DHI Notes...

September 07 | Bennet Cassell

State DHI averages for important management areas in July 2007

Management area	July 2007	Change from last year
Rolling herd average milk	21653	-185 lbs.
Peak yield in heifers	74	-2 lbs.
Days to first breeding	95	0 days
Days open	164	-1 days
Net Merit of proven service sires	306	*
Herd turnover less dairy sales (%)	29%	0%
Monthly average SCS	3.2	0.0
Feed cost per cwt. (milking cows)	$5.73	$0.35
Milk blend price	$18.18	$4.90

*Net Merit changed in August 2006 and averages are not comparable.

Of all the changes in DHI averages that everyone would like to look better than this time last year, milk blend price would be the clear winner. Fortunately, very fortunately, that is the most dramatic change on this month’s comparison. The increase over last year is somewhat offset by higher feed, fuel and fertilizer costs, but the turn-around from a year ago is dramatic. Milk prices fluctuation is reality these days, and financial management during the good times has a lot to do with the health of the dairy business during those other times that are bound to follow. Extension farm business management agents are available in Virginia to help with planning. The county extension office or Dr. Gordon Groover at Virginia Tech, 540/231-5850, can direct you to the right people. There will be tax implications from this summer’s prosperity and now is a good time to give some thought to ways to manage tax obligations for the good of the dairy business. The first objective, of course, is to catch up financially. Beyond that, investments in income generating assets should be high on the wish list. I would suggest that investments in cow comfort be considered. Consider renovating those old free stalls or perhaps adding that new center drive through free stall barn. Bedded pack barns for close up dry cows or fresh cows – or other cows in the herd for that matter - are a good investment and cost share is available. Fresh cows really need a place of their own to recover from calving, acclimate to the herd ration, and get off to a good start for a productive lactation. If existing facilities don’t allow for a fresh cow group, modifications to accommodate such a group would be among the most rewarding “income generating” assets that could be considered. Heat abatement equipment such as fans and sprinklers for lactating cows is another possibility. Writing this month’s DHI Notes for me is a lot like spending the lottery money I will never win, but for dairy farmers, some of these decisions just might be reality in 2007.

Bennet Cassell
Genetics and Management