Interview in DairyBusiness.com with Walt Ogburn and Jane Hillstrom where they discuss the value of a public relations plan for dairies:
October is Breast Cancer Awareness Month for women AND men. Though you typically see the color pink during the month, the annual awareness program is designed to bring awareness about the disease and educate on the importance of early detection.
Breast cancer is one of the most common cancers among women - but men can get it also. Men can also get gynecomastia, a benign swelling of the breast tissue.
Check your breasts every month for lumps or changes.
Have a clinical exam every year. Instead of having your clinical and mammogram scheduled at the same time, think about separating the two. For example, have your clinical exam in January and your mammogram in July. This way you have your breasts checked professionally every six months instead of once a year. Our goal is to detect issues at the earliest point and this method helps to insure early detection.
Have a mammogram every year, starting at age 40. If your mother had breast cancer at an early age, start your mammogram ten years earlier than her detection age.
Know the signs and symptoms of breast cancer. If your son or daughter tells you they found something, check it out. Don’t let a doctor tell you that your child is too young to have breast cancer and let it go. An eight year old child was diagnosed with breast cancer.
Everyone who has a breast is at risk for breast cancer.
I’ve been a breast imager for a long time and have seen a lot of changes during my career. Helping women and men with their healthcare has been a fulfilling career. A question I routinely get from someone getting their first mammogram is “Is it going to hurt?”. It depends on a lot of factors but most people say it’s more of a discomfort than pain. The few seconds of discomfort during a mammogram is well worth peace of mind in my book.
So take care of yourself, be healthy!
2018 has seen hundreds (thousands before year-end?) of dairy farms exit the business in the United States. There are many reasons for this exodus which I won’t address today. I’d rather we step back and ask ourselves, as a dairy community and society: “What do we want our communities to look like?”
We may not think about the fact that we, as a society, have a choice. We can choose to have a “free market” free-for-all where only the strong survive. This group of survivors will milk more cows and be fewer in number. Instead of 100 dairies in a county we may see 10. Or 2. Or none. Choosing this approach means fewer dairies and fewer businesses supporting them. We know what this looks like - just drive through areas that were once strong dairy areas and observe the abandoned dairy facilities and empty businesses. Many will argue that this erosion of dairy farm numbers is inevitable. Of course economics plays a role - some dairies will fall behind in profitability and exit. I’ll submit that total decimation of a industry is inevitable only if we allow it be.
What’s the alternative? Some societies have chosen to make serious efforts to retain dairies. We have examples of this approach around the globe, witness Canada and many EU countries. What have these countries done differently? There are usually a number of factors but a quota system and/or direct government subsidies are common. Also common is that consumers pay a higher price for dairy products. The bottom line is that In these countries citizens (tax payers and consumers) have decided that higher taxes and grocery prices are prices worth paying to keep their dairy communities strong.
In the U.S. we often allow our desire for low taxes and low food prices to obscure the impact of those choices on our communities. There is no “free lunch”. Low taxes and food prices carry their own price.
Take a good look at your desk. Is it set up ergonomically so it’s comfortable to sit there and get work done? Or do you find yourself putting that work off until you have to get it done? It’s easy to overlook this process but the payback is huge. Who wants to sit on an uncomfortable chair, reaching for the computer? You end up with shoulder strain, neck strain, back pain; you get the picture. How's your desk setup? Here are some ideas for creating a good workspace:
1. Push back from your desk and sit comfortably. Position your feet flat on the floor, hands in your lap, shoulders relaxed. Your back is straight and aligned with the pelvis. Comfortable, right? Now we have your ideal sitting position.
2. Take a look at your mouse and keyboard - are your elbows at your sides and positioned at 90 degrees? If not, move your keyboard forward and back until you find this position. If possible, raise or lower your keyboard or maybe your chair, to find that 90 degree elbow position.
3. Next step is to position your screen. This is as simple as sitting in your ideal position and stretching out your arms. Your middle finger should touch the screen. If you have two monitors, set them up side by side with no gap. If both monitors are used equally, set them up centered to you. If not, set the secondary monitor off-center and look head-on at your main screen.
4. Adjust the height of the monitor(s) so the top of the monitor is at eye level - so you're looking down at the screen.
5. Adjust your chair as needed to accommodate your new position.
It's also important to get up and move every 20 minutes. Walk around and stretch! You will stay alert longer - and your body will thank you!
Robotic milkers are increasingly in the news as producers continue to struggle with labor issues. One often-overlooked concern is the initial impact on owner's equity that follows a large capital purchase - be it robotic milkers, buildings, machinery, feed or manure storage, or anything else that depreciates in value.
Here's an example: A 240 milking cow dairy invests in four robotic milkers with a purchase price of $210,000 each. That's a total of $840,000 for the robots. We'll disregard the extra investment needed to accomodate the robots, like building modifications, concrete and electrical work, feeding and milk transfer changes, etc.
What's the value of those robotic milkers once they're installed and put to use? That question can only be answered by selling them - but they're certainly worth less than their purchase price. We're all familiar with the "drive-off the lot" depreciation of a new car or truck. Same situation here - are those robots worth 20% less the day after they're installed? 30%? 40%? The market for used robotic milkers is pretty slim, so it's hard to know for sure.
In our example, let's assume 30% initial or drive-off depreciation on the $840,000 purchase price. This equals $252,000. On paper that money comes out of owner equity. The robotic milker company was paid. The lender is secured and will get paid. The producer is on the hook for that $252,000. This won't be an issue if the robots are kept in operation for their expected 10-15 year life. It is an issue if sold for any reason prior to their end-of-useful life.
Robotic milkers can be a sound investment - just remember to take drive-off depreciation into account as you do your planning. Be prepared for the potential hit to your equity upon the event of a forced or unexpected sale.
Lee’s idea: As an economist working in dairy I like to start with IOFC (Income Over Feed Cost) when looking for profit. It’s the power equation of (Milk Price x Milk Sold - Feed Cost) and just happens to include the three factors most in a dairy producer’s control. Knowing IOFC on a daily or weekly basis keeps a key profitability measure front and center, and be helpful when making decisions on marketing milk, buying feed, and making cow management decisions.
Walt weighs in: So right now you might be thinking — “great, I’d like to monitor this, but I don’t know how”. How do I proceed?
Lee, put on the spot and being a smart-aleck and shameless self-promoter says:
- Take today’s near-month Class lll futures price, add or subtract your dairy’s average basis for this month, multiple that times the pounds of milk per cow you shipped today, and subtract from that today’s average cost to feed your milking and dry cows. Convert that to the CWT equivalent and there’s your IOFC per CWT.
- Or do it the easy way. Download our free FYP Consulting’s Dairy app. It's right here: GET THE APP
Dave, being the voice of reason offers this: If a dairy can stay out of the ditches and head pretty much down the middle of the road they will make steady progress. A measurement can be used effectively if it is persistently, consistently and honestly evaluated and then reevaluated and adjusted with the knowledge of what has worked well in the past.
So, IOFC is a number that if calculated the same each week and if overall profitability is consistently and critically measured these two could do much to get the dairy further down the road and out of the ditches. Changes need to be methodical with a clear standard to measure success.
And Robin will not be left out: Producers do the best job of managing price risk when they are confident of their cost of production. Monitoring IOFC is a good start but I’d recommend they learn their true cost of production and choose marketing strategies based on that number.
Our cast of characters from FYP Consulting:
Lee Gross - Economist
Walt Ogburn - People Development
Dave Prigel - Vet Diagnostics
Robin Schmahl - Risk Management
It’s common for high potential employees to be promoted to positions in which they manage people. Often the people they will manage were former co-workers.
I’ve spent my whole career watching and coaching new managers. I’ve also been on the other side when a co-worker is promoted to be my manager. What I’ve learned about the challenges faced by new managers can be condensed down to three key messages.
1. The skills of managing are different than the skills of “doing the job” and must be learned and practiced.
2. The people you manage must trust and respect you, but they don’t have to be your best friends.
3. Your employees need and want feedback on their performance quickly and routinely.
You might be thinking now; “I understand that, but how do I put these tips into practice?” Here are some ideas:
- Define the management roles in your business. Be clear on the expectations of each position. Create brief job descriptions for each role.
- Use these job descriptions to define the skills the new manager needs to be successful, and to develop a few tools to help them learn these new skills.
- Consider starting a mentor program that pairs the new manager with an experienced person - long enough to help with the transition to their new role. It's best to assign a mentor that was not the new manager's old boss, and be a person committed to helping the new manager succeed.
- During the on-boarding process include a discussion about the difference between a friend and a trusted and respected manager.
- Consider implementing an "immediate feedback" process for all managers and employees. Have managers look every day for opportunities to give feedback, focussing on "good behaviors" vs "bad behaviors". Ask each manager (as well as the top-level managers) to keep a notebook, or a place in their phone to jot down quick notes about feedback they shared with employees. Share these notes with each employee for a quick monthly check-in conversation.
The bottom line is to ensure that new managers understand what good supervision looks like. Don't expect them to know! Offer examples of good leadership by providing a mentor and the tools necessary for the new manager to do their job well.
Roxanne and I grew up on mixed-enterprise farms in the non-glaciated NE corner of Iowa. Our families made good livings and, like farm families everywhere, lived with lots of stress and uncertainty. Were we going to have a crop? Were the yields going to be good or poor? How were the cows going to milk this year? What was the price of hogs going to be? What was the corn price for those bushels, if any, that we could sell? Could we afford to make improvements? How much risk could we manage? Where should we invest our limited capital?
Those questions and more came with the uncertainty of farming. Many, but not all of those variables were out of our control. At the time, we lacked the skills and tools needed to manage information, monitor profitability, and manage risk. Like many businesses we farmed by the checkbook.
On top of economic uncertainty, we faced the same family/people issues as all families that work together: Was anyone having fun? Was the work satisfying or only frustrating? Were Dad and/or Mom willing to share decision making with the next generation as they came of age? Was there enough income to support two families or was everyone expected to "tighten their belt"? Who's in charge of what?
Those questions were present when we farmed together and are present in every farm business today. The questions and challenges remain the same regardless of decade, enterprise, or size of operation.
We started FYP (Find Your Profit) Consulting to help farm businesses answer their questions and address their challenges. We are extremely pleased to have assembled an outstanding team of people that want to see farm families succeed. We do that by offering unbiased and easily accessible expertise to farms of all types. Our work with farm businesses begins with a joint understanding of that business's goals and objectives. We identify how we'll measure progress towards those goals, and the value of reaching them.
Contact us when you want to discuss your objectives.
Lee and Roxanne Gross