INSIDE THIS ISSUE
Milk Production Enters Slow Growth Phase - Will Milk Prices
Rebound?, Dr. Cam Thraen, Milk Marketing Specialist, Ohio State University
Cost of Nutrients in Feedstuffs, Dr. Normand St-Pierre,
Dairy Specialist, Ohio State University
Delay Placing Fly Control Ear Tags, Dr. William
Shulaw, Extension Veterinarian, Ohio State University
Feeding Lower Quality Hay Crop Forages, Dr. Bill Weiss,
Dairy Specialist, Ohio State University
Reporting of Independent Contractors, Mr. Robert Fleming,
District Farm Management Specialist, Ohio State University
Nutrition of Jersey Cows - Little Holstein Cows or a Breed
Apart?, Dr. Chris Reynolds, Department of Animal Sciences, Ohio State
University
Monitoring MUN in Dairy Cows - Ohio Data, Dr. Päivi
Rajala-Schultz, Department of Veterinary Preventive Medicine, Ohio State University
Environmental Rules for Animal Agriculture - Who Are You Going
to Call?, (Article #3), Dr. Maurice Eastridge, Dairy Specialist, Ohio
State University
Dairy Heifer Notebooks for Sale, Ms. Amanda Hargett,
State Dairy Extension Associate, Ohio State University
Calendar of Events
Milk Production Enters Slow Growth Phase - Will Milk
Prices Rebound?, Dr. Cameron Thraen,
Milk Marketing Specialist, Ohio State University,
Additional milk marketing information by Dr. Thraen
As we approach the midpoint of the 2003 calendar year it is time to take stock
of where we are milk price-wise and where we are likely to go in the last seven
months remaining for 2003.
The roller coaster that we know as the U.S. dairy market
As we look back at the dairy markets over the last four years, 1999 through 2002, we certainly can recall those familiar opening lines from Charles Dicken's Tale of Two Cities:
It was the best of times, it was the worst of times,…
It was the spring of hope, it was the winter of despair.
As a recap on the "spring of hope" and the "winter of despair",
recall that milk supply and demand were in tight balance as 1999 came to a close,
with National Agricultural Statistical Service, USDA reporting the average All
Milk Price at $14.35 and gross income from the sale of milk at a near peak of
$23.3 billion dollars. Times were indeed, good! The performance for 2000 lived
up to the billing of the worst of times. Milk production grew by 2.98% responding
to high prices and cash inflow. However, as often happens with farm production,
and dairy is not the exception, rapid production growth outpaces growth in commercial
demand. Commercial disappearance, as measured by fat equivalence, grew by 2.54%
for 2000 over 1999. By the end of 2000, this imbalance between production and
use had sent the all milk price declining by 13.6% and gross income from the
sale of milk declining by 11% to 20.8 billion dollars.
As 2001 began, it appeared that more despair was on the way! This was not to
be, however, as difficult weather created harsh production conditions, and milk
per cow struggled to keep up with the trend, and finally posted a significant
reversal of direction and declined by 0.4% for the year. Even with demand now
showing real weakness, this was enough to push the average value of the All
Milk Price back up by 21.4% and send gross cash income from the sale of milk
soaring to $24.9 billion dollars. It was the best of times once again!
As is the case for the US dairy, all of that cash income flowing onto the farms
was put to good use by producing more milk. With the weather back to more normal
conditions for most of 2002, production picked up again, cow numbers increased,
yields went up, and US milk production posted a 2.5% gain over 2001. What happened
to milk price? You guessed it! The average All Milk Price declined again. This
time it fell by a staggering 19.5%. The annual average All Milk Price in 2001
was $15.05, and by the end of 2002, it had declined to $12.11! My, how the winter
of despair had returned!
Why such a large decline in the milk price from 2001 to 2002? The answer to
this rests squarely on the recognition that with weak consumer demand across
the board, there is too much milk production taking place to support the higher
prices we experienced in 1999 ($14.35) and 2001($15.05). Commercial disappearance
grew by only 0.3% in 2001 and 0.5% in 2002! In addition, and this is a big factor
for the future milk price outlook, we are starting each new production year
with an ever increasing inventory of unsold dairy products - butter, cheese,
and nonfat dry milk.
On a fat equivalent basis, commercial inventories increased by 11% in 2001 and
by 2.95% in 2002. On a solids-equivalent basis, inventories held by the Commodity
Credit Corporation also increased by 284% in 2001 and 50.4% in 2002, primarily
as skim milk powder. This is the explanation for why a 2.98% increase in production
from 1999 to 2000 resulted in a 13.5% price fall and a smaller, 2.5% increase
in production from 2001 to 2002 resulted in a 19.5% price fall.
Dairy product inventories flatten milk prices
A seasonal pattern occurs for butter stocks to production ratio (BSPR). Stocks
tend to rise during the first half of the year as cream is flush and butter
production is full throttle. In the second half of the year, when cream is less
available, stocks are drawn down relative to butter production. High milk price
years need high butter prices. This is a fact! High butter prices require a
moderate to low BSPR. In 2003, the BSPR is running at least two times higher
than we would normally expect this time of the year. In fact, we are carrying
inventories of butter that we would not expect to see until the peak in the
June - August period. This strongly suggests that we will not see wholesale
butter price move above the $1.10 to $1.20 range this year, unless something
happens to soak up a significant quantity of this butter in commercial storage.
As with butter but not as obvious, a seasonal pattern occurs for the cheese
stocks to production ratio (CSPR). Stocks relative to production tend to rise
during the November to February months, and then again during the March to July
period. In the second half of the year, when farm level protein tests fall,
the cheese industry pulls from stocks to satisfy demand and stocks are drawn
down relative to cheese production. Just as we discussed for butter, high milk
price years need high cheese prices. And as with butter, higher cheese prices
require a moderate to low CSPR. In 2003, the CSPR is running at 4 percentage
points higher than we would normally expect this time of the year. While this
is higher than we would like to see at this time of the year, this is not nearly
as significant as the BSPR. With a pickup in commercial demand, we can anticipate
a real rise in the wholesale cheese price. How high can the cheese price rise?
Without a return to robust consumer demand, I do not expect to see the reported
National Agriculture Statistics Service (NASS) monthly average wholesale cheese
price to move above the $1.20 to $1.35 range for the remainder of 2003. In my
opinion, the cash cheese price rally posted on the Chicago Mercantile Exchange
on the opening days of July is not sustainable as a long-term price level.
A little good news please
From the latest USDA Milk Production report, it does appear that the prolonged
financial pain of the past year is beginning to show as a reduced rate of growth
in cow numbers, yield per cow, and US milk production. Couple this with weekly
numbers from the USDA Federal Inspected Livestock Slaughter - Dairy Cattle report,
which indicates that dairy cow slaughter is continuing to run an average of
10 to 11% ahead of last year at this time. If this continues, I expect that
we have turned the corner on milk production growth and can expect to see much
slower growth on a percentage basis over the next year. If the past is a guide,
it will take 3 to 5 quarters of reduced milk output growth with the last couple
of those showing a negative rate of growth over the year earlier period for
the supply and demand balance to become tight enough for the All Milk Price
to show a sustained and substantial increase. When this happens, you can expect
to see a $1.50 to $2.00 increase in the monthly value of the All Milk Price
by year end.
Let's take a look at what is ahead for market prices in the last half of
2003 and the first part of 2004
Until we get a better balance between the inventory of dairy products and commercial
disappearance, you should look for the current wholesale price levels of Grade
AA butter and Cheddar cheese to remain lethargic for the remainder of 2003 and
the first quarter of 2004. The 2003 forecast, June through December, for dairy
commodity prices (butter, nonfat dry milk, cheese, and whey), given by quarter,
is shown in Table 1. These forecast prices translate into the average milk check
value shown in Table 2. The producer differential and the gross milk check price
are applicable to producers in the Mideast Federal Milk Marketing Order 33,
Cleveland base zone. Milk component pay prices, given the 2003 forecast dairy
product prices, will be quite moderate, which will be good news for processors
of dairy products facing weak consumer demand and not so good news for dairy
producers. Class prices in the remaining months of 2003 will not be as robust
as they were in 2002 (Table 3).
Table 1. Forecast dairy commodity wholesale prices ($/lb), 2002 and 2003..
| Forecast for Planning Year |
Grade AA Butter
|
Nonfat Dry Milk
|
Cheddar Cheese
|
Whey Protein
|
| 2002 Annual Average |
$1.0952
|
$0.9077
|
$1.1857
|
$0.1993
|
| 2003 Quarter I |
$1.063
|
$0.812
|
$1.115
|
$0.166
|
| 2003 Quarter II est. |
$1.076
|
$0.803
|
$1.127
|
$0.147
|
| 2003 Quarter III est. |
$1.160
|
$0.801
|
$1.267
|
$0.160
|
| 2003 Quarter IV est. |
$1.200
|
$0.802
|
$1.313
|
$0.172
|
| 2003 Annual Average Forecast |
$1.125
|
$0.805
|
$1.206
|
$0.161
|
Table 2. Forecast milk component pay prices and Class III price, 2003.
|
Grade AA Milk Fat |
Protein
|
Other Solids
|
Nonfat Solids
|
Base Milk Value
|
MILC Payment*
|
|
| 2002 |
$/lb
|
$/lb
|
$/lb
|
$/lb
|
$/cwt
|
$/cwt
|
| Annual Average |
$1.30
|
$2.01
|
$0.06
|
$0.76
|
$10.93
|
|
| Forecast for 2003 | ||||||
| Quarter I |
$1.156
|
$1.778
|
$0.026
|
$0.672
|
$9.515
|
$1.156
|
| Quarter II est. |
$1.153
|
$1.887
|
-$0.012
|
$0.657
|
$9.612
|
$1.153
|
| Quarter III est. |
$1.254
|
$2.229
|
$0.001
|
$0.655
|
$11.064
|
$1.254
|
| Quarter IV est. |
$1.302
|
$2.329
|
$0.013
|
$0.656
|
$11.599
|
$1.302
|
| Annual Average |
$1.216
|
$2.056
|
$0.007
|
$0.660
|
$10.448
|
$1.216
|
*MILC = Milk Income Loss Compensation
Table 3. Forecast class prices 2003 with comparisons for 1999 through 2002.
| Calendar Year |
Class I
|
Class II
|
Class III
|
Class IV
|
|
$/cwt
|
$/cwt
|
$/cwt
|
$/cwt
|
|
| 1999 |
15.87
|
13.15
|
12.44
|
12.26
|
| 2000 |
13.61
|
12.65
|
9.74
|
11.83
|
| 2001 |
16.26
|
14.53
|
13.10
|
13.76
|
| 2002 |
13.01
|
11.56
|
10.43
|
10.85
|
| 2003 (estimated) |
12.64
|
10.75
|
10.45
|
9.99
|
Projected MILC payment rates
Now that we have the complete suite of price forecasts for FY2003, we can calculate
the implied payment rates under the MILC program (Table 4). In doing this, keep
in mind that these are only estimates of the rates and will change as new market
and production information becomes available. Remember MILC payment rates increase
as the Class III and/or Class IV advanced mover prices decline. A higher MILC
payment rate is not what is desired as it lifts only some boats, while across
the board strength in all milk prices raises all of the dairy boats.
Table 4. The FY2003 forecast Milk Income Loss Compensation (MILC) payment rate ($/cwt) by month.
| Month |
Days
|
Forecast MILK Payment Rate (Actual **)
|
| Oct '02 |
31
|
$1.5930 **
|
| Nov |
30
|
$1.3905 **
|
| Dec |
31
|
$1.3950 **
|
| Jan '03 |
31
|
$1.4085 **
|
| Feb |
28
|
$1.557 **
|
| Mar |
31
|
$1.746 **
|
| Apr |
30
|
$1.8225 **
|
| May |
31
|
$1.791 **
|
| Jun |
30
|
$1.7775 **
|
| Jul |
31
|
$1.7640 **
|
| Aug |
31
|
$1.485
|
| Sep |
30
|
$1.1655
|
| Oct |
31
|
$1.0215
|
| Nov |
30
|
$0.873
|
| DEC |
31
|
$0.9405
|
Winding up
It is hard to be up-beat and rosy with quarterly average prices that look, at
this point, not to be much better than 2000 or 2002. It is fair to ask what
could alter my dairy product and milk price forecasts for 2003. Ignoring the
unpredictable element of weather, there are really three economic factors at
this point. One factor on the production side and two factors on the demand
side.
First, higher feed costs and extremely unfavorable margins over feed costs are
beginning to show up in reduced rate of growth in production per cow and in
milk cow numbers. This must continue and grow in strength over the remainder
of the year. For those of you who like to follow the numbers, early signs of
better prices will be USDA reported cow numbers running 0.5 to 1% below year
earlier levels, accompanied by output per cow coming in at 0.5 to 1.5% below
year earlier levels. This is what is required to adequately slow the rate of
growth in milk production and dairy product inventory and could push wholesale
market prices and milk prices higher.
Second, the current slow recovery in the general US economy must continue to
gain momentum. We are now headed toward the traditional peak consumer demand
months for dairy products, and we need a real strong growth to get consumers
back into the buying mood. If this happens, we could see consumer demand gain
in strength, indicated by more rapidly declining inventories of butter and cheese.
We could see prices for butter and cheese rise above those in this forecast
and would be welcome news indeed for dairy producers.
Third, the current low wholesale price will slowly be reflected in prices in
the supermarkets, pizza parlors, and sub-shops. Low prices do perform the function
of making dairy products a better value for the dollar and this increases consumer
demand that eats away at excessive inventories. Slowly, yes - but it does happen,
and this will get market supply back into a better balance with consumer demand.
Remember, it was just the right kind of poor weather that rescued milk prices
and dairy farm revenue in 2001 from the lows of 2000, perhaps it will do so
again in the remaining months of 2003!
Cost of Nutrients in Feedstuffs, Dr. Normand St-Pierre, Dairy Specialist, Ohio State University (top of page)
The summer season always brings opportunities for reducing feed costs if one is attentive enough to the changes occurring in the markets. The supply of some high-fiber byproducts increases noticeably in the summer months (e.g., wheat middlings), while the demand for feeds drops due to pasture utilization and reduced animal intake from the warmer weather. Thus, there can be real buying opportunities for those who realize that corn and soybean meal are not perfect price drivers (i.e., everything is not priced based on the cost of these two feed ingredients). Understanding that feedstuffs are vehicles of nutrients and that markets are indirectly pricing nutrients when they are pricing feedstuffs is an important concept in valuing feedstuffs.
As of early July, unit costs of some major nutrients have dropped compared
to those calculated in mid-spring (Table 1). The costs per pound of rumen degradable
protein (RDP), digestible rumen undegradable protein (d-RUP), and effective
NDF (e-NDF) have dropped by 1.47, 1.57, and 0.80 cents per pound, respectively.
The cost per unit of net energy lactation remains high, at about 7.5 cents per
megacalorie. Non-effective NDF is actually traded at a discount of negative
2.5 cents per pound.
Table 1. Estimates of nutrient unit costs.
| Nutrient name |
Estimates
|
|
| NEL - 3X (2001 NRC) |
$0.074940
|
**
|
| RDP |
$0.018090
|
|
| Digestible RUP |
$0.151839
|
**
|
| Non-effective NDF (ne-NDF) |
$-0.025063
|
~
|
| e-NDF |
$0.088950
|
**
|
- A blank means that the nutrient unit cost is likely equal to zero.
- ~ means that the nutrient cost may be close to zero.
- * means that the nutrient cost is unlikely to be equal to zero.
- **means that the nutrient cost is most likely not equal to zero.
Because of these changes, it may be time to reconsider the ingredients in your dairy diets. Based on prevailing prices in Central Ohio during early July, the following ingredients can be purchased at a significantly lower price than what they are worth nutritionally (Table 2): ground corn, distillers dried grains, corn gluten feed, corn hominy, and wheat middlings. These are the ingredients that when used in a balanced ration can significantly reduce your feed costs. Likewise, the following ingredients are currently over-priced: beet pulp, canola meal, citrus pulp, meat meal, molasses, and soybean hulls. Their use in dairy rations should currently be minimized. Menhaden fish meal and blood meal should be avoided completely unless your cows' level of productivity warrants balancing for amino acids (70 to 75 lb/day of milk for a Holstein herd). Even if amino acids are factored in the evaluation, fish meal is still grossly overpriced and should be avoided entirely.
You feed your cows to provide them with the nutrients required to sustain a
desired level of production. There are many sources of such nutrients (feeds).
Thus, there are many combinations of feeds that can make a good, balanced ration
for your cows. Some of these combinations of feedstuffs can be considerably
cheaper than others.
Table 2. Calibration set.
| Name |
Actual ($/ton)
|
Predicted ($/ton)
|
Lower limit ($/ton)
|
Upper limit ($/ton)
|
| Alfalfa Hay, OH Buckeye D |
150
|
150.834
|
135.028
|
166.640
|
| Bakery Byproduct Meal |
118
|
131.140
|
118.119
|
144.161
|
| Beet Sugar Pulp, dried |
155
|
115.503
|
103.952
|
127.108
|
| Brewers Grains, dried |
142
|
142.114
|
130.989
|
153.239
|
| Brewers Grains, wet |
30
|
31.515
|
28.801
|
34.229
|
| Canola Meal, mech. extracted |
175
|
144.365
|
133.880
|
154.850
|
| Citrus Pulp, dried |
139
|
113.901
|
104.127
|
123.675
|
| Corn Grain, ground dry |
106
|
128.478
|
114.697
|
142.258
|
| Corn Silage, 32-38% DM |
40
|
55.296
|
49.942
|
60.651
|
| Cottonseed, whole w lint |
211
|
217.144
|
197.329
|
236.960
|
| Distillers Dried Grains, w sol |
123
|
144.285
|
134.928
|
153.641
|
| Feathers Hydrolyzed Meal |
230
|
257.928
|
241.607
|
274.249
|
| Gluten Meal, dry |
98
|
137.156
|
129.719
|
144.593
|
| Gluten Feed, dry |
257
|
265.074
|
245.064
|
285.084
|
| Hominy |
106
|
119.187
|
109.470
|
128.904
|
| Meat Meal, rendered |
235
|
213.434
|
200.217
|
226.650
|
| Molasses, sugarcane |
118
|
92.399
|
80.287
|
104.511
|
| Soybean Hulls |
97
|
79.761
|
63.339
|
96.183
|
| Soybean Meal, expellers |
253
|
230.922
|
217.337
|
244.506
|
| Soybean Meal, solvent 44% |
203
|
183.298
|
169.858
|
196.737
|
| Soybean Meal, solvent 48% |
213
|
202.605
|
190.987
|
214.222
|
| Soybean Seeds, whole roasted |
250
|
252.429
|
239.896
|
264.961
|
| Wheat Bran |
80
|
91.960
|
80.587
|
103.333
|
| Wheat Middlings |
73
|
101.942
|
92.065
|
111.820
|
Table 3. Appraisal set.
| Name |
Actual [$/T]
|
Predicted [$/T]
|
| Blood Meal, ring dried |
445.00
|
312.080
|
| Fish Menhaden Meal |
600.00
|
264.543
|
These estimates were derived using the software SESAME Version 2.05 written at The Ohio State University. For additional information, please refer to Buckeye Dairy News Vol. 5, Issue 2, March 2003.
Delay Placing Fly Control Ear Tags, Dr.
William Shulaw, Extension Veterinarian, Ohio State University (top
of page)
Did you realize that cattle raisers during the Civil War didn't have to worry
about the horn fly, and my grandfather didn't have to worry about the face fly?
Both pests were introduced (about 1860 for the horn fly and the 1950s for the
face fly) to the US. Today, flies are an economically significant problem for
cattle farmers.
The horn fly only lays its eggs in fresh manure, and it is generally recommended
not to begin control efforts using tags and sprays until the fly numbers reach
an economic threshold - about 100 to 200 flies per animal. Treatment with these
methods too early isn't cost effective, and since you never really get all of
them (or your cattle are parasitized by your neighbor's flies), early treatment
doesn't usually prevent a buildup.
If you use ear tags for horn fly control, treatment too early may actually be
counter productive. Many of these tags have an effective lifespan of five months.
If they are put in during the early spring, the drug may be nearly gone by the
time fly numbers peak (late summer). If the tags remain in the ear after their
effective period of use is over, the pesticide (drug) may be below effective
killing concentration at that time, and the flies can quickly develop resistance
to it. Resistance was observed in a relatively short period of time after ear
tags for horn fly control were first introduced. Therefore, it is recommended
not to put fly tags in place until the economic threshold of horn flies is reached
and to take them out when the manufacturer indicates the tag should be removed.
Unfortunately, spring turnout is often a convenient time for producers to apply
ear tags. In fact, it is the observation of many veterinarians and parasitologists
that fly tags are usually put in and removed when it is convenient, rather than
at the time when they will do the most good. Taking them out when the cattle
are brought off pasture or when they are worked in October or November (beef
cattle) is a common practice and almost surely has contributed to the resistance
problem.
Feed additive larvacides or growth regulators can be used to control horn fly
populations. These chemicals work by preventing the development of flies in
the manure. They are administered in feed, loose mineral, or block form, and
all animals in the group must consume the recommended dosage for effective control.
Because horn flies can move from herd-to-herd over a distance of several miles,
oral larvacides must be used rather extensively across an area or region in
order to be effective. They are not effective in controlling other fly populations
that breed in sites other than manure.
Certain systemic dewormers, now commonly used, also provide a significant measure
of horn fly control and may be useful in an integrated approach to control of
horn flies. However, some controversy exists surrounding some of these products
and other products that provide control of fly larvae in the manure. Research
has indicated that populations of some beneficial insects that use the manure
for some part of their life cycle, such as the dung beetle, may be harmed or
reduced. Dung beetles reportedly can aid in the control of horn flies by removing
and burying manure before the life cycle of the horn fly is completed.
Field observations and field research indicate that sustainable horn fly control
may be best attained by an integrated approach that involves within-season rotation
of chemical classes and treatment approaches. Reliance on just one chemical
class or one strategy usually results in poor control and may select for resistant
horn flies.
Feeding Lower Quality Hay Crop Forages, Dr.
Bill Weiss, Dairy Specialist, Ohio State University (top
of page)
This year's rainy spring had negative effects on the quality of first cutting hay crop forages. Rain either delayed cutting, caused substantial weather damage to mowed crops that could not be removed quickly from the field, or forced farmers to harvest hay or silage at improper moisture contents.
Delayed harvest means that forages were more mature when they were eventually cut. Fiber (NDF) and lignin concentrations increase and protein and energy decrease as forages mature. The negative effects of maturity are greater for grasses than for legumes. Rations should be formulated to contain adequate, but not excessive concentrations of forage NDF (usually between 18 and 21% of dietary DM). High concentrations of forage NDF in diets reduce DM intake and milk production. Intake depression becomes substantial when diets have more than about 25% of the DM as forage NDF. If forages have high NDF, diets should contain less forage. For example, if corn silage makes up 25% of dietary DM and has 44% NDF, it will provide 11% forage NDF (0.25 x 44). If alfalfa has 40% NDF and the dietary target is 21% forage NDF, the diet should contain 25% alfalfa (21% in total diet - 11% from corn silage = 10; 10/0.40 = 25% alfalfa). If the alfalfa contained 50% NDF, then the diet should contain 20% alfalfa (21 - 11 = 10; 10/0.5 = 20%). Additional supplemental protein may be needed because of the lower concentration of protein in the more mature forage.
Weather damage reduces the concentrations of protein, energy, and soluble carbohydrates, and increases the concentration of fiber. These changes are caused by rain leeching away soluble compounds and concentrating the less soluble compounds. Although the cause of quality loss is different for weather damage and maturity, the results are the same - DM intake decreases. Indeed, depression of intake can be greater in weathered forages than mature forages because of the development of mold and other anti-quality factors. The same diet modifications as described above should be made when weather-damaged forages are fed.
Silage made with too much moisture because of poor wilting conditions can undergo an abnormal fermentation. Wet silage (especially when moisture is >70%) can have high concentrations of acetic and butyric acids and a low pH and often adversely affects intake. About the only solution to this problem is to feed less of the poorly fermented silage. Some experiments have shown positive effects on intake when wet silage with low pH is treated with sodium bicarbonate (2 to 4% of silage DM) immediately before feeding. Positive results were reported for corn silage only, not hay crop silages.
Hay baled with too much moisture usually becomes moldy and heats. Heat-damage reduces the digestibility of energy and protein, but proper diet formulation can minimize those effects. Effects of mold are more complicated. Moldy alfalfa hay that contained no detectable mycotoxins reduced intake by dairy heifers (approximately 300 lb of body weight) but not beef steers (about 600 lb of body weight). Cattle in both experiments sorted against severely molded hay. Moldy hay also can contain mycotoxins which may adversely affect health and production. Because of the risks, moldy hay should not be fed to high producing dairy cows. Several commercial binding products are available, but their value has not been proven in controlled experiments with dairy cows.
Recommendations for feeding low quality hay crop forages
1. Have the forage analyzed. Concentrations of NDF and available protein are important quality measures. Alfalfa with > 44% and grasses with > 53% NDF can reduce milk production.
2. If possible, feed lower quality forages to animals with lower nutrient needs, such as growing heifers and late lactation cows. Feed early lactation cows the highest quality forage available on the farm.
3. If forage quality is poor because of high NDF concentrations, reduce the amount of forage in the diet but ensure that the diet still contains adequate NDF. Diets with >25% of the DM as forage NDF usually reduce intake.
4. If forage quality is poor because of a bad fermentation (wet silage), reduce the amount of that particular silage in the diet. Neutralization of the acids in wet silage with sodium bicarbonate may help increase intake.
5. If forage quality is poor because of mold (wet hay), intake may be poor
and toxicity risks are present. This type of forage should not be fed to high
producing cows and may or may not be acceptable to other types of cattle. Moldy
hay can increase sorting which may increase ruminal acidosis. Other than not
feeding or severely limiting the amount fed, little can be done to overcome
the problems with moldy hay.
Reporting of Independent Contractors, Mr.
Robert Fleming, District Farm Management Specialist, Ohio State University
(top of page)
Farm labor laws continue to evolve and become more consistent with non-farm labor requirements. Managing farm labor effectively requires following current regulations. Since October 1, 1997, all Ohio employers, including farmers, have been required to report all newly hired, re-hired, or returning-to-work employees within 20 days of hire or rehire date. Now, recent changes in Ohio law requires employers to report some independent contractors as well to the Ohio New Hire Reporting Center.
Provided below are some common questions/answers from the Ohio New Hire Reporting Center:
1) What is the new law that requires independent contractors to be reported as new hires?
The statute defining who must be reported as a new hire has changed. The new definition requires that Independent Contractors also must be reported as new hires. Pursuant to section 3121.891 of the Ohio Revised Code, employers are obligated to report all employees who reside or work in the state of Ohio. Ohio Revised Code, section 3121.89 defines an "employee" as "an individual who is employed to provide services to compensation to an employer and includes an individual who provides services to an employer under a contract as an independent contractor and who is an individual, the sole shareholder of a corporation, or the sole member of a limited liability company."
2) When did this change occur?
This law is now in effect. You should begin reporting independent contractors as soon as possible.
3) Do I need to report all independent contractors, both individuals and companies, which I use?
ORS Section 3121.891 defines an independent contractor for new hire reporting purposes as outlined in question 1. Companies should only be reported if they meet these requirements.
4) How should I report an independent contractor?
Employers may report new hires via one of the manual methods listed below:
New Hire Form
· A printed list
· A copy of the employee's W-4 form with employer information, employee
date of birth, date of hire, and work state added.
· A copy of the independent contractor's W-9 form with the independent
contractor's social security number, date of birth, date of hire, and work state
as well as employer information added.
When reporting an independent contractor, please be sure to indicate their status as a contractor on your submission.
Independent contractors can be reported either electronically or manually. Request or print the current New Hire Form, brochure, and more information from:
Ohio New Reporting Center
P.O. Box 15309
Columbus, OH 43215-0309
http://www.oh-newhire.com
Fax: 888-872-1611
Phone: 888-872-1490 or 614-221-5330
5) What information should I report for an independent contractor?
Ohio Revised Code Section 3121.892 requires the following information to be reported for both employees and independent contractors:
· Employee name, address, date of birth, and social security number;
date of hire, rehire, or return to work; and state of hire, and
· Employer name, address, and federal employer identification number.
6) I do not have a social security number for the independent contractor I am reporting. Can I use their federal employer identification number instead?
No, ORC section 3121.892 and OAC 5101:1-30-12 require that the social security number be reported.
7) What are the potential penalties for noncompliance?
An employer who fails to make a new hire report can be fined up to $25.00 for each failure to report. If the failure to make a report is the result of a conspiracy between the employer and the employee not to report or to supply false or incomplete information, the fine can be up to $500.00 for each failure to report.
Summary
Human resource management is a skill that can be acquired by farm employers
through education, experience, and commitment to the directing function of management.
Following legal requirements is a part of that management effort. Progress toward
your mission statement, goals, and objectives is enhanced by actions consistent
with these functions.
Nutrition of Jersey Cows - Little Holstein Cows or
a Breed Apart?, Dr. Chris Reynolds,
Department of Animal Sciences, Ohio State University (top
of page)
The Jersey breed has a passionate following, and there is ample evidence that this is justified. Surveys and research have indicated that when compared with Holstein cows, Jersey cows have earlier first calving, easier calving, reduced mastitis and lameness, and greater longevity, while their temperament and size means they are friendly to both farmer and pasture. Although their total milk yield is lower, the Jersey cow typically produces more milk solids per pound of body weight (BW). Milk from Jersey cows has a higher fat (and therefore energy) content, as well as a higher milk protein content and manufacturing quality. A higher dry matter (DM) intake per pound of BW generally accompanies this higher milk energy output.
As a consequence of the above factors, it is likely that interest in the Jersey breed will continue to increase. In addition, there is currently an increase in the use of Jersey cows in cross-breeding programs. However, it is now recognized that in many ways, the Jersey cow cannot be treated simply as a mini-Holstein cow in terms of nutrition and ration formulation, but only limited scientific information is available on which guidelines for Jersey cows can be based. This article reviews some of this information.
Feed efficiency: A number of research summaries have indicated that the Jersey breed has advantages in terms of the milk solids output relative to metabolizable energy intake and the production of milk energy from forage. Her energetic advantage is largely due to a greater milk energy output relative to total maintenance requirement, which is associated with the higher solids content of her milk. These comparisons also assumed that the maintenance requirement of the Jersey cow is the same as for the Holstein cow, but there is evidence from non-lactating animals that the maintenance requirement of the Jersey cow is higher.
Intake and feed digestion: As the DM intake of Jersey cows per unit of BW is often higher than Holstein cows, their intake can not be predicted from BW and milk yield using equations developed for Holstein cows. Increased rate of passage of digesta through the gut has been observed for the Jersey cow. This may be a consequence of increased milk energy output, driving higher DM intakes or, alternatively, more effective mastication and rumination may increase the rate of passage and allow greater DM intake. Regardless, the higher intake in Jersey cows relative to her body size does not appear to reduce diet digestibility.
Milk fat composition and ration fiber content: The higher milk fat content of Jersey milk is associated with an increase in the relative proportion of shorter-chain fatty acids. These fatty acids and other medium length fatty acids are synthesized in the mammary gland, using lipogenic volatile fatty acids produced in the rumen. As the production of these precursors is promoted by forage digestion, it is generally believed that Jersey cows may need higher fiber levels in their rations. However, feeding too much fiber may impose a limit on their DM intake. Further research is needed to clarify the 'effective fiber' requirements of the Jersey cow and the consequence of errors in balancing rations for fiber, starch, or fat. Indeed, articles in the popular press have suggested that Jersey cows are more tolerant of low fiber rations than Holstein cows, and should be fed less long fiber to achieve maximal DM intake.
Milk fever and transition diets: One disadvantage of Jersey cows is that they have a higher incidence of milk fever. This has been attributed to fewer vitamin D receptors in the intestine. These receptors increase calcium absorption in early lactation via mechanisms which are inhibited by high blood pH. Therefore, it has been recommended that the cation-anion difference of transition rations for Jersey cows be adjusted for a lower target urine pH (5.8-6.2) than for Holstein cows (6.2-6.7), but the basis for these recommendations is sketchy and the potential negative effects of supplemental dietary anions on metabolism and health must also be considered.
Energy metabolism: Two calorimetric comparisons of lactating Jersey and Holstein cows from the first half of the century suggested little difference between the two breeds in terms of energy metabolism. However, more recent research conducted at USDA in Beltsville, USA indicates that:
· Relative yield potential of the two breeds was similar for the individuals studied; fat corrected milk yield per pound of metabolic BW (BW0.75) at peak lactation and DM and energy intake per kg BW0.75 were not different. Thus, the genetic merit of the cows used provided a good basis for a breed comparison.
· Metabolizable energy intake as a percentage of intake energy was not different: digestibility of energy was higher in the Jersey cows, but this was countered by slight increases in urine and methane energy losses.
· Energy balance (milk plus body tissue energy) as a percentage of intake energy also was not different between breeds; higher milk fat content for the Jersey cows was associated with greater milk energy output, but corresponding tissue energy retention was numerically lower. This was an important difference between the breeds.
· This study did not detect differences in the maintenance energy requirement of lactating animals, but higher metabolizable energy intake was required to avoid tissue energy loss in the dry Jersey cows. This may in part be due to differences in body composition, as well as a genetic difference between the breeds.
Conclusions: When compared on the basis of milk energy output per pound
of metabolic body size, the energy requirements of lactating Jersey and Holstein
cows are remarkably similar. Differences in milk energy output also explain
differences in DM intake and body energy balance between the two breeds. Although
further research is needed, factors which should also be considered when formulating
rations for the Jersey cow include a higher rate of digesta passage, the higher
incidence of milk fever, and the fiber content of the ration.
Monitoring MUN in Dairy Cows - Ohio Data, Dr.
Päivi Rajala-Schultz, Department of Veterinary Preventive Medicine,
Ohio State University (top of page)
Milk urea nitrogen (MUN) is related to dietary protein intake, as well as protein-energy ratio in the dairy cow's diet. The normal/target values for MUN are within the range from 10 to 15 mg/dl. High values typically indicate inefficient protein utilization, either because of feeding of excess protein or insufficient amount of energy in relation to protein in the diet. Low values, on the other hand, may indicate insufficient protein feeding.
The Department of Veterinary Preventive Medicine at the OSU College of Veterinary Medicine and Ohio DHI collaborated in a study, evaluating MUN concentrations in 24 randomly selected Ohio dairy herds over a one-year period. Half of the herds (n = 12) were defined as low producers (Rolling Herd Average (RHA) milk production < 16,000 lb) and half (n = 12) as high producers (RHA milk production > 23,000 lb). The MUN concentration was measured in the DHI laboratory from individual cow's monthly test day milk samples. The study herds comprised of 1681 cows altogether.
Based on these Ohio data, MUN concentrations, on average, were higher in the high than in the low-producing herds. The herd level MUN concentrations varied between 5.0 and 15.1 mg/dl in the low producing herds (overall average 11.3 mg/dl) and between 10.1 mg/dl and 19.2 mg/dl in the high producing herds (overall average 13.9 mg/dl). The MUN concentrations varied with month of lactation, as well as with the season of the year. Great variability in MUN was observed from test day to test day in both production groups, and therefore, it is advisable to monitor MUN monthly to establish a baseline MUN concentration for a herd. If the average for the herd (or for a particular group of cows) is outside the target range, it is a good idea to try to determine the cause. The data from this study indicated that herds with RHA milk production over 24,000 lb can have overall MUN as low as 10 to 11 mg/dl. This suggests that using MUN measurements as a practical monitoring tool might provide an opportunity to improve protein feeding efficiency, reduce feed costs, and improve profitability of the herd.
The association between MUN and fertility of dairy cows was also evaluated
from these data. Increasing MUN concentrations were negatively correlated with
fertility of cows and were associated with a lower likelihood of detectable
pregnancy at herd checks. Cows with MUN concentrations below 10.0 mg/dl in early
lactation were 2.4 times more likely and cows with MUN levels between 10.0 and
12.7 mg/dl were 1.4 times more likely to be confirmed pregnant than cows with
MUN values above 15.4 mg/dl (the values are adjusted for cow's milk yield).
Negative effects on reproduction have previously been reported when MUN concentration
is above 19 or 20 mg/dl. The results from this Ohio study would suggest that
the levels of MUN that are adversely associated with fertility are likely lower
than reported earlier. However, when evaluating reproductive problems in a herd,
it is always important to consider MUN in the context of the entire herd management
and not to target at low MUN just to improve reproduction without considering
the associations between MUN, nutrition, milk production, and reproduction in
a herd.
Environmental Rules for Animal Agriculture - Who Are
You Going to Call?, (Article #3), Dr.
Maurice Eastridge, Dairy Specialist, Ohio State University (top
of page)
There was a cartoon a few years ago, the "Ghostbusters". The central focus was that evil ghosts prowled upon people and capturing the ghosts required the special skills of the "Ghostbusters". The theme song contained the words, "So who are you going to call, The Ghostbusters." Sometimes I think environmental risks are viewed somewhat like ghosts in the cartoon. Environmental risks are everywhere but not at my place, at least I don't think so. But come to think about it, I really haven't given it much thought. Then it happens, the Environmental Busters got a tip from someone and they are invading - "What is going on, who are these people?" Or better yet, maybe you have questions to ask so that you can be better prepared at lowering environmental risks - so who are you going to call? Well, in Ohio it's not that simple - we have many different agencies with different responsibilities. So let's review the primary agencies that can help us with environmental compliance on livestock farms:
Ohio Department of Agriculture: regulatory authority for Concentrated
Animal Feeding Operations (CAFO) and monitors point source discharge from animal
facilities, (614) 387-0470, lepp@odant.agri.state.oh.us,
http://www.state.oh.us/agr/LivestockRegIndex.HTML
Ohio Department of Natural Resources (ODNR):
Division of Wildlife - protects waterways thorough enforcement of stream
litter and wildlife protection laws, 1-800-wildlife, wildinfo@dnr.state.oh.us,
http://www.dnr.state.oh.us/wildlife/default.htm
Division of Soil and Water Conservation - Administers non-point source
pollution control assistance, state cost share, and pollution abatement complaint
programs, (614) 265-6610, dswc@dnr.state.oh.us,
http://www.dnr.state.oh.us/soilandwater
Ohio Environmental Protection Agency (Division of Surface Water):
authority to implement laws and regulations regarding water quality standards,
(614) 644- 2001, http://www.epa.state.oh.us/dsw
USDA Natural Resources Conservation Service: provides information on
soil capabilities, surface and subsurface drainage, and erosion control measures,
(614) 255-2472, http://www.oh.nrcs.usda.gov;
locate local offices at http://www.oh.nrcs.usda.gov/contact/directory/directories.html
The most accessible, local contact that will help you follow through the channels
of environmental rules is the ODNR-Division of Soil and Water Conservation.
Each county has a local soil and water conservation district (SWCD). You can
find the phone number in the local telephone directory or go to: http://www.dnr.state.oh.us/soilandwater/swcds.htm.
Being PROACTIVE is good. Get to know the SWCD personnel and the assistance that
they can provide.
Note: Ohio House Bill 152 was introduced to the 125th General Assembly to
revise Ohio's environmental rules for CAFO to abide by the new Federal rules.
The Ohio Legislature passed Bill 152 and it remains in Governor Taft's office
for signature.
Dairy Heifer Notebooks for Sale, Ms.
Amanda Hargett, State Dairy Extension Associate, Ohio State University
(top of page)
The notebooks from the Dairy Heifer Program are on sale for $20.00 each plus $5.00 for shipping and handling per copy. If any producers or agents are interested in the notebooks, have them contact me at 614-688-3143 or hargett.5@osu.edu. We have a limited number and it will be first come, first serve. There is a lot of valuable information in these notebooks and it is all in one place - a perfect deck reference! Powerpoint presentations from this program are now on the Ohio Dairy Industry website under Heifer Management (http://dairy.osu.edu).
Calendar of Events
(top of page)
July 22 - Wayne County Dairy Twilight Tour
July 25, 2003 - Mammary Biology Symposium in Honor of Dr. Larry Smith's Retirement,
1:30-3:30 pm, Fisher Auditorium, Wooster
August 1-17, 2003 - Ohio State Fair,
Columbus
August 20 - Manure Application Research Plot Field Day, New Waterford, OH
August 26 - Manure Science Review,
OSU Lima Campus
August 27 - Manure Science Review,
Fayette County Fairground, Washington CH
August 28 - Manure Science Review,
OARDC/OSU Campus, Wooster
September 16-18 - Farm Science
Review, London, OH, www.ag.ohio-state.edu/~ofsr/
Web link to Milk Futures: http://www.cme.com/prices/delayed_intraday_quotes/futuresandoptions.cfm