1. Advantages of Hiring Custom Operators Sarah Roth Dairy Alliance Penn State University Dairy Alliance is a Cooperative Extension initiative

2. Today’s discussion Advantages Example Feel free to ask questions!

3. 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

4. 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

5. Free up management Time to analyze data and make more informed decisions Take advantage of educational opportunities

6. Concentrate efforts Specialization –Focus on one (or two) enterprises –Dairy (milk production), heifers

7. Obtain higher quality products Custom operators provide: –Specialized knowledge in the services they perform –Timely service –Consistent quality

8. 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

9. Increase production Higher quality forages can increase milk production Increased production or better milk component levels generate more gross revenue

10. Example Corn silage harvesting See worksheet

11. Thank You! Visit the Farm Management website –http://farmmanagement.aers.psu.eduhttp://farmmanagement.aers.psu.edu Visit the Dairy Alliance website –http://dairyalliance.psu.eduhttp://dairyalliance.psu.edu My contact info –Phone: 814-863-8645 –Email: sarahroth@psu.edu