Since mid-2008, we have seen milk prices as low as $10 and as high as $22. Corn, corn silage, soybean meal and other feedstuffs have also experienced significant price volatility. Day-to-day operation management in these times becomes a challenge, let alone planning for an expansion. Many questions need to be evaluated before an expansion is considered. Some of them include the following: 1. Why does the operation need to expand? 2. What will the new operation look like? 3. Where will the new operation be located? 4. How will the operation be different from a management perspective? 5. When is the best time to expand? These basic questions are naturally interrelated and need not be answered in any particular order. However, No. 1 is probably the most important and requires the closest consideration before moving forward.

One thing I like about working with dairymen is they are not afraid of taking risks to be successful. Initially, we were asked to talk about expansion opportunities for dairy operations. While that sounds great and full of risk, we’d like to expand your thinking by asking you to see risk transfer as the business expansion itself. Given today’s dairy environment, we believe it makes more sense to address expansion and planning from a different angle than what a traditional expansion looks like. Instead of expanding the dairy operation by adding more cows, land and facilities, let’s look at it from the individual owner’s perspective. For example, how does a son or daughter increase their ownership in the family dairy from 10 percent to say 25 percent or 30 percent?

When planning a dairy cattle freestall housing system, focus on the cow and the freestall where you expect her to spend half her work day, resting and making milk. The size of the resting and lunge areas of the stall and the type and condition of the resting surface are critical. The quality (temperature, moisture, dust) and quantity (flow rate and velocity) of the air surrounding the cow must also be considered in the design, construction and maintenance of the freestall component of the overall dairy system. The cow must be able to freely access other housing areas throughout her work day. This includes the alleys that service the freestalls, water stations and feed lines, and also allow the cow to travel to and from the milking parlor and special-needs areas.

President Obama signed the new tax bill into law on Sept. 27. This law contains several new provisions as well as extensions of older provisions that were scheduled to expire at the end of 2010. Many of these provisions are very beneficial to businesses engaged in agriculture and provide numerous opportunities you should consider as you review your tax situation and do your year-end planning. Expensing of equipment purchases In the past, equipment and single-purpose agriculture building (barns, hay sheds, milk parlors, etc.) purchases were depreciated over a certain period of years. Several years ago, provisions were made allowing certain dollar amounts to be expensed in the year purchased.

TRENDING TOPIC ARTICLE: FEED & NUTRITION Published: November 1, 2010 print issue of Progressive Dairyman In this past article, nutritionist John Hibma outlined the different forms of fats available and each of their functions in dairy rations. to jump to the article. Because this article was so popular, we asked Hibma, “Why are dairy producers curious about this topic?” Hibma says, “I suspect that many dairy farmers are realizing the critical importance of body condition in their cows and how it affects milk production throughout the lactation. "The rumen-protected fats will maintain body condition very well. The other factor is that energy balance is critical for reproduction, and a herd of cows that is long in days in milk is a herd that is losing money ... so there again, the fats do a good job of improving reproduction performance in a herd.”

The fundamental design for the dairy barn is to provide cow comfort, labor efficiency, economic viability and waste management efficiency. Solving the manure collection and removal problem will result in increasing productivity and a better environment.

“The use of copper sulfate footbaths is no big deal. Don’t worry about it!” Is this what you and your neighbors are saying? Let’s evaluate that position and see if it holds water.

The general public is increasingly concerned about air and water quality, especially as it relates to manure management. In response, governing bodies pass laws and regulatory agencies develop regulations that livestock farmers are forced to follow.