1. Wisconsin Herd Expansion - 1999 Wisconsin Dairy Modernization Survey Roger W. Palmer and Jeffrey Bewley UW-Madison Dairy Science Department UW-Extension Dairy Team

2. Roger W. Palmer, UW-Madison Dairy Science Department Dairy Modernization Objectives n Operate with lower investment per animal n Improve labor efficiency n Improve profitability n Improve the “quality of life” for dairy farm owners and workers

3. Roger W. Palmer, UW-Madison Dairy Science Department Dairy Systems Options

4. Roger W. Palmer, UW-Madison Dairy Science Department Modernization – the process of changing management systems Modernization/ Expansion is not new Optimum herd size is defined by the technology chosen

5. Roger W. Palmer, UW-Madison Dairy Science Department Thoughts about Modernization n Direction is more important than speed n Understand u where the industry is going u your family’s goals n Develop a list of possible strategies u Get opinions from other people n Evaluate each strategy u Keep an open mind n Make the best decision for ‘your farm’

6. Roger W. Palmer, UW-Madison Dairy Science Department Objective of This Study n To survey producers, who recently expanded, to determine: u what they did u how happy they are with their choices n To provide information to others thinking about: u expanding their operation u changing their operation

7. Roger W. Palmer, UW-Madison Dairy Science Department Survey Background Information Selection Criteria n Producers who expanded herd size 1994-98 u >50% increase if 60-100 cow herd size u >40% increase if >100 cow herd size n 694 Mailed, 336 Returned, 302 Used (44%) n Production related information from DHI n Facilities types, management and satisfaction values from survey responses

8. Roger W. Palmer, UW-Madison Dairy Science Department Average Herd Size

9. Roger W. Palmer, UW-Madison Dairy Science Department Summary Averages (252 herds)

10. Roger W. Palmer, UW-Madison Dairy Science Department Operation Performance and Satisfaction by “Type of Expansion”

11. Roger W. Palmer, UW-Madison Dairy Science Department Operation Performance and Satisfaction by “Herd Size”

12. Roger W. Palmer, UW-Madison Dairy Science Department Labor Efficiency by Herd Size

13. Roger W. Palmer, UW-Madison Dairy Science Department Determine Differences 4-Row Vs 6-Row

14. Roger W. Palmer, UW-Madison Dairy Science Department Factors to Consider 4-Row vs 6-Row Freestall Barns n Cost u Cost per cow vs cost per stall (overstocking rate) u Cost of self-locks vs sort gates and treatment area n Cow Comfort u Feed space (24” vs 18” inches/cow) u Alley congestion (24 vs 18 sq ft/cow) u Air quality (92 vs 79 cu ft/cow) u Ventilation (barn width) n Convenience of Animal Handling u Use of self locking manger stalls versus separation of animals for health and reproduction treatments animals for health and reproduction treatments u Labor cost of herdsman and/or vet u Animal stress

15. Roger W. Palmer, UW-Madison Dairy Science Department Overstocking Effect on Initial Cost of 4-Row and 6-Row Barns 4-Row6-RowDifference No. Cows 144144 Stocking Rate 12.5%0% No. Stalls 128144 Cost/Stall$1200$1000 + 20% Total Cost $153,000$144,000 Cost/Cow$1067$1000 + 6.5%

16. Roger W. Palmer, UW-Madison Dairy Science Department New Freestall Barns with Drive-Thru Feeding Number Herds 4-Row536-Row42Diff 1998 Median Herd Size 245247 1998 RHA Milk 23,644 a 21,733 b +1,911 RHA Change (’94-’98) 1,9741,382+592 Stocking Rate (%) 112 a 103 b +9% Average Linear Score 2.73 b 2.96 a -.23 Cost Per Stall $1235$1212+$23

17. Roger W. Palmer, UW-Madison Dairy Science Department Sand vs Mattresses Production Differences MattressesSand Number Herds 69145 1998 Median Herd Size 265195 1998 DHI RHA Milk(lb) 22,51922,539 Linear SCS 2.882.80 Cows/FTE4540 Culling Rate (%) 3432

18. Roger W. Palmer, UW-Madison Dairy Science Department Sand vs Mattresses Satisfaction Differences MattressesSand Number Herds 69145 1998 Median Herd Size 265195 Cow Cleanliness* 4.12 b 4.47 a Hock Damage* 4.22 b 4.72 a Bedding Usage and Cost* 4.25 a 3.95 b Manure Management* 4.32 a 3.43 b *Average satisfaction reported, 1-Very Dissatisfied to 5-Very Satisfied

19. Roger W. Palmer, UW-Madison Dairy Science Department Cow Preference for Different Types of Stall Base – Wagner/Palmer ‘02 Stall Base Type % Occupied % Lying Sand 79% c 69% a Mattress 1 88% a 65% b Mattress 2 84% b 57% c Waterbed 62% e 45% d Soft Rubber Mat 65% d 33% e Concrete 39% f 23% f

20. Roger W. Palmer, UW-Madison Dairy Science Department Milking Facility Performance

21. Roger W. Palmer, UW-Madison Dairy Science Department Parlor Satisfaction

22. Roger W. Palmer, UW-Madison Dairy Science Department Parlor Utilization Costs Capital Cost Assumptions n $18,000 per milking stall u Building and Equipment n Milk 30 cows/stall 3X u 6.5 hr/shift @ 4.6 turns/hour n $600 investment/cow u $18,000 per stall / 30 cows per stall

23. Roger W. Palmer, UW-Madison Dairy Science Department Parlor Utilization Costs Operating Cost Assumptions n 7 year loan repayment at 9% n D-12, 2 people @$10/hr each n 1 hour/milking to clean-up and set-up n 20,000 lb shipped per cow per year

24. Roger W. Palmer, UW-Madison Dairy Science Department Milk Harvesting Cost ($/cwt) with Different Parlor Utilization Levels UtilizationLevel Capital Cost Labor Cost Total Cost Full$0.58$1.09$1.67 Half$1.16$1.17$2.33+$.66/cwt Quarter$2.32$1.32$3.63+$1.96/cwt

25. Roger W. Palmer, UW-Madison Dairy Science Department Mean Production (1998) by Milking Frequency and bST Use 68% of respondents reported using bST

26. Roger W. Palmer, UW-Madison Dairy Science Department Custom Heifer Raising by Herd Size

27. Roger W. Palmer, UW-Madison Dairy Science Department Reasons for Expansion

28. Roger W. Palmer, UW-Madison Dairy Science Department Satisfaction With Expansion Choice

29. Roger W. Palmer, UW-Madison Dairy Science Department Expansion Advice

30. Roger W. Palmer, UW-Madison Dairy Science Department Respondents Feelings about Expansion “Best Choice”

31. Roger W. Palmer, UW-Madison Dairy Science Department Respondents Feelings about Expansion “Worst Choice”

32. Roger W. Palmer, UW-Madison Dairy Science Department Summary Respondents indicated: n Their willingness to share experiences n Most were happy they expanded n That after expansion they u had a better life style u their labor efficiency increased u their operation was more profitable n They would do it again, but bigger & faster n They plan to double herd size again

33. Wisconsin Dairy Modernization Summary A complete summary of the results can be found on the University of Wisconsin-Dairy Science web page (http://www.wisc.edu/dysci/), under Management Publications