Grow Wisconsin Dairy 30x20 Nicole Breunig Wisconsin Department of Agriculture, Trade and Consumer Protection (DATCP)

The Mission The mission of DATCP is to serve the citizens of Wisconsin by assuring: The safety and quality of food. Fair business practices for the buyer and seller Efficient use of agricultural resources in a quality environment Consumer protection Healthy animals and plants The vitality of Wisconsin agriculture and commerce Department of Agriculture, Trade and Consumer Protection

Background Department of Agriculture, Trade and Consumer Protection Wis. Act 32 provided an annual appropriation of $200,000 of the former Dairy 2020 program funding to DATCP following the disbanding of the Wisconsin Department of Commerce. DATCP Secretary Ben Brancel convened dairy discussions with industry leaders from across the state to better understand the needs and demands of our farmers and processors. Suggestions from these discussions formed the priorities and services model of Dairy 30x20.

Discussion Collaborators Cooperative Network Dairy Business Association GrassWorks, Inc. Professional Dairy Producers of Wisconsin UW-Extension Wisconsin Center for Dairy Research Wisconsin Center for Dairy Profitability Wisconsin Cheese Makers Association Wisconsin Dairy Products Association Wisconsin Farm Bureau Federation Wisconsin Farmers Union Wisconsin Milk Marketing Board Wisconsin National Farmers Organization Department of Agriculture, Trade and Consumer Protection

Graphic and data courtesy of WMMB and USDA/NASS WI Dairy Farm Numbers Department of Agriculture, Trade and Consumer Protection 11,637 dairy farms in Wisconsin as of 4/1/201 Less than half of the number in 1997 (25,000 then)

Milk Production Per Cow is Increasing Department of Agriculture, Trade and Consumer Protection 1987 average of 13, average of 16, average of 20,630

Services to Match Customer Needs Dairy Farm Number Trend Continues Herd Size Trend Continues Cow Numbers Approximately Steady Milk Production per Cow is Increasing Distribution of Herds and Milk Production Shifting Diversity of Size and Type of Dairy Farms

WI Annual Milk Production In Billions of Pounds

% Representation by Herd Size 80% 40.5% 20% 59.5%

WI Dairy Industry Trends 11,637 Wisconsin dairy farms as of 4/1/2012 Less than half of the number in 1997 (25,000 then) Milk production per cow is increasing 2010 average of 20, average of 16, average of 13,816 Shifts in % total milk production by herd size In % of the herds had more than 100 cows and yielded 32.5% of the milk produced in the state In 2007 almost 20% of the herds have more than 100 cows and are producing almost 60% of the milk volume

Dairy Discussion Goals Provide assistance to dairy farmers, without regard to size or type, focusing on: Long-term, sustained operation Profitability Maintaining and increasing milk production Management & operation changes Business planning Transition planning Beginning farmer assistance Department of Agriculture, Trade and Consumer Protection

Dairy Discussion Items Changes among Wisconsin dairy farms Changes in economic conditions Changes in federal, state, and local budgets Need to continue to improve services and address changing needs Identify needs by herd size Develop clearinghouse model with DATCP as starting point to disseminate information and navigate to resources. Department of Agriculture, Trade and Consumer Protection

Needs by Herd Size According to the Wisconsin Agricultural Statistics Service(WASS) 2010 Dairy Producer Survey, ¾ of surveyed farmers are intending to be in business in Based on this number is it important to recognize the needs of the approximately 9,000 dairy farms in Wisconsin what will be in business in 2015 and incorporate a dairy development strategy to help them obtain profitability while increasing Wisconsin milk production. Difficult to put every farm type into a box or place on a line. Diversity isn’t just in farm size. From management styles, ownership, business planning and many other facets, every farm can be very different – But they all need basic things…

Needs by Herd Size Cow #s on farmGeneral description of this size farmProbable future needsTypical services to be provided by DATCP no hired laborexit planningshort-term/next generation planning high equity positionlow cost modernizationmodernization planning not looking to expandtransition planningorganic/grazing transition stanchion/tie-stall/pipeline set-upgetting started farmingbeginning farmer few hired immigrant laborhow to manage employeesbusiness training skills medium equity positionhow to manage a businesspeople management skills will expand in futuremodernizing/expanding optionsfuture planning parlor/free stall set up or robot 500+Immigrant laborlegal servicesprovide resources as requested lower equity positionfinancial management skillsprovide consultants through grants always expandinginvestigating new technologyprovide financing options always looking at new technologyexpansion planning Department of Agriculture, Trade and Consumer Protection

Herd Needs by Area Planning & Preparation -Business Development -Financial Analysis -Transition/Transfer -Expansion -Modernization On farm management -Herd Health -Facilities -Milk Production -Milk Quality -Operational Efficiency Planning and Preparation for Profit

Implementing Clearinghouse Model Establish a client based service delivery system that utilizes a multi-agency, private-public network for services and referrals Identify internal technical assistance areas covered by DATCP staff Coordinate list of private service professionals. Including, but not limited to: Financial advisors Legal service providers Department of Agriculture, Trade and Consumer Protection

Clearinghouse Model - Internal

Clearinghouse Model - Farmer

Grow Wisconsin Dairy 30x20 Goal Improve the long-term viability of Wisconsin’s dairy industry through services to achieve an annual milk production of 30 billion pounds by 2020 to meet the growing demand of the marketplace. Department of Agriculture, Trade and Consumer Protection

Grow Wisconsin Dairy 30x20 Need Wisconsin dairy farmers currently only produce approximately 90% of the milk volume needed by the state’s dairy processors. Wisconsin’s milk production grew less than 1% in 2011 to 26.1 billion pounds, which is not on pace to meet the future demands of the state’s growing processing industry. Dairy 30x20 will help secure a strong future for Wisconsin dairy farmers that will allow our state’s dairy industry to maintain our diversity. Department of Agriculture, Trade and Consumer Protection

Grow Wisconsin Dairy 30x20 Objectives Provide assistance to dairy farmers, without regard to size or type, focusing on long-term, sustained operation and increasing profitability and production. Improve profitability through management and operational system changes, business and legal structure, and herd health and milk production. Beginning farmer assistance. Department of Agriculture, Trade and Consumer Protection

Grow Wisconsin Dairy 30x20 Services Toll-free number 855-WIDAIRY ( ) for dairy farmers to call to connect with resources and service provided for WI Dairy Development. at These resources and services will continue to build and be available online at GrowWisconsinDairy.wi.gov. Electronic Catalog of Network and Contacts to facilitate clearinghouse function. Department of Agriculture, Trade and Consumer Protection

Grow Wisconsin Dairy 30x20 Services Promote the growth of the dairy industry through research, planning, and assistance, including grants and loans to dairy producers. Per Emergency Rule Scope ATCP 161. ATCP 161 formed the Grow Wisconsin Dairy Producer Grants to retain farms, facilitate operational changes, improve profitability, and yield more milk through. Department of Agriculture, Trade and Consumer Protection

Grow Wisconsin Dairy 30x20 Grow Wisconsin Dairy Producer Grants FY12 Request for Proposal release March 30, 2012 The grant will be flexible and customizable to meet the needs of individual farms. Monies from the grant will be used by farmers to hire consultants and build a team of experts with a broad range of expertise to address specific business needs on their operation. Each grant is up to $5,000. Cost share payments by the farmer are required at 20% of the grant amount. Department of Agriculture, Trade and Consumer Protection

Grow Wisconsin Dairy 30x20 Grow Wisconsin Dairy Producer Grants Two types of grants are available Planning & Preparation Teams to be applied towards business development and expansion needs. Examples include business planning, financial analysis, transition planning and farm transfers. The grant money can also provide assistance with professional services costs related to dairy farm modernization and expansion efforts such as siting, engineering, design, layout of new barns, parlors or farm structures. Dairy Profit Teams to develop an on-farm management team to assist dairy producers in improving management of existing operational systems and identify opportunities to improve profit. Topics include new or appropriate technology implementation, farm growth, financial success, long-term sustainability, and production enhancing measures. Department of Agriculture, Trade and Consumer Protection