Buckeye Dairy News: VOLUME 27: ISSUE 1
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Dairy Dollars: Feed Prices, Nutrient Costs, and Milk Income
Andie Majewski, Graduate Teaching Associate, Department of Animal Sciences, The Ohio State University
Feed is the largest cost of production on dairy farms; therefore, it important to monitor the costs of feedstuffs on a local level. Since November, the overall price of feedstuffs has increased in Ohio (Figure 1), directly impacting the income over feed costs for dairy farms. While the greatest $/ton price increase is seen in blood meal, the price of all corn products increased by some amount except for corn silage, which is priced on a biannual basis. This is significant as corn is commonly incorporated into rations for lactating dairy cows.

Figure 1. Actual cost of 21 feedstuffs fed on Ohio dairy farms on January 27, 2025 (red) compared to the actual costs of feedstuffs on November 18, 2024 (gray).
Figure 2. Actual and predicted cost of feedstuffs with 75% confidence interval (CI) of 21 feed commodities fed on Ohio dairy farms; January 27, 2025. Feedstuffs that are priced above the upper prediction price limit are overpriced (red bars). Feedstuffs that fall within the upper and lower limits of the predicted prices are breakeven feeds (gray bars). Feedstuffs that are priced below the lower prediction price limit are considered a bargain (green bars).Economic Value of Feeds
Figure 2 displays the costs for the 21 reported commodities in Ohio. These results were produced by SESAMETM for the central Ohio region on January 27, 2025. In simple terms, Figure 1 represents the bargain feedstuffs (green), the overpriced feedstuffs (red), and the breakeven feedstuffs (gray). Despite the overall rise in cost of feedstuffs in January, corn-based feeds were generally a bargain as in the previous report. Other byproducts, such as cotton seed meal, canola meal, and blood meal, were generally overpriced. Remember, these prices and estimates are from a point in time and their economic classification may change from what is reported. While it is important to consider the costs of feedstuffs when formulating a ration, the prices are not the only thing that should be considered. Some of the “bargain” priced commodities may have a place in a dairy cattle ration, though it is important to consider the investment opportunity that may arise by feeding “overpriced” feedstuffs.
The appraisal set, shown in Table 1, predicts the prices for the commodities that did not have a current local price. These commodity prices were predicted by SESAMETM and represent the estimated commodity prices at one specific point in time and are therefore subject to change. These values may be used as a benchmark if you’re considering purchasing these ingredients for your dairy farm.
Table 1. Estimated feedstuffs prices not reported for Ohio, January 27, 2025.
Feedstuffs
Estimated price with 75% CI1
Alfalfa hay – 32% NDF2, 24% CP3, 190 RFV4, $/ton
205 (186 - 224)
Alfalfa hay – 36% NDF, 22% CP, 170 RFV, $/ton
208 (187 - 229)
Alfalfa hay – 44% NDF, 18% CP,130 RFV, $/ton
206 (180 - 232)
Alfalfa hay – 48% NDF, 16% CP, 110 RFV, $/ton
206 (176 - 235)
Bakery byproduct meal, $/ton
150 (124 - 176)
Beet sugar pulp, dried, $/ton
191 (175 - 208)
Citrus pulp dried, $/ton
141 (125- 158)
Fish menhaden meal, mech., $/ton
532 (505 – 560)
Molasses, sugarcane, $/ton
99 (76 - 121)
Tallow, $/ton
264 (174 - 354)
1Confidence Interval
2Neutral Detergent Fiber
3Crude Protein
4Relative Feed ValueFeed Nutrient Prices
The cost of net energy of lactation (NEL) and metabolizable protein (MP) increased slightly by about 1% and 0.25% respectively, from our previous report in November. The cost of physically effective fiber
(e-NDF) decreased by about 4.6%. Values of nutrients are shown in Table 2.Table 2. Prices of nutrients for Ohio dairy farms, January 27, 2025, compared to November 18, 2024.
Nutrient Name
Jan. Estimate
Nov. Estimate
Price Change
NEl - 3x (2001) (Mcal/kg), $/lb
0.0344
~
0.034
~
Metabolizable Protein, $/lb
0.5477
**
0.5463
**

e-NDF, $/lb
0.1448
**
0.1518
**

ne-NDF, $/lb
0.0036
-0.0049

- A blank means that the nutrient unit cost is likely equal to zero
- ~ means that the nutrient unit cost may be close to zero
- * means that the nutrient unit cost is unlikely to be equal to zero
- ** means that the nutrient unit cost is most likely not equal to zeroMilk and Milk Component Prices
In the month of January, the ending Class III milk price was $18.62/cwt. January’s milk fat and protein prices were $2.91/lb and $1.96/lb, respectively (Table 3). While the price of fat decreased slightly by $0.18 since the month of November, the price of protein decreased significantly, by $1.36 since the last report. The price of class III milk dropped from $22.85 to 18.62/cwt.
The profitability of milk production with the nutrient costs displayed in Table 2 is estimated using the Cow-Jones Index. The prediction formula uses a 1500 lb cow, producing milk with 4.09% fat and 3.22% protein. This month, the income over nutrient cost (IONC) for cows milking 85 and 70 lb/day is about $13.73 and 13.42/cwt, respectively. Both estimates are expected to be profitable, despite not including factors such as replacement and cull cows in the herd.
Table 3. Prices of milk and milk components, sourced from the Federal Marketing Order 33, for Ohio dairy farms, January 27, 2025, compared to November 18, 2024.
Milk/ Component price
Jan. Estimate
Nov. Estimate
Price Change
Milk fat, $/lb
2.91
3.09

Milk protein, $/lb
1.96
3.32

Class III Milk1, $/cwt
18.62
22.85

1Class III milk is used for hard cheese
Considering the increased feed costs, reduced milk price for Class III milk and milk components, in addition to the slight increase in feed nutrient prices, the overall cost of production increased for Ohio dairy farmers at the start of the new year.
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New Extension Forage Agronomist
Dr. Emma Matcham, Assistant Professor, Department of Horticulture and Crop Science, The Ohio State University
We are excited to introduce the newest Extension state specialist for integrated forage management, Dr. Emma Matcham. Prior to joining the faculty at OSU, Emma was an Assistant Professor of nutrient cycling and agronomy at the University of Florida and became a certified crop advisor (CCA) in 2020. She earned her BS and MS from OSU, and her PhD from the University of Wisconsin—Madison. As an assistant professor and Extension state specialist, her lab focuses on applied forage systems research that helps address the needs of Ohio farmers. She has initiated one field trial so far, which investigates how nitrogen management impacts yield, protein, and other qualities for winter annual forages. She’s also starting trials on summer annual planting dates and stand evaluation methods this year, since that information is helpful when managing farms during droughts and other environmental stressors. She’s involved in continuing education and other opportunities for CCA and Certified Livestock Managers.
This winter you can meet Dr. Matcham at a variety of winter meetings, including the Ohio Dairy Producers Association annual meeting, Ohio Forage and Grassland Council annual meeting, and Conservation Tillage and Technology Conference.
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Corn Hybrid Selection for Disease Management
Jason Hartschuh, Assistant Professor, OSU Extension Field Specialist, Dairy Management and Precision Livestock, Ohio State University
Corn hybrid selection is critical to maximizing your cow's production. When selecting hybrids, we usually consider factors like digestibility, energy, crude protein, milk per ton, and milk per acre. Foliar corn disease susceptibility is a critical factor to consider as it can affect both grain and forage quality, requiring a multi-prong approach to managing feed quality. Stalk and ear rots can be even more detrimental as they produce mycotoxins. Deoxynivalenol (DON), also known as Vomitoxin, can cause significant feed quality challenges in both silage and grain. The same fungus that produces DON can produce Zearalenone (ZEA), an estrogen mimicking mycotoxin that can also create many challenges for dairy cows.
Foliar Disease
Foliar diseases can reduce yields but cause fewer grain quality issues unless they kill the corn plant prematurely, lowering test weight. However, foliar disease can cause feed quality issues in silage. Tar Spot is the most concerning as it is an aggressive disease that can kill corn plants rapidly, leading to silage moisture that is too low for proper fermentation. Even when a foliar disease does not kill the corn plant, it can lower the digestibility of the corn silage, decreasing the energy and milk per ton. When a corn plant is infected with a foliar disease, its natural response to fight off the disease, which includes hardening the cell walls around the infection so that the disease does not spread further along with the death of plant tissue in the infected area. As the cell walls around the disease area thickens, they become less digestible and so does the dead plant tissue in the diseased area, lowering the quality of your silage. Under severe disease pressure, we have seen highly digestible brown midrib (BMR) corn hybrids become less digestible than a non-BMR silage-type hybrid.
Management of corn diseases starts with hybrid selection; however, for emerging diseases such as Tar Spot, there may not be resistance ratings available in the seed catalogs. Selecting hybrids that have good disease resistance for Gray Leaf Spot and Northern Corn Leaf Blight is your first step so that those diseases are managed through plant genetics. Then discuss with your seed salesman what they are experiencing for Tar Spot resistance. Layering genetic resistance with fungicide applications when disease is present can maintain forage quality. When using a fungicide for foliar disease control, be sure to select one that controls the diseases you have presently. Information on fungicide efficacy for foliar disease can be found here: https://cropprotectionnetwork.org/publications/fungicide-efficacy-for-control-of-corn-diseases.
Gibberella Ear and Stalk Rot
The fungus Fusarium Gaminearum can infect the corn stalk by causing stalk rot, which includes rot in the stalk, cob, and grain. In both locations (ear and stalk), the mycotoxins can be produced with major concerns coming from DON and ZEA. With your support from the Ohio Corn Marketing Board and Ohio Dairy Research Fund, OSU Extension and OSU Plant Pathology have been researching a systems-based approach to DON management. This systems-based approach includes hybrid resistance screening of both corn grain and corn silage, hybrid infection reaction characterization, fungicide application method screening, weather modeling to predict disease levels, and post-harvest cleaning of corn grain.
Our first hybrid screening project for DON was done in 2023 with only corn grain, but in 2024, we conducted a screening of both grain and silage hybrids. We will continue this program in 2025. The grain screening results can be used to help with hybrid selection for both grain and silage, but corn silage can have DON toxins from both the grain and the stalk. There is no correlation between high amounts of DON in the stalk and high quantities of DON in the grain and ear. The plant resistance traits for these two areas of disease infection are probably different so there is a chance that a corn hybrid with partial resistance to DON development in the ear may not have resistance to DON development from stalk rot.
In 2024, we lost half of our silage screening plots to due to flooding after planting at the research station. This led to us only having results from the Enogen plots, which were grown in a different area of the farm to maintain the stewardship guidelines. Weather conditions for disease development in 2024 were not favorable, so across all screening trials, DON levels were low. The results from the Enogen hybrids are in Figure 1 below. Hybrids with a different letter at the top of the bar had statistically different DON levels. These plots had higher DON levels than most corn silage in the State this year. The plots were inoculated with fungal spores to cause ear rot and DON during pollination. These hybrids ranged from 0.06 to 1.46 ppm DON. Of the 11 hybrids submitted, 3 of them averaged greater than 1 ppm and 7 averaged less than 0.5 ppm. Under high disease pressure such as inoculation, no hybrid is 100% resistant. When using results from these screening trials, consider that hybrids with higher DON levels are susceptible while low hybrids are partially resistant. Under favorable weather conditions for disease development, some of the low hybrids may have been higher. One strategy to evaluate the hybrids that you grow is to test every hybrid every year. If using silage bags, test each hybrid at feed out; for bunkers and silos, sample hybrids as they are put in. DON levels can change during the first 30 to 60 days fermentation. The goal for high-producing dairy cows is to keep the complete ration below 1 ppm DON.
abcdHybrids with different superscripts differ.The corn grain hybrid screening project had 80 hybrids submitted in 2023 and 90 hybrids submitted in 2024. DON levels in 2023 were much higher than in 2024. Of the 80 hybrids submitted for evaluation, 24 of them had DON levels greater than 5 ppm in at least 1 of the 3 locations and 28 hybrids averaged less than 2 ppm across the 3 locations. The DON levels were much lower in 2024, with the 2 locations we have completed the data analysis only averaging 0.4 ppm DON across all 90 hybrids. The range however was from no DON detected to 3.7 ppm. Grain hybrid DON screening data can be found at: go.osu.edu/vomitoxin
Hybrid selection is an important first step to producing feed that has low levels of DON and other mycotoxins. The second step to consider is a fungicide application; however, only Proline and Miravis Neo currently have labels for the control of Gibberella Ear Rot. Using fungicide for Gibberella Ear Rot management requires perfect timing. The fungicide must be applied while the silks are wet and must reach the silks during application. Once the silks turn brown and dry, the fungicide doesn’t move into the ear where the fungus is hiding. A fungicide can only lower the DON levels but cannot lower a susceptible hybrid to 0 ppm DON when weather conditions favor disease development. Through an integrated pest management approach, DON can be controlled so that you have clean corn silage.
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Property Owners and Unidentified Drones
Peggy Kirk Hall, Director, Agricultural and Resource Law Program and Ryan McMichael, Agriculture and Natural Resource Educator, Mercer County, The Ohio State University
Drones, or more accurately named Unmanned Aerial Vehicles (UAV), have helped provide new methods of pesticide applications and agronomic data collection to assist farmers with productivity and efficiency. Yet, the possibility of unknown drones flying over a farm property can cause concerns. Recent conversations and sightings of drones in rural areas have producers raising questions, such as “what can I do about suspicious drone activity” and “can I shoot down a drone over my property?” Federal and state laws provide answers to these questions. Here are several points farmers need to know about dealing with UAV traveling over their properties.
1. Shooting a drone is a crime under Federal and state laws. Federal law prohibits a person from intentionally harming UAV and other aircraft. It is a Federal felony to willfully “damage, destroy, disable, or wreck any aircraft,” and the Federal government has prosecuted persons for doing so. The potential punishment can be severe: a fine of up to $250,000 and 20 years of imprisonment. Ohio law also establishes a crime for “endangering aircraft.” A person who knowingly discharges a firearm, air gun, or spring-operated gun at or toward any aircraft can be subject to misdemeanor or felony charges, fines, and imprisonment, depending upon the risk of harm resulting from the endangerment.
2. Shooting a drone can create safety risks and potential civil liability. The Federal Aviation Authority (FAA) and other aviation professionals warn against the unintended consequences of injuring an airborne drone. Once disabled, a UAV is no longer under the control of an operator and will eventually crash. Some compare an injured drone to a “missile” that can harm people, animals, and property upon impact. A recent case in Florida illustrates this danger, with a child suffering serious harm when a drone crashed and struck him. A person who intentionally harms a drone not only creates this safety risk but also opens up the possibility of being liable for injuries caused by the drone or its debris. Additionally, the owner of the drone may seek compensation for the loss of the aircraft.
3. The recommended action is to report suspicious drone activity. If a UAV poses a danger, an observer should report it right away to local law enforcement or the county Emergency Management Agency, who can investigate the situation. It’s helpful to share location information and videos and photos of the aircraft. If a drone doesn’t pose an immediate danger but appears to be operated in violation of FAA rules, an observer can report the activity to the nearest FAA flight standards district office. There are FAA district offices in Cincinnati, Columbus, and Cleveland. Contact information is available on the FAA website.
4. Federal laws require registration and tracking technology for drones. A drone owner must register the aircraft with the FAA and provide the owner’s address, e-mail, and telephone information, along with the model and serial number for the UAV. The FAA issues an information or “N-number” the owner must display on the vehicle, and the agency also provides an online tool for looking up an aircraft by its N-number. An additional FAA rule also requires a registered drone to have “Remote ID” technology. A Remote ID acts as a drone’s “digital license plate” by broadcasting a signal identifying the drone, its location, and the location of its control station. The registration and Remote ID requirements increase the likelihood that law enforcement or the FAA can ascertain who owns or is operating the aircraft.
5. New laws for UAV will soon be effective in Ohio. While the Federal government has sole authority to regulate UAV, states can also enact drone laws as long as they don’t conflict with the Federal regulations. The Ohio legislature recently did so, enacting a bill last December with requirements and prohibitions on private use of drones. The new law, which is not effective until April 9, 2025, will prohibit a person from operating a UAV “in a manner that knowingly endangers any person or property or purposely disregards the rights or safety of others.” The penalty for a violation includes a fine of up to $500 and imprisonment of up to six months. The new law offers another reason to report suspicious drones, and its penalties could help reduce potentially harmful drone activity.
It can be unnerving and threatening to site an unknown drone flying over one’s property, but shooting at the drone is not a viable solution to the concern. An injured UAV can harm people and property. A shooter could not only be liable for that harm but could also face criminal felony and misdemeanor charges for endangering or harming aircraft, along with hefty fines and imprisonment penalties. The preferred solution for dealing with drone activity is to report it to local law enforcement or the FAA. Taking action quickly could result in identification of the owner and an explanation of the drone’s activities. If that activity is suspicious or endangering, Federal and state laws can penalize the offender and eliminate the drone activity.
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Federal Order Reform Passed in All 11 Federal Orders: Considerations for FMMO 33 Milk Prices
Jason Hartschuh, Assistant Professor, OSU Extension Field Specialist, Dairy Management and Precision Livestock, Ohio State University
On January 17th, USDA published the Final Federal Order Rules amending the uniform pricing formulas in all 11 Federal milk marketing orders (FMMO). The full final rules can be found at: https://www.ams.usda.gov/rules-regulations/moa/dairy/hearings/national-fmmo-pricing-hearing. These rules will go into effect on June 1, 2025 for all of the following changes except for the changes to the skim milk composition factors. The changes to the skim milk composition factors will be implemented on December 1, 2025. The changes will apply to all milk marketed after these dates and will be reflected in both the advanced pricing released before the milk is marketed and the class and component prices announced after the close of the month.
Final rules announced and passed by all 11 FMMO’s and considerations for milk price
- Updating the skim milk composition factors to 3.3% true protein, 6.0% other solids, and 9.3% nonfat solids (not implemented until December 1, 2025)
- This change brings skim milk prices more in line with what is being produced in the industry as genetics and cow nutrition programs have changed. The modern cow is producing a more nutrient-dense product. This change will be reflected in the calculated skim milk class prices. It will also raise the Class I price in all orders, resulting in a slight increase to the pool value. The most impact will be for producers in the 3 skim-fat Federal orders where producers are paid for set protein and other solids levels, along with the fat they produce and are not compensated for any increase in milk protein or other solids.
- Removing the 500 lb barrel cheddar cheese price from the Dairy Product Mandatory Reporting Program survey.
- This change will adjust how cheese price is calculated by only using the 40 lb block cheddar cheese price in the monthly calculation. Over the past 5 years, the cheddar block-barrel spread has been large as these commodities move independently of each other. If only block price had been used for the last 5 years, it would have increased Class III milk price by $0.47/cwt.
- Updating the Class III and IV manufacturing allowances to $0.2519 for cheese, $0.2272 for butter, $0.2393 for nonfat dry milk, and $0.2668 for dry whey, all on a per pound basis, and updating the milk fat recovery factor to 91%.
- This change may feel counter-productive to dairy producers as it will lower pay price, but it is an important step in the reform process to ensure processor long-term sustainability. While processors of commodity dairy products may have the benefit of knowing what they will make per pound of product processed, the only way they have been able to maintain profits as input costs like electricity or labor increased was to become more efficient. In some instances, this has led to decreased investments in processing plants and decreased producer premiums offered for high-quality milk.
- Returning the base Clase I skim milk price formula to the higher-of the advanced Class III or IV skim milk prices for the month. In addition, the adoption of a Class I extended shelf life (ESL) adjustment for all ESL products will equal the average-of-mover plus a 24-month rolling average adjuster with a 12-month lag.
- Over the last several years, the spread between Class III and IV milk prices has been large for multiple months. In 2020, there was a point when the Class III-IV spread was greater than $8.00/cwt; any time the class spread is over $1.50/cwt, this change will increase Class I milk price. In 2024 for over half of the year, this change would have resulted in a higher Class I milk price, putting more money in the pool and raising the statistically uniform price. This change will also help with depooling as there should be minimal times when Class I milk price falls below Class III or IV prices for over a month. This should only occur when there is a rapid change during the month from when the Class I milk price is calculated the month prior during the advanced price calculation, and when the Class III and IV prices are calculated after the end of the month. This may, however, change your risk protection strategy when using Dairy Revenue Protection or the futures and options market as you will no longer know as closely how much of your milk check will be based on the underlying Class III or IV milk prices. Choosing the higher contract between these two to hedge the portion of your milk represented by Class I prices is probably the most reliable strategy. Keep in mind that if your milk is pooled on the Federal order, the price you receive is a blend between all four classes of milk based on the processing utilization that month in the order. In most months, this change will bring more value to the FMMO 33 Pool.
- Updating the Class I differential values to reflect the increased cost of servicing the Class I market.
- Class I location differentials are fixed values that increase the regulated fluid milk price in a county based on the need for fluid milk and the distance milk needs to travel to consumers in that county. This location differential only applies to Class I fluid milk. The location differential is for the county where the milk is processed, not the county it is produced in. In Ohio, this location differential increase was between $1.30 and 2.30/cwt for Class I milk, but across all of FMMO 33, the increase ranged from $1.10 to 2.30/cwt. This increase will bring slightly more money into the pool from Class I milk with about a third of milk in FMMO being utilized for Class I. It will also help cover the hauling cost of moving milk into major fluid milk deficit areas, such as the southeast, hopefully bringing enough milk into these regions so that consumers always have access to fluid milk and decrease milk dumping.
In the end, the FMMO reform will have variable changes to the farm gate milk price, depending on each FMMO. In FMMO 33, Mideast, if these changes had been in place from January 2019 to December of 2023, the Statistically Uniform Price average at actual fat test would have increased $0.50/cwt. These changes may impact how you use market-based tools in the future to manage risk between Class III and IV. It should assist at least some processors in investing in processing plants to allow for increased capacity as national milk production grows and the possibility for more competition between processors. While these recommendations were back-tested to determine their consequence, only time can tell us how these changes will play out in the markets and affect producers' bottom line. An increase in milk price often leads to an increase in production. Higher milk prices can also lead to higher dairy product prices on the store shelves and decreased consumption, all factors that cannot be accounted for in back-testing.
- Updating the skim milk composition factors to 3.3% true protein, 6.0% other solids, and 9.3% nonfat solids (not implemented until December 1, 2025)
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Dairy Margin Coverage and Dairy Risk Management for 2025
Jason Hartschuh, Assistant Professor, OSU Extension Field Specialist, Dairy Management and Precision Livestock, Ohio State University
The dairy industry has a history of volatility in profits coming from both income (milk price and the beef market) and expenses (feed prices). Using multiple strategies to manage these risks in 2025 can help protect your operation from volatility. Dairy Margin Coverage (DMC) through the U.S. Department of Agriculture (USDA) is one of these tools that allows producers to manage both milk price risk and feed cost risk together. This program allows producers to protect their operations from market fluctuations. Over the past 15 years if DMC was available as it is today, the first 5 million pounds of milk production history covered with a $9.50/cwt margin would have had a positive net benefit (Indemnity payments minus premiums) 13 of the 15 years. Enrollment for DMC begins January 29, 2025 through March 31, 2025 at your local USDA Farm Service Agency (FSA) office.
Current DMC outlook
The current market projections using the DMC feed cost calculation can be found at: https://dmc.dairymarkets.org/. This tool can be used to evaluate the current market projects for feed cost and milk price using DMC calculations. The current All Milk Price forecast by month ranges from $22.63 to 23.86/cwt with an average for the year of $23.16/cwt. The feed cost for the year using the DMC calculation ranges from $9.45 to 9.79/cwt with an average of $9.60/cwt. These milk price and feed cost projections lead to a DMC margin range of $13.09 to 14.19/cwt, with a year average of $13.56/cwt. This range is well above the maximum DMC protectable margin of $9.50, but either a downturn in milk price or an increase in feed costs could lead to the DMC program triggering a payout. A lot can happen in the world markets over a year, potentially increasing feed costs through domestic or internal weather challenges that lower corn and soybean production. While domestic demand for dairy products has shown great resilience, milk prices could see challenges from international markets or increases in domestic cow numbers and production. As a risk management tool, DMC costs $0.15/cwt for $9.50/cwt margin coverage, which is significantly less than most other risk management tools for both milk price and feed costs.
Dairy Margin Coverage Highlights
- Provides protection when milk prices and feed costs create tight margins
- A $9.50 margin for Tier 1 coverage only costs $0.15/cwt
- Provides an affordable safety net against unpredictable market fluctuations
- Coverage for extremely tight margins of $4.00/cwt is available for only an administrative fee of $100.
- Enrollment is necessary, even if enrolled in the past and coverage election is unchanged
- Enroll through your local USDA FSA office
- Enrollment is January 29, 2025 through March 31, 2025
Other Risk Management Strategies
Dairy Margin Coverage is the first step for managing risk, but many other opportunities are available. Through the USDA Risk Management Agency (RMA), the same group that provides crop insurance is the Dairy Revenue Protection (DRP) program, which can be used to set a floor under your milk price. This program can protect from a decline in milk price based on available milk futures and component futures. The protectable price available is 95% of the futures market price or a producer can choose a lower protection amount of the futures price. This program has a higher cost per hundredweight than DMC, with the Quarter 2 2025 protection starting at about $0.26/cwt after subsidies for Class IV coverage and increasing if competent coverage is added or later quarters are protected. The price and availability of DRP contracts vary daily based on futures market trading. With higher milk prices and low feed costs, this program may be a tool to ensure current milk price projects are a reality on your farm. One of the best strategies when using this program is to do contracts when the protected price minus the contract cost is above your cost of production, allowing you to set a profitable milk price floor. Alternatively, a producer can set a higher milk price floor under their milk price using a put option directly from the Board of Trade, but this is more costly since it is unsubsidized and at a milk price closer to where the futures are actually trading.
With lower feed cost projections, risk management strategies should also be considered for your purchased feeds. The most common strategy is a direct forward contract of feeds with your supplier with a set cost. Some feed suppliers also offer alternative programs that only set a ceiling on your feed cost, allowing the producer to take advantage of price declines. These options typically have a higher ceiling than the set price forward contract, but it allows you to take advantage of feed price declines if they occur. For some feeds, a call option can also be used from the Board of Trade to set a ceiling on your feed cost. The other feed cost risk management program available through RMA is the Livestock Gross Margin-Dairy Program which can be used to protect the margin between Class III milk prices and corn and soybean meal prices.
As you consider risk management strategies, keep in mind that depending on your Federal order, your milk price is a combination of all four classes of milk, which are based on both Class III and IV milk prices that have been moving independently of each other. If you are in Ohio and your milk is pooled in Federal Order (FMMO) 33, approximately a third of your milk check comes from Class III milk and a third from Class I with the remaining third coming from Class II or IV. Currently, Class I price is an average of Class III and IV plus $0.74/cwt, but with the Federal order reform starting in June of 2025, Class I milk prices will be higher than Class III or IV milk prices. For risk management, the time between the amount of your milk check and risk based on Class III or Class IV prices could change. However in FMMO 33, at least a third of your milk price will continue to be based on Class III milk price, and as long as Class IV remains higher than Class III, a significant percentage will be based on Class IV milk price. When managing risk using alternative programs beyond DMC, protecting your milk price with both Class III and IV risk protection strategies will be vital.
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Hidden Defenses: How Cows Fight Disease
Elizabeth Plunkett, Graduate Research Associate, Department of Animal Sciences, The Ohio State University
Disease presents a significant threat to animal productivity, leading to billions of dollars in annual losses. As a producer, you do everything in your power to mitigate disease risks in your operation, but unfortunately, disease is opportunistic and will strike when least expected. While disease can be challenging to mitigate, it is often easy to spot by observing cow behavior and productivity. The signs that we initially observe and associate with disease are the consequences of physiological adjustments that are a part of the host’s response to an abnormality. At first glance, these responses might seem counterproductive. For example, why would a cow go off feed at a time when her metabolic requirements increase exponentially? However, the physiological adjustments present at the onset of disease are a set of highly organized and calculated survival mechanisms that have been evolutionarily favored for centuries. Understanding the biological rationale behind these responses reveals how they collectively contribute to the cow’s initial defense against pathogens.
Reduced Feed Intake:
Interleukin-1 (IL-1) is a cytokine that plays a crucial role in regulating the immune response. When IL-1 is released, it triggers a decrease in appetite. Although it might appear unfavorable when sick cows stop eating, it is actually a protective mechanism. Listed below are several plausible reasons why this is a beneficial response during sickness, and for more information into this perplexing phenomenon, I encourage you to read Brown and Bradford (2021), which reviews these mechanisms in greater detail.
- When cows consume less feed they divert less energy towards digestion, which is an energetically costly process. Creating less energy usage allows for more energy to go towards fighting the infection and fueling vital organs.
- The pathogen may be present in the feed so limiting intake helps reduce overall pathogen load. Additionally, if the pathogen is in the feed, reducing intake would allow the gastrointestinal tract time to heal and prepare for future intake.
- Cows may simply lack the motivation to eat. If feeding requires them to walk a great distance or fight for their food, they may not feel up to the challenge when they are sick. It may be more energetically costly for them to approach a feed bunk rather than staying put to conserve energy.
- Looking at this from an evolutionary perspective, limiting feed intake during sickness is a prey instinct. Historically, cows are grazing animals; therefore, during times of sickness, it is unwise to put themselves in such a vulnerable position when they can’t promptly respond.
- Eating less helps reduce iron intake which is an important mechanism to ‘starve’ the invading bacteria. Some bacteria require iron for proliferation and growth; therefore, limiting intake helps reduce nutrient availability for the invading pathogen.
Decrease in Plasma Iron Concentration:
Iron is an essential mineral for some bacteria as they need it to grow and proliferate. During bacterial infections in cattle, we see a reduction in iron concentrations. This reduction is not due to increased excretion but rather the redistribution of iron throughout the body. For example, during mastitis, transferrin concentrations in milk will increase as transferrin will work to bind free iron to keep bacteria from acquiring it and utilizing it to multiply. The release of IL-1 also causes iron concentrations to decrease. Additionally, the reduction in iron concentration acts synergistically with fever to hinder bacterial growth in the early stages of disease. While they both work to suppress bacterial growth, one is not dependent upon the other and one can occur while the other does not.
Fever:
Fever is a temporary increase in the body temperature set point, not to be confused with hyperthermia which is an increase in body temperature without an adjustment made to set point. Fever is controlled by IL-1, and it helps make the body less welcoming to infections as some bacteria and viruses can’t survive at higher temperatures. Immune cells also have enhanced performance during fever, primarily due to the actions of IL-1, but also due to the heat fever creates. To reach and hold this new higher temperature, the body must make several changes. It does this by reducing heat loss and/or generating more heat. For example, sick animals often curl up in an attempt to reduce their surface area and limit heat loss. Additionally, blood flow will shift to internal organs, leaving the extremities to feel cold to the touch (e.g., cows’ ears feed cold). Another way the body reduces heat loss is called piloerection, which is when hair follicles stand up. While the body does everything it can to retain heat, sometimes this is not enough. If it can’t hold the heat, the body will increase heat production by speeding up metabolism, which is energetically costly. Fever can increase overall metabolism by 30-50%, creating more stress on the cow if this response is prolonged.
Depression and Lethargy:
Just like when we are sick and all we want to do is stay in bed, cows behave in similar patterns. There are multiple benefits of depression and lethargy during disease. Cows may curl up and move less as a strategy to conserve body heat and minimize the use of nutrients for non-essential functions. IL-1 also plays a role in inducing sleepiness, as it is involved in promoting rest and reducing activity in response to illness. This is why an activity monitoring system can help us detect illness in cows because they will be moving less to conserve energy. This depressive state helps the cow conserve energy for essential functions, allowing her to focus on launching her defense.
These physiological adjustments that occur during disease work with one another to provide an initial defense mechanism against invading pathogens. These responses work together to protect the host, but they neither the same purpose nor do they depend upon one another. Even cows subjected to the same pathogen will have variations in these responses and may present with different clinical signs. Making the approach to resolve the issue is difficult and case-dependent. While these mechanisms are biologically normal, their prolonged presence can create just as much damage as the invading pathogen. Leading furthermore to the question, we continue to ask ourselves: When do we treat and when do we let these processes run their course?
Stay tuned for the next article which will answer this question and many more!
Disclaimer: This article is intended to explain and inform readers about some common physiological responses observed in ill lactating cows. It does not constitute veterinary advice or recommendations for treating animals. For specific concerns and treatment plans, please consult a licensed veterinarian.
Sources:
- Brown, W.E., and B.J. Bradford. 2021. Invited review: Mechanisms of hypophagia during disease. Journal of Dairy Science 104:9418–9436. doi:10.3168/jds.2021-20217.
- Hart, B.L. 1988. Biological basis of the behavior of sick animals. Neuroscience and Biobehavioral Reviews 12:123–137. doi:10.1016/S0149-7634(88)80004-6.
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Update on the Foot-and-Mouth Disease Outbreak in Germany
Dr. Gustavo M. Schuenemann, Professor, Department of Veterinary Preventive Medicine, The Oho State University
On January 10, 2025, Germany announced an outbreak of foot-and-mouth disease (FMD) in water buffalos near Berlin. This is the first FMD outbreak since 1988. The National Reference Laboratory for FMD, Friedrich-Loeffler-Institute in Germany, has pinpointed the virus serotype O responsible for the recent outbreak.
What is FMD?
FMD is a severe, fast spreading viral disease affecting cows, pigs, sheep, goats, deer, and other animals with divided hooves. Most infected animals survive, but FMD causes significant losses in milk and meat productivity, as well as economic impact due to the closure of export markets. FMD was first discovered in the United States in 1870 and eradicated 1929.
What is the source of the FMD outbreak?
The exact origin and route of entry into Germany is still unknown. The FMD virus serotype O has been found in many countries, primarily in Africa, Asia, and the Middle East. Knowing the serotype is critical for effective vaccine deployment within a few days from the national vaccine bank once activated by regulatory agencies. For FMD, the vaccine must match precisely the virus serotype, as vaccines against other serotypes do not protect animals.
How many serotypes of FMD are there?
To date, seven FMD serotypes are known: O, A, C, Asia 1, SAT1, SAT2, and SAT3, which are further divided into more than 60 subtypes and strains. The global map from the USDA provides more details.
Is FMD a threat to human health or food safety?
No. FMD is not transmissible to humans (it is not a zoonosis) or a food safety threat. Also, the disease is not related to hand, foot, and mouth disease, a common childhood illness caused by a different virus.
What are the clinical signs?
The first clinical signs of FMD typically appear within 2 to 14 days after infection:
- Fever
- Blisters and/or vesicles (tongue and lips, in and around the mouth, on the mammary glands, and around the hooves)
- Erosions. When blisters pop, they leave raw, eroded areas surrounded by ragged fragments of loose tissue.
- Excess salivation (sticky, foamy, and stringy saliva)
- Loss of appetite due to painful tongue and mouth blisters may lead animals to eat less.
- Lameness and a reluctance to move or stand
- Abortions
- Drop in milk yield
- Heart disease and death, especially prevalent in newborn animals
FMD can easily be confused with other diseases that produce blisters, such as vesicular stomatitis, bluetongue, bovine viral diarrhea, foot rot in cattle, and swine vesicular disease.
What should I do if I observe blisters on the mouth or feet of my animals?
Please report them immediately to your herd veterinarian for further examination and testing. The only way to tell if the blisters are caused by the FMD virus is through laboratory testing.
How can FMD be prevented from entering the United States?
If you are travelling outside of the United States, you can help prevent FMD by taking these steps:
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- Report signs of FMD.
- When outside of the United States, don’t bring back any prohibited items, dirty footwear, or clothing that could potentially move the FMD virus.
- Declare to U.S. Customs and Border Protection any visits to farms, ranches, zoos, fairs or any other facilities where animals were exhibited.
- Follow a “5-day” rule: Avoid contact with livestock, zoo animals, or wildlife for 5 days after returning to the United States if you visited a farm or had livestock contact.
- If you're returning with pet dogs or cats: Before returning to the United States, ensure your pet’s feet, fur, and bedding are clean of dirt, mud, straw, or hay, bathe your pet upon arrival, and keep it away from livestock for at least 5 days.
An ounce of prevention is worth a pound of cure! Livestock producers should remain vigilant and work closely with their herd veterinarian to protect both animal health and the agricultural market from the potentially devastating impacts of this disease.
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Rumen Acidosis in Dairy Cattle – A Cause for Concern?
Dr. Kirby Krogstad, Assistant Professor, Department of Animal Sciences, The Ohio State University
Background
Ruminal acidosis (RA) is a general term used to describe a condition where dairy cow rumen pH is depressed below optimal levels. RA can be acute (observable symptoms such as off feed, lethargic) or subacute. In dairy cattle, we are usually concerned about subacute RA (SARA), or RA that occurs in the absence of clinical symptoms. It’s important to remember that SARA can impact both confined and pasture fed cattle. Remember, lush pasture has high concentrations of digestible carbohydrates that can reduce ruminal pH.
Definitions of SARA are most often based on the amount of time that the rumen pH for a cow is below a threshold, usually 5.6 or 5.8. When the rumen pH declines to less than these cutoffs, fiber digesting microbes and fiber digestibility can be depressed. Reducing rumen pH can reduce ruminal fiber digestion by up to 30%. By these definitions, SARA is highly prevalent in dairy cattle – up to 33% of dairy cattle experience SARA during their lactation. Up to 40% of pasture cattle also experience pH below 5.8.
The tricky part about managing SARA in lactating dairy cattle is that many factors interact to reduce rumen pH and cause SARA. Some of those factors are listed in Table 1.
Table 1. A list of potential factors to consider when managing ruminal acidosis on your farm.
Starch concentration
Starch source
Starch processing
Forage fiber
Physically effective fiber (peNDF) and forage particle size
Supplemental buffers or alkalinizers
Level of feed intake
Pasture maturity and species
Cow comfort and lying space
Since managing SARA is a multi-factorial challenge, it is difficult, if not impossible, to provide concrete recommendations for reducing the prevalence of SARA when feeding dairy cattle. In spite of that, there are concepts and guidelines that are helpful and can serve as a compass when managing dairy cattle nutrition and feeding programs.
Managing SARA
The primary concept of managing SARA is applying management strategies that increase rumen pH or ruminal buffering capacity. In this article “buffering” refers to the ability of the cow to neutralize fermentation acids that are produced during ruminal feed digestion. The cow’s ability to enhance buffering can be done through increasing forage fiber, physically effective fiber, providing buffers, increasing lying time, and reducing fermentation load by considering different starch sources or differently processed grains.
Forage and Physically Effective Fiber
The primary method that cow’s use to buffer their rumen is absorbing the acids that are produced during feed digestion. Rumination and cud chewing is another substantial way that cows buffer their rumen because their saliva contains compounds that neutralize acids. Feeding increased forage fiber or increased physically effective fiber increases rumination and chewing time which drives saliva production and thus increases rumen pH by increasing rumen buffering capacity. Generally, increasing forage fiber or physically effective fiber in the diet will increase rumen pH, but it does come with risks. Increasing forage or physically effective fiber can reduce feed intake and milk yield because the bulkiness of forage physically limits how much feed cows can consume. It also contains less digestible energy than other feeds, like grains, which risks reducing milk production. An “optimum” forage or physically effective fiber concentration is the ultimate goal.
Forage NDF concentrations below 17% risks reduced rumen pH and feed efficiency while forage NDF above 23% risks reducing feed intake and milk production. Also, updated physically effective NDF recommendations suggest that >50% of particles in a ration should be retained on the 8 mm sieve of the Penn State Shaker Box.
Buffers
Another strategy for managing SARA is through the supplementation of buffers like sodium bicarbonate, sodium sesquicarbonate, limestone, or calcareous algae products. These products neutralize acids in the rumen and aid in maintaining a stable rumen pH. Some of these buffers also have the benefit of increasing the dietary cation-anion difference which has been shown to increase milk fat production. Some buffers also provide readily absorbable minerals. If you consider feeding a buffer, look into all it offers in addition to buffering (DCAD, minerals, etc.) and determine which may be most economical for you. Buffers should be included at 0.25 to 0.50 lb/head/day in most cases if you’re concerned about SARA in your dairy cows.
Cow Comfort
Dairy cows ruminate more and produce more saliva while lying down. Thus, cow comfort is a critical part of SARA management as cows with more opportunities and time to lay down and ruminate should be able to buffer their rumen to a greater degree than cows in overcrowded pens. Ensure that you’re maintaining a comfortable, dry, and clean lying surface to enable a healthy rumen in your dairy herd.
Bunk Management
Feed availability, uniformly mixed feed, and consistent feed delivery is also part of SARA management. Cows with less access to the feed bunk may be more prone to large meals and “slug feeding” which reduces ruminal pH. This problem is compounded if a ration is poorly mixed or easily sorted. When these issues occur, a cow may eat more grain than the diet allots. Solid all-round nutrition management is necessary to reduce SARA and maintain rumen health.
Take Homes
SARA is a multifactorial challenge which is best managed by implementing a variety of mitigation strategies. These include feeding increased forage fiber, use of buffers, cow comfort, and sound feed bunk management. None of these approaches will eliminate SARA incidence, but used together, they can minimize the risk of SARA occurring in your dairy cows while also maximizing your herd’s rumen and animal health.