Navigating through the volatile milk market, rising production costs and numerous other challenges require innovation, strategic planning and sometimes a little outside help. In recent years, the transformations of three east coast dairy farms: Shafdon Farms, JoBo Holsteins and Misty Mountain Dairy exemplify how strategic interventions can lead to a sustainable future.
Shafdon Farms: Rising from Rock Bottom
Shafdon Farms, nestled in Jefferson, Md., stands as a testament to resilience and strategic transformation. Ten years ago, Shafdon Farms was struggling under a high debt load and poor forage quality. Dee Shafer and her family faced significant challenges with no clear path forward.
“We hit rock bottom,” Shafer says. “We finally realized we needed some outside help.”
In 2015, the Shafers made a pivotal decision —hiring an accountant with extensive experience in agriculture. Two years later, and with assistance from the Center for Dairy Excellence, they assembled a profit team.
The significance of a business plan and a collaborative approach cannot be overstated for any farm looking to climb out of economic hardship. Shafdon’s profit team — comprised of nutritionists, accountants, lenders and various consultants — was the catalyst for crafting a meticulous business plan. This blueprint aimed at setting production targets, managing expenses and providing a roadmap for future growth.
“I can’t stress enough the importance of a profit team and a business plan,” Shafer says, reflecting on the pivotal role teamwork played.
By channeling their combined knowledge and efforts, the Shafers went to work on several fronts — expanding their herd, optimizing facility usage, hiring a new custom forage operator and refining crop and ration strategies.
Fueling Growth with Strategic Changes
A new partnership with a lender streamlined the farm’s payments, granting the Shafers enhanced flexibility in their financial decisions. In an ambitious bid to boost milk production efficiency, they transitioned their barley and alfalfa acreage to double-cropped corn and triticale, necessitating changes in herd rations.
Noteworthy farm improvements were made, including the construction of a new manure storage pit, a heifer barn and an addition of 72 freestalls to enhance cow comfort. They also introduced separate rations for high and low producers, tailoring their approach to maximizing output.
Since 2017, the advancements at Shafdon Farms have been profound. Their herd has expanded from 240 cows to more than 400 cows. Financial health, once characterized by a deficit of approximately $155,000, has reversed impressively, now reflecting a positive balance exceeding $140,000.
JoBo Holsteins: Strategic Expansion and Profit Margin Focus
JoBo Holsteins, nestled in the charming landscapes of Gettysburg, Pa., is a testament to the power of strategic decision-making in agriculture. In a sector where operational difficulties are commonplace, the farm has managed to transform its challenges into opportunities, shifting from a struggling enterprise to one flourishing with positive cash flow and a promising future.
Dale Brown, one of the visionary partners behind JoBo Holsteins Farm LLC, sheds light on the pivotal strategies that fueled this turnaround. The farm’s unique five-way partnership has been instrumental in navigating financial distress. Through collaborative efforts, they have emphasized operational efficiencies and profit margins, focusing on the profit margin per cow and overall capacity as the backbone of their success. This strategic focus has been crucial in expanding the dairy to its current scale of approximately 1,050 milking cows.
Leverage Expertise for Growth
Like other successful farming entrepreneurs, Brown credits peer groups and financial consultants for their indispensable role in the dairy’s revival. These external experts provided invaluable insights and frameworks for sustainable growth, paving the way for the farm to embrace financial stability. As the profits flow more consistently, the decisions related to expansion and development can now be made with increased flexibility and confidence.
With solid financial footing, JoBo Holsteins is ready to tackle its next growth challenge. While operational stability has been achieved, the focus shifts to future objectives.
“Our next challenge is where to go next,” reflects Brown, highlighting the farm’s commitment to continuous innovation and development.
Misty Mountain Dairy: Building a Foundation on Profit Margins
Mark Mosemann of Misty Mountain Dairy LLC recounts how his family farm rose from challenging times through a combination of good communication, team planning, dedicated work and a touch of faith. It’s a story of resilience and strategic growth for the Mosemanns, who are driven by the pursuit of financial sustainability and family legacy.
For Mosemann and his family, the cornerstone of decision-making lies in profit margins. Operating a 500-cow dairy alongside his wife Lauren, his parents, brother, and two members of the next generation, Mosemann emphasizes the importance of financial health.
“If you’re not making the margin, you’re not making the income to survive,” Mosemann candidly shares. The family’s ethos revolves around the idea that every decision must enhance their financial footing.
Strategic Growth Through a Master Plan
Adapting to a complex agricultural landscape requires a thoughtful master plan for growth. Mosemann urges fellow farmers to devise a strategy that aligns with family goals while remaining economically viable. At Misty Mountain Dairy, this translates into a comprehensive approach where risk management plays a crucial role. The family keenly balances the cost of homegrown feed against purchasing options and fosters advantageous purchase agreements.
The Art of Incremental Growth
Instead of aiming for spectacular immediate success, Mosemann and his family embrace the power of incremental achievements.
“Hit singles instead of going for a grand slam,” Mosemann advises.
By focusing on internal herd growth and enhancing forage quality, they aim for steady, sustainable improvements. For them, measured progress is the pathway to durability.
Networking stands as a pivotal component of Misty Mountain Dairy’s transformation. By connecting with industry experts and fellow farmers, the Mosemann family expanded their horizons beyond initial limitations.
“The more people you know, the more options and information you will have,” Mosemann explains. This exchange of diverse perspectives has empowered them to be innovative thinkers— sometimes even discarding conventional structures in favor of new approaches.
Each of these farms exemplifies how strategic risk management, financial oversight and a focus on profit margins over gross sales can transform a dairy operation into a successful business. Whether it’s hiring knowledgeable consultants, forming a profit team or developing a master plan, these steps can pave the way for a brighter and more profitable future in the dairy industry.
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