Many planters across the country are parked, still in the shop waiting for the green light to get into the fields. The reason might vary – too much rain or not enough rain, but the outcome is the same.
Brian Vaassen, Midwest regional business manager with Standard Dairy Consultants says he talked to several dairy producers about planting 90-day corn.
“The goal is to harvest in early August,” he says. “It helps lessen the concern around running out.”
He also shares some producers have adjusted planting plans due to weather.
“For tonnage purposes, and in case of a drought or really for the opportunity to sell more corn this fall, producers have chosen to plant BMR-Sudan.” Vaassen says.
Vaassen reports producers have retooled rations to feed lower corn silage diets with purchased baled hay. He says this transition creates a “win-win” situation by lowering the dollars per head, per day by removing proteins from the diet.
“By adding hay to the diet, we can reduce soybean meal some and lower costs today,” Vaassen says. “Secondly, by reducing corn silage usage today, we can stretch inventory further into the fall, creating other opportunities in the fall.”
Although dairy producer Lisa Reeck says she isn’t worried yet, she is hopeful her farm’s planter can get rolling in a couple of weeks.
“For us, I would say the last week of April or the first week of May is normal,” she says. “Even when we have to wait until later May to plant, it works out okay for us.”
Reeck and her family milk own and operate Greenwood Dairy, home to 700 cows and 1,300 acres in Paynesville. She says their feed inventories are lower than in previous years because of how dry they were last year.
“We need a good summer of rain and growing days to make up for smaller crop last year,” she remarks.
Reeck intends to plant longer day varieties and hopes to harvest the majority of their corn as silage.
“A lot of our corn can go both ways,” she says. “It just depends on how silage yield is this year.”
Maximizing the Milk Check
As feed prices continue to rise, so have milk checks. Factor in thin margins, Vaassen works with producers to maximize income. He recommends the following four tips to capitalize on profit:
- Component prices are excellent right now; look to push components as much as possible.
- Harvest and maintain the best possible forages; all the savings add up.
- Review feed ingredients, understand why you are feeding them, and decide if they have add value in the diet today.
- Consider working with a broker to better manage the margin between feed costs and the milk check. Understand what your dairy needs and work to lock that in.
Other Management Decisions
Not long ago, Vaassen was on a dairy that moved to sell 100% of their calves and purchase all their replacement needs monthly.
“This was a giant financial swing for them,” he reports. “It’s a tough decision on their hearts, but the right decision for their checkbook.”
Ultimately, for this dairy, transitioning to the replacement system minimizes the worry, allowing them to better focus on what is making them money today.
Soon, once farmers get to the field, they will have plenty of tractor time to think about all the challenges that face them. Contact your nutritionist and other dairy team leaders to help work through some ideas you are contemplating to maximize your dairy’s profit.
