Recap of Dairy Policy Testimony Presented to: U.S. House of Representatives – Committee on Agriculture
April 20, 2010 – Harrisburg, PA

by Tammy Graves

Committee on Agriculture Members Present – 7:
Collin Peterson (MN), Chairman
Tim Holden (PA), Vice Chairman
Leonard Boswell (IA)
David Scott (GA), Chairman of Subcommittee of Livestock (handles dairy policy)
Kathleen Dahlkemper (PA)
Randy Neugebauer (TX)
Glenn Thompson (PA)

Purpose: A Field Hearing to review dairy policy for development of Farm Bill 2012

#1 Farm Bill 2012 Action needs to be Price Discovery based on testimony.

Remarks by Collin Peterson, Chairman:
• Current federal programs are not providing appropriate safety net, There is a consumer disconnect and economic/business climate made worse by trade agreements.
• Need risk management for dairy – need something for all agriculture. That’s going to be what’s left for gov’t help
• Price discovery: mandatory price reporting needs to be reauthorized by Sept. 2010. Met with Agricultural Marketing Service (AMS) and they are on the right track for packaging reporting info in a working manner for producers to use. It will roll out in June or July 2010.
• Encouraged by what’s going on in the industry…consensus building. Needing a change is universal in the industry.

Panel I

Russell Redding, PA Sec. of Agriculture

• Pricing transparency is needed now – can’t wait to next Farm Bill. Implement near term changes and use experiences for debate of next Farm Bill. Thank you for the reporting and feed adjustment of the last Farm Bill. There is a “confidence crisis.”
• Price Discovery – implement Farm Bill 2008 provision for electronic reporting. It is an action item for right now. Use experience for debate during developing Farm Bill 2012.
• Income protection – LGM Dairy program needs to be crop insurance equivalent: meaningful, affordable and workable – need subsidy, need flexibility in sales closing date
• Credit – credit discussion is a bridge to a better year – “Post TARP” environment is a regulatory piece to look at that is causing ag lenders difficulty (ex. 90-day past due item). Operating loans are condidtional or not available because of new regulations “Post TARP”. The regulations are not discretionary to the lending agency. Farms fall into the “troubled assets category.”
Emphasis should be profitablilty over pricing through ensuring and insuring with risk management, trade and credit policies.

Responses to questions: We need more than CME. We don’t know the value/worth of milk in the marketplace. Include fresh and manufactured products, Consumer Price Index. The basket of tools are on the table with Sec. Vilsack.

Jim Dunn, Penn State Professor of Agricultural Economics
• Recapped export from 2008: high exports, high all-milk prices. U.S. dairy industry has historically been 10% imports and 10% exports
• European Union is a heavily subsidized high exporter.
• Running out of collateral and ability to service loan
• Many parties are on thin ice – has same credit concerns as Sec. Redding
• Trade is important.
• Growth in rest of world is not going to be buying high-value dairy products. They will want storable (MPC) products instead. (personal thought: so we want to produce MPCs in the U.S. so we can make store products until the hungry in Africa have money to buy MPC-containing dairy products or until a Hunger Relief Agency buys it. How is this a profitable export market for dairy farmers?)

Panel II

John Frey, Executive Director, Center for Dairy Excellence
• LGM risk management is good. Having ag economists analyze and compare plans – Dairy Growth Management Plan, Dairy Stabilization Plan, etc.

Farmer: Rod Hissong, Dairy Producer, Mercer Vu Farms, Mercersburg, PA
Speaking on behalf of: Professional Dairy Managers of Pennsylvania (PDMP) – past president
• pricing away from CME needed to be more transparent to reflect what products milk is used for and cost of production
• implement mandatory reporting and import assessment from prior Farm bill
• tear down and start over the milk pricing because we’ve been remodeling for years

Farmer: Lauren Mosemann, Dairy Producer, Misty Mountain Dairy, Warfordsburg, PA
Speaking on behalf of: National Milk Producers Federation and Maryland & Virginia Milk Producers Cooperative Assoc.
• supports Dairy Producer Income Protection Program

Farmer: Kent Heffner, Dairy Producer, Pine Grove, PA
Speaking on behalf of: Farm Bureau, President of the Schuylkill/Carbon County
• encourage domestic MPC, continue MILC
• is the direct marketer of the farm operation – hears that MPC being bad

Farmer: Daniel Brandt, Dairy Producer, Brandt View Farms, Annville, PA
Speaking on behalf of: Dairy Policy Action Coalition (DPAC)
• improve price transparency/discover. Pull away the curtain, make it simple. Take out errors and manipulation
• include more products, more frequent reporting, NAS survey lags (May milk will be determined by March cheese)
• Fund 1510 of Farm Bill – mandatory reporting with auditing (implement, expand to include Italian cheeses, improve inventory reports
• Redirect dairy support money for purchases to put in recourse loan program for processors to reinvest in their facilities and product innovation
• World prices are higher.
• Need 2 classses to remove ability to manipulate (pay farmer for Class IV and sell the milk to Class III)

Processor: Todd Rutter, President, Rutter’s Dairy, York, PA
• dairy farmers need to be planning ahead and risk management
• he pays the mandated price, offers premiums to keep a supply of milk and the raw milk price has to maintain his (processor) competitiveness
• processors need access to credit – processors are not reinvesting

On Tuesday 13th April, Willsbro Holsteins hosted an Open House around their 1000 cow facility, attracting nearly 1200 people from all parts of the UK and Europe. Basking in glorious spring sunshine, visitors were treated to a wonderful tour of their facilities, and also were given the chance to see some of the cows at Willsbro which have enjoyed considerable show success.

Feeding up at Willsbro- Much of the equipment and freestall metalwork was sourced from the U.S.

A 60 point rotary parlour is in operation at Willsbro, on average milking 400 cows an hour.

All cows are fed a TMR diet, the 1000 cow unit currently averages 25,465lbs. milk and 3.82% butterfat.

Over 180 lots were presented in the Willsbro Sale at the fantastic facilities of the Royal Cornwall showground, whilst over 1200 people attended the cheese and wine reception at night!

One of the biggest crowds ever at a European sale witnessed a record breaking trade.

Willsbro Emilyann (Planet X Wabash-Way Emilyann) the #1 GTPI heifer in Europe-smashed the previous European record for a female sold at auction- selling for $144,500 to Spanish buyer, “La Ponderosa”

A fantastic sale crew helped make this one of the most memorable sales in European History, great hospitality, fantastic pre-sale promotion, and a great standard of presentation really paved the way for a most memorable sale.

On behalf of the Cornell University Dairy Science Club (CUDS), we would like to extend our greatest appreciation to all of the buyers and donors of the first ever Styles of Spring Semen & Embryo Online Sale. In its first year, the sale was a great success and brought in a significant amount of money to help benefit our dairy club and its members. Without the quality of donations that we received, as well as the support of buyers, the sale would not have run as smoothly as it did. Building on the success of this year’s sale, we hope to continue the tradition next spring and provide offerings of the same caliber to our buyers. If you have any suggestions for next year’s sale, please feel free to contact any member of CUDS. Thank you again to everyone involved in making our sale such a success; without your support, many of our activities as a club would not be possible.

Sincerely,
Cornell University Dairy Science Club
Note: The Cornell University Dairy Science Club (CUDS) is a student run organization that focuses on community outreach, gaining international perspectives of agriculture, fund-raising activities, and the shared interest and promotion of dairy cattle.

Ann Marie Magnochi of Carnation, Washington, shares a great poem with us from one of her “Holstein kids.” It’s called a palindromic message. You read it one way and it says something, then you read it the other way and it says the opposite message…the second one being the one that’s supposed to mean the most. The way it works is you read the whole thing through, then you read it from bottom to top and reverse it.

So the last few lines read:
My peers and I care about this earth
It will be evident that
My generation is city loving, vegans
It is foolish to presume that
There is hope
And all of this will come true unless we reverse it.

As you read it bottom to top, it’ll go:
There is hope
It is foolish to presume that
My genation is city loving, vegans
It will be evident that
My peers and I care about this earth

____________________________________________

I am not part of a farming generation
And I refuse to believe that
I can feed the world
I realize this may be a shock, but
Food comes from the farm
is a lie, and
Food comes from the grocery store
So in thirty years, I will tell my children
They are not the most important thing in my life
PETA will know that
I have my priorities straight because
Work
Is more important than
Family farming
I tell you this:
Once upon a time
Families worked and farmed together
But this will not be true in my era
This is a quick fix society
Experts tell me thirty years from now, I will be celebrating the tenth anniversary of my neighborhood
I do not concede that
Anyone will live in the country
In the future
Environmental destruction and development will be the norm
No longer can it be said that
My peers and I care about this earth
It will be evident that
My generation is city loving, vegans
It is foolish to presume that
There is hope
And all of this will come true unless we reverse it.

The author is Mr. Buddy Furrer. He’s the 18 year old son of Scott and Vicki Furrer of Monroe, WA, is a senior at Monroe High School and will be attending Washington State University this fall. He is a fourth generation dairyman, growing up on his family’s Registered Guernsey operation (Beetchenow Farm), but also raises Registered Brown Swiss and Holstein heifers. His brother had the Reserve Jr. All-American Guernsey Summer Yearling a couple years ago.

Thanks for sharing Ann Marie!

The 12^th Annual WI Jersey Spring Spectacular took place over the weekend in Viroqua, WI. Judge Mark Reuth placed over 200 Jerseys in one of the premier spring Jersey shows. For full results check out www.allbreedaccess.com – below are some photos of the event captured by Kari Stanek!

The Grand Champions (l-r): Back: Debbie Ashmore; Abby Tauchen, WI Jersey Princess; Nic Sauder with Reserve Grand Champion, Dements Socrates Pearl; Christy Ratliff on the halter of the Grand Champions, Ratliffs D Dean Allie-ET; and Cassy Krull, WI Jersey Queen. Front: Mike Kennedy & Ron Ratliff.

The Champion – Ratliffs D Dean Allie-ET

The Champions of the Junior Show (l-r): Cassy Krull, WI Jersey Queen; Ben Sauder with Fredestel Laser P Nelly Bly, Reserve Grand Champion; Nicholas Kipp, owner of the Grand Champion, SRG Royal Amedeo Claudia; and Abby Tauchen, WI Jersey Princess.

Ron Ratliff with the Intermediate Champion – Ratliff Amedeo Krissy-ET

Molly Florent on the halter of the Reserve Intermediate Champion, Hillacres Morrae Maryland, who is owned by Budjon Farms & Peter Vail.

The Junior Champions (l-r): Cassy Krull, WI Jersey Queen; Becky Hammann on the halter of the Junior Champion, Triple H King Icing-ET; Laura Elliott, with her Reserve Junior Champion, Lookout Iatola Polka Dot; and judge Mark Rueth.

The Junior Champions of the Junior Show: Cassy Krull, WI Jersey Queen; Laura Elliott, with the Junior Champion, Lookout Iatola Polka Dot; Res. Junior Champion, Rapid Bay Shy Suspition; and judge Mark Rueth.

The winner of the Junior Showmanship contest, Colin Wussow.

The winner of the Intermediate Showmanship contest, India Tauchen.

The winner of the Senior Showmanship contest, Marissa Roden.

Karla Peterson and Janet Keller enjoy the show!

Kathy Elliot – always willing to pitch in help!

Judge Reuth gives some helpful advice during the showmanship contest.

And more from last weekend’s California Spring Show, held April 24th in Merced!

Fitting and Showing Champions:
Winner – Vincent Migliazzo, 2nd Rocco Cunningham, 3rd Michael Davis, 4th Emilie Strand, 5th Tony Garcia

California Juniors – We got a good thing going!

It’s all about the friendships! Celeste Lopes & Christian Cunningham chat before Christian heads into the ring!

Junior Champion Females of the Open Show:
Jr. Champion Giltex Jasper Barcelona exhibited by Gil Tex Holsteins, Reserve Junior Champion Crasdale Jasper Lucky exhibited by Ken Melvold

California Holstein Futurity Winner: MS MCR Ladybug-Red-ET exhibited by Joseph Azevedo

~coverage and photos provided by Kirsten Areias!

Kirsten Areias was hard at it this weekend snapping photos during the California Spring Show, held in Merced on April 24. The show was officiated by Maryland’s Chris Hill.

Junior Division – Intermediate Champion:
Nabholz Dundee Sally-ET exhibited by Rocco Cunningham and Reserve Intermediate Champion Bingland Advent Sunrise-ET exhibited by Nisa Gallichio

Grand Champion – Dinomi Offroad Ryley-ET

Dino Migliazzo looks on as his son, Vincent shows Dinomi Offroad Ryley-ET. She would not only win the 4 year old class, she would go on to bring home a win for Team Migliazzo – Grand Champion! She is pictured above winning her class.

Herdsmanship Award: (6 Head & Under) Den-K Holsteins, Inc., Brannon & Jenna Areias

Junior Division Grand Champion – Cortney Borba Memorial Award:
Lazy-A Dundee Susann-ET exhibited by Rocco Cunningham pictured with CA Holstein Princess Mandy Brazil, Frank & Carol Borba & District 6 Dairy Princess Erica Mello

For more information on the California Holstein Association, please visit their website at www.caholstein.com.

The Springtime in the Heartland II Sale was held Saturday, April 24th in West Union, IA and achieved an average of $3,569 on 72 full lots.

It was the first sale managed by Courtney Sales – Scott & Amy Courtney – and it featured groups of cattle consigned from the following herds: Scientific Holsteins, Morningview Holsteins, Hendel Farms, Elegance Futures, Macland Holsteins, Korian Holsteins, Moondale Farm, Golden Oaks Farm, Da-So-Burn Holsteins, Scottmore Holsteins, Rabur Holsteins, Holbric Holsteins and Henkseen Holsteins.

Line up of lovely-uddered cows

Uniform group of calves

Sale manager Scott Courtney welcoming the crowd and thanking the sales staff, fitting crew and consignors.

Pedigree man Larry Kleiner and auctioneer Gary Estes present Amy, Blake and Scott Courtney with a lilac plant to commemorate their first sale.
“There’s a new franchise in the sales business!”

A large crowd gathered for the sale – the heavy rainstorms that moved through the area in the morning certainly didn’t hurt attendance!

High seller on the day at $14,000 was Lot 19 – First Choice of three ultrasound female De-Su Observers due in November and five April implants out of Hendel-Vatland SM Tish 2488 (VG-86), a Shottle daughter with a GTPI of +2135 with sons in AI that hails from the Ralma Juror Faith family. Consigned by Hendel Farms of Caledonia, MN, these will be quite early Observers and the choice was purchased by Select Sires of Plain City, OH.

Second-high seller and top live animal at $8,200 was Lot 26 – Scottmore Million Marlie-ET – an 8/09 MIllion daughter that received her genomic test results after the catalog was printed. The results were good news as Marlie tested out with a +2112 GTPI – ranking her as the #34 Million in the breed. Her dam is Morningview Shttl Mikki-ET (VG-89) +2184 GTPI, an 11th generation VG or EX from the Lead Mae family. Marlie was consigned by Scottmore Holsteins of Westgate, IA and was purchased by Select Sires of Plain City, OH.

L to R in front: Scott Culbertson representing buyer Select Sires; Scott Courtney, sale manager; Blake Courtney holding Scottmore Million Marlie-ET; Kathy, Naomi, Mary & Mike Scott, consignors. In the box are Larry Kleiner and Gary Estes, sales staff.

Lot 22 – Hendel Plt Carmen 2993-ET – a 9/09 Planet daughter with a +2100 GTPI – brought $6,700 from Select Sires, good for third high. Out of Beyercrest Mac Caprice-ET (VG-86 VG-MS), Carmen is a potential 7th generation VG or EX. She was consigned by Hendel Farms of Caledonia, MN.

L to R in front: Scott Courtney, sale manager; Scott Culbertson representing buyer Select Sires; Blake Courtney on the halter of Hendel Plt Carmen 2993-ET; Matt & Hannah Hendel, consignors. In the box are Larry Kleiner and Gary Estes, sales staff.

Other high sellers on the day:

Lot 15 – $6,500 – Golden-Oaks Mighty Pria – a polled *RC 10/09 West Port Arron Doon Mitey P from the Roxys.
Consignor: Golden Oaks Farm, Wauconda, IL
Buyer: Todd Johnson, Guttenberg, IA

Lot 10 – $6,500 -Scientific Dentine Rae-ET – 9/09 Jerland Denison from Scientific Gold Doll Rae-ET (VG-87); next dam EX-92 Debutante Rae
Consignor: Scientific Holsteins, Chippewa Falls, WI
Buyer: Craig Helgeson, Rose Creek, MN

Lot 32 – $6,400 – Rabur Jeeves Passionate-ET – 6/09 Jeeves from Rabur Shottle Paddington (VG-86), 7th generation VG or EX from the Rabur Outside Pandora family.
Consignor: Rabur Holsteins, Viroqua, WI
Buyer: Regancrest Farms, Waukon, IA

Lot 3 – $6,200 – Budjon-JK Sanchez Evra-ET – 8/09 Sanchez out of 2E-96 Budjon-JK Linjet Eileen; next dam 3E-96 Elegance.
Consignor: Elegance Futures, Lomira, WI
Buyer: Howard Binder, Ft. Lupton, CO

Joel Kietzman doles out some advice to Blake Courtney – the next generation!

Corey Wolff, Tom Mercuro & Tom Priest held a sale in Lebanon, PA, on Friday, April 23, 2010. Top seller of the day was Lot 8, a 2-year-old Jetstream scored VG-85 with a GTPI of +2107. With a record in progress of 2-02 170d 10,809M 4.1 and 3.4, the young heifer is out of Morningview Outside April from the Converse Judy family. Air America Dairy of Florida purchased the lot for $12,000. Second high seller at $10,100 was a 6/09 Shottle x Goldwyn Secret from the Glen Drummond Splendor family. Jeff Winton & Jonathan Pinkerton of New Jersey were the successful buyers. A 12/09 Planet from Goldwyn Wishful out of Wish sold for $9,000 to Tim Schmitt of Iowa. The young Planet was cataloged as Lot #1. A final sale average of $3523 was achieved on 111 full lots. Our thanks to Brian Sparling for sale information!

Kirsten Areias reports from the Merced County Holstein Sale, held April 25, 2010, where 55 lots (including four Jersey lots) averaged $2197. The high seller was Lot #58, a Jersey, Exels Carrier Polly 2109 consigned by Jennifer Van Exel and purchased by Chris Hill. The high Holstein seller was Lot #2 – (5) #1 Picston Shottle-ET embryos out of McClelland Dundee Illana consigned by Jason Mast and purchased by Legendary. And the high Holstein live animal – Lot #42 – Den-K Laurin TJ Bella-ET, was purchased by Joseph Azevedo of Costa View Farms for $4100. Stephen Mast served as sale chairman.