Presentation on theme: "Professional Dairy Managers of PA Annual Members Meeting."— Presentation transcript:
Professional Dairy Managers of PA Annual Members Meeting
Kurtland Farms “Our Top 10 Milestones” Tim Kurtz Kurtland Farms
2006 – Profit Team Start CDE Initiative 125 Cows Prompted by Frustration Need for Outside Resources and Guidance Quality of Life Important!
2007 – Developed 3-Year Strategy Dairy Alliance Initiative Five-week Hands-on Workshop SWOT Analysis Need for Business Plan Benchmarking Cost of Production
Needed Answers What is the long-term viability of dairying in this community? What is the long-term profitability of current facilities? What are the bottlenecks & limiting factors? Is there enough land? What are other options for the farm?
Immediate Action Steps Short Term: Ventilation, Sexed Semen, 3X milking, Written SOPs, Amino Acid ration balancing, Shot program Long Term: Becoming involved in dairy industry organizations Vital to gain additional perspective
2009 – Began Expansion Exploration Involved Lending Institution, Engineering Consultant, & Construction Company Environmental grant availability??? Building site was obvious Extremely tight budget Grants seemed only hope Had to be permitted but not guaranteed
2010 – Denied Waiver Required Land Development Plan Added Considerable Cost Lesson learned: Need highest level of experience on team Jeff Ainslie consulted Started 2-year process of designing economically viable facility Numerous trade shows, workshops, phone calls, s and consultations
2011 – Transformation Team Start Focused on challenges Assisted with engineering & permitting costs Penn State Extension Feasibility & Cash Flow Analysis Brought clarity and credibility Brought new level of energy
2011 – Operation of Satellite Adjoining Dairy Opportunity for additional cows and feed availability Employees stayed with operation Allowed for more specialized employee responsibilities Allowed Us to Keep Replacements & Streamline Labor Force Within 3 Months of 3X Milking, Added 15 # Per Cow Per Day
2011: Began Relationship With Different Construction Company
May 2012: Manure Storage & Processing Grant Approved!
June 2012 – Began Relationship With New Bank Financing Most Challenging Part of Project Always Kept Open Lines of Communication Explored All Options
September 2012: Began Construction
Best possible environment
Is It Worth the Investment?
ItemCost Expansion/Construction Cost: -- Soft Costs (Engineering, Permitting, Environmental) $50, Barn & Milking Equipment Costs$2,070, Miscellaneous Costs$40,000 Subtotal$2,160,000 Environmental/Manure Grants$866,653 Grand Total$3,026, Cow Robotic Free Stall Barn, Manure Storage & Processing -- Start Up: 3/18/13 Goal: 7.8 million lbs. of milk per yr Does Not Include Cattle Or Start-Up Costs
Robotic Milking: A Natural Fit Voluntary milking gives cow more flexibility and lowers stress Labor skills even more important Enhances positive consumer attitudes
Composted Manure Solids Manure recycled via press separator and compost drum Clean, comfortable stalls are deep bedded Environmentally responsible Additional revenue stream
Precision Advantages Accuracy of information Detection of abnormalities Analyzable data Production Efficiencies
Too Much Information? Need to decide what information is needed, when it is needed and where to find it Monitor on a broader level Investigate attentions in more detail Cows have averaged 85 pounds per day for past six months in robotic barn.
Healthy Cows=Profit Teamwork=Success Many skill sets needed. Appeals to next generation Mission statement values: Profitability, Quality of life, Stewardship, Having Fun, Honor God
Future? 100% robotic Transition to next generation of ownership
PATIENCE, PERSERVERENCE, PERSISTENCE!
Jeff Ainslie Transformation Team Member Site Planning / Permitting / Engineering
Kurtland Farms - Take Homes Lenders talk about the 3 (or now more) C’s of credit In the quest to construct a new dairy facility, we should be talking about the Four P’s: 1)PLANNING 2)PATIENCE 3)PERSEVERANCE 4)PERMITTING
PLANNING No offense to the builders -- but the details of the barn can wait until a landowner knows what he or she can do where on their property.
PATIENCE 7/15/10 Timeline Kurtland
PERSEVERANCE PENNVEST: 4 th try was a charm! Caernarvon Sewer Authority / Lancaster CD / others…. Berks Conservations District came through
PERMITTING It is involved…and likely to get more so… It is complicated…and likely to get more so… It is different for every project at every location... It is costly in more ways than one….
Kurtland Farms - Take Homes PLANNING Headlock dimensions can wait – confirm what you can do on your property, and what regulations will apply to you PATIENCE “My excavator is ready….we’re starting in a month” – unfortunately, you are probably not… PERSEVERANCE Stick with it and work with people that will help you get there PERMITTING It’s a reality – but take the time early on to learn what rules and regulations actually impact you and your project
Fulton Bank Perspective From Lamar King
Agricultural Lending in 2013 Communicate with Your Lender Prepare/Budget/Understand Your Financials 5 Cs of Credit Capacity (Cash Flow) Capital Character Conditions Collateral