Dairy Economics: Feeding Milk Quality, and Management 2014 ISDA Annual Meeting ...

University of Illinois at Urbana-Champaign

Dairy Economics: Feeding Milk Quality, and Management2014 ISDA Annual Meeting January 3rd – Waverly, Iowa


“Profit Potential”


Time To Vote for 2014• Milk prices

– < $20/cwt or > $20/cwt

• Corn prices– <$4.25 a bushel or > $4.25a bushel

• Soybean meal prices– <$450 a ton or > $450 a ton


Looking Ahead to 2014 Prices(Dec 20, 2013, CME Futures)

Month Milk Corn SB Meal

(cwt) (bu) (ton)

Jan, 2014 $19.45 $4.30 $429

March, 2014 $18.55 $4.38 $419

May, 2014 $18.01 $4.45 $411


1980 1983 1986 1989 1992 1995 1998 2001 2004 2007 2010 2013$0.00

$5.00

$10.00

$15.00

$20.00

$25.00

Milk ($/cwt) Corn ($/bu) Soybeans ($/bu)

Historical US Average Farm Price Received

http://farmdoc.illinois.edu/manage/uspricehistory/us_price_history.html


The 2013 Crop Year• Over 1.7 million acres of alfalfa winter killed

• Wet spring delayed corn planting, replacing alfalfa, and cutting alfalfa

• Dry areas in August, and September

• Killing frost in mid-September in some areas

• Green immature corn in October


Corn Production United States

Crop Production (September 2013) USDA, National Agricultural Statistics Service


Soybean Production United States

Crop Production (September 2013) USDA, National Agricultural Statistics Service


Cotton Production United StatesCrop Production (September 2013) USDA, National Agricultural Statistics Service


• Forage update from 2013• Feeding economics in 2014• Building your milk check• Economic feed prices• Management factors: Additives, grouping,

heifer costs, and “free feed”

Today’s Program


Got Milk?


Take Home Message #1

ForageAvailability


Avoiding the Forage Cliff


Forage Inventory• No carry over of

corn silage from 2013

• Limited amounts of 1st cutting legume/grass forages


Forage Quality• Late planted corn silage

results in grass rather than starch

• Delayed harvest of first crop due to wet conditions and cool weather


Hay/Haylage (Rock River Lab)Nutrient 2011 2012 2013 (fresh)

Protein (%) 18.8 19.4 17.9

NDF(%) 45.8 44.1 47.6

Lignin 8.5 5.9 6.29

NDFD-30 hr 43.0 40.4 38.1

TTNDFD 48.4 44.7 42.6


Corn Silage (Rock River Lab)

Nutrient 2011 2012 2013 (fresh)

DM (%) 33.5 40.7 37.2

Protein (%) 9.0 8.1 7.8

NDF(%) 50.9 43.9 48.1

Starch 24.5 11.6 26.7


Fuzzy Cottonseed Status• Reduced acreage

• In the drought area

• Prices are up $50 a ton


Forage Inventory Today• Plan on 30 lb of DM per cow (includes 5 to

7% shrink) results in 10,950 or 5.5 tons (includes dry cows)

• Add 30% for replacement heifer

• 7 tons of forage dry matter per unit


2013 / 2014 Forage Yield DM tons /AcreSpring cereal grain (2014)

Boot stage: 1 to 2Dough stage: 3 to 4

Late planted corn silage (2013) 3 to 4

Fall cereal grain (2013) 1 to 2


Using Corn Stalks• Lactating cows

– High producing groups—1 to 2 pounds– Low producing groups—2 to 5 pounds (depending on the ration)

• Older heifers—up to 40 to 50% of DM intake• Dry cows--none• Treat corn stalks with calcium oxide (quick lime)—2 to 5%• Avoid soil contamination in corn stalks• Variable on quality depending on harvesting method


Using Straw• Milk cow rations

– Start with 0.5 lb per cow and monitor cow response– Maximum of 2 lb per cow– Processing to 1 to 2 inches in length or

1/3 in each of the Penn State box (3 box unit)– Add water

• Dry cows—up to 1/3 total DM intake (8 to 10 lb)• Older heifers—up to 40 to 50% of DM intake• Be aware of mycotoxin risks in straw

Dairy Economics: Feeding Milk Quality, and Management 2014 ISDA Annual Meeting ...

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