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The basics of Livestock Gross Margin Insurance for Dairy

March 19, 2012
Craig Thomas
Livestock Gross Margin Insurance for Dairy (LGM-Dairy) is a subsidized insurance policy that provides protection to dairy producers against the loss of gross margin (market value of milk minus feed costs) for specified portions of milk produced by their dairy cows. Livestock Gross Margin Insurance for Dairy establishes a floor (minimum) on income over feed costs (IOFC), ensuring that the gross margin will not be less than the amount specified in the LGM-Dairy policy. It is a risk management tool very similar to using a bundled options strategy.
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The importance of up-to-date accounting and recordkeeping

March 16, 2012
Roger Mills
The old adage of farming being a “way of life” no longer rings completely true. Farming is very much a business these days, much like any manufacturing or service industry in town. Even the smallest dairy operations can show assets in excess of $1 million, as milk quota, in many cases with this size of unit, is the main contributor to the farm balance sheet.
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‘Energy-smart’ agriculture needed to escape fossil fuel trap

March 16, 2012
The global food system needs to reduce its dependence on fossil fuels to succeed in feeding a growing world population, the Food and Agriculture Organization of the United Nations (FAO) said. “There is justifiable concern that the current dependence of the food sector on fossil fuels may limit the sector’s ability to meet global food demands. The challenge is to decouple food prices from fluctuating and rising fossil fuel prices,” according to an FAO paper published during the UN Conference on Climate Change.
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The whys and hows of seasonal dairying

March 15, 2012
Dave Forgey
Why manage a seasonal herd on pasture? For starters, here are seven good reasons: • Single milking herd management. I like seasonal dairying because it allows the management of even a large herd as one group.
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What do cows and chickens have in common?

March 1, 2012
Alan B. Gunderson
In late January, the U.S. Poultry and Egg Association and the American Feed Industry Association (AFIA) jointly sponsored the International Poultry/Feed Expo in Atlanta, Georgia. It is truly one of the largest and most well-attended trade shows and conferences in the world. Now, you are probably asking yourself, why would a show about chickens and feed have anything that would interest a dairy producer? I used to wonder the same thing, but I have come to understand that an international show like this is a place for new ideas, technologies and production practices that form the basis for future adaptation in other species.
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Avoiding the Derek Principle: Promoting the best to leadership

March 1, 2012
Richard Hadden
We’ve all heard of the Peter Principle, which states that “in a hierarchy, every employee tends to rise to his level of incompetence.” One special flavor of the Peter Principle is something I call the Derek Principle (my apologies to those of you who share the name), after a brilliant software designer I once worked with, a young man who could apply his creativity and ability to work tirelessly toward the solving of some of the greatest technical challenges our company ever encountered. So skilled was he in the disciplines of coding, flowcharting and testing against all conceivable possibilities, that his manager naturally made the mental leap that Derek would make a terrific manager, able to lead and inspire others to the same high level of performance.
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Seven ways to lead by example

February 29, 2012
Timothy F. Bednarz
A developmental milestone is reached when the leader is able to build trust and motivation with their employees to the degree that they are willing to openly follow their direction regardless of circumstances. This is not achieved until a leader is able to demonstrate – through personal example – that they have earned their employees’ respect and admiration.
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Time to toss out the USDA’s milk-feed ratio

February 29, 2012
Normand St-Pierre
Rewind your clock to December 4, 2011. The prior week the USDA released its preliminary Agricultural Prices report for November. According to this report, the preliminary milk-feed ratio for November was 1.80. Following the headline “November milk-feed ratio a disappointing 1.80,” an eminent dairy economist commented, “The milk-feed profitability index for November is none too rosy. It’s not until the ratio reaches 3.0 that it is considered profitable to buy feed and produce milk.”
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Communication: Simple is better

February 29, 2012
Tom Wall
When you think of great communicators in history, who are some of the first people that come to mind? What do you think made them so good at sharing their message? Is it merely because they speak the same language as you do, or is it more than just the words they use? Of course, choosing the right words at the right time is at the heart of effective communication. But, I think most top-notch communicators are great because they know their message, their audience and how the two come together.
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When is a pig not a pig?

February 29, 2012
Ben Yale
In the Supreme Court term which began in October, the court has been called upon to decide what is a religious minister and what is not, whether a GPS monitoring by police is a search or not, and whether the Congress can mandate that individuals buy health insurance or not. In the midst of those weighty decisions, it recently decided what a pig is. This tale begins with a cow. Early in 2008, undercover photographers for the Humane Society of the United States caught workers at a California slaughterhouse mistreating a non-ambulatory cow. It was shocking footage.
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