MILK Business Quarterly

Insider Strategy Tips for Top Performing Producers

Tue, 02 Dec 2025 20:39:52 GMT

Progress on the farm rarely comes from a single breakthrough. It comes from the everyday decisions that make a dairy run smoother, smarter and more sustainably than it did the year before. For three dairymen speaking at this year’s MILK Business Conference, Greg Bethard, TJ Tuls and Hank Hafliger, success isn’t accidental, it’s intentional.

These producers offer practical, hard-earned tips for other producers, sharing the strategies that have helped their dairies stay competitive, efficient and resilient in a fast-changing industry.

Invest In Technology That Pays Its Way
Technology continues to transform how dairies operate by offering tools that streamline processes and boost efficiency. For Tuls, the principle remains clear that every investment must deliver value.

“We’re always looking for ways to make our dairies run better,” Tuls says. “Right now, we’re testing three or four different systems to see what works best.”

Some tools use cameras to monitor cow movement and employee performance. Others combine data with DairyComp to spot trends and guide better decisions. But Tuls reminds farmers technology only works if you use the data.

“At the end of the day, it’s feeding your data back into your operation and doing something with that information. And it takes good people and managers to interpret it and really apply it on your farm,” he says.

For Bethard in Kansas, his perspective comes with decades of hindsight.

“I remember 30 years ago when I started out, a 1,000-cow dairy was huge. Back then, DairyComp and headlocks were your tools to manage that many cows,” Bethard says.

Today, his list of non-negotiables to manage a larger herd has grown. Sort gates, activity collars and meters in the parlor are all essential. The philosophy behind adopting new technology, though, hasn’t changed.

“I can barely use my cell phone, so I’m not really a technology guy,” he jokes. “I’m looking for anything that’s easy to use and lowers my cost to produce milk. The key is evaluating it and embracing what makes sense for us.”

For Bethard, every piece of technology has to prove its worth. When he evaluated activity collars on his dairy, the numbers spoke for themselves. Looking ahead, he plans to follow the same approach by avoiding flashy trends and focusing on tools that truly improve efficiency and animal care.

Measuring What Matters
Across all three dairies, success is powered by key performance indicators.

Tuls’ team in Nebraska leans heavily on people-focused metrics.

“One of the biggest KPIs we track is employee turnover,” he says. “When you have a strong, experienced team, it directly improves profitability, production and cow longevity.”

Feed efficiency is another cornerstone metric for Tuls.

“You can feed a lot of different products and make a lot of milk, but if you’re spending a ton of money doing it, it doesn’t help your bottom line,” he adds. “How cows convert feed into milk, that’s a huge deal.”

Bethard’s dairy approaches metrics through the lens of business sustainability. Their guiding number is their break-even cost with no milk price factored in.

“If we achieve that, really nothing else matters much,” Bethard says.

Operationally, they track a daily static variable margin: income over feed cost minus variable expenses.

“That margin is what pays for all the other fixed costs,” Bethard says.

It’s the heartbeat of the business, and the number he relies on to maintain a healthy, resilient operation.

Winning With People
For all three dairymen, success starts with people. Hafliger says that means creating a family atmosphere on his operation.

“These guys come to work in the middle of the night when it’s snowing outside,” he says. “They’re pulling calves and caring for cows in the toughest conditions. It’s important to treat them like family.”

Tuls agrees. Watching employees grow has become one of his greatest rewards.

“Three of our managers started as cow pushers, and now they’re running dairies,” he says. “That’s fun to watch. They really are family.”

Tuls says leadership means being present, listening, checking in and making sure people know their work matters.

“They’re working at your farm by choice,” he says. “You’ve got to convince them it’s a good place to be,” he adds.

Bethard sees culture as the cornerstone for his operation.

“Culture is what keeps the wheels turning,” Bethard says. “You can have the best systems in the world, but if your team doesn’t feel respected and connected, nothing works.

The Blueprint for Success
Across three states and three management styles, one message is clear. Great dairies do not achieve success by chance. They build it through careful adoption of technology, disciplined measurement and workplaces where people feel valued and motivated.

CEO Cliff Notes: 3 Lessons on Leadership and Life

Tue, 26 Aug 2025 14:00:00 GMT

So often, we see a leader in their prime. When they are sitting in a corner office as a CEO, or making deals on a major acquisition. But what we don’t see are the life experiences that put them on this path, let alone those that nearly derailed their journey.

Over the past few months, I’ve had the privilege of sitting down with some unforgettable leaders. Here is a snapshot of three simple, yet powerful, lessons on life and leadership:

1. “Don’t let anyone rob you of what you want to be.” - David Abbott, former CEO of Purina Mills

One such story that stands out is that of David Abbott. He spent more than 25 years of his career with the Purina Mills company, starting out as an intern and eventually becoming the CEO. From humble beginnings, Abbott grew up in from rural Vermont. He recalls leaving his small town to go to college, and learning later on that his school principal had told his parents he was not college materials. Abbott’s message rings true that others may discourage your dreams and ambitions, yet they do not control your future. “Stay true to yourself,” he adds.

Listen to the full podcast here:

2. “Make a decision and own it.” - Steven Landwehr, CEO, United Dairies

One of the most impactful lessons Landwehr learned as a young manager was the power of deciding. Delayed decision-making can lead to unclarity, frustration and confusion among a team. “Make a decision, own it, just recognize that it might not be the right decision, but you’re going to learn either way,” Landwehr says. “The important thing is you learn that you have to make decisions.”

Listen to the full podcast here:

3. “Identify good people, hold them accountable, and empower them.” - Manuel Soares, CEO, Milc Group

Soares believes people want to be held accountable, as well as have the freedom to make decisions. As a leader, empowerment means understanding that mistakes are inevitable and also necessary for the growth and development of the next leaders in an organization.

Listen to the full podcast here:

It’s Not Luck, It’s Intentional

Thu, 21 Aug 2025 14:00:00 GMT

Let’s talk about something that can really make a difference in your farming journey—professionalizing your farm. If the word professionalizing doesn’t resonate with you, then let’s call it being Intentional. Intentional about what?

As someone who works across all sectors in agriculture, it’s my humble opinion that dairy is the most complex. Yes you need great animal husbandry and good milk production, but there is more. So why do some farms tend to pull ahead over time? Why do some farms just have “all the luck?” It’s not luck at all, but rather intentional focus and execution in several key areas. These are my observations from working with many top farms. Here are some tips.

Building Strong Relationships
First things first, surround yourself with good people. Successful farmers know the importance of fostering collaborative relationships with bankers, accountants, landlords, family members, and employees. It’s all about creating a supportive environment where everyone can succeed together. These relationships are not just feel good, but built on respect and trust. Although the employees will never show up on a balance sheet, they get more attention than any other asset.

Heads Up vs. Heads Down Farming
While production is crucial, the best farmers look beyond the immediate tasks at hand. Heads up farming involves applying general business principles to agriculture, looking over the horizon, and creating a common vision. This approach includes attending peer groups and conferences, being proactive on the business side, and holding regular owner and manager meetings to manage conflict, review data, and solve strategic problems. Most everyone likes to drive tractors or work cows but the biggest challenges are often solved with a spreadsheet and some quiet time to think. On these farms, off the farm education and skill development is not only encouraged, its often a prerequisite to come back to the farm as an owner.

Maintaining Momentum
Top-tier farms avoid getting stuck in cycles of indecision or intra-family politics. They make decisions, implement changes, and keep moving forward. If a decision doesn’t work out, they reassess and try again. These farms don’t finger point or cry over spilled milk. They clean up the mess, correct the mistake, and keep moving. When a decision is made everyone gets on board even if it wasn’t their idea.

Scaling Business Systems
As farms grow, their management structures must evolve. What once worked for HR, financial reporting, equipment maintenance or data management often doesn’t work with 2x the cows. You can’t shove 2x the cows through a parlor at max capacity any better than you can shove 2x through your office, shop and support systems. When the cow numbers increase the rest of the system is intentionally increased as well.

Take these tips from across North America and determine if you need to professionalize as you scale up. All farms don’t have to reinvent the wheel and it’s not about luck. We can all borrow great ideas from each other.

Recognizing the Best in Dairy: Apply Now for the 2025 MILK Business Awards

Thu, 31 Jul 2025 15:53:32 GMT

In every successful dairy operation, there are standout individuals and teams who go the extra mile, whether it’s through smart innovation, passionate advocacy or exceptional work ethic. That’s why the MILK Business Awards were created to celebrate those people and shine a spotlight on the best in the business.

This year’s application deadline is Aug 11 , and there are three opportunities for recognition:

The Young Producer Award
Are you, or do you know, a young dairy leader making a difference both on and off the farm? This award recognizes a producer 35 years of age or younger as of Aug. 1, who not only excels in their operation but is also a strong advocate for the industry through community and organizational involvement. If at least half your income comes from farming or related ventures, you’re eligible to apply.

Previous Winners:

The Leader in Technology Award
From precision feeding to data-driven herd health, dairy technology is evolving and so are the producers who adopt it. This award honors a dairy farm that has strategically implemented technology to improve ROI, labor efficiency and time management. Innovations can span anything from milking systems and nutrient management to genetics, automation and more.

Previous Winners:

The Employee of Excellence Award
Behind every great dairy is a team of outstanding employees who make daily operations possible. This award recognizes an exceptional team member, such as a milker, calf manager or feeding specialist, who plays a critical role in the success of the dairy. Nominations must come from the employer.

Previous Winners:

Why Apply?
In addition to national recognition, winners gain the opportunity to connect with top producers and industry leaders at the MILK Business Conference in Las Vegas. It’s a chance to share your story, represent your farm and inspire others across the dairy community.

Winners will be featured in MILK Business Quarterly magazine and will receive a trip for two to the 2025 MILK Business Conference, Dec. 2-3, in Las Vegas, including airfare, hotel and full registration.

Apply or Nominate by Aug. 11
Don’t miss your chance to be recognized for the impact you’re making. Whether you’re a young leader, a tech-driven operation or an employer who wants to spotlight your top team member, now is the time to apply !

Community-Fed and Family-Led: The Unique Story of Brey Family Beef

Mon, 28 Jul 2025 13:42:45 GMT

At Brey Cycle Farm in Sturgeon Bay, Wis., beef-on-dairy is just a small piece of the family’s 1,500 registered Holstein operation — but it serves a big purpose. What started as a way to help maintain the farm’s herd size evolved into something more meaningful — an avenue to give back to consumers, connect with the community and promote transparency on their 121-year-old operation.

Located in the scenic countryside of Door County, Brey Cycle Farm has been a family-run operation since 1904. Over five generations, the Brey family has lived by their mantra: “To learn and grow so that all may prosper.”

That sentiment remained strong when Tony and Moriah Brey returned to the farm in 2007 and started milking just 100 cows. By 2016, when Jacob and Lauren Brey joined the team, the herd had grown to 400 cows. With more family involved, the Breys knew staying competitive meant being open to new opportunities.

“Typically, we always focused on growing the herd. But there was a time frame where we were not sure which direction we were going to go,” Moriah Brey recalls. “So, the boys began using beef-on-dairy to help keep numbers steady.”

After using Angus semen on a few of their lower-end Holsteins, the family had a group of crossbred animals ready to go to market in the spring of 2020. Rather than send them to the sale barn, they saw an opportunity to process and sell the beef themselves.

“We had beef available and a desire to give back,” Brey says. “We started processing our own animals and put in a retail store right away. It’s a little red shed that sits near my driveway across the road from the farm.”

Not long after the launch of Brey Family Beef, the COVID-19 pandemic threw a wrench in their plans. However, unlike many businesses during the pandemic, Brey Family Beef prospered.

“During COVID, people would call ahead and we would run the beef out to their car. And it actually worked really well because people didn’t want to come in to touch, see or feel things. They wanted to keep their distance. I’d like to tell you we had this crystal ball and knew things would shut down and everyone would stop in our driveway to buy meat, but we didn’t,” Brey says with a laugh. “It all lined up and worked in our favor.”

(Brey Family Beef)

While the small retail store’s timing was lucky, the product spoke for itself. Demand for Brey Family Beef grew, and the family leaned into the momentum.

“Our Facebook page started to take off, and others heard about us by word of mouth,” Brey notes. “People started reaching out with questions — not just about the meat, but about the farm, how the animals were raised, what they ate and how we handled them. And that opened a door for us to really tell our story and help people understand what modern dairy and beef farming looks like.”

A Local Staple
One of the guiding principles behind Brey Family Beef has been keeping everything local, starting from the calves and extending all the way to the final product.

“All of the meat comes from our farm,” Brey explains. “Nothing comes from outside of Door County.”

Much like their dairy operation, the crossbred calves are born and raised on the farm, often alongside their dairy counterparts.

“We raise the calves and grow all of our own feed. Then, when the calves are old enough, they graze one of our pastures until they are fed a finishing diet. Everything comes from here on the farm,” Brey says. “It’s all connected.”

That local loop extends to their beef finishing program as well. Even the processing is done close to home. By keeping every step of the process local, the Breys maintain full oversight of their product’s quality and consistency.

That local pride shows up in creative ways, too. The Breys recently partnered with a nearby cherry farmer to craft Door County cherry-and-cheddar-flavored beef sticks and summer sausage — a flavorful nod to their region and a testament to what can happen when local producers come together.

“We’re proud to keep it all here,” Brey adds. “It’s not just about raising good beef. It’s about doing it in a way that stays true to who we are and where we come from.”

(Brey Family Beef)

The Devil is in the Details
From the start, building a direct-to-consumer beef business was a family effort. Jacob and Tony focused on the cattle while Moriah and her sister-in-law, Lauren, took charge of customer outreach, marketing and day-to-day operations. With demand for their local products continuing to rise, it became clear that staying successful would require careful planning and collaboration.

“I’d run spreadsheets on what it cost to raise the animals, factor in what we needed to make and create a blend price for the products,” Brey explains. “When you’ve got a different amount of hamburgers, steaks and roasts that come from each cow, you have to do the math to make it all pencil out.”

That attention to detail extended beyond the spreadsheet. While some customers preferred to order quarters or halves in advance, others wanted the flexibility of shopping by the cut. To meet both needs, the Breys introduced more customer-friendly options — including preorders, customized beef bundles and seasonal holiday boxes.

“We wanted people to feel like they had choices,” Brey says. “Whether someone’s looking for a quarter of beef or just a few steaks for the grill, we try to make it easy.”

On the marketing and digital side, Lauren took the reins.

“Lauren works full time for Farmers for Sustainable Food, and she had great contacts and a good sense of how to build a brand,” Brey says. “She got our website off the ground, keeps it updated, manages plugins and hosts the online store. It’s all very user-friendly thanks to her.”

(Brey Family Beef)

Beef That Brings People Together
At Brey Family Beef, success goes beyond the amount of beef sold. From the beginning, the business has been built around people — placing value not only their customers, but also their employees and the broader community.

“All of our employees get beef at half price for their families,” Brey says. “We also give a lot away. It helps us meet people in the community and take care of the people who take care of the cows.”

Beyond taking care of their employees, Brey Family Beef often shares beef sticks during tours and community events and provides samples to local schools — reinforcing their belief that food is a powerful tool for connection and community building.

“People want farm-to-table. They want to know their farmer,” Brey says. “And we can provide that while also educating them on how we farm and why. We always emphasize that all sizes of farms are acceptable. There are lots of different ways to do things well.”

Currently, no major expansion plans are on the horizon. But the Breys remain open to small improvements and evolving needs. Rather than trying to fast-scale their retail beef brand, they have chosen a steady, intentional pace.

“We’re content with where we are at for the moment,” Brey says. “It checks the boxes for us. It gives us a way to give back, meet people and offer a product we’re proud of.”

That balanced mindset also extends to pricing.

“Right now, we’re probably priced lower than the grocery store, but it balances out,” she says. “And when the market dips, our loyal customers stick with us. That means a lot.”

In the end, Brey Family Beef may be just one piece of their broader farm operation — but it reflects the heart of who they are.

“It’s a small part of the big picture,” Brey reflects. “But it’s one that lets us share who we are and why we do what we do. That’s what makes it worth it.”

Reset, Refocus and Recharge at the 2025 MILK Business Conference

Mon, 23 Jun 2025 17:27:45 GMT

The days are long, the heat is intense and the to-do list never seems to end. That’s why now is the best time to plan your year-end breather and business reset. And there’s no better way than by joining us December 2-3 at the Paris Hotel in Las Vegas for the 2025 MILK Business Conference.

This two-day event is built for progressive dairy producers ready to elevate their business and move their operation forward. From market volatility and beef-on-dairy innovation to labor, technology and sustainability, we’re tackling the issues that matter most to modern operations. You’ll hear from leading experts, gain practical takeaways and connect with producers who share your goals and drive.

What to Expect
Last year’s conference drew a record crowd representing more than 1 million cows. This year promises even more — more networking, more insight and more energy.

The 2025 agenda is packed with sessions designed to sharpen your competitive edge and prepare your operation for the road ahead. You’ll walk away with real-world tools, innovative ideas and a renewed sense of direction.

Featured speakers include:

Krysta Harden, president & CEO of the U.S. Dairy Export Council: An Update from USDEC
Stephen Cain, National Milk Producers Federation: Navigate Uncertainty: Dairy Industry’s Path Forward
Greg Bethard, High Plains Dairy: Transform Your Future: Insider Strategy Tips from Top Performing Producers

Plus:

Panels on labor, beef-on-dairy, policy and sustainability
Strategy insights straight from leading producers
Live taping of U.S. Farm Report with Tyne Morgan

MILK Business Awards
We’re also celebrating the dairies that have taken their operations from good to great. Applications are now open for the 2025 MILK Business Awards, honoring innovation, efficiency and leadership in dairy. Winners will be recognized live on stage in Las Vegas. But don’t wait — nominations close August 1.

Last year’s award winners included:

The 2024 MILK Business Conference award winners have been revealed, and they are set to be honored at the prestigious event on December 10-11 at Caesar’s Palace in Las Vegas.

(Lindsey Pound)

Don’t Miss Out
And yes, the fan-favorite Dairy DARTY is back. What’s a Dairy DARTY? A Day Party! Join us for an afternoon of networking, games and fun. Meet other dairy producers while enjoying the beautiful Paris Hotel pool deck with food, drinks and sunshine. You work hard — you deserve to celebrate!

Between the insights and the atmosphere, this is more than just another conference, it’s a chance to close out the year with momentum and purpose.

Don’t wait - early bird rates won’t last. Register today and learn more at MilkBusiness.com!

A New Era for Nebraska: First Dairy Plant Breaks Ground in Over 60 Years

Thu, 19 Jun 2025 21:42:48 GMT

A new chapter in Nebraska agriculture began Wednesday as DARI Processing, LLC officially broke ground on the state’s first new dairy processing plant since 1963. The $186.3-million facility will be located on a 40-acre site within the Seward, Neb., Rail Campus and is expected to be fully operational by the first quarter of 2027.

Once complete, the plant will process approximately 1.8 million pounds of milk per day, using aseptic, ultra-high-temperature processing to produce shelf-stable dairy products. These products, which are designed to have up to a 12-month shelf life without refrigeration, are positioned to support markets with limited cold storage access, such as food banks, schools and global export channels.

“This is really just a transformational project for Seward, and really for the county, region and the state,” says Jonathan Jank, president and CEO of the Seward County Chamber and Development Partnership.

DARI Processing, LLC is owned by the Tuls family, longtime Nebraska dairy producers and the largest dairy operators in the state. With this project, the family is taking the next step in vertically integrating their operation and keeping more of Nebraska’s milk in-state.

“Building this plant will help keep 30% of the state’s milk production from being processed elsewhere and creating more jobs here in the state,” says TJ Tuls, CEO of DARI Processing, LLC. “By keeping Nebraska’s milk in Nebraska, we will reduce the amount of miles that trucks haul around milk, reduce fuel usage and reduce the overall carbon footprint.”

He also notes the broader opportunity this facility presents.

“This isn’t just about our family or our farm — it’s about building a sustainable future for Nebraska dairy,” Tuls says. “It’s about creating a better path forward for farmers, families, and the next generation who want to stay on the land.”

While Tuls Dairies will supply a large share of the milk, the plant will also rely on additional producers throughout the region.

“Their existing dairies will supply a good percentage of it, but not all of it,” Jank says. “We think this opens up a big opportunity for farmers in the region, and some may even consider expanding as a result.”

The site itself is also a strategic part of the equation. The Seward Rail Campus has been in development since 2009, and food processing has always been at the top of its target list. The vision is finally becoming a reality.

“At our core, Seward County is agriculture,” Jank says. “We have a lot of great farmers, not just in corn and beans, but also livestock and dairy. This project fits perfectly.”

Jank also emphasizes that local and state-level coordination is what helps get a project like this across the finish line.

“The Tuls wanted to vertically integrate in the market,” Jank says. “They were looking for about a 40-acre site, and we had it for them. Ultimately, we were able to help coordinate the rest of the logistics around extending road and utilities and making sure that everything else fit from a dollars and cents standpoint, to make them profitable here in the community.”

And the timing couldn’t be better. The dairy industry in Nebraska has been seeking greater processing capacity to support in-state milk production, and this facility helps fill that gap.

“There’s a Grow Nebraska Dairy team that’s been working hard to bring processors to the state,” Jank says. “Ultimately, the Tuls family took it upon themselves to become that processor, and now we’re seeing the result.”

The impact of the new facility is expected to ripple through rural communities, offering economic and generational opportunity for family farms.

“This really is a game changer for the dairy industry in our state,” Jank adds. “We’re hoping this facility gives the next generation of farmers a reason to come back to the farm because there’s now a processor close to home.”

Governor Jim Pillen, who attended the groundbreaking event, calls the project a huge win for Nebraska agriculture. The facility is expected to create around 70 new jobs and help keep more value-added production within the state’s borders.

“Nebraskans raise the finest crops and livestock in America,” Pillen says. “Instead of shipping these commodities out of state, we can add value to them right here in Nebraska. I commend Todd and TJ Tuls for constructing a dairy plant to capture the full value of milk from local dairies.”

Jank sees the facility as proof of what’s possible when vision meets partnership.

“Economic development is a team sport,” he says. “None of this happens without a developer willing to invest, but there are also countless partners — community leaders, utility providers, state officials and others — who step up to make this project possible.”

Your Next Read: Growing Pains and Big Gains: A Wisconsin Dairy’s Fast-Paced Journey From 70 Cows to 700

Tariffs Cast Chilling Effect Over Whey Sales

Thu, 08 May 2025 18:16:37 GMT

The U.S. trade war with China continues despite recent comments from President Donald Trump and members of his administration that suggest the U.S. could cut its current 145% tariff rate on goods from China by 50% or more. While these comments buoyed markets initially, an official from China’s Commerce Ministry called on Trump to eliminate tariffs altogether if he wants to negotiate with China.

Sarina Sharp, analyst with the Daily Dairy Report, says, “the damage high tariffs can do is very real. In the dairy complex, whey and lactose prices could be hardest hit. In fact, tariffs are having a chilling effect on both international and domestic whey sales. China is already turning to other suppliers for whey and lactose.”

In 2024, China bought 38% of all U.S. dry whey product exports and 25% of U.S. lactose exports, according to data from USDA. While early in the trade war, China granted tariff exemptions for U.S. lactose and some whey products, Beijing allowed those exemptions to lapse on Feb. 28. Today, China’s tariff on whey remains at 127%. Tariffs on food-grade whey protein concentrate are 140% and taxes on U.S. lactose products range between 130% and 135%.

“Any product that left the United States before April 9 and arrives in China before May 13 will not face these punitive border taxes, so it could take time for monthly trade data to confirm a setback in U.S.-China dairy trade volumes,” Sharp says. “Ahead of the tariffs, Chinese buyers stepped up imports of American whey products, and in March, Chinese imports of U.S. whey reached a nine-month high.”

Damage from the trade war has extended far beyond imports. Relations between Chinese buyers and American suppliers have soured, Sharp says.

“Amid growing anti-American sentiment, Chinese hosts have rescinded invitations to trade shows, and even the least patriotic buyers will eschew U.S. dairy products under the new tariff rates,” she adds.

China has turned to Europe as an alternative supplier, and as a result, European whey prices have been climbing, while U.S. prices have weakened. USDA’s Dairy Market News recently noted that U.S. buyers of whey feel a general lack of urgency to purchase whey because they are, “aware of the potentiality of more dry whey loads remaining,” in the U.S. In other words, buyers believe the steep slowdown in sales to China will provide plenty of opportunities to snap up whey at cheaper prices down the road, Sharp says.

The loss of whey exports is already having a negative impact on U.S. dairy producers’ milk checks, according to Sharp.

“Some dairy producers are buying liquid whey from cheese plants at steep discounts to feed to their cattle,” she adds. Before the tariffs, that whey was dried and shipped to China.

“As cheese and whey production climb, the U.S. dairy industry will need to maintain or grow exports to keep inventories in check,” she says. “If the U.S.-China trade war drags on, exports will suffer and whey and lactose values will likely drop again.”

Your Next Read: Economists Fear Trade War Will Push Agriculture Deeper Into a Recession

RFK Jr.: Friend or Foe to the Dairy Industry?

Thu, 27 Feb 2025 15:49:11 GMT

Robert F. Kennedy Jr.'s confirmation as Secretary of Health and Human Services (HHS) has sparked a lively debate in the dairy industry. While some see his “Make America Healthy Again” stance as a win for dairy products, others worry about his controversial views on raw milk and ultra-processed foods.

The big question is — will RFK Jr. be a friend or foe to the dairy industry?

Dairy Employee Milking Parlor_Reuters

(Reuters Marketplace - DPA Pictures Alliance)

RFK Jr.: Catalyst or Controversial Figure?
RFK Jr. has emerged as a polarizing figure whose name is now associated with a broader call for re-evaluating nutritional policies. His willingness to challenge long-standing dietary guidelines — particularly the vilification of fat — has put him at the center of a broader push to rethink what’s truly “healthy.”

While some see his rhetoric as a much-needed shake-up that could benefit both dairy producers and consumers, others worry his controversial positions could lead to increased regulatory uncertainty and public health risks.

Newly appointed Secretary of Agriculture, Brooke Rollins, recently sat down with Farm Journal at the Top Producer Summit and shared her thoughts on RFK Jr.’s impact on agriculture.

USDA Secretary Brooke Rollins headlined the opening of the 2025 Top Producer Summit in Kansas City, Mo. Moderating the discussion was Kansas Senator Roger Marshall.

(Rhonda Brooks)

“I know there’s a lot of concern in the community, and I understand that with the confirmation of Secretary Kennedy, RFK Jr., at HHS. Some of the things he has said in the past, I know, if implemented, would be devastating for a lot of our farming community,” Rollins said. “I believe, though, and maybe it’s the optimist in me and in the relationship that he and I have built, I have found him to be extremely reasonable.”

Despite concerns about Kennedy’s past statements, Rollins remains hopeful that open dialogue and collaboration will help navigate any policy disagreements.

“I believe he was very truthful and sincere when he said we will work this together. Will we have disagreements? Probably so. But when we do, we just take them to the President,” she Rollins said. “There may be a few of those [disagreements] in the coming months and years, but I am more confident than ever before that he understands the implications — at least a lot of them — of what would happen if some of these more bold ideas of his would get implemented.”

While policy clashes are inevitable, Rollins sees Kennedy’s appointment as an opportunity to drive important discussions — particularly on issues such as childhood obesity and nutrition policy.

“I think what Secretary Kennedy represents is a new day in America,” Rollins said. “We have a chronic childhood obesity disease issue in this country, and his focus on nutrition is really important. I’m looking forward to working with him on things like the food stamp program and the nutrition programs out of USDA. We’re going to be forced to work together, whether we want to or not, on dietary guidelines and other things. There’s a lot of work ahead between the two of us, but I remain optimistic we will get to the right place for our ag community.”

Kennedy’s Stance on Raw Milk
Kennedy has said he only drinks raw milk , and his recent endorsement of raw, unpasteurized milk has raised eyebrows among public health officials and industry leaders. He has criticized the Food and Drug Administration (FDA) for its stringent regulations against raw milk. In fact, Kennedy has referred to the FDA’s regulations on raw milk as part of the agency’s “war on public health.”

However, the FDA and numerous health experts warn consuming raw milk poses significant risks, including exposure to harmful bacteria that can lead to serious illnesses. Promoting raw milk could potentially result in increased health incidents, tarnish the dairy industry’s reputation and invite stricter regulatory scrutiny.

His Case for Whole Milk
While Kennedy’s positions on raw milk have sparked debate, his views on nutrition align with those advocating for a return to full-fat milk. The push for whole milk in schools — a movement that recently saw bipartisan support in Congress — has gained traction, with many arguing milk fat is not the enemy it was once made out to be.

Whole Milk

(Canva)

“Fat in milk is not a health risk,” noted Gregg Doud, president and CEO of the National Milk Producers Federation (NMPF) , during a recent Farm Journal Unscripted podcast, “The majority of both parties in the House of Representatives recently agreed we need to get whole milk and 2% milk back in our schools in this country. I mean, I can’t think of something that’s more make America healthy again than this topic.”

RFK Jr.’s support of whole milk comes at a time when fluid milk is experiencing a resurgence, signaling a shift in consumer preferences toward full-fat dairy products.

“Last year, for the first time in 30-some-years, fluid milk consumption is actually on the uptick in the United States,” Doud said. “I think this whole conversation [on whole milk] is causing consumers to turn a corner — and we have to help them understand whole milk is not a bad thing. It’s something us farm kids have known forever.”

A Return to Fat and Flavor?
For decades, dietary guidelines steered consumers away from fat. However, that narrative is shifting. RFK Jr. has positioned himself as an advocate for real, minimally processed dairy products, arguing foods such as butter and whole milk have been unfairly demonized for decades.

Butter

(Canva)

Supporters argue the full-fat versions of milk and butter not only taste better but also provide essential nutrients being lost in a sea of processed alternatives.

“We had this whole conversation decades ago that eggs and bacon and butter were bad for you. I don’t know how we got off on this, whether it was the dietary guideline conversation, but I think it got totally off track. I agree with [RFK’s] notion that we have to get this realigned again.”

This shift in perspective comes at a time when butter consumption, both in the U.S. and globally, is on the rise.

“Look at butter consumption in the U.S. and in the world — it has been a driving force for dairy,” Doud noted. “We have completely changed dairy production in the U.S. for more solids and more butterfat. The demand for it is there.”

The Limits of Kennedy’s Influence
While RFK Jr. is a strong advocate for rethinking nutrition policy, his ability to directly influence federal dietary guidelines is limited. Although his position at HHS allows him to push for changes, the authority to revise the nation’s Dietary Guidelines ultimately lies with USDA, not HHS.

Nina Teicholz, author of “The Big Fat Surprise: Why Butter, Meat and Cheese Belong in a Healthy Diet,” recently touched on this during a podcast with NMPF .

“There’s a lot of support for changing our nutrition policy in various ways, in ways I consider to be good,” Teicholz said. “I know there’s support for bringing whole milk back to schools, and I think that will be supported by Bobby Kennedy. But really his whole focus of control is going to be about drugs, healthcare, all of the domain of HHS. And the action on food and dietary policy is going to happen at USDA.”

Friend or Foe?

RFK Jr. Swearing In

(Photographer: Jason C. Andrew/Politico)

So, will RFK Jr. be a friend or foe to the dairy industry? The answer isn’t entirely clear. On one hand, his push for whole milk and full-fat dairy products aligns with what many in the industry have been advocating for, especially with growing support for bringing these options back into schools. On the other hand, his stance on raw milk and some of his broader views on nutrition policy could bring some challenges and uncertainty.

One thing is for sure though – RFK Jr. is shaking up the conversation about food, health, and nutrition.

Your Next Read: Rethinking the Term ‘Cheap Labor’ in the Dairy Industry

Dry Products Put More Pressure on Latest Milk Price

Fri, 21 Feb 2025 14:00:00 GMT

After a period of substantial volatility, both spot prices and futures markets have settled down. There have been numerous days of light trading volume as traders did not have much to get excited about. Unfortunately, spot prices have not been trending higher. The substantial areas of weakness have been in dry whey and nonfat dry milk. This weakness has had a significant impact on milk prices.

The spot dry whey price has been under steady pressure. The price peaked on December 13, 2024, at 79.25 cents per pound. The close of spot trading on February 14^th was 55.50 cents, a decline of 23.75 cents reaching the lowest price since August 28, 2024. That reduced the Class III price by $1.4250 per cwt. Every one-cent decline in dry whey correlates to a 6-cent decrease in Class III. That is one of the main reasons why Class III futures have not been able to increase even though cheese prices have risen.

Dry whey reached a level at which some end users have sought alternatives due to the high price. Buyers of dry whey are accustomed to contracting dry whey for months in advance. Once they look for and find alternatives, they will contract those supplies for months in advance. Dry whey demand slows, resulting in the price decline. The market tends to overcorrect to the downside as it takes longer to regain buyer interest. They are not quick to rebuy dry whey supplies due to the alternative products already on the books. Once prices fall back to lower levels, demand will eventually be stimulated.

Nonfat dry milk has moved similarly. The price peaked on November 14, 2024, at $1.4050 per pound, and closed at $1.28 per pound on February 14^th, a decline of 12.50 cents. This is the lowest price since August 22, 2024. The decline is not quite as much but it does have a substantial impact. Each one-cent decline in the nonfat dry milk price correlates to a decrease of 8 cents in the Class IV price. Thus, the decline has reduced the Class IV price by $1.00 per cwt.

Class IV futures have fallen significantly over the past three weeks from the weakness of nonfat dry milk and the butter price. This has moved Class IV futures nearly in line with Class III futures where they have not been in a few years. Milk futures do not show much of a price fluctuation throughout the rest of the year. It is unlikely it will remain that way as the supply/demand balance may change. However, the uncertainty of tariffs and the impact they can have on international demand will keep uncertainty in the market.

Robin Schmahl is a commodity broker with AgDairy, the dairy division of John Stewart & Associates Inc. (JSA). JSA is a full-service commodity brokerage firm based out of St. Joseph, MO. Robin’s office is located in Elkhart Lake, Wisconsin. Robin may be reached at 877-256-3253 or through the website www.agdairy.com .

The thoughts expressed and the basic data from which they are drawn are believed to be reliable but cannot be guaranteed. Any opinions expressed herein are subject to change without notice. Hypothetical or simulated performance results have certain inherent limitations. Simulated results do not represent actual trading. Simulated trading programs are subject to the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. There is risk of loss in trading commodity futures and options on futures. It may not be suitable for everyone. This material has been prepared by an employee or agent of JSA and is in the nature of a solicitation. By accepting this communication, you acknowledge and agree that you are not, and will not rely solely on this communication for making trading decisions.

Successful CEOs Do These 4 Things

Wed, 19 Feb 2025 16:00:00 GMT

I’ve had the privilege to sit down with many incredible leaders, including the CEOs and high-level managers of dairy farms and dairy businesses. Each one is like a case study on success, an opportunity to listen in for the common threads of the characteristics, habits and mindsets of those who are leading operations that are both profitable and reputable.

So, what do these leaders have in common when it comes to developing both strong teams and strong balance sheets?

In a recent conversation with third-generation CEO of T.C. Jacoby & Company, Inc., Ted Jacoby III states so clearly what I’ve heard from many others as he highlighted these four keys to success as a CEO:

Step 1. Hire talented people.
“Don’t be afraid to hire the best people you possibly can,” Jacoby says.

That means hiring people whose aptitudes and skillsets surpass your own. Choose those who will make your business better.

Step 2. Communicate a clear picture of what success looks like for them.
As Jacoby describes, the clarity of that picture must be catered to the style of communication an employee best receives.

He said, “Some people are very detailed thinkers, and they have to build concepts in their own brain based on many details. Others are generalists … they don’t actually get into the weeds on the details.”

Step 3. Equip them with the skills and resources they need to achieve that success.
Whether it’s the right tools or the best training, employ the talent you bring to your team with what they need to make that picture of success a reality.

Step 4. GET OUT OF THEIR WAY.

“It sounds easy, but it’s not,” Jacoby said. If you’ve hired really good people, if you’ve trained them well, if they know what success looks like and if you provide them with all of the resources that they require to be successful, your most important job is to get out of their way.

These keys to success build upon each other within an organization:

The power is in the PEOPLE.
The ability to SUCCEED is rooted in the ability to LEAD.
And great LEADERS have the ability to LET GO in order to empower others to utilize their talents and make decisions - even when that means making mistakes.

To hear more from Ted Jacoby III, listen to this Uplevel Dairy Podcast:

https://open.spotify.com/episode/4iD8Qh6YqDvJajb7xGngJd?si=sLaT7-9FR1C9NqLW1CNf0A

Farmland Trends, Machinery Market and Economic Outlook

Mon, 11 Nov 2024 14:00:00 GMT

On a recent Uplevel Dairy Podcast featuring Lynn Paulson, agribusiness development director with Bell Bank, a prominent theme emerged—understanding farmland trends and how these shifts may impact the broader agricultural community. In an era where precision is key, discussing farmland value trends, the machinery market, and the economic environment offers illuminating insights for producers and investors alike.

Farmland Trends: Highs, Lows, and What’s Next

Paulson highlights the evolution of farmland values, noting that over the last quarter-century, farmland has appreciated significantly, often outpacing inflation. This growth transforms farmland into a strategic investment. However, as many seasoned farmers will attest, purchasing land involves much more than mathematics; emotional factors heavily influence decisions, especially when land holds strategic value.

Despite uncertainties, Paulson predicts that farmland will remain a solid long-term investment. He emphasizes the role of upcoming generational shifts, as a significant portion of farmland is poised for transfer. This transfer, if approached tactically, may stabilize farmland prices more effectively than the broad economic factors influencing the farming sector.

Machinery Markets: Shifts and Strategic Buys

Turning to the machinery market, Paulson outlines a notable shift in recent months. The COVID-19 pandemic sparked robust machinery purchases, driven largely by excess government support and the need to reduce tax liabilities. However, as these waves crest, machinery lots are now filling up, with significant markdowns on equipment prices, presenting opportunities for strategic purchases of late-model used equipment.

For machinery dealers, these developments necessitate a keen eye for forecasting trends. They find themselves aligning with bankers who are vigilant about preparing for potential downturns. The machinery market often signals the economic climate’s direction, preceding transitions in the land market.

Economic Outlook: Challenges and Considerations

Paulson turns a critical eye on the broader economic landscape, particularly the U.S. national debt, which he considers a looming crisis. With the national debt accruing rapidly, the implications for agricultural financing are substantial. Higher interest rates and reduced government resources could pose significant challenges for farmers, emphasizing the need for robust financial management within farms.

Paulson advocates for “bulletproofing” one’s balance sheet—ensuring ample working capital and liquidity. He stresses the importance of realistic financial planning, understanding the true costs associated with family living from a farm’s finances, and setting clear boundaries between personal and business expenses.

In this fluctuating landscape, the key takeaway is clear: proactive management and strategic investment in both land and machinery are critical for thriving amidst shifts in the agricultural sector and broader economic turbulence. Keeping an eye on global trends and preparing financial and operational strategies tailored to those insights can position producers to succeed in the long term.

Your Next Read: How Higher Interest Rates Could Impact Farmers in 2025

Facing the Kryptonite of Mental Health in Farming

Fri, 08 Nov 2024 14:00:00 GMT

Even Superman has his limits, and so do our farmers. Farms are inherently dangerous places, and many of us know someone who has been injured or killed in a farm accident. When such tragedies occur, the farming community rallies around the affected family, offering support and assistance. However, the dangers of farming extend beyond physical injuries. The most prevalent injury is inside the mind of our Superman farmers.

According to the latest CDC studies, farmers are over three times more likely to commit suicide than the general population. When a suicide occurs, it often surprises everyone. But the precursors of suicide, such as stress, anxiety, and substance abuse, are frequently overlooked. How many lives could be saved if we all took mental health as seriously as physical safety?

Managing mental health in the farming community is particularly challenging. Here are some observations based on discussions with clients who have faced these challenges:

Isolation is a significant issue. Other than a spouse, many farmers work alone with no peers to have deep discussions about mental health. In close-knit farming communities, there is still a stigma surrounding mental health. Even if a local clinic has a mental health provider, it can be difficult to sit in the waiting room without being recognized by neighbors and friends. Being seen outside a mental health professional’s office still carries a stigma.

The culture of grit in farming requires gumption, perseverance, and fighting through the day’s challenges. While these are admirable traits, mental health issues cannot be resolved by simply toughing it out. Farmers often have everything on their shoulders. People look to them daily to solve problems, know the answers, and accomplish big tasks. Asking for help and admitting they don’t have all the answers is not easy.

Farming comes with unique stressors that are often beyond one’s control—finances, weather, markets, and long hours all take a toll on mental reserves. Taking time to recharge the mental reserves isn’t always feasible. Taking time off from livestock or harvest can create more worry about what is happening back home. Changing jobs isn’t an option because so much rests on the farmer’s shoulders. The farm mortgage still needs to be paid, and the cows must still be fed.

Addressing mental health in the farming community requires a new approach. It involves creating awareness, reducing stigma, and providing accessible mental health services. The involvement of local health providers who understand the unique challenges farmers face is important. We can help our farmers manage their mental health if we make it normal to ask for help. We need to educate ourselves about the signs when someone is getting stressed or being put in stressful situations. Most importantly, as family farms, we need to talk about mental health and pay attention to the signs in each other. Superman couldn’t do it all, and neither can our farmers if they are alone in mental health struggles.

Your Next Read: Promoting the Next Generation: Going from Farmer to CEO

Saddle Up for the Milk Business Conference to Win Tickets to the NFR!

Fri, 18 Oct 2024 16:02:09 GMT

Rodeo fans, it’s time to dust off your boots and grab your hats because this year’s Milk Business Conference, held at Caesar’s Palace Dec. 10-11 in Las Vegas, is taking things to a whole new level! We’re giving away TWO tickets to the National Finals Rodeo (NFR) and you could be the lucky winner!

Simply register for the Milk Business Conference by Oct. 31 (our early bird deadline) to be entered to win two tickets to Night 7 of the NFR on Dec. 11, 2024.

What’s in Store

The Milk Business Conference is the ultimate gathering of dairy producers, innovators, and industry leaders. It’s where you’ll get the tools, insights, and connections you need to ride through today’s market challenges and rope in new opportunities for your operation.

This year’s conference will once again feature top-notch sessions that cover everything from animal health and wellness to unique ways to increase farm profitability. You’ll also hear from industry leaders on topics like market trends, what’s in the pipeline for dairy policy and unique ways to not only find, but keep dependable employees.

Standout sessions include:

Can We All Get Along? Communicate to End Conflict Among Key People, Including Family
Reconsider These Immigration Solutions to Help Fill Your Farm Team
From Start to Finish: The Opportunities and Challenges that Come with Raising Beef-on-Dairy

Milk Business Awards

In addition to these knockout sessions, we will also be celebrating this year’s Milk Business Award winners. These award-winning producers have faced many of the same challenges as most dairy farmers and have come out on top. We’ll recognize their efforts throughout various parts of the conference and listen to their individual stories during a special panel titled: Good to Great - MILK Award Winners Tell All

Drumroll please - This year’s award winners are:

Young Producer Award: Perry Baeten - Baeten Dairy LLC in New Franken, Wisconsin
Leader in Technology Award: GenoSource - Blairstown, Iowa
Employee Excellence Award: Joaquin Vazquez - Vir-Clar Farms, LLC in Fond du Lac, Wisconsin

The DARTY!

Last, but certainly not least, we’re hosting a darty to end what is sure to be a fantastic, jam-packed conference. What’s the darty you ask? It’s a daytime, dairy-themed party! Join us for an afternoon of networking, games and so much fun. Meet other dairy producers while enjoying the beautiful Caesar’s Palace pool deck with food, drinks and sunshine!

Don’t miss out on the chance to attend the dairy conference of the year! REGISTER HERE!

The Milk Business Conference wouldn’t be possible without the help of our fantastic sponsors, including:

Elite Sponsors – Enogen, Endovac, Farm Credit, John Deere
Premium Sponsors – IDEXX, Novonesis, TDSG, HarvXtra
Supporting Sponsors – Edge Dairy Cooperative, Ever.ag, FutureCow, GEA, Zinpro

How to Run An Innovation Sprint on Your Farm

Thu, 20 Jul 2023 20:33:44 GMT

Create a process to brainstorm, prioritize and implement ideas

The best ideas for your farm can come from anyone on your team. How can you foster an environment of innovation and strategic focus? Use a process Mark Faust calls an “innovation sprint.”

“The exercise usually focuses on individual development, but you could apply it to items you want to innovate within your area of an organization,” says Faust, president of Echelon Management . “It will prove instantly to you the value of an abundance of ideas and relationships, as well as the benefits of the rules for productive strategy sessions.”

This process can be used as a meeting opener or brainstorming tool. Gather your team and follow this format provided by Faust.

Phase I

Pick something you want to improve.
State it in the positive, Faust says. So, if you picked “get more effective at saying no” or “slow the loss of long-term employees,” change those to “get myself to not overcommit” or “create ways I can help retain our longer-term employees.”
Put your team into groups of four.
Have each person in the group state what they want to improve, in this sentence format:

“When I improve __________, a benefit will be _______.” or “When I get better at __________, a benefit will be _______.”
Repeat four or more times! That way, each person will have stated four or more benefits of this improvement.

Phase II

Have everyone grab a notebook and pen and pair up with one other person to ask them, “What is one idea I could do to ______” in regard to the new behavior or habit.
Write down the idea. Be sure to listen without judgment and thank each person for their contribution.
Allow the other person to ask for an idea and they do the same.

Phase III

Reconvene the whole group.
Ask participants to share one word to describe the process. Limiting it to one word speeds the exercise! Capture those words on papers.
Then, optionally, individuals could share with their small group circles what they learned. This helps to an-chor a positive energy as well as get new ideas for making your first area of change.

The intel you gather during the last phase can be used to drive your farm’s strategy, Faust says. Plus, the process is a great teambuilding exercise.

“This tool helps anyone to both connect a more powerful and positive association with changing a behavior as well as get ideas on how to accomplish the change,” he says.

Rules for a Productive Strategy Session

Set aside titles and status.
Require everyone in the room to declare their point of view
Postpone judgment. There are no bad ideas.
Say yes and eliminate the “buts.”

Listen to Mark Faust discuss growing your business on The Farm CPA Podcast:

5 Business Principles That Define Success

Thu, 20 Jul 2023 20:31:01 GMT

As a child, Rich Redmond had a vision. He could picture himself playing Madison Square Garden and his drum skills vibrating across the radio waves. Redmond wasn’t an overnight success. He became a student of the drum and music industry. Through wins, setbacks and time, he created a no-nonsense system to supercharge your personal and professional life, whether you are a farmer or the drummer for Jason Aldean. His mantra:

C – Commitment: Dedicating energy to yourself, your craft and your customers.
R – Relationships: Navigating and nurturing the connections that inspire us to grow.
A – Attitude: The one thing that people will always remember about you and what will make or break any business venture.
S – Skill: Honing crucial skills for your business, while constantly developing new ones.
H – Hunger: Stoking the flames for success that burn in your belly!

Read more stories from the 2023 Top Producer Summit:

Preventative Maintenance for Your People: How to Reduce Turnover and Boost Morale

How to Run An Innovation Sprint on Your Farm

Take Time to Celebrate Accomplishments

Farming Boom or Bust in the Decade Ahead? How to Manage Price Cycles

Be Inspired by Five Remarkable Farm Operations

Q&A with the president and CEO of Tillamook County Creamery Association

Wed, 31 May 2023 15:26:09 GMT

The president and CEO of Tillamook County Creamery Association (TCCA), Patrick Criteser shares his career path, advice, lessons learned and more in a casual sit-down conversation.

Education: Bachelor’s degree in mechanical engineering from the University of Washington and a master’s degree in business administration from Harvard Business School.

Favorite Quote: “The best way to get something done is to do it.” To me, this doesn’t mean “do it yourself,” it emphasizes the importance of forward momentum for an organization. Get moving and make adjustments as you go!

Most Valued Books on Business: Eating the Big Fish by Adam Morgan and Good to Great by Jim Collins.

Describe your career path

Prior to joining TCCA, I spent eight years as president and CEO at Coffee Bean International and one year as co-CEO of Farmer Brothers. I also held management and strategic development roles at some of the most respected brands, including Nike, The Walt Disney Company and Procter & Gamble.

What are your key responsibilities?

I serve the dairy families of Tillamook County by leading their company, TCCA. In my 10 years at TCCA, I’m proud of have transformed this long-respected agricultural cooperative into one of the fastest growing consumer food brands in the United States. Today, one in four U.S. households buy Tillamook products.

What is your connection to farming?

The Tillamook County Creamery Association is a 114-year-old farmer-owned cooperative. As a cooperative, the business is owned and governed by the farming families of Tillamook County, and in my role as president & CEO, I serve these families and report to a board of directors comprised entirely of farmers. I have spent much of my career in food and other agriculture-centric business, and grew up on a hobby farm in a small rural town.

What business lessons have you learned that could be applied to farmers? Strategy is important, but 90% of success in business is execution. How teams perform together in reaction to challenges and opportunities determine whether a business will struggle or thrive. Honestly, I might have learned this as much from farmers as from anywhere else. As a fifth-generation Oregonian, I was drawn to TCCA’s deep roots in Oregon and the farmers’ entrepreneurial grit, ingenuity, and commitment to producing high-quality dairy products for over a century.

What is a leadership lesson that you’ve learned in your career?

As the leader, you don’t have to be the smartest person in the room, and it is important to create an environment where everyone is encouraged to contribute their ideas. I am a big believer in the power of teams.

What is your leadership philosophy?

One of our core values at TCCA (possibly the most important) is “One Team.” This means we are all working toward the same goals and supporting each other. This is a powerful driver of business results. It is the leader’s responsibility to ensure the destination is clear to everyone and to remove barriers to teamwork and stamp out the politics that cause teams and people to be at odds with each other.

What is your biggest challenge as a leader?

I am at heart an engineer and I started my career on the plant floor working shifts. As we have gotten much larger, it has been hard for me to remember to operate at the right elevation and to trust our teams to manage the business on a day-to-day basis. Fortunately, we have fantastic leaders throughout the business who are not shy about telling me “We’ve got this” when I am not needed.

A Slow Spring Squeeze for Dairy

Wed, 31 May 2023 15:24:33 GMT

As the calendar moves past the spring milk production peak, dairy farmer’s attention remains laser-focused on the milk price and overall margin outlook throughout the remainder of this year. A tough second quarter has ensued, driven by sufficient milk supply throughout the U.S. during the Spring Flush period coupled with global dairy import demand that remains weaker than ideal levels.

March milk production grew 0.5% versus the prior year, marking the ninth consecutive month of year-over-year growth. The herd size continued to increase as well, up 6,000 head versus February. More notably though, USDA revised February cow numbers 12,000 head higher versus the initial estimate, making for an 18,000 head gain in March versus the initially reported February data. At 9.435 million head, the revised number for herd size would make this the largest herd size of any month since August 2021.

It is possible that USDA will revise cow numbers lower in subsequent data releases, as the herd size data is incongruent with the struggling margins and strong dairy cow slaughter data, which would also increase the milk per cow projection that showed yield up just 0.1% in March, a surprisingly small climb. Regardless, Rabobank estimates milk output will remain higher versus the prior year throughout the remainder of 2023, climbing close to 1% on a calendar year basis.

Dairy product prices have shown mixed trends throughout spring. After falling to the lowest value in almost exactly two years in early April, the NDPSR nonfat dry milk price recovered slightly at the end of the month but remained below $1.20 per pound. In a balanced market, the NDPSR butter price had remained relatively steady in the low $2.40s throughout most of the year to date but slipped slightly lower after Easter. Dry whey trends have persisted lately as the price hovers close to $0.45 per pound. Finally, in cheese, both blocks and barrels have seen decent demand support the market opposite strong production, but abundant milk could reverse the trend quickly before the Spring Flush concludes.

Looking ahead, some price upside is expected as milk slows seasonally, and global dairy demand increases into the back half of the year. Buyers abroad looking to build stocks will encounter affordable dairy commodity prices, with purchasing not impeded because of expensive products. The upside is surely welcomed by dairy farmers who will face another year of high feed costs (among other expensive inputs) driving the cost of production to extreme levels. Margins will not return to the attractive values noted during 2022, but the upside potential is likely after a brutal second quarter.

3 Topics Producers Should be Tracking in the Farm Bill

Wed, 31 May 2023 15:23:48 GMT

It’s no secret that conservation and insurance will be heavy topics of discussion in ongoing farm bill debates this year. But it’s difficult to understand the exact role each title will play in legislation.

There might be some insight from House Ag Committee Chairman Glenn Thompson (R-Pa.).

“We don’t need to rewrite the entire farm bill,” Thompson says. “We’re comfortable with many parts of the 2018 bill and there aren’t many tweaks or changes, instead things we need to protect and invest in more.”

With Thompson’s words in tow, Kala Jenkins, Pinion ag consultant, and her colleague Bill Penn, Director of Farm Program Services, have carved out their own theories on what to expect in farm bill 2023.

Here’s a highlight of what they’re tracking as we move through the year.

1. Program Limitations with FSA

USDA defines a small farm as one that sees gross cash farm income under $250,000. According to the agency’s 2021 data, large farms—operations that gross more than $250,000—account for 85% of ag’s market value.

But these income brackets often leave small producers emptyhanded when it comes to disaster programs, according to Senator Chuck Grassley (R-IA).

“The 2018 Farm Bill was intentionally written to help the largest farmers receive sometimes millions of dollars of subsidies from the federal government each year,” Grassley said to USDA Secretary Tom Vilsack in a Senate Ag Committee hearing. “I’m asking that you would now work with me to stop this needless abuse of taxpayer dollars.”

Related story: Crop Insurance, Production Costs, ERP Among Key Topics at Senate Ag Farm Bill Hearing

Penn, who formerly served as USDA’s Assistant Deputy Administrator from 1985 to 1993, doesn’t see the aid differences as abuse and wants aid to go to the producers who make the biggest difference.

“Congressmen always like to talk about how 10% of the producers are getting 70% of the payments, but those 10% of growers are producing 85% of our supply,” Penn says. “If the goal of aid is to ensure America’s needs are met, we have to offer protections to those that put in the work.”

2. AGI Calculations

Adjusted gross income (AGI) is used to determine eligibility for disaster programs, through means testing.

Penn formerly served as USDA’s assistant deputy administrator from 1985 to 1993. He says in the 1980’s, disaster programs means testing was determined through gross receipts rather than AGI. Penn believes AGI is a better test for means testing than gross receipts because it is a “net income” number rather than a gross revenue number.

Related story: Paul Neiffer: PARP – Will You Get Anything?

However, in the recent WHIP+ and ERP Programs, USDA used AGI as a test to determine if someone was a farmer. In Penn’s view, gross receipts is a better measure of who is a farmer when compared to AGI.

“If a farmer has a bad disaster year, he might have a negative net income or AGI. But his wife, a schoolteacher who has a $70,000 positive, non-farm income would push them out of WHIP+ eligibility for increased limitations due to their AGI,” he says.

Penn says when the government is carving-out a disaster aid plan, it must be careful what question it is trying to answer with balance sheet numbers, or aid won’t be inclusive.

But, Penn is concerned if AGI limitations are applied to crop insurance.

3. Crop Insurance Coverage

In the past 20 years, the Federal Crop Insurance Program has covered an average of 87% of all U.S. croplands that were eligible for the program.

So, is a climate angle how crop insurance should be viewed? Jenkins isn’t convinced. She says the bottom line is in making programs voluntary.

“If we focus solely on climate and conservation in all our farm bill initiatives, could we miss something in the literature that could make certain practices mandatory instead of voluntary? That’s the concern we’re hearing from growers now.”

Related story: Commodity Programs Might See a 12% Cut in the Proposed $1 Trillion Farm Bill

Beyond conservation, Jenkins hears whispers of Title XI programs taking an entirely different direction in 2023.

“I’ve heard chatter about whether we need to change the way some of these programs work today, like whole farm crop insurance programs versus the noninsured crop disaster assistance program.” she says. “Then there are also some stakeholders questioning whether we need to link insurance to conservation, while others don’t want it to be the main focus. The needle is all over the board.”

How Colleges and Universities are Preparing Students for the ‘Real World’

Wed, 31 May 2023 15:21:29 GMT

Ask a college student what their future career plans are, and you probably will get a variety of responses. Add in the fact that the Institute for the Future predicts that nearly 85% of the jobs that today’s students will do in 2030 don’t exist yet, underscores how big of a task it is for colleges and universities to prepare students for a rapidly changing future.

Fewer dairy science students come from a dairy background

The University of Wisconsin-Madison says that they are seeing fewer and fewer students entering college with a traditional dairy farm background.

“Excitedly, we have more urban students that are interested in learning about animal agriculture and its related career opportunities,” says Ted Halbach, dairy management instructor at UW-Madison.

Christen Burgett, an associate teaching professor and dairy judging team coach at Iowa State University is seeing the same trend.

“We are able to pique the interest of non-traditional dairy farm students as well and get them excited about the dairy industry,” she says.

A larger proportion of female students

Another trend that universities are seeing, especially in dairy programs, is that the ratio of female to male students enrolled in dairy science has flipped since the mid-90s. Today, a larger proportion of dairy science students are now female, nearly 80%.

According to Halbach, dairy science enrollment is down from pre-pandemic levels, although the numbers are starting to slightly trend upward.

“However, the animal science major is growing. We are in the process of improving both our majors to better serve our students,” notes Heather White, professor of nutritional physiology at UW-Madison.

Liv Sandberg, also with UW-Madison, points out that some students still plan to return to their family farm or go into management on a large dairy operation.

“We have always had a strong number of students who get a business certificate or double major with life science communications, but we have also had a recent spark of interest with a group who are double majors with Agronomy,” she shares.

Additionally, some dairy science students plan to go to vet school and have a career as a dairy veterinarian.

Burgett says Iowa State’s Dairy Science program is not as robust as it was back in 2012, but that they still have many students with an interest in dairy cattle who elect to major in Animal Science.

“These students are now able to work toward completing a dairy production management certificate in order to showcase their interest in dairy to future employers,” she says.

Biggest Takeaway: Critical Thinking

The number one takeaway for students exiting college and entering the real world is the ability to think critically.

“Technology and knowledge will change,” White adds. “So our job is to teach students how to critically evaluate new tools, technologies, and information for solving the types of challenges they’ll face in their careers.”

Burgett concurs, adding they hope to teach students that learning is a life-long endeavor.

“We also emphasize professionalism, encourage students to ask questions and we continually let students know that we may be training them for a job that may not even exist yet within the dairy industry, so being adaptive, innovative, and coachable are critical,” she shares.

Preparing for the Future

With an industry that has already seen so much change, universities are also challenged to prepare students for a future job in a quickly changing dairy environment. This is no small task. Although Halbach and White share that UW-Madison classes are taught by individuals that also lead internationally renowned research programs in the areas that they teach.

“This means that what our students learn is always on the cutting edge,” White shares. “Even with that in mind, there is no doubt that everything changes rapidly, so teaching students how to think through challenges and evaluate new information is critical to their future success.”

In Ames, Iowa, the dairy science program is also student focused.

“We provide ample opportunities for our students to engage in high-impact practices that allow them to apply what they are learning in the classroom to real-world situations,” Burgett states.

What Can the Dairy Industry Learn from the Healthcare Industry?

Wed, 31 May 2023 15:20:38 GMT

Robots, sensors, connected devices, virtual reality and even artificial intelligence (AI) have become a daily presence in our hospitals, care facilities and even in our homes. As agriculture is facing its own transformation what lessons can we learn?

Robots

Every day, up to 3,000 blood samples are transported by robots in Denmark’s Aalborg University Hospital from bedside to the lab, with the same robots being witnessed in the corridors of America’s biggest hospitals. Robots enable consistent, accurate sample analysis through maintaining stable temperatures during transport without deviating from their path or getting distracted from their task.

Agricultural robots are being embraced in a similar manner on the farm. Shouldering the burden of harvesting, planting, irrigation and other manual tasks in the field. The advent of robots to milk cows (or most precisely allowing cows to decide when they want to be milked), cleaning barns and feeding, which AgriTech Capital estimates at over 1 million cows globally.

Internet of Things (IoTs)

IoT technology , smart devices like Fitbits and Apple Watches, are changing the game in our hospitals. Wearable health devices provide real time relevant data for doctors and consultants, freeing bedside staff from constant monitoring.

Likewise, precision agriculture is using sensors to monitor crop conditions for moisture (irrigation efficiency), diseases, readiness for harvest, and other factors. Before, this was a time-consuming and labor-intensive task with frequent observational errors. Now, IoTs can accurately analyze dairy farm inputs and management in real-time, increasing precision and giving farmers back time. Visible examples of this in our dairies include the use of millions of wearable collars and eartags, and more recently the smart rumen bolus of SmaXtec is the latest technology in the US dairy market, already being used in hundreds of thousands of cows. Knowing cow movements, cows productivity and health before problems become visible is worth hundreds of dollars per animal per year to a dairy farmer,

Artificial Intelligence (AI)

Clinicians’ mistakes result in cost the healthcare industry over $2 billion annually and the lives of over 200,000 people. Artificial intelligence (AI) can play a critical role in eliminating this. Errors caused by fatigue, memory, lack of experience or training, and misapprehensions are significantly reduced when AI supports decision-making.

What mistakes could we eliminate on our farms? When so much knowledge relies on being passed from generation to generation AI can eliminate human errors, accurately a nalyz ing data, predicting yields, identifying potential health challenges, optimizing resource allocation and linking decisions to market demands and prices. In fact, AI computations can play a crucial role in addressing carbon credits and resource scarcity. B ig data and cloud computing are also allowing farmers to address the real complexity they face of weather, genetics, market turbulence and the microbiome of soil and the animals they feed. Ever.Ag is an example of a technology company specifically focused on dairy, which enabling better decisions to be taken in real time based on market movements, with fewer mistakes.

Lessons for Ag

The World Bank has raised concerns about technology replacing workers but as we’ve seen in hospitals, we don’t have fewer doctors, nurses or caregivers. Human labor is not being eliminated but the jobs humans fill have shifted, and the same is expected to happen in agriculture.

Future dairy workers should be recruited with new skills; data analysis, software engineering, coding. A McKinsey survey revealed that more than 50% of large farms and nearly a quarter of small farms are using (or planning to use) precision agriculture technology, so the demand for high-skill jobs will only grow.

What is the best way to prepare agriculture for these changes? Retain and invest in talent. Agricultural employment in the U.S. is only expected to increase by 1%. Agriculture has always had a “ people problem .” But as Agri executive search group Kincannon & Reed says “if it was difficult to find good help before, then it’s even more difficult now.”

Automation could also help. T raditionally work ers have left farming because of poor pay and difficult conditions. If automation replaces the jobs laborers don’t want to do, the opportunity will be for stimulating, higher-paying work that attracts and retain s an adaptable workforce.

Talent retention goes hand in hand with talent investment. As I noted in the The Future of Agriculture , education and training programs cultivate a diverse and flexible workforce that evolves with each innovation.

Technology on the farm offers solutions to many of agriculture’s most pressing problems, but if dairy farmers can learn from healthcare and invest in the workforce now, these technologies will boost productivity and profits. Is Healthcare’s transformation a road map for farming? Using robotics, sensors and AI to grow food efficiently, precisely, cost-effectively, offers safe and affordable food, but also answers the sustainability demands of the consumer, climate change, resource scarcity.

Early El Niño Impacts to Vary

Wed, 31 May 2023 15:18:25 GMT

Extreme weather events appear to be more common than they once were. This year has already delivered several major disasters to the country. California has been deluged by one atmospheric river after the other, and the South has been wracked by a series of tornado outbreaks. Whether this year’s weather disasters will beat last year’s near-record-setting disasters is still unknown, but an El Niño will likely play a major role in this year’s weather.

According to the National Farm Bureau Federation, 18 weather disasters, each with damages exceeding $1 billion, occurred across the United States last year. The National Oceanic and Atmospheric Administration reported that last year’s weather disasters caused an estimated $165 billion in total economic losses, surpassing 2021 as the third-costliest disaster year on record. Total crop and rangeland losses exceeded $21.4 billion, accounting for nearly 8% of the total economic impact.

And now, NOAA said El Niño, could arrive much earlier than previously expected. While not a weather disaster, El Niño, definitely can change weather patterns. During an El Niño weather phenomenon, temperatures in the Pacific Ocean rise off the coast of South America, shifting the jet stream and fundamentally impacting weather around the globe, said Monica Ganley, analyst with the Daily Dairy Reportand principal of Quarterra, an agricultural consulting firm in Buenos Aries. NOAA now gives a more than 60% likelihood that El Niño will take hold sometime before July and persist through the end of the year. But El Nino’s impacts won’t all be negative, Ganley said.

“El Niño typically brings warm, dry conditions to the northern United States as well as to the Midwest, while the southern United States typically experiences above-average rainfall,” Ganley said. “The impacts of an El Niño are incredibly nuanced, but in years when the weather has transitioned from a La Niña in winter to an El Niño in summer, U.S. corn production has benefitted. The cooler temperatures that accompany this transition have typically boosted corn yields, and in many cases resulted in record productivity.”

Combined with the increase in acres that U.S. farmers are expected to plant to corn this year, Ganley said that the pending El Niño raises the odds that this year’s corn crop will be very large. And that could help offset shortfalls expected elsewhere and ultimately reduce upward pressure on feed prices for dairy producers, she added.

“While U.S. corn production could benefit from El Niño, impacts are more varied south of the equator,” Ganley noted. “An El Niño typically brings wet weather to swaths of South America, and while this season’s corn harvest has already begun, it could result in planting delays as wet weather prohibits machinery from entering fields next spring. Excessive precipitation brought about by El Niño can also cause flooding and wash out roads, undermining milk production in South America.”

Meanwhile, in Oceania, El Niño typically causes dry weather in Australia and on New Zealand’s North Island, while above-average rainfall is more likely on New Zealand’s South Island, all of which could bring negative consequences for milk production. Australia is coming out of a three-year wet period after experiencing years of dry conditions and severe drought that along with deregulation has devastated the continent’s dairy industry. And New Zealand’s milk production for the current season has been lackluster.

3 Tips to Make Hard Conversations with Employees Easier

Wed, 31 May 2023 15:14:01 GMT

Nobody enjoys having to be the bearer of bad news. However, as the leader of your operation, having hard conversations with employees can sometimes be part of the job.

According to Brooke Vuckovic, a clinical professor of leadership at Kellogg, all too often leaders keep on kicking the can, hoping that the issue with an employee will resolve itself. But more times than not, it doesn’t. Vuckovic provides the following tips to consider when delivering negative feedback.

Clarify Your Purpose

Before diving into the tough talk, state why you’re having the conversation in the first place.

“To clarify your purpose is to understand why you must have this conversation—beyond the specific behavior at hand,” she says. “Being clear is going to give you some momentum and it’s going to allow you to roll over that emotional speed bump.”

Prepare for Conflicting Statements

According to Vuckovic, there’s a very high likelihood that new information about the employee or situation will emerge during the conversation. Often this will challenge your understanding of the issue.

“If you assume that [there will be new information], then you are less likely to be surprised and thrown on your heels,” Vuckovic says.

To prepare for this possibility, she suggests asking yourself a few prompts:

What’s your story of the problem?
What story might this other person tell about the same problem?

When listening to the other side of the story, put yourself in your employee’s shoes and consider:

Have I turned a blind eye to something?
Was I unclear on what my expectations were?

Knowing that new, conflicting information may surface helps prevent you from being thrown off-guard.

Commit to Listening

Leaders often want to get through hard conversations as quickly as possible. In an effort to get the conversation over with, they fail to make it productive.

“They can lose sight of the absolute discipline and rigor and presence that’s required for the rest of the conversation, which is where the learning is going to occur,” Vuckovic says.

To make the discussion impactful, be sure to offer the employee a chance to respond. Taking notes and repeating what they say ensures that you don’t miss any important information and the employee feels valued.

Vuckovic suggests also having an exit strategy.

“You want to ensure that, by the end of your conversation, all agreements are completely clear to all parties—and that may simply be that you are going to talk about this again tomorrow,” she says. “You’ve clarified the next steps and your commitments to one another.”

While having hard conversations is not a fun part of the job, it’s necessary to ensure your operation continues to run smoothly. The next time you find yourself preparing for a tough talk, be sure to keep Vuckovic’s recommendations in mind.

Who Should You Hire?

Wed, 31 May 2023 15:11:21 GMT

Have you ever had one employee who you wish you could clone and make one hundred more of? While cloning technology won’t be on the market anytime soon, what if you could hire the same type of employee over and over again? Taking time to determine what qualities employees must have to help your business be successful just might be the next best thing.

It’s no secret the labor pool has become a bit shallow, especially within agriculture. However, qualified, hardworking employees still exist. As the leader of your operation, it becomes your job to find the right talent that fits your team’s needs. And according to Michael Hoffman, founder and owner of Igniting Performance Inc., it’s a skill every employer should possess.

“Having the right people in the right place or growing them into future roles is a superpower of every great leader. But it can be a challenge to find the right people in the first place,” Hoffman says.

When you are short on labor, it can be tempting to fill an open position with the first person who walks through the door. However, Hoffman suggests using the ‘ KSAM ’ (Knowledge, Skill, Attributions, Motivations) method to help determine what qualities your employees should possess to begin with.

“Having a purposeful interview process can help you determine what qualities your team currently has and what you need to fill,” Hoffman says. “Take time to figure out what knowledge, skills, attributes and motivations your team needs to be successful.”

Knowledge

While there are certain positions on the farm you can train for, other positions require a general understanding of the job at hand. Hoffman recommends asking yourself:

“What do my employees need to know to be successful and do the job right?”

“There are certain things that in a beginning position where you might be able to take anybody because you’re going to train you from the beginning. But then there are certain positions that require a certain knowledge base from bringing,” Hoffman says.

Examples of this include:

Equipment understanding
Specific program knowledge
Methodologies behind certain tasks

Skills

“Certain positions require certain skill levels from the get-go,” Hoffman says. “This is another area you can train for, but it’s important to know exactly what you are looking for during the hiring process.” He suggests asking yourself:

“What do my employees need to be able to do to be successful?”

Consider asking current employees what skills it takes to get the job done, then make these skills a pre-requisite for future employees. When interviewing candidates, compare their skillsets to the skills required to be successful in the job, then narrow down your selection.

Attributes

“This is the one I think gets left off the most when looking for positions because you can’t train for it. When we see a position, we look at the things that have to be accomplished, but we often don’t take a look at the person who’s doing them,” Hoffman says. Ask yourself:

“What do my employees need to be like in order to be successful?”

Examples of this include:

Patient
Attentive
Up-beat

“This is one of the most important qualities to hire for because it gives you a sense of who the employee truly is,” Hoffman adds. “If you hire someone who’s personality doesn’t fit the role, it just won’t work out.”

Motivations

What are some of the things that encourage you to go to work every day? Is it your team? Your drive to be better? Your passion for the industry? These are the things your employees should possess as well. Hoffman suggests asking yourself:

“What part of the job do my employees need to enjoy?”

“Find out what motivates your employees within their roles,” Hoffman says. “What makes them truly enjoy their job? We can all put up with things we don’t like about our job for a certain amount of time. But after a while, this will have a negative impact on the longevity of being in that position.”

While labor shortages continue to be a pressing issue across the agriculture sector, Hoffman notes that exceptional employees still exist.

“Your next best employee is out there, but it’s up to you to dig a little deeper to find them,” he says. “If you settle for someone who isn’t the right fit, you aren’t setting yourself or your team up for success. Make a list of the qualities your employees should possess and stick to it.”

How to Reduce Turnover and Boost Morale on the Farm

Wed, 31 May 2023 15:10:34 GMT

Follow this strategy to reduce turnover and increase morale on your farm team

No news from your employees is good news, right? That approach might fit your leadership preference, but it’s an archaic way of leading your team, says Dave Mitchell, founder of Walla Walla, Wash.-based consulting firm The Leadership Difference .

“I’m stunned at how little leadership interacts with their team members,” he says. “Leaders need to be more assertive in reaching out to the employees to make sure any frustrations are resolved before they fester and cause permanent damage.”

This concept is something Mitchell calls people preventative maintenance. Essentially it is a system to create continuous feedback from the employee to the employer.

It can take several months for employees to be open to providing honest feedback. But over time, Mitchell says, team members will be more eager to participate and share.

“The key is you are consistent in collecting the information and reliable in acting on what you collect,” he says. “This cycle creates a continuous improvement process based on employee feedback.”

Simple and Purposeful System for Feedback

1. Create a spreadsheet with all your team members’ names in the left column and all the months as headers for the columns.

2. Each month, schedule a casual 15-min. meeting (over a cup of coffee or during a drive to town) with each of your team members.

“The key is to execute the meeting informally but track it formally to ensure you speak with each team member each month,” Mitchell says.

3. Ask questions, such as:
How are things going at work?
What do you like most?
What do you like least?
What would you change to improve our work?
What do you need to make it easier for you to be successful?

4. Take notes on the feedback and identify any suggestions you should implement.

5. Note the meeting on your spreadsheet so you know you conducted the meeting.

6. Once you know which suggestions you will take, respond to the team member within a few days about the status of their suggestion.

Virginia Family Ice Cream Business Gives People a Reason to Stop

Wed, 31 May 2023 15:09:12 GMT

The Fields of Dreams slogan, ‘Build it and they will come,’ rings true for Virginia dairy farmer Ken Smith. But he would also add, ‘Give them a reason to stop by.’ The fourth-generation dairy farmer was referring to his quickly growing ice cream business that he and his wife, Pam, and their daughter, Amy, built in 2010 at a one-stoplight location off Route 29 that is near their family dairy. A true family affair, their daughter, Taylor, makes all of Moo Thru’s ice cream.

In 2006, the family purchased an old truck stop property nearby the family dairy farm and began building their ice cream business, Moo Thru. Ken shares that the opening week, they ran out of ice cream.

“We sold 15,000 cones in the first three weeks,” he says. “People asked if we’d franchise this, and we’d only been open 60 days.”

The Smiths sold the family dairy, Cool Lawn Holsteins, a 1,000-cow dairy with a 30,000-lbs. plus herd average to their son, Ben, so their attention could go towards their ice cream endeavor.

A Little Vision

Moo Thru started as an antique building that was modified to resemble a barn. Ken shares that the idea for this all began on a hot Saturday afternoon when he was sitting at an intersection with a load of haylage.

“I was miserable,” he recalls, sharing that others driving by were smiling and seemed happy.

“They have weekends to spend money,” he says, and his ah-ha moment went off.

The idea was born to start construction on Moo Thru, although Ken says neighbors thought he was crazy to tackle this new adventure.

“Everyone thought I was nuts and that no one was going to come to this. That there are no other stores and no other conveniences nearby,” he says. “Nothing is out here. Why would they stop?”

It’s a good thing that Ken possessed a bubbly personality and the ability to think differently than most. He says if you give people a reason to stop, they’ll stop.

“They’ve got money in their pockets. They’re going somewhere to spend that money,” he says.

Fast forward to today and Moo Thru has been recognized as the best ice cream place in Virginia, an accolade that the Smith family is proud of.

Continued Success

“We do the promotion, and we eat ice cream and we have tested our product against everyone else,” Ken shares. “The only way I can keep selling my product is knowing how I compare to the rest.”

Today, Moo Thru has a drive-through, which Ken says grew their business, especially during Covid.

“Nobody could go anywhere, but they could go through a drive-thru and people would sit and wait for ice cream,” he shares. “There would be 50 to 60 cars deep and people would wait in line for over an hour.”

This caused a backup that blocked the intersection which eventually led to the Smith family hiring local deputies to help control traffic.

While Route 29 still only has one stoplight today, those traveling 60 mph on the two-lane road can see the hopping attraction that causes many to make the turn and stop in and enjoy what the Smith family has built.

“They don’t have to wait for the light to turn red to notice,” Ken notes. “They make the turn.”

Moo Thru now has a food truck that can be utilized at events, as well as four additional Virginia locations in Charlottesville, Hillsboro, Winchester and Warrenton. All locations serve ice cream made from the family herd at Cool Lawn Farm.

Dairy Producers Share How They Tackle Uncertainties

Wed, 31 May 2023 15:07:17 GMT

Over the past two years, dairy producers were forced to adjust to uncertainties that faced them such as rising feed costs, ongoing labor challenges and navigating a pandemic and its ripple effect.

Ken McCarty with McCarty Family Farms says technology can address some of the uncertainty dairies are facing, especially when it comes to water smart technologies on his Kansas dairy, as they are heavily dependent upon irrigation to grow quality and quantity of crops to feed their cows.

“We are trying to be conservationist minded and intelligent about how we utilize that water resource in the face of last year,” Ken shares, referencing 2022’s extreme drought conditions and what is appearing to be another challenging drought year for 2023. “That type of technology can help us mitigate those types of variables. But that being said, there’s a lot of variability in just the geopolitical climate impacts milk prices, feed prices, all those sorts of things, that we don’t have any control over whatsoever.”

Additionally, McCarty is also focusing on being smart from a financial perspective and paying down debt.

“We’re taking on a lot of debt right now, but we pay down debt and try to be smart about how we think through financial decisions to mitigate variables that we have no control over - interest rate, global feed markets, global fuel markets, those sorts of things.”

Ryan Junio with Four J Jerseys concurs with McCarty, stating he is 100% reliant on irrigation on his farm in Pixley, Calif.

“We don’t do anything based off the rainfall out here,” he says, adding that this year’s snowpack has been a blessing, although it has brought a lot of heartache with the flooding that his farm personally had to experience. “We’ve got to build big data sets throughout our land and figure out how to best utilize the water we will have available to us in the coming years and figure out how we can best size our herd to be able to move forward with what landlords will have available to us based off of water availability.”

Junio adds that diving into more drought-tolerant crops and best utilizing winter crops will help California farmers tackle the water scarcity issue and help them feed their cows in the future.

“We’ll adapt,” he says. ‘We will figure out a way to keep growing feed the best we can.”

In Wisconsin, Chema Ortiz, herd management specialist for Milk Source in Wisconsin, says like many dairies across the U.S., Milk Source is also faced with uncertainties when it comes to milk prices or feed costs. To help combat the obstacles, they try to put a lot of emphasis on what they can control.

“We are working to reduce labor and become more efficient with guys and our staff,” he says.

To listen to the entire conversation with these three producers talk more about technology, as well as talk about value-added revenue sources, click on https://fjwebinars.com/account/register/dairy-herd-management/167