Constant Goal, Changing Tactics: A Wisconsin Dairy Farm Start-up

Abstract

This case study documents the start-up of a successful alternative dairy farm in Wisconsin. Initially the vision was to establish a 97-ha biodynamic farm with dairy and cash cropping. Low milk prices throughout most of 1991 and the heavy work load associated with conventional dairying forced the farm family to look for alternative strategies. They experimented with management-intensive grazing in 1992, and by spring 1994 had seeded their entire farm to sod. The work load still was too heavy, so they switched to seasonal dairying and outwintering of their dry stock, which reduced the daily midwinter work load from 12 to 3.5 hours. By the end of 1995, yearly net farm income from operations had risen from $21,500 (1990 and 1991) to $54,000 (1994 and 1995). The farm family, with its alternative approach (biodynamic, grass-based, seasonal milking) weathered the stresses of entering dairy farming at a time when entry rates were very low and existing dairy farmers faced substantial financial pressure. The grassbased system required low purchased feed inputs ($300 per cow) and nearly reached equilibrium in the whole-farm nutrient budget. Good herd management has maintained high productivity (rolling herd average of 17,000 lbs) and excellent herd health. Renting the farm and managing money carefully have resulted in a low debt load ($73 per cow). This study illustrates the complexities and adjustments associated with the initiation of an alternative farm business.

A constant goal, changing tactics: The Krusenbaum dairy farm (1996–2005)

“…Initially the farm was set up with a typical complement of equipment for a small conventional dairy farm. During the first 6 years (1990–1995), machinery costs per hectare were fairly constant ($62 ha −1 ) 6 due to the costs incurred as their row crop equipment became unnecessary and was sold (at a loss), and to their decision to buy equipment allowing them to wrap round bales and make round bale silage. The more recent data (Table 1, line 3) show that machinery costs on the farm have climbed somewhat as herd size increased, resulting from their decision to buy newer equipment to meet the increased need to put up winter feed.…”

“…Nevertheless, in the summer months, it was typical for 100% of the cows to be producing milk. This change in winter milking policy resulted in reductions in the average length of dry periods from 83 days in 1994 and 1995 6 , to close to the industry standard of 62 days by 2002 (Table 2, line 2). Milk production per cow climbed slightly following the transition period and, by 2002, RHA milk at 7355 kg per cow per year was about 80% of the average DHIA Holstein herd production.…”

“…In 1994–1995, 56% of the herd was culled 6 . Many of these cows were sold because their calving intervals had stretched to where they would not calve back in the desired early spring ‘calving window’.…”

“…1), they were milking 70 cows on a strictly seasonal basis (cows were dried-off in mid-January and began calving in mid-March), and production was at 7700 kg (17,000 pounds) of milk as measured by rolling herd average (RHA). Net farm income (return to the operator and family's unpaid labor and management time) per cow was $790 or $54,000 for the farm 6 . The family was, however, getting ready to install a new ‘swing-16’ milking parlor (16 milking machines running while on the other side of the pit, 16 more cows are being prepared to be milked) in May 1996.…”

“…It has been estimated that as many as 30% of the new entrants into dairying during the late 1990s were primarily using rotational grazing to feed their cows, and a surprising 23% of all dairy farms were using managed grazing (moving the animals at least once a week) in their operation by 2003 5 . The Krusenbaum family entered this shifting field in 1990 and what follows is the sequel (1996–2005) to an earlier paper 6 describing the farm start-up (1990–1995).…”