Labor is the second-largest expense on dairy farms, and labor costs are frequently a target for cuts. However, any attempts to reduce labor expenses must be weighed against the impact on quality and the quantity of the farm’s output, warns Jason Karszes, Cornell University’s PRO-DAIRY farm management specialist.

Where can you get unbiased insight and information on critically important and sometimes sensitive issues and opportunities?

We are in a fourth year of depressed milk prices, the longest span we’ve experienced in the last 20 years. Dairy farmers must concentrate more than ever on expense reduction and enhanced profitability.

We are all feeling the pinch (or gut punch) of low milk prices these days, but the blow doesn’t have to be as bad as it seems. In fact, it is actually possible to make money right now at a Class III base price of $14 to $15 per hundredweight (cwt).

Within the dairy and livestock industry, we spend the majority of our time focused on animal comfort and care. We know this is extremely important; we also know that it is vital to the success of our operations and is highly valued by consumers. But let me ask you this: How much emphasis are we placing on our employees and their comfort and care? Do consumers care? Is it something we should place at a higher level on our management radar?

Drafting and updating standard operating procedures (SOPs) may not be a favorite task on the dairy farm, but it is critical for a well-run operation. According to a survey of large dairy farms conducted by Michigan State University, communication is a common weakness across farms.

When contemplating renting a facility for animals, it can be difficult to know how to calculate the value. There are standardized formats for renting other properties and assets, but no simple formula for computing livestock facilities’ worth.

Four panelists, representing some of the dairy industry’s leaders in building employee engagement, offered their perspectives at the recent Operations Managers Conference, presented by Cornell PRO-DAIRY and the Northeast Dairy Producers Association. The session was moderated by Dr. Richard Stup, Cornell agricultural workforce specialist. Panelists shared how and why to engage employees and build a positive workplace culture.

Safety plays a vital role on every dairy farm because the ideal goal is to end each day with safe and healthy employees and animals. Safety is a role that continues to be evaluated and improved in order to better the industry and the experiences of those who work in and are a part of it.

Cost of production (COP) is one of the most important metrics to evaluate a dairy operation’s financial status. However, when discussing COP, people typically refer to cash flow and include purchased feed, labor, principal and interest payments, and any cash capital purchases.