Advantages of Hiring Custom Operators Sarah Roth Dairy Alliance Penn State University Dairy Alliance is a Cooperative Extension initiative
Today’s discussion Advantages Example Feel free to ask questions!
6 Advantages Free up labor for remaining enterprises Free up management for remaining enterprises Concentrate efforts in fewer enterprises (specialization) Obtain higher quality products Cut input and/or production costs Increased production
Free up labor Time to attend to details in other parts of the business Develop specialized knowledge instead of being jack-of-all trades Don’t have unqualified employees driving equipment
Free up management Time to analyze data and make more informed decisions Take advantage of educational opportunities
Concentrate efforts Specialization –Focus on one (or two) enterprises –Dairy (milk production), heifers
Obtain higher quality products Custom operators provide: –Specialized knowledge in the services they perform –Timely service –Consistent quality
Cut input/production costs No need to own machinery only used for a short period of time –Depreciation –Interest –Repairs –Oil, Fuel –Taxes, Insurance, Housing Don’t have to hire part-time summer help
Increase production Higher quality forages can increase milk production Increased production or better milk component levels generate more gross revenue
Example Corn silage harvesting See worksheet
Thank You! Visit the Farm Management website – Visit the Dairy Alliance website – My contact info –Phone: –