Barns in New Zealand Dairying Geoff Taylor Project manager: People & Business Farmer’s Forum April 2015

Why farmers tell us they are building barns! Greater level of control over system Manage issues, for example: –wet soils –winter pasture damage Achieve genetic potential of cows Address performance issues, e.g. in-calf rates Manage environmental regulation To grow their business without purchasing land

What’s DairyNZ doing? Our aim is to help the farmer: Make an informed decision Build it right Manage it well

What’s DairyNZ doing? 1. Pastoral 21 Investigating use of barns to help achieve productivity growth without increasing footprint. 2. System Choice Helping farmers to determine if building a barn is right for them. 3. Animal Health & Welfare Generating a set of guidelines and resources to help ensure facilities are built and managed with an animal and human focus 4. Feed Right & System Optimisation Looking at how feeding strategies can be developed and implemented leading to continued profitability and sustainability.

System Choice Take homes:

System Choice Take homes –Be sure a barn is the best way to achieve your goals

Reducing Footprint? Pre-barn N Loss (kgN/ha) Post-barn N Loss (kgN/ha) Diff Case Study % Case Study % Case Study % Case Study % Case Study 58713% Case Study %

Reproductive performance

System Choice Take homes –Be sure a barn is the best way to achieve your goals –Total investment = cost of barn %

Costs can be hidden Cost of Barn Total Capital Cost Diff Case Study 1$2,102$3,16050% Case Study 2$2,573$4,18162% Case Study 3$2,994$3,73325% Case Study 4$3,302$4,73143% Case Study 5$4,000$6,74469% Case Study 6$1,440$2,16150%

System Choice Take homes –Be sure it’s the best way to achieve your goals –Total investment = cost of barn % –Operating profit is not sufficient measure

Use the right tools Option 1Option 2 Change in Operating Profit / Ha $225$498 Change in Operating Return on Assets 0.20% Net Present Value / Ha $828-$891

System Choice Take homes –Be sure it’s the best way to achieve your goals –Total investment = cost of barn % –Operating profit not sufficient measure –Skill requirements are different!

How does variability arise? In practice: Making 2 decisions: 0.95 x 0.95 = 0.90 But making 4 decisions: 0.95 x 0.95 x 0.95 x 0.95 = 0.81

Looking at a barn? Make sure you get what you think you are paying for Do your figures carefully –Analysis is very farm specific Building & system design must be animal focussed Make sure your team has the required skill Not all about the money EYES WIDE OPEN

What’s DairyNZ doing? 1.Pastoral 21: Investigating use of barns within the farm system design to help achieve productivity growth without increasing footprint to meet environmental targets. Take homes –N-loss has been reduced by up to 50% in some cases –Intensification reduces this benefit –The amount of effluent generated is enormous !

What’s DairyNZ doing? 3.System Optimisation & Feed Right These projects are looking at how integrated feeding strategies can be developed and better decisions can lead to continued profitability and sustainability. Take homes –If nutritional messages are confusing you, you are not alone! –A 1,500 -1,600 kgDM/ha residual will increase pasture grown

What’s DairyNZ doing? 4.Animal Health & Welfare Generating a set of resources to help ensure facilities are built and managed with an animal and human focus Take homes –Code of practice for design due out soon –The capex/opex trade-off can be deceiving –The drop test will tell you about cow comfort –Hygiene or hand towels – you choose

What’s DairyNZ doing? 2.System Choice Helping farmers to determine if building a barn is right for them, both in terms of achieving their goals and generating a positive return on capital invested. Take homes –The cost of building = Cost of barn % –Be sure it is the best way to achieve your goals –Barns are depreciating assets –Regulation not clear – being a first mover is risky