In the conventional milk market, up-and-down prices can make it challenging to manage finances on a dairy operation. For some dairy producers, the idea of consistent, stable milk prices is motivation to consider switching to organic. For others, they are limited by land base constraints, differences in production practices and challenges with switching to a grass-fed diet.
During a recent Organic Lunch and Learn event, hosted by the Pennsylvania Agricultural Business Development Center and Pennsylvania Department of Agriculture, three Pennsylvania dairy producers opened up about their journeys transitioning to organic. They shared their deciding factors in making the switch, how they have achieved profitability, and the lessons and challenges they’ve navigated along the way.
The deciding factor for switching to organic
An urban landscape was one of the major motivators for Todd Frescura, a dairy farmer from Sunrise Ridge in western Pennsylvania, switching to organic. With 100 acres and registered Ayrshires and Milking Shorthorn, the organic milk market has helped make Frescura’s small family dairy operation more viable – especially with Frescura being the sole employee.
“We only have 100 acres and I’m by myself. I don’t have the full-time help that a lot of farms do. I live in a really urban area, so I’m dealing with traffic on the main roads and urban sprawl. I needed to find a way to keep my 100-acre farm viable,” Frescura shared during the panel. “I started grazing cattle before I realized I was actually transitioning to organic. Someone asked me why I wasn’t organic already, so my transition was really easy. I was already doing it without even knowing it. It was a way to keep my small farm viable.”
Roman Stoltzfoos of Springwood Organic Farm in southeast Pennsylvania has been certified organic since 1995. With 240 cows, 200 owned acres and 1,100-plus rented acres, the rented land base in his area was a deciding factor in making the switch to organic more than 30 years ago. Stoltzfoos and his family aim to make all hay, and they are nearly 100% grass-fed.
“We thought organic grass would be easiest to grow, and we found that to be really profitable. There’s a challenge to get feed in Lancaster County, but it seems like there’s more land available to rent than ever. We were able to get 100 acres right next to us,” Stoltzfoos shared. “We feel it’s worth it to have our own ground to make our own hay so we can have good forages and feed to keep our organic cows milking.”
Another dairy farmer from Lancaster County in southeast Pennsylvania who preferred not to be named switched to organic in the past year. He milks approximately 50 cows on a 70-acre dairy farm. While he is new to the space, he says falling conventional milk prices and a family-friendly lifestyle sparked his transition to organic.
“Conventional milk price has really gone down. I’m enjoying [being organic]. It’s a family farm, so the kids can go out with me. We enjoy having the cows out on pasture. The stress level is a little less, too,” he shared. “Another reason for transitioning was getting away from the chemical spraying and [being aware of] what I’m putting into the ground and the soil.”
Managing profitability, not production
With the transition to organic, all three producers noticed significant differences in milk production. They reflected on different grazing and herd management practices that helped them streamline profitability. For Frescura, he found freedom in being able to control his volume, components and quality – and also made the decision to switch to mainly custom harvesting.
“You will lose production from your conventional herd, but the transition at the end is absolutely worth it. [There are ways to] streamline and specialize in what you’re doing. I got rid of most of my farming equipment, so I do mostly custom work now. I have no expense in fixing it, fuel or supplies,” Frescura explained. “My milk price has a guaranteed minimum price, and all the other components and quality have a set price. The only variance I have is my volume, components and quality, which comes from my farm. I know exactly what I’m getting for what I have. I control how much I give.”
With grain calories being more dense than grass, Stoltzfoos says there is a learning curve that comes with grazing correctly and feeding your cows a grass-fed diet. It also comes with management changes that can turn into competitive advantages, depending on the size of farm.
“You need to have 30 percent dry matter from grass to be organic. When you first get to 100 percent grass, your cows will probably lose weight unless you know what you’re doing. So you need to know how to handle grass. That’s what is going to make you money. It’s not production. It’s profitability that counts,” Stoltzfoos shared. “I know farmers who are buying 30 to 40 percent of their dry matter needs, but you can do it on 100 percent grass. Larger, 1,000-plus-cow dairies are going to struggle to implement a 100 percent grass-fed diet, so there’s a real competitive advantage [if you can manage your dairy] with grass. Components are typically going to be higher on an all-grass farm.”
The consistency in organic milk price, along with quality premiums, has led to sustained profitability for the Lancaster County dairy producer. Quality crops are his focus area.
“The organic milk price seems very stable. We’re averaging around 37 dollars per hundredweight. Occasionally there are drops, but it doesn’t go up and down like conventional milk,” he said. “To me, the biggest profitable thing you can do on your farm is grow quality crops. Pay attention to the little things. Get your quality premiums. Keep your cows healthy. Those little things make a big difference.”
Lessons learned
With high volumes of paperwork, different styles of grazing based on the geography of the state, new management practices and a long certification process, the journey of transitioning to organic takes time, effort and adaptability. For these Pennsylvania dairy producers, the effort has paid off in terms of steady profitability and consistency in milk price.
“The amount of paperwork you have to do [is a challenge]. Every year you’re inspected and there are people coming to your farm to make sure numbers, crop yields and dry matter intakes match. Everything has to mesh together. It’s still a learning process, especially when you’re doing a fully grass-based diet,” Frescura shared. “I also have to adapt to different techniques and styles of grazing. Not everything matches across Pennsylvania.”
After recently going through the organic certification process, the Lancaster County dairy producer encouraged others to start early.
“Pick a certifier you’re going to work with, and start that process early. Don’t wait until you want to be certified organic. Get everything in shape, and talk to the certifier when you start transitioning to know what is allowed and what is not allowed,” he said.
After a long career in the organic space, Stoltzfoos reflects on how rewarding it is to have a learning edge, know where your costs are and keep profitability at the forefront.
“You have to get around people who are doing it. Go to pasture walks and meetings. You can pick up a lot of information at grazing conferences. Keep learning. The number one thing we’ve done to get into a profitable position was adding a business coach who knows the numbers. Our coach has helped us set a budget every year. It’s amazing what you can do knowing where your costs are,” he added.
