A recent USDA Ag Prices Report outlined that labor expenses were up 7.3% compared to 2020 and according to Stan Moore with Michigan State University Dairy Extension, labor costs are about 14% of a dairy’s total expenses.
New York dairy producer Tyler Reynolds, who is a co-owner of Reyncrest Farms, says that his farm’s year-over-year labor costs have risen by 25-30%.
Ben Laine, a senior dairy analyst with Terrain, says that it’s not about the cost of labor, it’s about the availability of reliable labor.
“It’s not just about whoever is willing to do the work,” he says. “You want a good, reliable team.”
Wisconsin dairy producer, Jordan Mathews, a partner at Rosy-Lane Holsteins, concurs with Laine and shares that his farm is pretty lucky when it comes to labor.
“We’ve had a little bit of turnover, more than normal, but about three years ago we kind of changed how we approach labor and changed from waiting until someone shows up looking for a job to constant recruiting,” he says. “So, we always try to have someone in that pipeline waiting to get that call to work at Rosy-Lane.”
Rosy-Lane milks 1,550 cows at one of two locations—the home farm in Watertown, and a newly purchased second farm in Paoli. Mathews shares that some employees chase money, and not the quality of the environment that Rosy-Lane can provide.
“I think we’re comfortable with them leaving because I don’t think those people are happy no matter where they are at,” he says.
Laine says that immigration reform is needed, but it’s simply not just about getting more help.
“I think more of the focus is relying on getting the right people and getting the right labor,” he says. “It’s about getting a strong team that wants to stay and to be reliable and that is where the biggest gains are going to be.”
Moore says for those that struggle to keep employees, to talk to your employees.
“Both those that are staying and those that are leaving,” he says. “Ask what they like about working on your farm, and what they don’t like. And, find out what is making them leave. Often it is hard to get a clear answer on this from employees that are leaving, as many don’t want to burn bridges and those that do, may overstate a problem.”
Moore highly recommends producers to conduct a personal assessment.
“Find out where can you improve and if you have a management team meeting (especially involving outside professionals), make this a topic of conversation,” he says.
Laine believes that an increase of large dairies will invest in technology to help dial in on efficiencies that can help combat labor struggles.
“Especially in years where there’s pressure and high costs,” he says. “Any technology that’s a realistic and beneficial investment that’s going to help you manage those costs and cut those costs becomes more appealing. It’s always that balance of is this the year to make that investment. But I do think there’s a lot of momentum.”
Moore encourages producers to continuously look for labor saving technology and production methods that will allow you to trim labor hours and increase compensation and benefits to help in overall retention.
