’re at least 10 days old. “It’s just to make sure the navel is dry, the calf is reasonably hardy, and it keeps two-and-three-day-old calves from going into the market, which is a good thing,” Clesham said.

dairying
Clesham milks a herd mostly made up of Holstein-Friesian cross cattle, although he will throw other breeds in from time-to-time to improve the protein and butterfat content of his milk, which Irish cooperatives are now paying premiums for. (Photo by Dr. Greg Bourgond)

Most, if not all of the milk produced in Ireland, comes from grass-fed cows. Clesham, one of more than 18,000 dairy farmers in the country, says that’s the most profitable way to do dairying in Ireland. In fact, the Irish dairy industry markets itself as selling “grass-produced milk from small family farms.” He said that is what makes Ireland dairying unique.

The temperate Irish climate allows farmers to grow large quantities of grass over a long season, so the 40-year-old farmer rotates his 80-cattle herd through a handful of different pastures, called “paddocks.” It’s going to get a little trickier over the next several weeks as the grass “slows down a bit come July” when grass gets a little “stemmy.”

“During this rotation through the paddocks, I’m going behind the cows and mowing the paddocks, which I call ‘topping,’ and trying to cut back any stringy grass that they won’t eat at this stage,” he said. “I think it allows the grass to come back a little better when I mow after the cows eat all they can get to.

“Some guys think it’s better to mow the grass before the cows come into a paddock,” Clesham added. “Other guys say it’s better to skip paddocks entirely and make baled silage out of it. We do cut some silage here in addition to running them out on paddocks.”

As with most American dairy farms, the milk goes to a local cooperative for processing. Clesham says Irish co-ops are now paying bonuses from dairy farmers for higher-quality milk, so the higher the protein and butterfat content, the higher the check. Clesham works on what’s called an “A, B, C Milk Payment System.”

While walking on the road running between different paddocks, Clesham stops in front of a new building to house the cows before they head into the barn for milking something American farmers might refer to as “stanchion barns.” The cows lay on rubber mats in each of their cubicles. While some Irish dairymen may put down chopped straw or sawdust, he puts down lime in each cubicle.

“The manure pit is down below where the cows walk,” Tom said. “We spread it out on our land here. It’s mixed around and stirred before it goes into vacuum tanker vehicles that put it down on the land.”

Speaking of caring for the land, an American Farm Bureau survey in November 2020 showed that Americans trust their farmers to do the right things when it comes to sustainability and the environment. Clesham feels the Irish hold their dairy farmers in equally high regard.

“What we produce is grass-based, and I suppose, is more environmentally friendly than big barn systems that feed a lot of grain,” he said.

Clesham’s beautiful Springer-mix hunting dog Ivy was more than happy to join us as we walked down the gravel road between the paddocks. (Photo by Chad Smith)

Carbon emissions Is another topic that American farmers understand, and the conversation has also begun in Ireland. The dairyman says there’s “been a little bit of flak” when it comes to farming and carbon emissions.

“I’m not an expert on the topic, but I do think some folks have been led a bit astray on what it is,” Clesham said thoughtfully. “There are some cattle on lands across Ireland, but there are also huge plots of land that absorb carbon too. On my farm, I can easily say I have more trees than cows.”

That in no way means Clesham isn’t concerned about caring for the environment. After all, if he doesn’t take care of his land, he won’t be able to continue dairying into the future, something he clearly loves doing. “As we talk here, you can see I’ve planted a long row of flowers I call my ‘Bee Bank,’ he said. “That’s to help the bees in my area stay healthy.”

Clesham planted a row of flowers he calls a “Bee Bank,” something he put in just to keep the pollinators around his field happy and healthy. (Photo by Chad Smith)

Clesham is currently milking 47 cows and looking at more. He has visited with a government-run advisory service (Teagasc) that helps farmers with their dairying plans. At one point, they discussed not having any heifers and just having milking cows on the acreage.

“I might be able to milk over 70 cows then, but that would lead to other troubles,” he said. “I’d have to find a source for heifers. I’m definitely going to milk a few more next year as I have 16 in-calf heifers that will add on to the milking herd.”

Dairying is not the only thing keeping him busy: He’s working at the Falconry School on the grounds of Ashford Castle near Cong, Ireland, and raises pheasants for future hunting opportunities.

Minecraft – Dairy Industry Thinking Outside the Box

Minecraft. The chances are good that you know what it is if you have kids. Would it surprise you if I said the dairy industry was thinking outside the box and turning to a video game such as Minecraft to help promote its products? Dairy Management Incorporated held a press conference recently to announce a partnership with four of the most influential gamers in the world to promote itself to people in “Gen Z (early teens to early 20s).”

The idea started growing late in 2019 when the dairy industry found out that per-capita dairy consumption hit its highest level in 60 years. America hasn’t consumed this level of dairy products since 1960, so the question is how to keep this trend going into the future? Dairy Management Incorporated CEO Tom Gallagher says you reach out to younger people on platforms where they already engage with each other.

Minecraft
The U.S. dairy industry is partnering with four of the most popular Minecraft gamers in the world to promote their products to the next generation of consumers. (Photo from theverge.com)

Dairy industry sustainability is another key driver in the new idea. “The businesses of dairy, such as the co-ops, the processors, and the manufacturers, have collectively set the goal of becoming carbon neutral by 2050,” Gallagher said.

“Dairy Management’s role in that is to support the environmental science, communications, and other relationships in achieving that goal,” he added. “While sustainability is important, it also has to be profitable for the industry. We are working on several different test cases on various farms to prove that profitability is possible, or what might need to change to make sustainability profitable.”

Gallagher said there is no sustainability without profitability. Without improving sustainability, farmers and the entire industry will likely be subject to very pejorative regulations in the future. It’s a chance for the industry to be proactive and avoid excessive regulations.

So how does Minecraft fit into the discussion? DMI had five college interns over the past summer who were in their low 20s and MBA students. DMI gave them the challenge to figure out how they would promote dairy sustainability to Gen Z if they had 10 million dollars to do the job. The students came up with the idea of promoting dairy through the video games that Gen Z plays.

Minecraft
Dairy Management Incorporated is thinking “outside the box” in coming up with new methods to promote dairy to the next generation of consumers, one of which is using the popular video game Minecraft. (photo from lakenormanpublications.com)

Joanna Hunter is the Executive Vice President of Communications with DMI, who says the dairy industry will work with four of the most well-known Minecraft gamers in the world. It’s a chance to reach the Gen Z audience through a platform they’re already engaging in.

“We are going to work directly with four gamers who combine for more than 120 million followers,” she said. “Each of the influencers will take part in a virtual visit to dairy farms of different sizes and locations across the country, and every farm will have its own sustainability practices.

“After that virtual visit, the gamers will take what they learned and build a dairy farm in Minecraft,” Hunter added. “They may challenge each other, or they may challenge their followers to build the best dairy farm.”

The overall goal is for the gamers to engage others in that sustainability story and how dairy farmers are working hard to bring a nutritious and sustainable product to their audience. The gamers will be putting out dairy-related content through November. Hunter says it’s a great time to use the platform for a unique two-way engagement with the intended audience.

This kind of work doesn’t get off the ground without direct support from dairy farmers. Aric DeJager owns and operates Icon Holsteins in Kersey, Colorado. His role will be to provide on-site dairy farm education for the four gamers through FaceTime. Like a lot of folks older than Gen Z, he’s learning about Minecraft from younger relatives.

“I’m learning a lot about the scale of this from my nieces and nephews,” he said. “I’m just figuring out exactly how popular this stuff is. These gamers will have 40 million young and impressionable people watching them build their dairy farms on Minecraft. I’m really excited to see how this goes forward from here.

“I think this is a great step in the right direction,” Jager added.

Gallagher says things are changing, and the industry has to change with the times. The days of three cable TV channels are over, and it’s a new generation of marketing.

“Things like traditional television and cable news just don’t present the same marketing opportunities they once did,” Gallagher said. “We have to go where the people are. Over the next year, we’re going to test some new things, including Minecraft.

“Through GenYouth and Fuel Up to Play 60, we’ll be doing some things with NFL Madden,” he added. “Retailers are starting to create their own media cloud as the more traditional forms of advertising have declined in their reach a bit. Companies like Quaker have gone to 70 percent digital advertising, with more and more retailers following suit.

“As retailers continue to test their own channels, we’ll be doing more and more testing with them,” Gallagher added.

Dairy industry sustainability is another key driver in the new idea. “The businesses of dairy, such as the co-ops, the processors, and the manufacturers, have collectively set the goal of becoming carbon neutral by 2050,” Gallagher said.

“Dairy Management’s role in that is to support the environmental science, communications, and other relationships in achieving that goal,” he added. “While sustainability is important, it also has to be profitable for the industry. We are working on several different test cases on various farms to prove that profitability is possible, or what might need to change to make sustainability profitable.”

Gallagher said there is no sustainability without profitability. Without improving sustainability, farmers and the entire industry will likely be subject to very pejorative regulations in the future. It’s a chance for the industry to be proactive and avoid excessive regulations.

So how does Minecraft fit into the discussion? DMI had five college interns over the past summer who were in their low 20s and MBA students. DMI gave them the challenge to figure out how they would promote dairy sustainability to Gen Z if they had 10 million dollars to do the job. The students came up with the idea of promoting dairy through the video games that Gen Z plays.

Joanna Hunter is the Executive Vice President of Communications with DMI, who says the dairy industry will work with four of the most well-known Minecraft gamers in the world. It’s a chance to reach the Gen Z audience through a platform they’re already engaging in.

“We are going to work directly with four gamers who combine for more than 120 million followers,” she said. “Each of the influencers will take part in a virtual visit to dairy farms of different sizes and locations across the country, and every farm will have its own sustainability practices.

“After that virtual visit, the gamers will take what they learned and build a dairy farm in Minecraft,” Hunter added. “They may challenge each other, or they may challenge their followers to build the best dairy farm.”

The overall goal is for the gamers to engage others in that sustainability story and how dairy farmers are working hard to bring a nutritious and sustainable product to their audience. The gamers will be putting out dairy-related content through November. Hunter says it’s a great time to use the platform for a unique two-way engagement with the intended audience.

This kind of work doesn’t get off the ground without direct support from dairy farmers. Aric DeJager owns and operates Icon Holsteins in Kersey, Colorado. His role will be to provide on-site dairy farm education for the four gamers through FaceTime. Like a lot of folks older than Gen Z, he’s learning about Minecraft from younger relatives.

“I’m learning a lot about the scale of this from my nieces and nephews,” he said. “I’m just figuring out exactly how popular this stuff is. These gamers will have 40 million young and impressionable people watching them build their dairy farms on Minecraft. I’m really excited to see how this goes forward from here.

“I think this is a great step in the right direction,” Jager added.

Gallagher says things are changing, and the industry has to change with the times. The days of three cable TV channels are over, and it’s a new generation of marketing.

“Things like traditional television and cable news just don’t present the same marketing opportunities they once did,” Gallagher said. “We have to go where the people are. Over the next year, we’re going to test some new things, including Minecraft.

“Through GenYouth and Fuel Up to Play 60, we’ll be doing some things with NFL Madden,” he added. “Retailers are starting to create their own media cloud as the more traditional forms of advertising have declined in their reach a bit. Companies like Quaker have gone to 70 percent digital advertising, with more and more retailers following suit.

“As retailers continue to test their own channels, we’ll be doing more and more testing with them,” Gallagher added.

Farmer Angel Network giving farmers a safe place to talk

Farmer Angel Network
Randy Roeker of Loganville, Wisconsin,, pictured here with country music star WIllie Nelson, is the man behind the Farmer Angel Network in Wisconsin. (Photo from Facebook.com)

“Farmer Angel Network.” It just seems like something weird to say because you don’t typically use the words “farmer” and “angel” in the same sentence. However, the old saying that “necessity is the mother of invention” is a true one. More than half a decade of struggle in the agricultural industry has taken a big toll on farmers, so the Farmer Angel Network began in Wisconsin to give producers a safe place to talk about what they’re going through.

Randy Roeker is a Loganville, Wisconsin-based farmer who started the Farmer Angel Network after going through struggles of his own early in his farming career, a career that began shortly before the recession began in the late 2000s. It hit him hard.

A Growing Dairy Farm

“I started out milking 50 cows here,” he recalled. “Around 20 years ago, we decided to expand the operation. We kept growing and eventually we were milking around 190 cows in a 50-stanchion barn. At that time, we decided to build a new operation, so we built a new milking parlor.

“Then, of course we’d just finished building the new place when the recession hit in 2008,” Roeker said. “The anxiety got so bad for me and I got a bad case of depression. I thought I’d be the last person to come down with depression, and when I did, my thought was ‘I never want this to happen to anybody’ after I got through it.”

At one point, Roeker says they were milking close to 300 cows and losing roughly $30,000 a month. He had heard figures of other farmers losing $60-$100 a cow.

Farmer Angel Network Begins

Ten years later, Roeker decided to put together a meeting in his local church in Loganville. Little did he know how much his meetings would get noticed. At the first meeting, they were interviewed by someone from the Wisconsin State Journal. That report was released on the Associated Press Network and the story wound up all over the country.

“We next had Soledad O’Brien of the weekly syndicated talk show Matter of Fact send a correspondent up here and they interviewed everyone at our meeting,” Roeker said. “Right after that, NBC News with Lester Holt was out here at my farm, so we made NBC News talking about the work we are doing.

“What we’re doing is designed to help farmers overcome the mental challenges associated with farming,” he said. “We talk about different topics to help see these guys through the tough times. Those tough times, unfortunately, affected one of my neighbors so badly that he took his own life.”

Mental Health Struggles and Farmer Suicide

Roeker said the suicide hit him hard. The farmer who took his own life was a member of Roeker’s church. That unfortunate event took the Loganville farmer back to where he’d been ten years earlier. “I remembered feeling so alone, I didn’t have anyone to turn to, and my family had no idea what to do with depression,” he recalled. “I happened to see my therapist the very next day after the suicide and told her it’s now my calling to help other farmers.”

Farmer Angel Network
Roeker, pictured here in his dairy that was built just before the recession of the late 2000s, decided two years ago that his calling in life was to help other farmers avoid the severe case of depression he went through. (Photo from Facebook.com)

Farmers are self-reliant and independent people who don’t typically want to talk to others about the tough stuff they go through. However, Roeker says he gave them a safe environment to talk in and they’re taking advantage of the meetings. “One of the things we stress is it’s okay to talk about stuff like this,” Roeker said. “We need to shed the stigma of depression in farm country.”

That’s tough to do when dairy farmers are having to dump their milk and hog farmers are unfortunately having to euthanize hogs because there’s nowhere to send them to be processed. “Luckily, we’re not having to dump our milk here, but I do have several friends across the country that are and it’s just a shame,” he said.

“That’s why it’s so important to talk about anxiety and depression because all producers, no matter what crops they grow or livestock they raise, are going through the stress,” Roeker said, “and they just don’t know which way to turn.”

People can find out more about the Farmer Angel Network on their Facebook page. You can also find Randy Roeker on Facebook. “I’ve been talking one-on-one to people from all over the country who see my name in the media and reach out,” Roeker says, “I welcome that because I’ve been through it and I don’t want anyone else to feel so alone that they can’t reach out and talk.”

Overcoming Farmer Reluctance to Talk About Depression

Little by little, Roeker thinks people in his area are getting over the stigma of talking about depression and struggles. Still, it’s a work in progress. He says farmers have driven to his meetings from several hours away, likely because at least some of them don’t want their neighbors to know about their struggles. One thing Roeker would like to see is the Farmer Angel Network spread to other communities and even other states.

“I’ve talked to at least five people about starting these meetings in their own communities,” he added. “Everyone needs to talk out their problems and when we get together like this, it’s a safe setting with like-minded people.”

Dairy Assistance Program Enrollment Reopened

The Minnesota Department of Agriculture (MDA) is reopening enrollment in its Dairy Assistance, Investment, and Relief Initiative (DAIRI) program for eligible milk producers through the end of the year.

Dairy Assistance

Producers who have locked in five years of coverage through the USDA Farm Service Agency’s Dairy Margin Coverage (DMC) program and who have not already successfully enrolled in the Dairy Assistance program can apply.

The MDA has already issued $3.4 million to about 1,800 producers representing more than 1,550 farms in Minnesota through the program in its first round of payments.

Producers not yet successfully enrolled will not receive the first round of payment, but may receive a check for the second round of dairy assistance, which will be determined after all new enrollments have been received.

Dairy Assistance

In order to qualify, farmers must have produced less than 160,000 cwt (hundredweight) of milk in 2018. They will be paid based on production levels, up to 50,000 cwt of milk produced in 2018.

An application form, an IRS Form W-9, a copy of their DMC enrollment form, and a statement from their processor(s) detailing the amount of milk produced in 2018 are required to complete an application. All materials must be postmarked by December 31, 2019.

Producers who are already successfully enrolled and have received their first check do not need to take any action. They will automatically receive a second payment. However, producers who submitted incomplete applications and have not received a check must return any requested information by December 31, 2019, to be eligible for the second payment.

For additional information and the application form, visit the DAIRI program page of the MDA website.

Dairy Industry is “Optimistic” at #NAFB19

Dairy
U.S. Dairy Export President and CEO Tom Vilsack spoke at the #NAFB19 convention in Kansas City, appearing more optimistic about the future of the U.S. dairy industry than in recent years. (Photo by Chad Smith)

Dairy industry officials know firsthand that the industry has struggled in recent years, and there’s no question about it. Former Ag Secretary Tom Vilsack, who spoke to broadcasters during the National Association of Farm Broadcasting’s annual convention in Kansas City. Vilsack, is the current President and CEO of the U.S. Dairy Export Council. He says in spite of some tough years for the American dairy industry, there are reasons for optimism.

News broke this week that Dean Foods, America’s largest milk producing company in the dairy industry, filed for bankruptcy. I had a chance for some one-on-one comments with the former Ag Secretary, who preferred to talk more about the positive signs ahead in the dairy industry than the bad news about Dean Foods.

He took a lot of questions from farm broadcasters on a variety of topics in the dairy industry. One of the biggest topics in recent months is the growing market for plant-based “milks.” He and the rest of the dairy industry aren’t happy with these companies referring to themselves as “milk.” The question came from Orien Samuelson, the dean of farm broadcasters and a good friend of Vilsack.

https://www.youtube.com/watch?v=CbopKYObCAs&feature=youtu.be

He says the US-Mexico-Canada Trade Agreement making its way through the House of Representatives, all be it slowly because of Democratic concerns, is another reason to be optimistic. He’s confident that the agreement will get done.

https://www.youtube.com/watch?v=FCURYBZ6IIo&feature=youtu.be

It’s hard to believe that folks in Washington, D.C. are already talking about the next Farm Bill. The reason for that is House Ag Committee Chair Collin Peterson, a Minnesota Democrat, isn’t sure yet if he’ll be running for re-election in 2020. He’s said publicly that decision will be coming in either January or February. Vilsack said even if Peterson doesn’t run again, the next farm bill will get done.

https://www.youtube.com/watch?v=BHU9-7w_CVU&feature=youtu.be

Lastly, as President of the Dairy Export Council, he pays close attention to the country’s export situation, which hasn’t been great at all thanks to trade disputes. In spite of that, with agreements pending in Japan, as well as in North America, exports are another reason to be optimistic.

Dairy Margin Coverage Program Signup Deadline Sept. 20

The U.S. Department of Agriculture’s Farm Service Agency (FSA) reminds dairy producers that the deadline to enroll in the Dairy Margin Coverage (DMC) program for 2019 is Sept. 20, 2019.

Dairy Margin Coverage Program
The USDA wants to remind dairy farmers that signup for the Dairy Margin Coverage Program ends on Sept. 20. (Photo from AgDaily.com)

Authorized by the 2018 Farm Bill, the program offers reasonably priced protection to dairy producers when the difference between the all-milk price and the average feed cost (the margin) falls below a certain dollar amount selected by the producer.

“Over 19,100 operations have signed up for DMC since the new program opened enrollment on June 17,” said FSA Administrator Richard Fordyce. “DMC is a great risk management tool that protects against narrowing margins caused by down turns in the market and increased feed costs. I encourage farmers who have not yet enrolled to sign up as soon as possible.”

As the 2019 enrollment period draws to a close, FSA estimates over $257.7 million in payments to producers who are currently registered. Also, nearly half of the producers are taking advantage of the 25 percent premium discount by locking in for five years of margin protection coverage. FSA has launched a new web visualization of the Dairy Margin Coverage Program data, which is available here.

Margin payments have triggered for each month from January through July. Dairy producers who elect higher coverage levels could be eligible for payments for all seven months. Under certain levels, the amount paid to dairy farmers will exceed the cost of the premium.

For example, a dairy operation that chooses to enroll for 2019 an established production history of 3 million pounds (30,000 cwt.) and elects the $9.50 coverage level on 95 percent of production will pay $4,275 in total premium payments for all of 2019 and receive $15,437.50 in DMC payments for all margin payments announced to date. Additional payments will be made if calculated margins remain below the $9.50/cwt level for any remaining months of 2019.

Enrollment for 2020

For 2020, dairy producers can sign up for coverage under DMC beginning Oct. 7 through Dec. 13, 2019. At the time of signup, dairy producers can choose between the $4.00 to $9.50 coverage levels.

DMC offers catastrophic coverage at no cost to the producer, other than an annual $100 administrative fee. Producers can opt for greater coverage levels for a premium in addition to the administrative fee. Operations owned by limited resource, beginning, socially disadvantaged or veteran farmers and ranchers may be eligible for a waiver on administrative fees. Producers have the choice to lock in coverage levels until 2023 and receive a 25-percent discount on their DMC premiums.

Producers who locked in coverage in the 2019 sign-up must certify the operation is producing and commercially marketing milk and pay the annual administrative fee during the 2020 enrollment period.

To assist producers in making coverage elections, USDA partnered with the University of Wisconsin to develop a DMC decision support tool, which can be used to evaluate various scenarios using different coverage levels through DMC.

2019 Retroactive Intergenerational Transfers

Participating dairy operations who had an intergenerational transfer between 2014 and 2019 will a have a one-time opportunity to increase their established production history during the 2019 and 2020 annual coverage election periods. Retroactive payments based on the increased production history will apply for 2019 and not prior years.

A dairy operation may add to their approved production history for an intergenerational transfer when a spouse, child or grandchild join a participating dairy operation. Non-lineal relatives, such as siblings, cousins, nieces or nephews, that join the operation will not be eligible for a production history increase.

The increase to the established production history of the participating dairy operation will be determined based on multiplying both the national rolling herd average data for the current year in effect at the time of the intergenerational transfer and the quantity of cows purchased by the joining family member within 60 days of joining the dairy operation.  For an intergenerational transfer to be recognized by FSA, the requesting dairy operation will meet all eligibility requirements including an ownership provision for those entering the business.

Applications for an intergenerational transfer must be submitted by Dec. 6, 2019, for approval by the local FSA county committee, to be eligible for the increased production history effective on January 1, 2019.

More Information

On December 20, 2018, President Trump signed into law the 2018 Farm Bill, which provides support, certainty and stability to our nation’s farmers, ranchers and land stewards by enhancing farm support programs, improving crop insurance, maintaining disaster programs and promoting and supporting voluntary conservation. FSA is committed to implementing these changes as quickly and effectively as possible, and today’s updates are part of meeting that goal.

For more information, visit farmers.gov DMC webpage or contact your local USDA service center. To locate your local FSA office, visit farmers.gov/service-locator.

Refresher on the DMC Program:

https://www.youtube.com/watch?v=d1J7SJsyXZ0

GoFundMe Miracle for Wisconsin Dairy Family

GoFundMe
The Cihlar farm in picturesque Door County, Wisconsin, will stay in the family, thanks to a wildly successful crowdfunding campaign. (Contributed Photo)

Dale and Karen Cihlar of Algoma, Wisconsin, can vouch firsthand about just how tough things are in the American dairy industry right now. Low milk prices are making it difficult for American producers to get the loan capital they need to stay in operation. The Cihlars were literally down to their last option for more operating money when they turned to crowdfunding through the GoFundMe website. Down to their last chance, they saw a miracle happen.

“Milk prices were down, and we had lost some cattle,” said Karen Cihlar. “We also had a big payment due on our manure storage facility. My husband (Dale) went to some loan officers, looking for a $35,000 loan for livestock because we were down in numbers. We also wanted to pay off a little debt. The bankers told us they weren’t loaning money to dairy farmers at the present time because of low projected milk futures prices.”

“When we asked the loan officers what to do, a lot of them said walk away,” she recalled. “I told Dale that just wasn’t an option. We have six or seven years in this business, everything is paid for, and the farm is ours. No, we weren’t going to walk away. We gotta fight.”

She had noticed in previous weeks that there were other farmers with campaigns on GoFundMe. Karen asked Dale if it was something he wanted to try, and he said “no.” He didn’t want other people to know what’s going on in their business.

GoFundMe
Dale Cihlar was hesitant to turn to crowdfunding for operating capital, at first. His wife, Karen, launched a campaign that allowed them to stay on their farm and he couldn’t be happier and more grateful. (Contributed photo

“I said ‘if we have to pull a U-Haul up to the house and load up, they’re going to know our business,’” she recalled. “The last loan officer we went to said, ‘do what you have to do and don’t worry about what anyone thinks because they’re not in your shoes.’ That night, Dale told me ‘no to GoFundMe one more time. However, I really felt we should try it.

“I went over to our daughter’s house for some help and we did it,” she added. “We started getting donations right away.

Here’s the rest of the story:

In case you were wondering? The campaign was for the exact amount the family was turned down for; $35,000. The five-month campaign has raised over $90,300! Amazing!