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.

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

Dairy Margin Coverage Program already helping producers

The U.S. Department of Agriculture’s Farm Service Agency (FSA) opened enrollment for the Dairy Margin Coverage (DMC) program on June 17 and has started issuing payments to producers who purchased coverage. Producers can enroll through Sept. 20, 2019.

Dairy

“Times have been especially tough for dairy farmers, and while we hope producers’ margins will increase, the Dairy Margin Coverage program is providing support at a critical time for many in the industry,” said Bill Northey, USDA Under Secretary for Farm Production and Conservation. “With lower premiums and higher levels of assistance than previous programs, DMC is already proving to be a good option for a lot of dairy producers across the country.  USDA is committed to efficiently implementing the safety net programs in the 2018 Farm Bill and helping producers deal with the challenges of the ever-changing farm economy.”

Authorized by the 2018 Farm Bill, DMC replaces the Margin Protection Program for Dairy (MPP-Dairy). The program offers 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. To date, nearly 10,000 operations have signed up for the new program, and FSA has begun paying approximately $100 million to producers for January through May.

May Margin Payment

DMC provides coverage retroactive to January 1, 2019, with applicable payments following soon after enrollment.

The May 2019 income over feed cost margin was $9.00 per hundredweight (cwt.), triggering the fifth payment for eligible dairy producers who purchase the $9.50 level of coverage under DMC. Payments for January, February, March and April also were triggered. 

With the 50 percent hay blend, FSA’s revised April 2019 income over feed cost margin is $8.82 per cwt. The revised margins for January, February and March are, respectively, $7.71, $7.91 and $8.66.

Coverage Levels and MPP Reimbursements

Dairy producers can choose coverage levels from $4 up to $9.50 at the time of signup. More than 98 percent of the producers currently enrolled have elected $9.50 coverage on up to 95 percent of their production history.

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.

Minnesota Dairy Farmers Eligible for Assistance

Dairy farmers have had a tough go of it lately as milk prices continue to struggle. The Minnesota Department of Agriculture (MDA) is rolling out its new Dairy Assistance, Investment and Relief Initiative (DAIRI) program to provide financial assistance for farmers. To be eligible, the state’s milk producers have to sign up for five years of coverage in the USDA Farm Service Agency’s Dairy Margin Coverage (DMC) program.

dairy farmers
The Minnesota Dairy Assistance, Investment, and Relief Initiative
is now taking applications. The program is designed to help the state’s dairy
farmers stay afloat during very tough economic times. (Photo from
nal.used.gov)

“Minnesota farmers are the cornerstone of our state’s economy,” said Governor Tim Walz. “We know that this has been a tough year for agriculture, and our dairy farmers need our support. I’m proud that our budget secured $8 million for the Dairy Assistance, Investment and Relief Initiative, The new initiative will help make sure our dairy farmers can continue doing the work they love and providing for our state.”

Applications to the program are being accepted now through October 1, 2019. In order to qualify, Minnesota farmers must have produced less than 160,000 cwt (hundredweight) of milk in 2018. Again, they also need to have signed up for five years of coverage through the DMC program during its current enrollment period, which is open between June 17, 2019 and September 20, 2019.

The MDA will issue payments on a rolling basis. Producers can expect to receive their first payments roughly two to four weeks after successfully applying. Minnesota dairy farmers will be paid based on production levels, up to 50,000 cwt of milk produced in 2018.

An application form, a W9, a copy of their DMC enrollment form, and a statement from their processor(s) detailing the amount of milk produced in 2018 are all required to complete an application.

Dairy farmers may receive a second payment this fall after the application period has ended, depending on remaining available funds.

Additional information and the application forms are available at https://www.mda.state.mn.us/dairi.

Margin Protection Program Registration Deadline Extended

Dairy Margin Protection Program
Ag Secretary Sonny Perdue announced this week that the enrollment deadline for the Dairy Margin Protection Program has been extended till June 22. (Photo from foodsafetynews.com)

U.S. Agriculture Secretary Sonny Perdue today announced the re-enrollment deadline for the Margin Protection Program (MPP) for Dairy will be extended until June 22, 2018.

The new and improved program protects participating dairy producers when the margin – the difference between the price of milk and feed costs – falls below levels of protection selected by the applicant. USDA has already issued more than $89 million for margins triggered in February, March, and April, and USDA offices are continuing to process remaining payments daily.

“Last week we re-opened enrollment to offer producers preoccupied with field work an additional opportunity to come into their local office to sign-up. We did get more than 500 new operations enrolled but want to continue to provide an opportunity for folks to participate before the next margin is announced,” said Secretary Perdue. “More than 21,000 American dairies have gone into our 2,200 FSA offices to sign-up for 2018 MPP coverage but I am certain we can do better with this extra week and a half.”

The re-enrollment deadline was previously extended through June 8, 2018. The deadline is being extended a second time to ensure that dairy producers are given every opportunity to make a calculated decision and enroll in the program if they choose. This will be the last opportunity for producers to take advantage of key adjustments Congress made to provisions of the MPP program under the Bipartisan Budget Act of 2018 to strengthen its support of dairy producers.

USDA encourages producers contemplating enrollment to use the online web resource at www.fsa.usda.gov/mpptool to calculate the best levels of coverage for their dairy operation.

Dairy Margin Protection Program
Dairy Producers have until June 22 to get signed up for the Dairy Margin Protection Program. Don’t leave potential money on the table when times are still tight financially. (Photo from wikihow.com)

The next margin under MPP, for May 2018, will be published on June 28, 2018. Therefore, all coverage elections on form CCC-782 and the $100 administrative fee, unless exempt, must be submitted to the County FSA Office no later than June 22, 2018. No registers will be utilized, so producers are encouraged to have their enrollment for 2018 completed by COB June 22, 2018.

All dairy operations must make new coverage elections for 2018 during the re-enrollment period, even if the operation was enrolled during the previous 2018 signup. Coverage elections made for 2018 will be retroactive to January 1, 2018. MPP payments will be sequestered at a rate of 6.6 percent.

To learn more about the Margin Protection Program for dairy, contact your local USDA Farm Service Agency county office at offices.usda.gov or visit us on the Web at www.fsa.usda.gov.