Business and economics

By Eliza Ruzic and Pat Hoffman
As robotic milking systems continue to gain interest and adoption, dairy producers are looking at the economics associated with the technology.  Producers often ask us, “What truly influences milk production on a robotic dairy?  Do pellet characteristics influence visits and milk production?  Does the energy density of the partially mixed ration (PMR) affect milk production?”

During Vita Plus Dairy Summit in December, attendees explored many “waves of change” in the dairy industry.  If you did not attend the event – or did attend and are looking for a refresher – browse the topics in this post to access the full event e-news.

By Steve Maier
As we receive improved milk prices for the year ahead, we should see some recovery to our profitability, which will, in turn, lead to recovery of the balance sheet. Reflecting on my 20 years of finance experience, I seldom see bad decisions made in the worst years; they always seem to happen in the best years.

While fat’s value has remained steady and worth capturing, starting in February 2019, protein values have taken off like Usain Bolt running the 100 meter. In fact, it has increased by 232% since February, or more than 20% per month - a pretty amazing performance.  The impact of this on recent milk checks has been a welcomed relief to dairy producers and the industry as a whole.

By Marin Western
Today’s dairy producers have a wealth of data at their fingertips. Details for health, reproduction, feedings and inventories just scratch the surface of the numbers that can be generated from farm data. One of the biggest challenges is what to do with all this information.  A study by Compeer Financial and Zoetis identified six factors that account for 85% of the variation in farm profitability.

By Rod Martin
Evaluating feed costs is a double-edged sword.  Because it’s your largest expense, cost-cutting measures could be extremely significant in reducing cost of production.  On the other hand, milk production and components are the economic engine that drives cash flow.  Saving 20 cents per cow daily in feed costs while losing 50 cents in productivity is not a good economic tradeoff decision.  

By Eliza Ruzic
Agriculture is an ever-changing field with endless opportunities for a variety of careers.  From accounting to research, and from sales to hands-on daily labor, young people considering a career in agriculture have plenty of choices for future careers. 

After speaking to an eighth-grade careers class recently, I started thinking about what students can do to prepare themselves for a career in agriculture.  Here are my top 10 tips to make yourself stand out as a candidate for a position.

By Peter Coyne
Key performance indicators (KPIs) are defined as measurable values that demonstrate how effectively a business meets its objectives.  Identifying and tracking a few simple, yet critical, KPIs can prevent farm managers from becoming bogged down in analysis and losing sight of what’s important to their operations.

By Gary Sipiorski
Lenders of all kinds – banks, Farm Credit, credit unions, equipment manufacturers and others who make credit available to farmers – have many financing options. 

You may have heard many of the following terms, but it can be tough to understand what they mean for you.  Lenders live and breathe this terminology daily while farmers many only hear the terms once a year. 

Here are some of the more common lending “products” as they may be called by someone doing the financing.  Always remember, each lender will have his or her own policies, additional terminologies and methods.  In no way is should this list be considered complete.

By Gary Sipiorski
The relationship a dairy producer has with a lender is just as important as a strong balance sheet and cash flow.  The lender is the gatekeeper for tapping into future borrowings.

A dairy producers should take these five steps to maintain a healthy relationship with his or her lender.

By Gary Sipiorski
Seasoned dairy producers have been through our cyclical milk price swings.  They recognize this low spot because they’ve been here before.  Those with less experience may feel more uncomfortable in the current situation, but that’s not to say any dairy producer is pleased with the prices.  Regardless, everyone must work through the low period. 

Here are five ideas to start the preparation process for however long it will take to get back to a higher milk price.  

More than 330 dairy producers, Vita Plus consultants and industry peers came together December 6 and 7 for Vita Plus Dairy Summit 2017 in Madison, Wisconsin.  Follow the links in this post to access full event coverage, including speakers' PowerPoint presentations, articles, videos and more.

By Peter Coyne
As I mentioned in part one of this series, success on the farm starts and ends with good employees.  We discussed the qualities of good managers and how good management starts at hiring.  In this second article, we will talk about what managers can do to keep employees engaged once they are hired.

By Peter Coyne
Employees are the most valuable asset on a dairy farm and managing those employees well is the true key to success on a farm. 

By Bob Hagenow
The workforce is currently made of three different generations:

• Baby boomers (those born between 1946 and 1964)
• Millennials (those born between 1980 and 2000)
• Generation X (those born between these two generations)

Each of these generations approaches work and is motivated differently based on the life experiences that shaped them.

By Gary Sipiorski
Transferring a dairy farm to the next generation can be complicated.  No one wants to make it difficult, but the process involves many details.  Written terms and agreements must be done properly.