Volume 40 www.extension.iastate.edu/dairyteam January, 2016

Larry Tranel Jenn Bentley Ryan Breuer

Transition Cow Management We again focus on transition cows as a means to increase our profits. Often we hear how costly good transition cow facilities are but we again need to remember that every cow in the herd occupies this facility for some of the most critical days of her dairy production career. Thus, this facility impacts each and every lactation of every cow in the herd so it is usually an investment that pays good dividends. Check out the articles inside this newsletter regarding transition cows. Happy New Year! The New Year is always a time for us to reflect on our successes and challenges of the past year and to resolve ourselves to make the necessary changes to improve our health in the New Year. These health improvements may be physical, mental, financial or other, but the important thing is to set goals and work towards them. Not having goals to work towards might luckily get you to an improved state of life, but planning and setting goals tends to better get you to a state of life that is often more desired. The old adage, plan rather than hope, tends to lead to better improvement. Planning, rather than hoping, for profits may be more necessary with the outlook of milk prices in 2016. Best Wishes in this New Year! Sincerely, Jenn Bentley and Larry Tranel ISU Extension Dairy Field Specialists, NE and SE Iowa Ryan Breuer, DVM, NW Iowa ISU Extension Dairy Field Specialist, NW Iowa Newsletter edited by: Larry Tranel

Welcome to Dr. Hugo Ramirez!

Dr. Hugo Ramirez, Assistant Professor focusing on Dairy Nutrition, comes to us from the Texas A&M system as Assistant Professor and Director of the Southwest Regional Dairy Center at Tarleton State University. He will be performing research and teaching an undergraduate course, ANS 435 along with his extension appointment. Dr. Ramirez is originally from the state of Guanajuato in Mexico. He grew up surrounded by agricultural education because his father and older sister are faculty members at the Autonomous University of Chapingo, the largest agricultural university in Mexico. He attended the University of Chapingo where he completed an agricultural high school program and earned a bachelor's degree in animal science. Upon graduation, Dr. Ramirez managed a state of the art dairy farm in central Mexico that was equipped with a methane digester that fueled electric generators which supplied energy to the farm. He also had the opportunity to get involved in large herd dairy management in the Torreon area in northern Mexico. Subsequently, he started his graduate career at the University of Nebraska-Lincoln conducting applied research in dairy nutrition including evaluation of corn silage hybrids and ethanol co-products for dairy cows. After that, he joined Texas A&M system in 2014 as Assistant Professor at Tarleton State University and Research Scientist with Texas A&M AgriLife Research. Dr. Ramirez's future plans with ISU include developing a forward thinking research based extension program that is producer-focused in the areas of herd management, forage quality and preservation, nutrient utilization and other timely topics relevant to Iowa dairy producers. He is eager to work with the ISU Dairy Challenge team, having the opportunity to prepare future dairy professionals is a privilege and he looks forward to it. He is excited to have the opportunity to work with the ISU Extension Dairy TEAM, faculty, and students of the Animal Science Department and other disciplines at ISU. Dr. Hugo Ramirez contact info: hramirez@iastate.edu

515-294-2160

DAIRY News & Views from the ISU Extension Dairy TEAM

ISU Extension Dairy Team

“Bringing Profits to Life”

Utilizing Vaccination Protocols to Optimize Herd Health & Transition Cow Success by Ryan Breuer, DVM

Dairy Specialist, ISU Extension and Outreach, NW Iowa

There are many goals to vaccinating your herd. Purposes for vaccinations include: - Provide optimal immunity for disease prevention in individual animals and the herd. - Protect animals from imminent pathogen invasions and diseases present in the environment. - Administer to animals at highest risk of contracting a particular disease. - Reduce the risk of recurrent disease(s) that have the ability and/or tendency to spread. - Provide protection to individual animals, as well as the herd, during a period of disease outbreak(s). - Reduce financial constraints and promote cost savings associated with frequent treatments, as a result of disease-related morbidity and mortality. - Lessen economical impact related to preventable diseases. Vaccines are not flawless nor 100% guaranteed effective. Rather, the purpose when administered to an animal is to promote an immune response so the body can recognize and fight the disease in the future, thus reducing resistance to treatments that are frequently given. It is critical that the vaccinations administered to a herd are tailored to its specific needs. For example deciding to vaccinate for respiratory, reproductive, gastrointestinal diseases & mastitis causing pathogens. Success is achieved when vaccines are not only effective and safe, but proven to provide protection. It is STRONGLY recommended to establish a veterinary-client-patient-relationship (VCPR) with a herd health veterinarian and to consult with your herd health veterinarian on your vaccination protocols. You will want to determine the disease(s) that pose the greatest challenge to the cows in your herd and ensure that there is an effective, protective and safe vaccine available. Determine the appropriate timeframe for vaccination administration. Keep in mind or take into consideration the following factors – a) optimal nutrition, b) minimizing management interventions, c) pregnancy status and d) stress reduction. Be certain to allow adequate time so that vaccinations are not delayed or distract from the primary concern. Delaying vaccination can be problematic and does NOT fix or prevent the problem. Be flexible because some practices may also need adjustments.

It is imperative that the health of the animal be taken into consideration prior to vaccine administration. A vaccination is only effective if the animal being immunized has the ability to immunologically respond to the vaccination. As with any medication, it is imperative to follow dosing administration and directions as outlined on the package inserts and labels. Remember to familiarize yourself with the product, as well as the vaccine label regarding the following: indication, dosage, storage, preferred route of administration, withdrawal period, booster schedule and doses, time to therapeutic dosing, appropriate handling, and whether the vaccine is a Modified-live (MLV) or Killed product. FOLLOW LABEL DIRECTIONS ON ALL VACCINES! The labels provide pertinent information that will eliminate failure of vaccine-initiated immunity. Again, these are all great discussion points to have with your herd health veterinarian. By establishing an efficient and effective vaccination protocol you will protect your cows against the major challenges they will encounter in their lives. By developing a solid immune system, cows will be able to ward off the challenges they may encounter. These disease challenges are most commonly faced during stressful times – Transition! By vaccinating a calf, heifer, or cow during times where they are the least stressed coupled with adequate nutrition, increases the successful outcomes of your vaccination protocol. This yields a strong immune-mediated response against the offending pathogens and allows animals to fight off infection. It also promotes passive transmission of immunity onto offspring through valuable colostrum.

It is important that vaccination protocols and programs are modified for individual operations and meet the needs of your herd. A lot goes into developing a

vaccination protocol, including but not limited to, operation type and size, geographic location, herd size, reproductive status, genetics, vaccination adverse reactions, etc. Consult a veterinarian to discuss and establish a suitable plan for you and your herd. By working with your herd veterinarian and establishing viable vaccination protocols for your herd, you offer your cows the ability to live healthy lives, especially during stressful times of life, in particular transition cows. An effective and efficient vaccine protocol is beneficial in many regards. The animals live a healthy, productive life and are able to pass on exceptional immunity to future members of the herd.

Observing Cow Behavior During the Transition Period Jenn Bentley, ISUEO Dairy Field Specialist, NE IA Observing the behavior of cows is a good indicator and tool to manage health and production, particularly in the transition period. Transition cows are at the most risk for stress and disease which ultimately impacts profitability on the dairy. Risks associated with disease include lower milk production, higher involuntary culling, lower reproductive efficiency and compromised well-being, costing $100-$400 per cow (Cornell). This article will summarize research conducted at The University of British Columbia by Dr. Katy Proudfoot, at The Ohio State University, who looked at the behavior of transition cows three weeks prior to calving through three weeks after calving. When observing healthy cows during the transition period, dry matter intake decreases, while standing time and bouts of up and down increase, approximately a day prior to calving to two days after calving. Cows diagnosed with mild to severe metritis a week after

calving were observed during the same timeframe with a more significant decrease in dry matter intake.

Feeding patterns also varied between healthy cows and severely metritic cows, indicating displacement, avoidance of competition for feed, and less interaction. Cows were observed for lameness with claw lesions recorded a few months after calving. Those diagnosed with lesions spent more time standing (perching) already 2 weeks prior to calving as compared to cows without recorded lesions.

Dystocia, defined here as a very difficult pull with force used and usually requiring two people was another

observation. Cows with dystocia ate significantly less dry matter than cows unassisted 11-12 hours before calving. These cows were restless with more standing bouts due to feeling uncomfortable and calving longer.

What are the implications for cow behavior? Are they eating less, perching more, or having more standing bouts for other reasons than the fact that they are near calving? These observations lend an opportunity to review the close-up management program. Are cows given ample opportunity to eat?

30” of bunk space to reduce competition and reduce disease risk.

Ample opportunity to eat fresh feed will stimulate the cow to eat.

Movement into new pens frequently cause cows to eat less and get displaced more often, especially in the first day of movement.

Do cows have easy access to a comfortable resting place?

Stocking density less than 100% Depending on cow size, move the neck rail to

reduce perching and lameness. Ample, dry, clean, bedding to improve lying

time and cleanliness Deep bedding is ideal

Are we providing a comfortable maternity pen for the cow? If a cow were in her natural setting, she’d mostly like seclude herself in some tall grass or tree cover and go into anti-predator mode to protect the calf. When should we move cows during labor to reduce stress and create a natural environment within the barn? Would she seek seclusion in today’s modern barns? Typically, calving pens are set up as bedded packs where multiple cows are housed and calved together, or as cows begin to calve they are moved to a pen of their own. Correct movement during labor requires us to understand the stages of labor: Stage 1: Calf moves into position; cervix begins to dilate, cow is restless, engorged, leaky udder, raised tail, relaxed pelvic ligaments, other calving behavior-rubbing, pawing at the ground Stage 2: Calf moves through birth canal; abdominal contractions, mucous or amniotic sac, visible calf legs, increased time lying down Stage 3: Placenta is released In this project, timing of movement prior to calving was observed. Cows were moved in one of three ways:

Moved before labor (24 hours before calving) Moved during early stage 1 (12 hours before

calving) Moved during late stage 1 and early stage 2 (4

hours before calving) Cows that were moved 12-24 hours before calving spent about one hour lying down before calving and one hour in stage 2 of labor. Cows only moved 4 hours before calving spent less time laying down in the hour before calving and had a longer length of stage 2 compared to the others. Less attention was paid to calving as she explored the new environment and causing more stress in the short term.

Along with what stage of calving cows are moved, calving environment was also observed. The research

barn was remodeled to include an open bedding area with the option to move into a shelter in full or partial seclusion.

Cows were allowed into the calving pen 3 days prior to calving to explore the area. More cows calved in the shelter compared to the open area. It is important to note that cows calved equally during the night in the open and shelter, while during the days cows were more likely to calve in the shelter. While nights tend to be quiet and dark, daytime included more activity in the barn, more sounds and cattle movement. Is this practical on-farm? The research farm created an individual pen in a corner of the calving barn made with plywood and allowed a partial opening to the group pen. Cows were moved into the pen 12 hours prior to calving. Cows preferred to calve in the corner side of the pen verses the window partial opening side of the pen. Depending on the barn setting, options to seclude calving cows may work. Producers have also used a curtain as a divider to the group. More research is still needed to improve these calving areas. Maternity pen recommendations

Although difficult to do, try moving cows before they are in stage 2 labor

Consider seclusion when designing maternity pens to reduce disturbances

Allow ways to observe cows for difficulties, such as cameras or walk-throughs

In summary, this research shows cows that are at risk of metritis, lameness and dystocia behave differently than healthy cows. Reviewing close-up management before calving will help reduce risk of disease and help maintain or improve production. Considering the environment cows prefer to calve in, will reduce stress during a sensitive time of the transition cow period. As always, work closely with your veterinarian, nutritionist, extension specialist, or other industry personnel to assist you with your transition cow program. References: Technology Tuesday Penn State Webinar Huzzey et al., 2007 J. Dairy Sci. Huzzey et al., 2005 J. Dairy Sci. Proudfoot et al., 2010 J. Dairy Sci.

Using Cover Crops as a Forage Source: Herbicide Restriction Awareness Rebecca Vittetoe, ISUEO Field Agronomist Cover crops have become quite popular in recent years, not only for conservation purposes and soil health, but they are also being looked at as an additional forage source. However, there may be limitations if the cover crop can grazed or used as a forage source due to what previous herbicides have been applied to the field. It is important for producers to look at and follow the rotation restrictions listed on the herbicide label. Additionally, just because a specific cover crop species is not listed on the herbicide label does not mean the cover crop can legally be grazed or fed. In these instances most herbicide labels usually have an “all other crops” or “all others” that producers should use and follow those restriction intervals, which are typically 12 to 18 months after the herbicide as been applied. Please refer to the specific herbicide label. It can be frustrating looking up all these herbicide labels just to find out they have a restriction on them for grazing or feeding cover crops. To help provide some guidance for farmers, ISU Extension and Outreach worked on putting together a bulletin, “Herbicide use may restrict grazing options for cover crops,” that lists herbicides that have acceptable restriction intervals where cover crops can be grazed or used as a forage source. The list is not all comprehensive, but is meant to help provide producers with a starting point. The bulletin can be found at: http://store.extension.iastate.edu/Product/Herbicide-use-may-restrict-grazing-options-for-cover-crops. So as you are making decisions for the 2016 growing season on what herbicides you plan to use, remember to take into account if you plan to either graze or feed the cover crop that will get planted next fall. If you are planning to feed or graze a cover crop you’ve planted this fall, please go back and check herbicide labels to make sure it is legal to do so. If you have any questions, please contact your local Extension Field Agronomist.

Wishing You a Very Happy New Year!

ISU DAIRY TEAM UPDATES Leo Timms, ISUEO Dairy Specialist

Nutrient mgmt.: Opportunitie$ and Challenge$

Manure (nutrients) are a fact of life. Optimizing value of these nutrients while minimizing risks has a cost but is essential for dairy farm profitability and land stewardship. Our successful ISUEO Dairy Team programs the past years (with help from NCR RME grant in 2015) has created great learning opportunities, tools, and materials to evaluate costs, minimize risks, and optimize dairy farm nutrient management (NM) success.

Dairy farm surveys with costs of different handling systems and manure values

Spreadsheet tool for calculating NM economics on your farm

Practical On Farm NM Assessment Tools Optimizing Dairy NM video (11 min) Producer guide to small open lot dairies Factsheets and programs on nutrient storage,

handling, application including winter, soil testing and manure value$

http://www.extension.iastate.edu/dairyteam/nutrient-manure-management

ISU Research: Distiller’s and Dairy Products

5 years ago, an industry issue and concern (particularly in the Midwest) arose focused on an oxidized off flavor occurring in milk about 6-10 days into store shelf life. Issues were traced through certain brands, plant, and farms and concerns and interests that distillers grains (DG) (particularly the oils) might create this issue. Much research had focused on plant oils (PUFA or polyunsaturates) and ruminant diets, with particular focus on milk production and components, but little on dairy product taste and quality. Feeding lactating dairy cows dried distillers grains with solubles (DDGS) increases the concentration of unsaturated fatty acids in milk from those cows, potentially leading to increased susceptibility to development of off-flavors. Feeding DDGS has been loosely implicated as a cause of development of spontaneous oxidative off-flavor in milk.

The ISU Dairy Team with financial support from the Midwest Dairy Association and Dairy Foods Research

Consortium conducted individual feeding studies (Calan gates under supervision of Dr. Don Beitz, Dairy Science and Dr. Stephanie Clark, Food Science). Dried distillers grains were fed at 0, 10, and 25% of diet DMI and their results showed that feeding DDGS modified milk composition, but did not contribute to development of off-flavors in milk.

Recent industry interests and research have focused on feeding DG and milk used in cheese making. Late blowing in Swiss cheese, a result of unwanted gas production, is unacceptable to consumers and causes economic loss to manufacturers. Cheese processors have raised concerns that feeding dried distillers grains with solubles (DDGS) to cows may lead to this defect, in part because of clostridial spores. An individual feeding study was conducted with DDG fed at 0, 10, and 20%. Results showed that although feeding cows diets with DDGS modified milk and subsequently cheese composition, DDGS was not a source for gas-producing, spore-forming bacteria or quality defects in Swiss cheese. Rather, gas-producing, spore-forming bacteria likely originated from the environment or the cows themselves. A 2nd study is currently underway feeding DDGS (9-10% oil) vs. modified low fat DDGS (4-6%) and evaluating milk and Swiss cheese characteristics.

Looking back -- Moooving Forward!!!

The 2012 statewide Iowa Dairy Farm Survey revealed many excellent farm and industry modernization changes expected to be made. The ISU dairy team has leveraged our resources by receiving NCR Extension Risk Management Grants over the past 4 years and built comprehensive field programs and educational materials to meet these needs and changes by addressing milking systems (2013), calf facilities and management (2014), nutrient management (2015) and transition cow management (2016).

Information on Iowa dairy industry, 2012 dairy farm survey, and educational materials can be found at:

http://www.extension.iastate.edu/dairyteam/

Organic Dairy Profits in Iowa, 2014

by Dr. Larry Tranel, Dairy Specialist, ISU Extension and Outreach, NE / SE Iowa

Interest continues to grow in organic dairying by consumers, producers and processors. Organic dairying has its production challenges but good profits can be earned for producers who manage the organic system well. The proof is in the numbers. Iowa State University Extension teamed up with CROPP Cooperative/Organic Valley to analyze the 2014 profits of 15 Iowa dairy farms. The results were broken down into four sections, each shown in a three column format depicting dollar values, per cow values, and per cwt. equivalent values for applicable income and expense items. The four sections include 1) Average of all 15 farms 2) “High Profit” group consisting of the five most profitable farms, 3) “Medium Profit” group consisting of the five next most profitable farms, and 4) “Low Profit” group consisting of the five least profitable farms. Profitability was determined based on 1) return on assets 2) return to unpaid labor hour, and 3) net return per cwt. equivalent of milk produced. Each farm used the Dairy TRANS Financial Analysis program to analyze profitability. To maintain fairness in comparing farms with varying debt loads, an equity charge of 4% of total farm assets was used. So, whether the assets were owned or also allowed producers to participate without sharing confidential information about debts or total net worth. Note that this impacts the analysis in that the cash expenses do not include interest expense. This affects cash related ratios and calculations.

The Average of All 15 Farms*

The average farm employed 73 cows and operated 3.64 acres of productive land per cow. Assets totaled $16,349 per cow. Total cash incomes per cow were $4,447 with total cash expenses of $2,902 giving a net cash income per cow of $1,545. Adding a $102 per cow inventory gain gives a net farm income of $1,647 per cow or $120,332 per farm. After subtracting $47,177 for an equity charge, the return to unpaid labor averaged $1,001 per cow or $73,155 per farm. This gives a return of $19.49 per unpaid labor hour. The average milk price received was $31.57 per cwt. equivalent. Total expenses, including both equity and unpaid labor, were $30.94 for a net income per cwt. equivalent of $0.63. The rate of return on assets was 4.7% with an operating profit margin of 17.01% and an asset turnover ratio of 32.39%. Thus, these 15 organic dairies show “Average” profitability for 2014. On average, these farms handled 36 cows per FTE (Full Time Equivalent of labor or 3,000 hours/yr.) selling 4,042 cwt. equivalents of milk per FTE and 11,658 pounds of milk per cow. These data sets defy traditional milk production logic, with the High Profit

group having the lowest milk production per cow. However, there was only a 7.5% difference in the average milk production among the three groups. Also, it is notable that the most profitable farm in the study also had the highest milk production per cow and the 4th highest milk production farm also made it into the High Profit Group. The major point that is causing the inverse relationship of profit versus milk production in the data set is that two farms that have reduced grain feeding levels to near zero made their way into the most profitable farms with herd averages in the 6,000-7,000 pounds of milk range. One farm was receiving a “no-grain” premium of $4/cwt. for about half of the year, while the other was not.

Bottom Line Organic dairying can be as profitable as conventional grazing and confinement systems. Milk production per cow is not well correlated to profit though the highest profit farm had the highest milk production. Labor efficiency is a great strength of the High Profit farms with significantly more cows per FTE (43 vs. 33); more cwts. sold per FTE (4,566 vs 3,897 and 3,664); and less labor cost per cow ($807 vs. $1,093 and $1,361). High Profit farms again had higher fertilizer and seed cost per acre similar to 2013 data in Iowa. Higher crop inputs seemingly translate into higher feed production per acre and less purchased feed costs per cow. The following two pages exhibit the detailed data of the 15 organic farms analyzed. Remember, cash expense data does not include interest expense. Also, realize this study represents 15 hand-selected farms so may or may not be representative of all dairy farms in Iowa. And, with a study this small, one or two dairies can dramatically change results of the average within the group. It is hoped this study will assist current and aspiring organic, grazing and conventional dairy producers to both budget and benchmark their dairy operations to better plan for future profits. Producers are also urged to consider using the Dairy TRANS Financial Analysis to analyze and further improve dairy profits.

Plan, Rather than Hope, for Profits!

*Note: The “average” is calculated as the sum of the individual five farms for each item, not a previous item’s sum divided by another item’s sum, which yields slightly different results.

Organic Dairy Farms 2014 Average of All 10 Farms Average of High Profit Average of Medium Profit Average of Low Profit

Iowa /Cow Farms(5) /Cow Farms(5) /Cow Farms (5) /Cow

Productive Crop Acres Operated 266 3.64 431 3.99 239 3.28 129 3.35

Average Number of Cows 73 108 73 38

Total Assets on Farm $1,194,550 $16,349 $1,971,996 $18,259 $933,249 $12,819 $678,407 $17,667

Milk Price $31.57 $31.47 $33.12 $30.13

Milk Hundred weight Equiv. 11,077 152 16,154 150 11,722 161 5,355 139

Milk Hundredweights 8,556 117 11,896 110 9,599 132 4,174 109

Milk Sales $267,463 $3,661 $370,951 $3,435 $305,618 $4,198 $125,820 $3,277

Cull Cow Sales Cull Rate% $16,074 $220 $24,772 $229 $13,608 $187 $9,843 $256

Calf Sales $7,894 $108 $10,556 $98 $8,732 $120 $4,393 $114

Crop Sales $15,029 $206 $30,341 $281 $8,511 $117 $6,235 $162

Other Income $18,493 $253 $26,608 $246 $26,305 $361 $2,567 $67

Total Cash Income $324,953 $4,447 /Cwt.Eq. $463,228 $4,289 /Cwt.Eq. $362,774 $4,983 /Cwt.Eq. $148,858 $3,877/Cwt.Eq.

Veterinary, Medicine $5,060 $69 $0.46 $4,953 $46 $0.31 $9,134 $125 $0.78 $1,095 $29 $0.20

Dairy Supplies $15,102 $207 $1.36 $19,449 $180 $1.20 $17,362 $238 $1.48 $8,495 $221 $1.59

Breeding Fees $490 $7 $0.04 $1,271 $12 $0.08 $198 $3 $0.02 $0 $0 $0.00

Feed Purchased $53,341 $730 $4.82 $42,083 $390 $2.61 $79,832 $1,097 $6.81 $38,110 $992 $7.12

Repairs $18,695 $256 $1.69 $21,831 $202 $1.35 $27,485 $378 $2.34 $6,768 $176 $1.26

Seed, Chem, Fert $21,443 $293 $1.94 $35,777 $331 $2.21 $19,519 $268 $1.67 $9,032 $235 $1.69

Fuel, Gas, and Oil $15,367 $210 $1.39 $19,729 $183 $1.22 $18,137 $249 $1.55 $8,236 $214 $1.54

Utilities $7,202 $99 $0.65 $9,495 $88 $0.59 $11,065 $152 $0.94 $1,045 $27 $0.20

Interest Paid -- not included $0 $0 $0.00 $0 $0.00 $0 $0.00

Labor Hired $18,906 $259 $1.71 $35,221 $326 $2.18 $20,908 $287 $1.78 $589 $15 $0.11

Rent, Lease and Hire $34,595 $473 $3.12 $45,602 $422 $2.82 $45,648 $627 $3.89 $12,534 $326 $2.34

Property Taxes $4,993 $68 $0.45 $8,465 $78 $0.52 $3,961 $54 $0.34 $2,553 $66 $0.48

Farm Insurance $5,020 $69 $0.45 $10,510 $97 $0.65 $3,638 $50 $0.31 $912 $24 $0.17

Other Cash Expense $11,826 $162 $1.07 $11,000 $102 $0.68 $12,999 $179 $1.11 $11,478 $299 $2.14

Total Cash Expense $212,040 $2,902 $19.14 $265,386 $2,457 $16.43 $269,886 $3,707 $23.02 $100,847 $2,626 $18.83

Net Cash Income $112,914 $1,545 $10.19 $197,841 $1,832 $12.25 $92,888 $1,276 $7.92 $48,011 $1,250 $8.97

Inventory Change $7,418 $102 $0.67 $19,147 $177 $1.19 -$1,161 -$16 -$0.10 $4,268 $111 $0.80

Net Farm Income $120,332 $1,647 $10.86 $216,989 $2,009 $13.43 $91,727 $1,260 $7.82 $52,280 $1,361 $9.76

Equity@ $47,177 $646 $4.26 $77,633 $719 $4.81 $36,958 $508 $3.15 $26,940 $702 $5.03

Return to Labor $73,155 $1,001 $6.60 $139,356 $1,290 $8.63 $54,769 $752 $4.67 $25,340 $660 $4.73

Inventory Adjustments--Feed $13,607 $186 $1.23 $29,640 $274 $1.83 $3,434 $47 $0.29 $7,748 $202 $1.45

Supplies and Other $1,186 $16 $0.11 $2,786 $26 $0.17 $252 $3 $0.02 $522 $14 $0.10

Breeding Livestock $5,703 $78 $0.51 $6,900 $64 $0.43 $5,570 $77 $0.48 $4,640 $121 $0.87

Income Change $20,497 $281 $1.85 $39,326 $364 $2.43 $9,256 $127 $0.79 $12,910 $336 $2.41

Prepaid Expenses -$133 -$2 -$0.01 -$1,042 -$10 -$0.06 $644 $9 $0.05 $0 $0 $0.00

Accounts Payable $0 $0 $0.00 $0 $0 $0.00 $0 $0 $0.00 $0 $0 $0.00

Machinery & Equipment $12,198 $167 $1.10 $26,489 $245 $1.64 $10,539 $145 $0.90 -$432 -$11 -$0.08

Land and Buildings -$2,991 -$41 -$0.27 -$3,995 -$37 -$0.25 -$2,200 -$30 -$0.19 -$2,779 -$72 -$0.52

Other Adjustments $688 $9 $0.06 $1,570 $15 $0.10 $360 $5 $0.03 $134 $4 $0.03

Expense Change -$9,763 -$134 -$0.88 -$23,022 -$213 -$1.43 -$9,343 -$128 -$0.80 $3,077 $80 $0.57

Capital Purchases Minus Sales Adj. $22,841 $313 $2.06 $43,200 $400 $2.67 $19,760 $271 $1.69 $5,564 $145 $1.04

Depreciation COST $39,666 $543 $3.58 $56,608 $524 $3.50 $34,748 $477 $2.96 $27,642 $720 $5.16

Depreciation FM Value $12,842 $176 $1.16 $19,160 $177 $1.19 $10,551 $145 $0.90 $8,816 $230 $1.65

Unpaid Labor Cost $48,267 $661 $4.36 $49,000 $454 $3.03 $55,200 $758 $4.71 $40,600 $1,057 $7.58

Unpaid Labor Hours 4,027 55 4,140 38 4,380 60 3,560 93

Labor Full Time Equivalents 1.98 2.55 2.19 1.19

Labor Earnings Per Hour $19.49 $38.78 $12.41 $7.28

Gross Income per Cwt. Eq. $31.57 $31.47 $33.12 $30.13

Gross Expense per Cwt. Eq. $30.94 $26.76 $32.95 $33.09

Net Income per cwt. $0.63 $4.71 $0.17 -$2.97

Thanks to Brian Wickline, Monroe County Agricultural Extension Agent, West Virginia for his critical review of this publication and thanks to the many dairy producers who so graciously shared their financial data for others to learn from. Thanks also to Wade Miller, Joe Klein and Gerry Cohn and Organic Valley Cooperative for their assistance in soliciting farmer participation and funding costs of collecting and analyzing data. Note, not all of the organic farms were Organic Valley producers.

Looking for Conventional Dairy Producers to Participate in Millionaire Model Dairy Farms Project

The ISU Extension and Outreach Dairy Team is looking for 10 conventional dairy herds in the 80-320 cow herd size range to participate in a similar study as done above with the organic herds and the Millionaire Model Dairy Farm project of grazing herds. If you would like to participate, please contact Larry Tranel at 563-583-6496 or tranel@iastate.edu . In order to participate, a beginning and ending asset sheet is needed (Net Worth Statement without liabilities included) and the Schedule F. Interest expense will not be shared. All information and names of participants will remain confidential. Participants will receive a full financial analysis of their dairy using the Dairy TRANS software, much like the information provided in the article above. So, please let us know if you are interested in this state-wide financial study of conventional dairy farms.

Organic Dairy Farms 2014

Iowa /Cow /Cow /Cow /Cow

Cash Income-- $324,953 $4,447 $463,228 $4,289 $362,774 $4,983 $148,858 $3,877

Adjusted Income $20,497 $281 $39,326 $364 $9,256 $127 $12,910 $336

Total Income $345,450 $4,728 $502,553 $4,653 $372,030 $5,110 $161,768 $4,213

Cash Costs $212,040 $2,902 $265,386 $2,457 $269,886 $3,707 $100,847 $2,626

Adjusted Costs $13,079 $179 $20,178 $187 $10,417 $143 $8,641 $225

Overhead Costs $95,443 $1,306 $126,633 $1,173 $92,158 $1,266 $67,540 $1,759

Total Costs $320,562 $4,387 $412,198 $3,817 $372,461 $5,116 $177,028 $4,610

RETURN OVER COSTS TOTAL INCOME - TOTAL EXPENSES$24,888 $341 $90,356 $837 -$431 -$6 -$15,260 -$397

Adj. Gross Return per FTE Labor..……………………………………………………$161,706 $190,791 $154,313 $140,014

Return to All Labor per FTE Labor.....………………………………………………………..$40,237 $62,684 $35,778 $22,251

Number of Cows per FTE Labor..........………………………………………………………..36 43 33 33

Cwts. of Milk Sold per FTE Labor......…………………………………………………………4,042 4,566 3,897 3,664

Pounds of Milk Sold per Cow.........………………………………………………………………..11,658 11,169 11,852 11,952

Productive Crop Acres per Cow.........……………………………………………………………3.9 4.01 3.39 4.37

Capital Cost per Cow………………… $862 $929 $598 $1,058

All Labor Costs per Cow..................……………………………………………………………………..$1,087 $807 $1,093 $1,361

Fixed Cost per Cow (DIRTI) $1,208 $1,292 $988 $1,343

Capital Invested per Cow………………… $15,656 $16,652 $10,716 $19,599

Net Farm Income per Crop Acre.........…………………………………………………………….$451 $496 $431 $425

Lbs. Milk Produced per Crop Acre…………………………………………………..3,262 2766 3606 3413

Adj. Gross Cash Income/Crop Acre………………………………………….$1,297 $1,158 $1,427 $1,305

Machinery Investment/Crop Acre $595 $454 $652 $679

Fuel, Gas and Oil Cost/Crop Acre..……………………………………………………..$60 $49 $66 $66

Repair Cost per Crop Acre........……………………………………………………………………….$66 $48 $92 $59

Fert/Chem/Seed Cost/Crop Acre…………………………………………….$82 $91 $84 $71

Livestock over Total Investment % 17% 14.24% 24.09% 12.44%

Cash Exp./Cash Inc.w/o Labor&Int.…………………………..…. 60% 49.88% 64.31% 67.11%

All Labor as Percent of Total Costs……………………………………………………………23% 21.20% 24.23% 23.90%

Fixed Cost as Percent of Total Cost……………………………………………………….27% 34.83% 21.55% 25.66%

**Net Farm Income From Operations (NFIFO).……………………………………... Net Cash Income - Accts Pay Adj+ Prepaid Expense Adj + Feed Inventory Adj + Livestock Inventory Adj - Depreciation = NFIFO$120,332 $216,989 $91,727 $52,280

**Rate of Return on Assets……………………………………….4.70% 7.94% 4.35% 1.81%

**Rate of Return on Equity………………………………………………………………………………….4.70% 7.94% 4.35% 1.81%

**Operating Profit Margin……………………………………………………………………………………….17.01% 32.39% 11.44% 7.18%

**Asset Turnover Ratio………………………………………………………………….. [Efficiency]34.04% 27.37% 50.81% 23.95%

**Operating Expense Ratio.......………………………………………………………………………………59.80% 51.97% 65.52% 61.91%

**Depreciation Expense Ratio...............…………………………………………………………….3.67% 3.53% 2.38% 5.08%

**Net Farm Income Ratio.............………………………. 36.53% 44.40% 32.00% 33.20%

Dairy TRANS Profit Status is…… Average Suberb/Good Average Fair/Poor

Dairy TRANS Peformance Rating 50.27% 71.80% 47.60% 31.40%

by Larry Tranel, Dairy Field Specialist, Iowa State University Extension

Calf Management in Cold Weather Hugo A. Ramírez Ramírez, Ph. D. - Department of

Animal Science, Iowa State University Extension and Outreach - Dairy Team

The care and attention that calves receive throughout their early growing phase will impact long-term outcomes. Much of the success of a dairy farm lies in raising healthy calves because they will become productive cows

in the future. During the cold weather season calves need more care to maintain their health and growth. In this newsletter we present basic information for the management and care of calves during the winter months. We must begin by clarifying what cold temperature means to a calf. Calves begin to show signs of cold stress when the temperature in their immediate environment is below 60 F (15 °C). Newborn calves are more sensitive because they are wet and this may affect them very seriously at low ambient temperatures. Facilities management--Maternity pen The attention to prevent health risks caused by low temperatures begin before the calves are born. It is very important to ensure that the maternity pen has enough clean and dry bedding material. It is also important to avoid cold drafts in the maternity pen. During the cold season we can provide assistance to ensure that calves

are dry soon after birth. Drying towels, straw or wood shavings can be used to dry and provide warmth to the newborn animal. Calf hutches or individual pens Individual pens and calf

hutches should have bedding material to protect the calf from low temperatures. It is recommended to add enough bedding material to cover the calf’s legs and change or add more material when it becomes wet. How can you decide if the material is dry enough or needs to be changed? A common test is to kneel down in the pen between 30 and 60 seconds. If the bed is in good condition you should feel that your knees are warm and sheltered. In addition, your knees should be dry when you stand up. For this test it is important to wear regular clothes like cotton pants or jeans to be able to feel the temperature changes and moisture. If you feel cold when kneeling or your knees are wet when you get up, change or put more bedding in the pen or hutch. Animal management Another useful strategy for very young or newborn calves is to use clean and dry protective jackets. It is

recommended to wash and dry jackets when they are changed from one calf to another to prevent the spread of diseases. Newborn calves should be placed in a clean, dry, draft-free place to prevent excessive loss of body heat. Nutritional management During the periods of cold weather, calves use energy to maintain their body temperature. If calves do not receive adequate energy for this function, you may notice that the calves grow slowly, do not gain weight or even lose weight because they will use energy to produce heat. In doing so, immune defense systems may also weaken and calves are more likely to get sick. In such cases, calves need to consume more calories to maintain body temperature and growth rate. There are several alternatives to increase energy intake, the most common are:

Provide more

meals per day

Feed a milk

replaces with

higher fat

content. It is

very important

to follow label

directions for proper mixing

Provide a starter feed with more energy

It is important to mention that calves must have constant access to clean fresh water, especially after eating. During the cold season warm water may entice calves to maintain their normal water intake.

I-29 Annual Winter Workshops “What Is Your Pregnant Cow Worth?”

These workshops will be held at five locations, one each in Iowa, North Dakota, South Dakota, Minnesota and Nebraska. The Iowa session will be on January 14: at the Sioux County Extension Office, 400 Central Ave NW, Orange City, IA

This workshop series will focus on everything from synchronization of cows, the latest in genomics & genetics, using of records to get the best in cow performance, reproduction economics, and the impacts of labor on reproduction while trying to get employees boost employee performance. We really encourage dairy producers to attend the workshop because the information provided will enable producers as they work to enhance their dairy herd’s reproductive performance.

The workshop cost is $50 per person, $20 for College/Technical School students before December 31st, 2015 and after that date it will increase to $65/person and $25/student. For On-line registration, visit http://igrow.org/livestock/dairy/, or you may contact Ryan Breuer, 712-737-4230 rmbreuer@iastate.edu for a

registration form.

NOTE: The following article is the same as the previous calf care article but in Spanish for farm employers to use as a training tool for employees that may have a language barrier on the basics of calf care.

Manejo y cuidado de becerras en clima frío by Hugo A. Ramírez Ramírez, Ph. D.

Dept of Animal Science, Iowa State University Extension and Outreach - Dairy Team Los cuidados y atenciones que reciben los becerros y becerras durante su crecimiento tienen resultados a

largo plazo. La crianza de becerras y vaquillas sanas es el éxito de la lechería porque se convertirán en vacas productivas. En temporada de clima frío los becerros necesitan más cuidados para poder mantener su salud y ritmo de crecimiento. En este material le

presentamos guías básicas para el manejo y cuidado de becerros durante los meses de bajas temperaturas. Debemos empezar por aclarar qué temperatura significa frío los becerros. Los becerros comienzan a mostrar signos de frío cuando la temperatura en el ambiente está por debajo de los 60 F (15° C). Becerros recién nacidos son más delicados porque están húmedos y esto les puede afectar de manera muy grave cuando hay baja temperatura ambiental.

Manejo de instalaciones Corral de maternidad Las atenciones para prevenir riesgos de salud causados por bajas temperaturas comienzan desde antes que nazcan los becerros. Es muy importante asegurarse que el corral de

maternidad tenga suficiente material de cama limpio y seco. Además, se deben evitar corrientes de aire frío en el corral de maternidad. Durante la época de frío se puede proporcionar asistencia para asegurar que los becerros estén secos poco después de haber nacido. Para eso se pueden utilizar toallas o paja para secar al becerro recién nacido. Becerreras o corraletas individuales Las corraletas individuales deben tener material de cama para proteger al becerro de las bajas temperaturas. Se recomienda agregar suficiente material que alcance a cubrir las patas del becerro y cambiar o agregar más material cuando se humedece. ¿Cómo se puede decidir si el material está lo suficientemente seco o se necesita cambiarlo? Una prueba muy común consiste en hincarse en la corraleta entre 30 y 60 segundos. Si la cama está en buenas condiciones se debe sentir que las rodillas están cobijadas y calientes. Además, las rodillas deben estar secas al levantarse. Es importante hacer esta prueba

vistiendo ropa regular como pantalones de algodón o de mezclilla para poder sentir los cambios de temperatura. Si se siente frío al hincarse o las rodillas están húmedas al levantarse, se debe cambiar o poner más material de cama en la corraleta. Manejo de los animales Otra estrategia muy útil para becerros muy jóvenes o recién nacidos es usar chamarras protectoras limpias y secas. Se recomienda lavar y secar las chamarras cuando se cambian de un becerro a otro para prevenir la dispersión de enfermedades. Los becerros recién nacidos se deben colocar en un lugar limpio, seco y libre de corrientes de aire para evitar enfriamiento.

Manejo nutricional Durante la temporada de frío, los becerros utilizan energía para poder mantener su temperatura corporal. Si no reciben la energía adecuada para esta función, se notará que los becerros no ganan peso o incluso van a

perder pesos porque usarán energía para producir calor y no para crecer. Al hacer esto, los sistemas de defensa también se debilitan y los becerros están más propensos a enfermarse. Por tal

motivo, se debe aumentar la cantidad de calorías en la alimentación de los becerros para brindarles soporte que ayude a mantener la temperatura y tasa de crecimiento. Para esto hay varias alternativas, las más comunes son:

Dar más comidas por día

Usar un sustituto de leche que sea alto en

grasa. Es muy importante seguir las

indicaciones en la etiqueta para preparar el

sustituto de leche.

Dar alimento iniciador que contenga más

energía.

Es importante mencionar que los becerros deben tener acceso constante a agua limpia, sobre todo después de comer. En temporada de frío se puede dar agua tibia o caliente para promover que los becerros continúen tomando agua.

2016 Dairy Calf & Heifer Association Conference This conference is April 11th – 13th in Madison, WI. “Moving Forward” is this year’s theme and includes networking opportunities and the latest practices, technology and research in the calf and heifer industry. Full agenda and registration can be found at www.calfandheifer.org or by calling 855-400-DCHA.

2016 NE/SE Iowa Dairy Days

TOPICS Maximize Economic Returns to Fertilizer Expenses Brian Lang and/or Rebecca Vittetoe, agronomist Putting Forages to Work in Your Transition Cow Program Hugo Ramirez, assistant professor of animal science Benchmarks for Transition Cows / Producer Survey Jenn Bentley, dairy specialist

LUNCH Precision Technology: Update from ISU Dairy Leo Timms, Morrill professor and dairy specialist Is Organic Dairying a Viable Option? Larry Tranel, dairy specialist Advances in Reproduction Programs Dr. Ryan Breuer, DVM dairy specialist Program details are available at: http://www.extension.iastate.edu/article/local-dairy-days-feature-profitable-dairy-practices

Locations: Jan. 18, Waverly, Civic Center, 200 1st Street NE Jan. 19, Calmar, Northeast Iowa Dairy Foundation, Hwy 150 South Jan. 20, Riceville, Windy Tree Cafe, 101 East Main St. Feb. 1, Bloomfield, Davis County Extension Office, 402 E. North St. Feb. 2, Kalona, Chamber of Commerce, 514 B. Ave. Feb. 3, Holy Cross, Neumann’s Bar&Grill, 927 Main St Feb. 4, Ryan, River Valley Coop, 605 Franklin St. A $15 registration fee covers the noon meal and proceedings costs. Pre-registration is requested by the Friday before each event to reserve a meal. Vouchers for the event may be available at a local agri-service provider or veterinarian’s office. For more information contact the local county ISU Extension and Outreach office or extension dairy specialists, Jennifer Bentley at 563-382-2949 or Larry Tranel at 563-583-6496.

2016 Dairy Foundation Annual Meeting

March 17th, Iowa's Dairy Center, Calmar, IA. Registration: 10:30 a.m. The educational events for the day start at 11 a.m. There will be a meal at noon, followed by the annual meeting. If you are not a current member of the Dairy Foundation and would like to attend, please contact Megan at (563) 534-9957, ext. 107, or email kregelm@nicc.edu and your membership can be set up. Please RSVP for lunch if attending.

Transition Cow On-Farm Workshops Looking to improve your transition cow program? While transition cow management encompasses only 20-30% of the herd, it can ultimately influence the production and health of 100% of the cows! Join the ISU Dairy Team for field days focused on transition cow management. Areas covered will

include, facilities, milk quality, feed management, day of calving, and records management. Dairy Field Specialists are partnering with local industry partners to provide you with many resources at the following farms!

Thursday, March 24 10 am—12pm: Marv Lynch, 24764 Hwy 151, Cascade, IA. From Monticello, follow Hwy-151 N for about 7 miles, farm is on the right. 12:30-2:30 pm: Tom Pasker, 1415 300th Ave. Dyersville, IA From New Vienna west on C64 for 3 miles, right onto 330th Ave, about 2miles, farm on left.

Tuesday, March 29 12:30-2:30 pm: Einck Dairy, 1140 227th Ave. Ft. Atkinson, IA From Calmar, head south on Hwy 150 for 6 miles, turn left onto 110th Street, then 1st left onto 227th Ave., farm is on the right.

Wednesday, March 30 12:30-2:30 pm: Brumm Dairy, 2370 465th Street Stacyville, IA From Stacyville, head east on Cty Hwy-A23 (465th Street) for 1 mile, farm is on the right (south)

Thursday, March 31 10 am—12pm: Chad Demmer, 1419 140th Street Dundee, IA From Strawberry Point, go south on IA-13/IA-3 for 2 miles, turn right onto Forestville Rd/Cty Hwy-W69 (140th Ave) for 5 miles, turn left onto Firefly Rd, turn slight left onto 140th Street for .6 miles, farm is on the left. 12:30-2:30 pm: Dennis Bergan, 16618 290th Street Elkader, IA From Elkader, take Hwy 13 South and turn

right onto Empire Rd, take 1st left onto 290th Street for

2 miles, farm is on the left.

NW Iowa Sites

There will also be Transition Cow Workshop sites in NW Iowa. For information regarding those sites, please contact Ryan Breuer, 712-737-4230 rmbreuer@iastate.edu for dates and locations.

Dairy Field Specialists Jenn Bentley, 563-382-2949 jbentley@iastate.edu Larry Tranel, 563-583-6496 tranel@iastate.edu Ryan Breuer, 712-737-4230 rmbreuer@iastate.edu

State Dairy Specialists: Dr. Leo Timms ltimms@iastate.edu Dr. Jan Shearer jks@iastate.edu Dr. Hugo A. Ramírez Ramírez hramirez@iastate.edu Iowa State University Extension programs are available to all without regard to race, color, age, religion, national origin, sexual orientation, gender identity, genetic information, sex, marital status, disability, or status as a U.S. veteran. Inquiries can be directed to the Director of Equal Opportunity and Compliance, 3280 Beardshear Hall, (515) 294-7612. Cooperative Extension Service, Iowa State University of Science and Technology, and the United States Department of Agriculture cooperating.

Inside This Issue:

Vaccination Protocols to Optimize Herd Health & Transition Cow Success

Observing Cow Behavior During the

Transition Period

ISU Research: Distiller’s and Dairy

Products

Organic Dairy Profits in Iowa, 2014

Calf Management in Cold Weather

Iowa Dairy Days Meetings

Transition Cow Workshops