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Hello everyone, welcome to Ruminate This with a Gray Solutions.
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Join us as we explore ruminant nutrition and the impact of mycotoxins.
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Here we challenge your curiosity and explore new industry insights and research to optimize your herd's health and performance.
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Hey, welcome everybody to another episode of Ruminate This with the Grand Solutions.
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I'm your host, Scott Zare, and today I'm again joined by Joe Lawrence from Cornell Pro Dairy.
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Joe, thanks for jumping back on with me.
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Appreciate it.
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Thanks for having me.
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Yeah, so Joe, we had a great conversation a couple of weeks ago here with talking about forage quality, you know, thinking from the field to feed out.
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And there's a lot of ground to cover, no pun intended, there.
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From I try to work in jokes sometimes, but there's a lot of ground to cover there from just remembering to master those fundamentals, right?
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Cut timing, cut height, storage management, as far as you know, keeping it in repair and keeping things clean and just so many things.
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And we're gonna be in the fields in the northeast here not too long, right?
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It's it's it probably within the next month we're gonna see and see grass coming off and and so on.
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In other parts of the country, you know, probably going on right now.
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But we spend a lot of time, a lot of resources, man hours to get up high quality forages.
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And sometimes we hit our goals of of having elite protein that we raised here on the farm, and sometimes we don't, but we're in kind of a down cycle in the milk price right now.
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And like any business owner, it doesn't matter what business you're in, if you know the product you're selling is is not valued as high.
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And so the cost of production is pretty much still the same, or maybe slightly increasing, all this stuff, it creates pressure on the organization, on the individuals to think about decisions that are going to lessen the money going out, right?
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If we have less money coming in, how do we get less money coming out?
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And there's probably places on every dairy that yeah, they could probably trim some fat here and there.
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I've been on the professional side of this where I've I've been able to work out in the field on farms now for 13 years.
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And the one thing that I've noticed that has stood out to me above all else.
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I spent a lot of time on the genetic side of things and uh dairy reproduction, and now on the front end of the cow with the mycotoxins.
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The pattern that I've noticed is that the farms that do the best through a downswing in milk prices are the guys that don't change anything.
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Right?
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It doesn't matter if milk is$25 a hundred or sixteen dollars a hundred.
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We need to still execute at a high level.
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And sure, they may trim uh some stuff here or there, like the fat that we don't need during these times, but they're not going out and slashing with a sledgehammer, right?
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They're going out with a pair of scissors and trimming the fat, not beating the program to death.
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So somebody asked me recently, Joe, and I this may be a long lead up to this, but somebody asked me recently a farm that is short on forage and looking at the milk pricing and uh how how we're gonna make up this uh this number in our budget, this X dollars, right?
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Uh and I mentioned it last time, like I I don't have that magic wand to print cash for them, but uh when I looked at and I I was just looking at their animal health side of things.
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When I looked at that side of the equation, I was seeing in the data we're probably leaving somewhere between I'm gonna say four to eight pounds of milk on the table.
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If they increased eight pounds of milk, even in the low milk prices, they actually would uh more than break even for the year.
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So that really kind of made me think about this forage conversation with you.
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And let's say everything goes great this year, Joe.
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We have the perfect growing season, the perfect harvest season, we've done everything.
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Well, no, we probably can't just you know that that hailage isn't gonna immediately turn into cash, but what's the economic impact to the organization to the dairy of not having to go source protein from the feed mill?
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So that's probably a long tee up for you, but I would like to get your thoughts on that overarching, and then we'll we'll break it down from there.
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Yeah, I think that's a good example, and it there's a couple things places I'd like to go with that.
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I'll start with more like specifically to your question and then zoom back out a little bit.
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So yeah, it can be challenging to put a lot of really capture a lot of good financials around forage quality because there's always kind of a what if component to it of, you know, we're not doing side-by-side trials with two different quality forages on the farm, right?
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Yeah.
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But you know, we have the dairy farm business summary program through Cornell.
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It's an opportunity for farms to benchmark their financials every year against, you know, uh, everyone else that's in the program.
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And what we see consistently, and some work that some of my colleagues at ProDairy have done in analyzing the data, is that you know, if we see this trend where farms that are able to feed higher forage diets trend towards an improved income over feed cost.
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And so, you know, there's there's a lot of other variables that go into that, right?
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But we have enough years of data and also from our dairy profit monitor program, which is a monthly program where farms input their data.
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We see that where we we can't exactly nail down everything, but we know that there's a solid trend, at least here in the Northeast and in similar growing environments, that higher forage diets are correlated with that improved income over feed cost, right?
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And I always like to go back to a case study that Dr.
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Larry Chase at Cornell did several years ago.
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And this is just again one farm, kind of a little case study.
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We'll take it for what it is, but it is really fascinating to me because they they track this farm.
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And when this was done, we weren't even necessarily talking about some of the fiber digestibility metrics, the UNDF 240, the NDF D30 hour, as much as you know, really just looking at forage NDF levels, right?
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And so Larry shares this data where this farm going into the fall was feeding out some halage and pretty high NDF levels in that halage, and they were uh hovering around 50% forage in their diet.
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As the fall went on and they shifted into some different cuttings of halage, that you saw that NDF level drop.
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And correspondingly, you saw percent forage in the diet increasing.
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And so, from in the data you know, that's shared, from October to January, percent forage in the diet went from 50% up to almost 65% forage in the diet.
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And through that same time period, income over feed cost went from when there was 50% diet forage in the diet, income over feed cost was$4.27.
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By the time we got up to about 65% forage in the diet, income over feed cost was five dollars and fifty-eight cents.
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If you just put that on 100 cows just for easy math, it's about$130 per day per 100 cows, right?
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That that you've that you've increased income over feed cost with that increased forage in the diet.
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So you know, when we can manage that, when back to our you know, previous discussion, when we can manage those things and put up that high quality feed, that's what's facilitating these higher forage diets, right?
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And through that, it's a it's a real opportunity to change some of those, not completely eliminate our financial pressures, right?
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But but change some of the dynamics there.
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How do we lessen the pressure?
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And those that's I think that's the the goal here, right?
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I don't think we're gonna, you know, I don't want anybody to be thinking that I'm some crazy tinfoil hat guy, right?
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We're not gonna just magically become profitable overnight in in these downturns, but financial I'm gonna go a little off off topic here.
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The the financial pressure in dairy farming, it crop farming, dairy farming, cattle, agriculture in general leads to a lot of uh decision struggle.
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Um, there's a reason that agriculture has one of the highest suicide rates in the country, and a lot of it is the financial pressure.
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So that's maybe the extreme on one side, but somewhere in there, like uh inherently we're probably going to consider uh making decisions that are gonna compromise long-term success of our operation.
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And then I guess from your chair, what are some of the things that are just completely non-negotiable on the forage side?
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Like don't even look here, don't even consider it here.
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I struggle with what not to include.
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Well, yeah, yeah.
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But I guess a couple things I would just say is, you know, again, our goal, as we talked about last episode, is how many tons of this feed do we have that actually reaches the cow's mouth, right?
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And that's the right quality for her nutritional needs, whatever part of her lactation she's in, or a dry cow or whatever, right?
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So, and to do that, yeah, we we really can't compromise.
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One thing I would say absolutely not to do, and this isn't even financial, but we had kind of a a droughty, challenging summer here in the northeast in New York last year.
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So this is even about inventory and connected to finances, obviously.
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But you know, one thing I've been spending a lot of time talking about with some farms and different groups the last month or so here is let's not compromise quality for tonnage this spring because we think we want it, we have to rebuild inventory.
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It's not a good trade-off.
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It's just not a good trade-off.
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And you may think, well, I can wait a little longer, put up extra tons, rebuild inventory because I'm kind of short, and you know, I don't have the money to buy this extra forage.
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And you know, what I would say to that is you really don't have the you can't afford not to put up that high quality feed that allows you to achieve that higher percent forage in your ration, right?
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Because inevitably the more the yield goes up, the less pounds of that we can fit into the cow's room and without her filling to her physical fill limits, right?
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And and just not being able to eat it.
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So now we we inevitably, you know, it's kind of the cruel irony of it is we end up with excessive inventory of stuff we just can't put as many pounds into the ration.
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And we're we're back to the, you know, we're back to relying more on purchase feed ingredients to meet her nutritional needs.
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So I guess that would be my biggest point is both from financial and uh considering the year we had like in New York is let's not compromise that quality to try to build inventories.
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And I think that that might be the one non-negotiable if you if you're you know, if you want to like just that's the mic drop one right there, because the idea of going out and sourcing uh hailage to say halage to some people is really kind of a nightmare, right?
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You're writing a check for it, that's not a normal check you have to write, so it seems like it's a you know double whammy, if you would.
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But the reality of what you just described is okay, we're gonna opt for a little more yield this year, and I'm okay giving up a percent or two of protein, and then what happens, right?
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We what you just described, but then you're still gonna go purchase off-arm uh feed stuff, but it's gonna show up in a semi with a feed mouse logo on it rather than uh buying a high quality hailage somewhere else or buying you know whatever the forage might be, and that's a check that we write every month no matter what, so maybe we don't think about it quite that way, and a lot of guys do, right?
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I think you're right.
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If there was one area people, especially coming out of a drought year, were gonna try to cut corners on, if you would, that would probably be one of the places they would look.
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So, Joe, you know, there's so many things on farms that we uh we can't control, right?
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No price, weather, so on.
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And then there's the things we can control.
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We can control our decision making, we can control our management practices, and we have to always be mindful to do a great job of mastering those things we can control.
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But then in in real life, right, what does that look like in the forage program for putting up high quality forage to to help ease budget pressure and that stuff?
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You know, where would you tell people to to really focus on number one, or maybe the the second part of this question should be specifically right on the things they can't control, but more broadly, like how do we manage those uncontrollable things?
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Yeah.
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Yeah, I think that's a great question.
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And I think back to the kind of that classical overlapping circles.
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And and I've actually, you know, been in farm offices where we put this up on the whiteboard or something, and I'd encourage farms to do that with their own cropping crew and or management team, right?
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Like put those two overlapping circles up on the whiteboard, and one is things that are important to forage quality, and the other circle is things we can control, right?
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And so where those two overlap are where we should focus the most resources in on, right?
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And there's there's stuff that's very important, but if we can't control it, and if we can reference back to our previous conversation in the last episode, thinking about the the ranking order that I referenced from Dr.
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Marvin Hall at Penn State of what has the biggest impact on forage quality in the field, and you know, starting with maturity, right?
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So so having that little kind of planning session with those two overlapping circles, I think, is helpful.
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And what we see in our data, and it's a little different from corn silage to halage, so halage will go back to maturity tops that list, right?
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Corn silage, and especially as we look deep dive a little deeper into fiber digestibility, and that's really become the standard nutritionists are using to really figure out how valuable this forage is, right?
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And we know from years of our trials that and other folks' trials too, that when we have a wetter growing season, if we're on the rainier side for the growing season, we're gonna tend to have lower fiber digestibility in that corn plant.
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And you know, in a lot of the country where we're in rain-fed agriculture, we can't control that rain, right?
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But what we can start to think about is, you know, as early as the month of August, we can start kind of looking at how rainy has the season been, what are the implications of this?
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Are we feeding some really good quality corn silage right now?
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And all of a sudden we're looking at the current season we're in and saying, hey, this is gonna, the writing's on the wall that this probably isn't gonna feed as well as last year's crop.
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So we get to December and we have to switch over to the new crop and it's a bit of a letdown, right?
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And we're going into something more challenging.
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But if we if we start thinking about that using the information we have in the month of August, and we start running some scenarios with our nutritionist of all right, if fiber digestibility goes down by this much, what's our new ration gonna look like?
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And what feed ingredients are we gonna might we want to source more of to that we know we're gonna need in that new diet?
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And it's not gonna be a perfect scenario, right?
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But we can get an idea.
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And maybe August, September might be a lot better time to source some of those ingredients we think we might be feeding in a higher quantity than waiting till December or January when we start feeding that new corn silage to make those decisions and start looking for those other ingredients we need, right?
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And or maybe it affects our decision making for an extra cutting of our hailage later in the year that we're really going after some quality to offset what you know a challenge we might have with the corn silage.
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So I think in the in the bigger picture, right, that's a that's a way we can use the information we have to start making some decisions that can directly impact the finances of our feeding program, while again recognizing that if we we put our resources where we can have an impact and it's important to our feeding program, and we try to avoid those areas where we could buy this product, we could get this gadget.
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And sometimes, you know, human psychology is that makes us feel better because we did something, but it doesn't actually mean it it had a meaningful impact on our goals.
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So it's funny you you kind of teed up my next question where my mind was without even knowing it.
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But you know, sometimes when we get into these these price challenging times, right?
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We're looking to cut forage corners, right?
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But cutting corners in general and and right if it feels smart because it makes us feel good.
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We're doing something to try to alleviate the pressure.
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But can you think of some examples to where it's it's just gonna remove our optionalities later?
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Yeah, well, I think of you know, this is kind of a detailed example, but I think it's a helpful one.
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We'll use alfalfa as an example.
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And you know, when we look at like the quality of alfalfa, and obviously protein is still important in our diets, right?
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But as we've shifted our thinking more to really how much of this can we feed, how many total digestible nutrients are in this forage?
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Alfalfa is a good example of where we see, like in this first cutting, where we'll get down, and Dr.
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Jerry Cherney at Cornell's had some interesting work where he's collected some of this data too.
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Is we'll get down, you know, you that alfalfa crude protein level is going down a little bit as the plant matures, then it might get to like 18% and it just kind of plateaus off.
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But if you're actually tracking fiber digestibility, like the 30-hour NDF value at the same time points, we see where that NDFD 30 keeps going down at a pretty linear rate, even when the when the crude protein plateaus off around 18%.
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You know, that's been a change in the last 30 years or so, right?
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Of what metrics we're looking at.
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If we're looking at that 18% crude protein alfalfa, and we're thinking, well, it's not 21, 22% anymore, but it's still 18.
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That's better than that 14% grass that's out there, right?
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But it there's a big difference in some of the work we've done and Dr.
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Therney's collected here in New York, like there's a big difference between 18% crude protein on in May 20th and 18% crude protein on May 30th, right?
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Because fiber digestibility has continued to go down in that 10-day period.
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And now that we have, you know, now that we can better recognize that information, to me, that's an area where we thought we were doing all right.
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Like, you know, we have it in the back of our mind, kind of this thinking, like alfalfa is a little more forgiving, I can leave it out there a few more days, and it's you know, it's still going to be decent protein, it's still gonna be decent feed, but we have the knowledge now to say, well, no, wait a minute, that's not quite right.
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And even though the protein level is still there, the fiber, the total nutrient digestibility of this food.
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Storage is going to continue to go down and we're not going to be able to utilize it as well in our rations, right?
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It's just it's going to be an ingredient in our rations that's got some constraints around how we use it.
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And it's going to force us to make other decisions about how we balance that ration because we've put these constraints around how we can utilize that one ingredient.
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Yeah, I mean that's it's a great example of where quality forage is buying you decision space, right?
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And it's funny because it's it's not just decision space, but it's also space inside the cow.
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Right.
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You know, what what we can put into her and what we can get out of that that plant.
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Man, that's that's that's big.
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I like the way you frame that up because it again, and I I think so many times these conversations, right?
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We know this.
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Like we know that 18% crude protein alfalfa on May 20 is is not the same as 18% on May 30.
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But yeah, I'm gonna come back to it.
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So often when we as humans start to feel pressure, sometimes those are the little things that we we put on the back burner and say, okay, yeah, but we're under the gun here and we need to do something else, do it different way.
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But I'm gonna come back to Joe, the comment I made at the beginning of the episode, which is the farms that I've seen in the last 13 years that survive these milk price swings the best.
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They don't make those decisions, they they stick to what they know has worked, even in you know, during the high high swings.
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Well, and I would even take that a step further, you know, kind of similar observation, just working with having the good fortune to work with a lot of different farms over the years and learn from them is there's also that there's folks that I've seen position themselves in the downturn to take advantage of the next up cycle, right?
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Yes, and so it's not just about not so there's the immediate sacrifice of cutting something out if you're in a downturn, but then there's there's the lagging effect of that, that sometimes we make changes that have you know can affect an entire lactation or affect the crop we're gonna feed for the next 12 to 15 months, and all of a sudden milk prices turn around, and we're not in a good position that our cows are at peak production to make the most of the turnaround in the milk prices, right?
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So it's a kind of a double whammy.
00:24:36.480 --> 00:24:46.160
It is, and the example I'm gonna give, and I I think I've I may have used this before, maybe not on this platform, but oh nine.
00:24:46.960 --> 00:24:53.839
We all remember that's all we have to say is oh nine in the dairy world, and we just all nod our head and smile and thank god we're still here.
00:24:54.160 --> 00:24:57.119
So this one's pretty close to home.
00:24:57.279 --> 00:24:58.960
I'll just word it like that.
00:24:59.279 --> 00:25:00.559
Yeah, things were tight.
00:25:00.640 --> 00:25:10.480
I was on the dairy at that time, you know, wasn't an owner by any means, didn't have any real decision making as far as you know making some of the bigger strategic decisions.
00:25:11.119 --> 00:25:14.480
But at the time, I mean 09 was tough.
00:25:14.880 --> 00:25:25.279
So one of the things that uh got done was we started sourcing genetics from some local farms that had some you know great cows, right?
00:25:25.519 --> 00:25:32.880
And they were collecting their own bulls, and man, three dollar straws of semen sounded awesome.
00:25:34.799 --> 00:25:37.839
Well, you know, we lived past 09.
00:25:39.920 --> 00:25:50.559
And in 2013, when I started at Select Sawyers, I did a genetic audit on those cows, the same ones that I I grew up working with every day.
00:25:51.359 --> 00:25:56.400
And you know, we were making a ton of milk back then, it was never a high-producing herd.
00:25:56.559 --> 00:26:18.960
62, 65 pounds was about where we had kind of maxed out for the most part, and I could go on and list the reasons why, but when we got into like 2012, where those genetics were coming in now, and they they mature cows and they should have been just cranking on either side of the curve.
00:26:19.200 --> 00:26:27.519
We had our genetic program that we were running prior to 09 that we kind of went back to once milk prices came back, right?
00:26:28.480 --> 00:26:39.519
And you could see it in the genetic audit when you sorted them by milk production, sorted them by reproduction, sorted them by health events, didn't matter.
00:26:40.960 --> 00:26:51.440
That genetic decision we made in 09 followed for at least six years before those cows finally weeded themselves out.
00:26:51.680 --> 00:26:57.119
And you don't make that up overnight, right?
00:26:57.599 --> 00:26:58.319
You can't.
00:26:58.559 --> 00:27:03.119
I mean, you can you can do it extreme, but it felt good at the time.
00:27:04.000 --> 00:27:11.440
But man, what a disaster it turned out to be, you know, from from my perspective of there's places to cut and there's places not to cut.
00:27:11.759 --> 00:27:27.599
That's just you know and and I you know, I'm getting dangerously out of my area talking about animals here, but you know, we we see more and more data too about the not only lifelong effects, but generational effects of stress, right?
00:27:27.680 --> 00:27:37.039
Like heat stress events, even during pregnancy, you know, pulling back mid-lactation, really pulling back the nutrition to cut cost.
00:27:37.119 --> 00:27:42.640
And it's not just it doesn't just affect that animal for the rest of that lactation, right?
00:27:42.799 --> 00:27:55.759
We there's a you know, I again I can't speak to some of the specifics, but I just know from reading enough articles and talking to the the people that do know that these effects are long-term on the animals.
00:27:56.000 --> 00:28:03.519
And we, you know, we have to keep that in mind when we're trying to to feed through a tough economic period, right?
00:28:03.759 --> 00:28:14.640
Yeah, I didn't think epigenetics would come into this conversation, but it's actually, I'm glad you brought that up because you know, you take my genetic example from my own experience, but then you come back to okay, right?
00:28:14.799 --> 00:28:36.799
We're trying to put up quality forage and we're struggling with the milk prices, and and you can easily see the the chain of events now that we've we've kind of flushed it out where we're sacrificing on the front end, or we we think we're not sacrificing on the front end, we think we're compromising on the front end, but really what's happening is you teased it up with the generational effect, right?
00:28:36.880 --> 00:28:47.279
Whether it's heat stress, whether it's mycotoxins, whatever happens to that cow in utero affects the calf that she's carrying and affects her developing gonads.
00:28:47.519 --> 00:28:59.039
And if if you guys want a reference point, if you're a listener on here, I'll reference people back for your listeners, episodes 10, which is genetics and nutrition, the keys to healthier long-living cows.
00:28:59.279 --> 00:28:59.920
That was with Dr.
00:29:00.000 --> 00:29:01.119
Kevin Zemba.
00:29:01.279 --> 00:29:08.559
And then even more specifically into the epigenetic realm, as we just talked about, episode 11 with the man, the myth, the legend himself, Dr.
00:29:08.640 --> 00:29:14.079
Jack Britt, talking the dairy cow fertility and the significant role of epigenetics.
00:29:14.319 --> 00:29:17.599
And you know, these these decisions, Joe, that we're we're making today.
00:29:17.759 --> 00:29:19.200
I'm so glad you brought that up.
00:29:19.359 --> 00:29:21.759
The generational impact here is a big deal.
00:29:21.920 --> 00:29:27.839
And you know, what what can feel good for us today to get through a downturn in our cash flow?
00:29:28.079 --> 00:29:32.079
I just would really encourage guys to think about the downstream effect.
00:29:32.240 --> 00:29:38.400
And you know, Joe, there's a man, we're getting a little philosophical here, but I think this is a good point.
00:29:38.559 --> 00:29:42.480
There's a book called Mastering the Complex Sale by Jeff Tool.
00:29:42.880 --> 00:29:46.079
And a lot of people maybe in the sales world have read it.
00:29:46.240 --> 00:29:55.200
But what it does is it talks about the different stakeholders in the business and how you know the same thing matters to stakeholders differently.
00:29:55.359 --> 00:30:02.799
So, what matters to to maybe our herd manager uh forage quality, let's take forage quality, for example.
00:30:02.960 --> 00:30:15.359
To the owner or CEO of a farm, forage quality means something different to them than it does to our herd manager, than it does to maybe the people that we have that are are milking the cows, right?
00:30:15.599 --> 00:30:18.960
Whether they know it or not, it does matter to all three of them.
00:30:19.279 --> 00:30:32.960
But I think a good filter, think about is we're making decisions around forage quality and how we're going to survive, or even potentially, as you mentioned, Joe, set yourself up for capturing the the upcycle even harder.
00:30:33.119 --> 00:30:39.839
The decision we're trying to make today how does it affect the company at all three levels?
00:30:40.799 --> 00:30:41.279
Right.
00:30:41.599 --> 00:30:47.200
And are we making a decision today that makes sense for the operational stuff today?
00:30:47.759 --> 00:30:52.799
But we're we're not spending any time on what's the strategic impact of that three to five years later.
00:30:53.440 --> 00:30:57.200
What's the tactical implications of that one to two years down the road?
00:30:57.599 --> 00:30:59.839
And so many times when there's a fire, right?
00:30:59.920 --> 00:31:09.839
The the fires today, we always focus on where the fire is instead of just take that extra bit of time to to flush that out and and think about the tactical and the strategic.
00:31:10.559 --> 00:31:12.640
Yeah, I'm I'm glad you brought that up.
00:31:13.519 --> 00:31:19.279
So I I guess to to kind of get back on track here, Joe, just just kind of bringing this conversation up.
00:31:19.519 --> 00:31:22.400
I'm gonna throw a list of a few questions at you.
00:31:22.640 --> 00:31:28.720
What's the most expensive cheap decision, if you would, that you've seen on farms?
00:31:28.880 --> 00:31:33.119
The most expensive cheap decision that you've seen.
00:31:40.720 --> 00:31:42.559
Which I've already elaborated on.
00:31:42.799 --> 00:31:44.240
Yeah, we've already used that one.
00:31:44.400 --> 00:31:45.759
Yeah, we've already used that one.
00:31:45.839 --> 00:32:02.880
So I don't know if this is the you know, that has the the biggest impact in terms of money saved, but I think you know, given the prevalence of driveover piles, bunk silos, you know, or horizontal silos on farms is just cutting corners on the storage side.
00:32:02.960 --> 00:32:10.319
And that, you know, there are that does come back to do we have the enough drivers for the pack tractors that day?
00:32:10.640 --> 00:32:22.640
Do we rent an additional pack tractor and and find a driver for uh, you know, those are in the heat of harvest and when finances are tight, those are those extra checks that have to be written, right?
00:32:22.799 --> 00:32:40.240
But just not cutting corners there because again, going back to the theme of you know, both of our visits here is if you it doesn't matter how good a job you did growing that crop or what the forage sample results say coming out of the field, if we don't preserve that.
00:32:40.319 --> 00:32:45.759
And shrink losses are just such a massive expense on farms, right?
00:32:45.920 --> 00:32:50.079
We've done some simple, we've done some simple math, you know.
00:32:50.160 --> 00:33:01.039
I mean, if you like if we call around 10% shrink a pretty good management because ferment, you know, because we have some biological losses with fermentation and stuff, right?
00:33:01.200 --> 00:33:19.119
But yeah it, you know, we've done some just some math on a hundred cows, just you can extrapolate that number from a hundred cows, but going from 10% shrink up to 20, 25 shrink, which unfortunately we still do see on farms.
00:33:19.279 --> 00:33:31.200
That's essentially uh in our little example, you know, 10 to 12 extra acres of corn that you have to grow for every hundred cows that you're trying to feed.
00:33:31.359 --> 00:33:52.160
And that's 10 to 12 acres that you have to own or rent the land, prepare the land, fertilize the land, purchase the seed for, plant, control the pest, run the chopper over, haul all those loads of feed back to the bunk, and they never never reach the cow.
00:33:52.559 --> 00:33:53.039
Right?
00:33:53.359 --> 00:34:01.839
Yeah, and it's 10 to 12 more acres of on the backside of pitching, shoveling, loading, composting.
00:34:02.079 --> 00:34:02.559
Yeah.
00:34:02.880 --> 00:34:15.199
So that's to me, it's I guess 10 to 12 acres, depending, you know, on your perspective, may seem like kind of the flex you have in your acreage, anyways, but it's you know, there's just such a cost there.
00:34:15.440 --> 00:34:22.719
That could be crop that's building your inventory, or even in a good year could be saleable crop, right?
00:34:23.199 --> 00:34:38.320
You know, I just saw recently like some estimates on the cost of growing a corn crop this year, putting it at close to a thousand dollars or even over a little over a thousand dollars an acre to grow a crop of corn.
00:34:38.400 --> 00:34:41.119
And that's before you even harvest it, right?
00:34:41.360 --> 00:34:48.639
So yeah, there's real money there and and real implications to how many acres you have to run over.
00:34:48.719 --> 00:35:07.440
And so I guess that's a long-winded answer to to your question is if we're if we're compromising on packing, on, you know, I I like to say like when I when I was first out of school, there was still a lot of discussion around like inoculants and like oxygen barrier plastics.
00:35:07.679 --> 00:35:11.920
And to me, today, those aren't discussion points or extras anymore.
00:35:12.079 --> 00:35:15.119
They should just be part of your best management practices.
00:35:15.360 --> 00:35:22.400
They're not gonna fix other problems, but to me in today's world, there's enough data behind them, there's enough information there.
00:35:22.559 --> 00:35:25.360
They should just be part of your best management practices.
00:35:25.519 --> 00:35:47.440
And so, yeah, making sure you got enough pack tractors and starting right from the get-go with doing a good job with storing that feed and not being tempted to save a few bucks on uh one less pack tractor or not getting the oxygen barrier plastic this year or something would would be where I would go with that.
00:35:48.159 --> 00:35:58.719
I think those are excellent examples and the shrink number, you know, people we we don't necessarily see it, right?
00:35:58.880 --> 00:36:03.840
We do, but we don't shoot at you, right?
00:36:04.480 --> 00:36:17.920
But let's just you know, let's just say we're a farm that's running that 15% shrink, you know, so we're we're it's just not a great job, but we're we're not doing the worst job ever, right?
00:36:18.320 --> 00:36:47.199
I had this discussion with a nutritionist at a conference one day and we were talking about shrink, and I said, you know, if if at the end of harvest you could just show up with payloaders and dump trucks and you divided the pile into you know, say four and a crew came in during the night and took twenty-five percent of the bunk and just left.
00:36:49.199 --> 00:37:04.079
Maybe then we could we could get uh more people to to just remember that the shrink number is it's it's numbers that represents the amount of forage you put up that you're never gonna feed to that cow.
00:37:04.639 --> 00:37:11.360
What's the difference if it leaves in a tractor trailer at the end of harvest or if it leaves quietly over the next 12 months?
00:37:11.599 --> 00:37:20.800
And obviously there is a difference there, but that stark contrast, I think, is something that once I got that through my head, it's like, okay, yeah, this actually is a big deal.
00:37:21.039 --> 00:37:23.119
And and it's the same example.
00:37:23.280 --> 00:37:29.199
I know this is a going back to the cow side again, but same example for that non-completion rate that we talk about in dairy.
00:37:29.440 --> 00:37:42.079
You know, if you're sitting there running 15, 18 non-completion rate, every time every hundred heifer calves that are born, hey, we're just gonna take 15 of them right off the top because you're not gonna milk them anyway.
00:37:42.239 --> 00:37:43.760
So let's just take them now.
00:37:44.159 --> 00:37:49.760
Boy, if you started, you know, if we thought about it in those terms, it gets kind of scary and kind of unsettling.
00:37:50.000 --> 00:37:52.079
That's a really impactful way to look at it.
00:37:52.159 --> 00:38:04.400
Yeah, that would be you know, I I I haven't jumped on the AI bandwagon yet, but you'd think you could like create like a graphic for a video or PowerPoint slide where you did that, right?
00:38:04.559 --> 00:38:08.320
Like, yeah, uh and yeah, it's a big number.
00:38:08.480 --> 00:38:17.679
I you know, I had a farm I was working with once, and they had some pretty challenging practices with their bunk, will will be nice and say it like that.
00:38:17.760 --> 00:38:38.800
But it you know, so after at the end of harvest, I unfortunately my camera skills weren't the greatest, but at the end of harvest, I tried to find a reference angle with some stuff in the background, and I took a picture, and then I came back four or five months later and stood in the same spot, tried to get the same angle and took another picture, and it wasn't perfect.
00:38:38.960 --> 00:38:57.599
I didn't have not my camera skills aren't good enough, but you could you could clearly see, you know, the stuff in the background that you could get a a bit of an elevation and just how how much that pile had settled, and it you know, it wasn't a super tall pile, so it wasn't just gravity like pushing the feed down, right?
00:38:57.679 --> 00:39:01.599
It was nutrients leaving and just burning off into the air.
00:39:01.679 --> 00:39:06.800
And I wish I could get a better reference of that sort of thing because it really is impactful.
00:39:07.039 --> 00:39:14.719
And and another part of that that comes up is you know, and uh someone I respect quite a bit in the industry brings this up.
00:39:14.960 --> 00:39:25.840
I won't won't take credit for it, but they you know, they talk about like when you have leachate from your bunk, you're not losing that's not pounds of just corn silage you're losing.
00:39:26.000 --> 00:39:28.880
That's more like pounds of corn meal you're losing, right?
00:39:28.960 --> 00:39:30.239
Because what's in that leachate?
00:39:30.480 --> 00:39:36.880
It's that it's stuff that's soluble in water, it's our you know, it's some of that starch, it's that sort of stuff.
00:39:37.039 --> 00:39:55.519
So that cloudy leachate that's leaving your bunk isn't you can't say that's like X number of pounds of corn silage, you can say that's X number of pounds of these nutrients that are actually valued at a lot higher value per ton than a ton of corn silage is valued at, right?
00:39:55.840 --> 00:40:00.079
Yeah, so yeah, and you know, I was thinking about that.
00:40:00.159 --> 00:40:00.400
Dr.
00:40:00.480 --> 00:40:11.119
Roth here at Agreing Solutions, he he likes to remind people that you know the forage pile you put up that is a stack of hundred dollar bills, right?
00:40:11.519 --> 00:40:17.280
You know, there's an old saying that money's no good, or money's like a manure pile, it's no good unless you spread it.
00:40:17.760 --> 00:40:23.440
Well, in the in terms of forage quality, it's uh you know it's no good unless you keep it tight and keep it under control.
00:40:23.599 --> 00:40:32.559
And and actually going back to that example that I gave of the trucks coming during the middle of the night taking 25 of your bunk because of shrink.
00:40:32.719 --> 00:40:39.679
Well, if it's a money pile, Joe, how often would you like somebody to maybe come in once a year and take 25% of your bank account?
00:40:39.920 --> 00:40:43.599
Yeah, it's just so you know.
00:40:43.840 --> 00:40:50.239
Last question I have for you is what do resilient operations tend to protect first?
00:40:50.639 --> 00:40:54.960
Yeah, in the forage quality realm or so on.
00:40:55.280 --> 00:41:04.559
I'm gonna stick on the storage side of this and really focused effort to protect what we've harvested out of the field.
00:41:04.800 --> 00:41:22.239
You know, there's actually we can put some economics to this, and I don't have the data right in front of me, but the the farm business management and dairy management folks at Penn State a few years ago did a large statewide survey of a lot of farms that voluntarily worked with them to track all of their data.
00:41:22.559 --> 00:41:48.159
And, you know, think of all the things on the dairy farm that can happen, and their summary report of that project that the leading thing that they found separating the higher profit farms from the lower profit farms was their wording of it was something like ability to put up high quality feeds regardless of weather, regardless of anything else going on around them, right?
00:41:48.239 --> 00:41:58.800
And that that group was actually, you know, they were able to separate financial performance by some of the metrics they collected around the forage program.
00:41:59.280 --> 00:42:03.760
So I, you know, as a forage guy, that was I thought that was pretty cool, right?
00:42:04.159 --> 00:42:10.079
That gives some one some credibility or some emphasis to why that's that's so important.
00:42:10.239 --> 00:42:22.159
But yeah, we just you know, again, regardless of what the weather delivers to us for a crop, what happens in the field, I think resiliency comes from doing the best job.
00:42:22.320 --> 00:42:26.159
We kind of not compromising on on storing that feed.
00:42:26.719 --> 00:42:39.920
So well, coming from the forage guy through that lens, you know, I I I would agree on the cow side from what I see is we don't change the genetic program or we don't change the the cow care, the cow comfort side of things.
00:42:40.000 --> 00:42:43.599
We still go about it the you know the right way every day, if you would.
00:42:43.840 --> 00:42:53.679
And I know it's easy for guys like you and I to sit here and say these things and encourage guys to not succumb to the pressure and and try to avoid the bad decision-making traps.
00:42:53.760 --> 00:43:14.800
But the one thing that I would say is from the one advantage that guys like you and I do have is you know, for the last number of years, we've been able to travel the countryside and see uh every different size operation, every different management style, and it's the pattern recognition, right?
00:43:14.960 --> 00:43:22.639
It's this is it whether you're a producer in Florida, California, the Midwest, New York, Maine.
00:43:23.519 --> 00:43:32.400
There's certain truths that are consistent across all sizes, shapes, and management practices of dairy.
00:43:32.559 --> 00:43:35.440
And I I think the the one you just mentioned is one of them.
00:43:35.599 --> 00:43:36.960
And then the cow side, right?
00:43:37.039 --> 00:43:45.119
That's those are the things that we really gotta remember not to try not to end up compromising when we're faced with decision pressure.
00:43:45.280 --> 00:43:48.079
So yeah, I thought that was great insight from you, Joe.
00:43:48.239 --> 00:43:54.639
Well, with that, Joe, I'll I'll ask you if you have any final parting words for our audience before we call it a day.
00:43:55.360 --> 00:44:08.079
I think I might go back to something we started last episode on is just we're coming into a busy part of the year, and you know, at the end of the day, we'll we want to do all this stuff right, and that creates a lot of uh strain.
00:44:08.239 --> 00:44:14.639
But if you know, let's take the steps to to do it safely and take care of our ourselves first, right?
00:44:14.719 --> 00:44:24.639
Like I think it would becoming more acceptable to acknowledge the fact that if we don't take care of ourselves, then we're not gonna be able to do a good job at these other goals we have.
00:44:24.800 --> 00:44:31.519
So I've been preaching that to myself and and to anybody that'll listen for the last number of years.
00:44:31.599 --> 00:44:34.559
Because yeah, if you don't take care of yourself, how are you gonna take care of others?
00:44:34.800 --> 00:44:39.920
And I I used to think that was selfish, but I actually think that's extremely selfless.
00:44:40.079 --> 00:44:41.679
Uh, once you understand it.
00:44:41.760 --> 00:44:42.719
So I would agree.
00:44:42.800 --> 00:44:43.360
Um, yeah.
00:44:43.440 --> 00:44:47.440
Well, great talking to you, Joe, from all the way on the other side of the county line.
00:44:47.519 --> 00:44:49.840
And hopefully we have another visit soon.
00:44:49.920 --> 00:45:00.400
And uh, with that, folks, I appreciate you taking time and make sure if you found value in today's podcast, you hit that share button and send it to somebody that could use the conversation.
00:45:00.639 --> 00:45:03.360
With that, we'll be talking to everybody again in a couple of weeks.
00:45:03.599 --> 00:45:04.400
Thank you.
00:45:05.119 --> 00:45:08.480
Thank you for listening to Ruminate This with Agrarian Solutions.
00:45:08.639 --> 00:45:11.440
Look for our next episode in two weeks.