[AT] Dairy farming. Dying industry?

[carl gogol]

Dairy economics is an interesting subject.  As Ray said, 40 years ago a 
diligent farmer milking 30 or 40 cows could afford to put children through 
college.  Can't do that today, even if the farm is paid for!

Last year I attended a couple of local seminars on intensive grass 
management, some of it talked to the dairy industry.  One fellow from 
Indiana told how in the mid 1990's he was milking ( I don't remember just 
how many) and doing everything right by the state ag college's standards. 
He was $400,000 in debt (maybe $700,000)and clearing about $50 per milker. 
He was barely able to make interest payments on the debt.  He realized it 
just wasn't working.  Instead of going out of business he stopped buying 
high cost protein supplements and corn and went to intensive grazing on the 
land.  He bred his herd of Holsteins to a variety of smaller breeds such as 
angus, jersey and gurnsey as they are smaller and do better on grass.  He 
sold his big tractors and corn equipment as he didn't need them any longer. 
He claims that in about 6 years he was out of debt.  He also claims that he 
makes $800 - 1100/ milker per year.  He doesn't have change cows as often as 
he is not pushing them as hard so they produce longer, letting him sell 
excess heifers or younger cows to others for replacements instead of to the 
dog food processors.
Indiana is an area where the cows can pasture nearly year around, so the 
need for winter forage is less than here in snowy central NY.  However, a 
farm about 2 miles from me uses the same system and is quite profitable 
compared to most, so I would say that this is not smoke, but a real 
possibility.
What stops the factory farms from doing this?  Well, most of them are based 
on 40 acres for their 500 cows and have no pasture.  It is also hard to deal 
with more than a few hundred cows so that adequate pasture is available 
within twice a day walking distance from the milking facility.
As always, winning is sometimes only possible by playing a game few play. 
These farmers are changing the rules and have a big advantage until everyone 
plays by their rules.
I am going to be learing the intensive grazing game from this farmer with 14 
of his mixed breed steers this summer on about 15 acres we are in the 
process of fencing.  It will be very satisfying for us to do this with him.
Carl Gogol
Manlius, NY
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