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PD NEWS Mar. 21, 2012: issue 3

March 19, 2012
Organic trade: U.S. and Canada take step toward full equivalency Canada and U.S. organic dairy, beef, sheep, goat and bison producers exporting products can now benefit from more streamlined trade. In the U.S., these animals, referred to as ruminants, must receive 30 percent of their feed during the grazing season from organic pasture and must be out on pasture at least 120 days per year.
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03192012 pdpw full

PDPW to tour Pennsylvania dairy industry

March 19, 2012
The Professional Dairy Producers of Wisconsin has put together a jam-packed, informative two-day tour featuring some of Pennyslvania's most progressive dairies. Consider attending the April 11-12 trip through Harrisburg and Lancaster to learn why this area continues to remain in the top 50 counties for U.S. milk production. Click here or on the image at right to see an e-newsletter from PDPW with more details.
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Planning ahead for 2012 should be more than guessing

March 19, 2012
Bruce Dehm
Planning for the year ahead with cash flow projections is a powerful business tool when done correctly. It is management’s blueprint on how to operate the business in the coming year based on what is known today. It is an opportunity to plan for improvements on operating efficiencies and methods due to new technology, new knowledge and the impact of different price and cost. Furthermore, with more dairy producers using price risk strategies such as forward contracting or pricing, it is even more important to not guess at your breakeven milk price. Guessing a dollar too low on your breakeven price and then locking in that price is a good way to invite a cash flow disaster.
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Mr. Chairman, Preserve funding to preserve rural communities

March 19, 2012
Senator Debbie Stabenow, chairwoman of the U.S. Senate Committee on Agriculture, Nutrition and Forestry, announced the committee will host four Farm Bill hearings in before April. The hearings will allow the committee to continue examining Farm Bill principles and evaluating policy solutions to develop a 2012 bill. The first hearing, titled Energy and Economic Growth for Rural America, was held on Feb. 15. The purpose of this hearing was to evaluate policies that make investments in jobs and opportunities for farmers and rural businesses through new markets, entrepreneurship, regional strategies and energy innovation. Here are excerpts of testimony presented during and the hearing:
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Mr. Chairman, Don’t lose sight of conservation

March 19, 2012
The second of several scheduled Farm Bill hearings, focusing on conservation, was held on Feb. 28. This hearing explored the Conservation Title’s important investment in America – the nation’s fundamental resources of our water, soils and other natural resource infrastructure – through policies that help farmers maintain soil health, keep our water clean and available, our food abundant and safe and our wildlife plentiful, so as to protect the basic principles of farming and our way of life for future generations. Here are excerpts of testimony presented during and the hearing:
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If you could change one thing about the U.S. dairy industry …

March 19, 2012
Gerwin Kerkdijk
Prior to immersing myself in the U.S. dairy market as of 2009, I’ve had the opportunity to farm in three countries, as well as work with dairy genetic suppliers and farmers in at least 50 more through my current employer. Every country has a unique set of circumstances driven by their domestic dairy needs or ability to compete on the global product market.The dairy industry differs greatly around the world based on economy, climate, social, environment and labor, just to name a few.
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Take aim at your estate plan

March 19, 2012
Rob Gunther
Estate tax planning has never been an art of certainty, but the last two years have brought about a new era of uncertainty. Due to congressional indecisiveness, estate tax planners have been unable to give clear direction to their clients. In light of all the uncertainty, some significant new opportunities are now available for those willing to engage in the process of estate planning.
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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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March 21, 2012 issue: Export watch

March 19, 2012
Click here to download a pdf of the latest export watch, provided by U.S. Dairy Export Council. PD
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Do your animal health protocols meet new FDA guidelines?

March 19, 2012
Gary Neubauer
This year, the U.S. Food and Drug Administration (FDA) announced that it would soon be modifying extra-label use of cephalosporin drugs in cattle. Effective April 5, 2012, veterinarians can continue to prescribe extra-label use of any cephalosporin as long as it is the same dosage, used through the same route of administration and in the same species as its FDA-approved label. The new order does not affect FDA’s approved indications for ceftiofur. When was the last time you reviewed your dairy’s protocols for pharmaceutical use? If it’s been a while, now is the time to make sure your product use is in line with these new guidelines and is helping you avoid any residue violations.
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