TOP 10 BENCHMARKS REAGAN BLUEL, DAIRY SPECIALIST, MU EXTENSION

Transcription

1 TOP 10 BENCHMARKS REAGAN BLUEL, DAIRY SPECIALIST, MU EXTENSION

2 THE COW IS A BEAUTIFUL BEAST Production Parameters $ Financial Parameters

3 YOU ARE ALL COW MANAGERS

4 DHIA: Dairy Herd Improvement Association $ $2.50

5 1. CALF SURVIVAL Dystocia Birth to Weaning Post Weaning

6 DYSTOCIA CALF LIVABILTY

7 1. CALF SURVIVAL Dystocia Birth to Weaning Post Weaning

8 2. AGE OF CALVING = 24 MONTHS Less Feed More milk

9 UC DAVIS RESEARCH Body Weight (lbs) Milk (lbs) Low (<700d, 23.3mo) Medium ( d, mo) High (>750d, >25mo) Annual Adjusted income: Medium (Low), (High)

10 3. MILK PRODUCTION Peak Milk Tank average First calf heifers 1st Lactation 2nd Lactation 3+ Lactation MO Peak National Peak Benchmarks % %

11 3. MILK PRODUCTION Peak Milk Tank average First calf heifers 50 4-Jan-13 4-Feb-13 4-Mar-13 4-Apr-13 4-May-13 4-Jun-13 4-Jul-13 4-Aug-13 4-Sep-13 4-Oct-13 4-Nov-13 4-Dec-13 4-Jan-14 Peak Milk 4-Feb-14 4-Mar-14 4-Apr-14 4-May-14 4-Jun-14 4-Jul-14 4-Aug-14 4-Sep-14 4-Oct-14 4-Nov-14 4-Dec-14 1st 2nd 3+ 4-Jan-15 4-Feb-15 4-Mar-15 4-Apr-15 4-May-15 4-Jun-15 4-Jul-15 4-Aug-15 4-Sep-15 4-Oct-15 4-Nov-15 4-Dec-15 4-Jan-16

12 3. MILK PRODUCTION Peak Milk MO National Tank average First calf heifers Daily Milk Milk Cows Daily Milk ALL Cows

13 4. MILK QUALITY Somatic Cell Count Clinical Cases Test day (1 st test) New case if clear for 8d % Chronic Cows

14 SCC TOOLS PREVIOUS VS CURRENT

15 SCC TOOLS PREVIOUS VS CURRENT

16 SCC TOOLS PREVIOUS VS CURRENT

17 5. REPRO PREGNANCY RATE 100 cows S. Poock DVM, MU Vet Med

18 HOW MANY WERE BRED? 45 cows (heat detection rate) Or more importantly 55 eligible cows were NOT bred! S. Poock DVM, MU Vet Med

19 HOW MANY BECAME PREGNANT? 16 Therefore The Pregnancy Rate is 16% S. Poock DVM, MU Vet Med

20 5. REPRO - PREGNANCY RATE 100 cows 45 cows bred Heat Detection Rate 45% =45/ diagnosed pregnant Conception Rate 35% =16/45 Pregnancy Rate 16% =16/100 National Averages S. Poock DVM, MU Vet Med

21 6. TRANSITION SUCCESS Udder Retained Edema Placenta Mastitis 5.6 Gohn, et al 1989 JDS 72: Milk Fever Clinical Metritis One system fails others will follow 2.3 KETOSIS Abomasal Disorders 61,124 Cows 5,661 herds

22 6. TRANSITION SUCCESS Udder Retained Edema Placenta Mastitis Gohn, et al 1989 JDS 72: Milk Fever Milk Fever Clinical Metritis One system fails others will follow 2.3 KETOSIS Abomasal Disorders 61,124 Cows 5,661 herds

23 6. TRANSITION SUCCESS Milk Fever KETOSIS <5-8% CLINICAL One/lactation <20% CLINICAL new case if >30d SubClinical <30% βhb, NEFA (blood)

24 CULL RATE Voluntary Cull Rate Involuntary Cull Rate Stage of Lactation % Deads Relationship to time

25 7. FEED COSTS / DAY LACTATING TMR $4.00 $4.50 $5.00 $5.50 $6.00 $6.50 Milk lbs / Day Total Feed Cost per Cwt milk including 20% heifers & dry cows $ $ $ $ $ $ $ 9.60 $ $ $ $ $ $ 8.73 $ 9.82 $ $ $ $ $ 8.00 $ 9.00 $ $ $ $ $ 7.38 $ 8.31 $ 9.23 $ $ $ $ 6.86 $ 7.71 $ 8.57 $ 9.43 $ $ $ 6.40 $ 7.20 $ 8.00 $ 8.80 $ 9.60 $ $ 6.00 $ 6.75 $ 7.50 $ 8.25 $ 9.00 $ $ 5.65 $ 6.35 $ 7.06 $ 7.76 $ 8.47 $ $ 5.33 $ 6.00 $ 6.67 $ 7.33 $ 8.00 $ 8.67 ** $0.11/lb DMI

26 FINANCIAL BENCHMARKS

27 8. OPERATING EXPENSE RATIO Operating expenses Left over to pay debt service, family living and new capital purchases

28 OPERATING EXPENSE RATIO What: Expenses as % of income Why: Best whole farm benchmark When: February Need: Tax forms & balance sheet Operating Expense Scorecard Strong Stable Weak Ratio <65% 65%-80% >80% Dairy Farm Example Category Amount Where to Find A: Total Expenses $400,000 Sch. F, line 34 - Depreciation $25,000 Sch. F, line 14 - Interest $10,000 Sch. F, line 21 - Accounts payable (Jan. 1) $0 Balance Sheet + Accounts payable (Dec 31) $25,000 Balance Sheet = Operating Expenses $390,000 B: Operating income + cow sales +/- change in current assets C. Operating Expense Ratio (A divided B) $500,000 Sch. F, line 9; Form 4797; and Balance Sheet 78% Online help:

29 9. WORKING CAPITAL What: Why: When: Needed: Current Assets -Current Liabilities = Working Capital Pay bills as they arrive January Balance Sheet Working Capital = - $2,017 $119,993 $121,950 Ideal Rules of Thumb: 2:1 (current assets: current liabilities) $500 working capital per cow 50% of annual operating expenses

30 10. DEBT LIMITS What: Maximum borrowing Why: Avoid cash shortages, stress When: February Need: Balance Sheet, Loan List Debt Limit Rules of Thumb $/Cow $/Cwt % Milk Check < $3,000 to $5,000 debt per cow Example: 100 Cows and $350,000 debt Math: $350,000/100 = $3,500/Cow < $20 debt per cwt. produced Example: 1.7 million lbs. sold per year Math: 17,000 cwt. sold X $20 per cwt = $340,000 total debt Principle & interest payments <15% of milk check Example: $310,000 milk sales Math: $310,000 sold * 15% for P&I = $46,500 for payments

31 SUMMARY 1. Calf Survival 2. Age of calving 3. Milk quantity 4. Milk quality 5. Calving Interval 6. Transition Cow Success 7. Cull Rate 8. Operating Expense Ratio 9. Working Capital 10. Debt Limits

32 QUESTIONS?? Reagan Bluel Dairy Specialist Cassville, MO (cell) Joe Horner Ag Economist Columbia, MO