1. How your dairy farm can save money on energy costs The energy efficiency opportunity and how dairy producers can benefit Thursday, May 27, 2010 1

2. Estimated Annual Electricity Bill 1 Potential Annual Energy Savings 2 100 head$4,032$403 - $1,411 135 head 3 $5,443$544 - $1,905 250 head$10,080$1,008 - $3,528 500 head$20,160$2,016 - $7,056 750 head$30,240$3,024 - $10,584 1,000 head$40,320$4,032 - $14,112 1,500 head$60,480$6,048 - $21,168 3,000 head$120,960$12,096 - $42,336 Why should you be interested in energy efficiency? Notes 1 Assumes 504 kWh hours per cow per year 2 Based on a savings range of 10%-35% (source: EnSave) and an electricity cost of $0.08/kWh 3 Industry average

3. Area of Operations% of Total Energy Use Milk Cooling26% Ventilation24% Milking18% Lighting17% Electric Water Heating5% Other10% Dairy producers use an average of 504 kWh per cow per year – equal to $40.32 per cow per year 1,2 Notes 1 Industry average of 135 head 2 Based on an electricity cost of $0.08/kWh

4. Over 4,000 dairy producers have already had an energy audit and have realized cost savings The energy audit uncovered areas of inefficiency that we didnt know about, and I would highly recommend that all producers take advantage of any low-cost audits available to them. Improvements include variable speed controllers on most motors, heat recovery on milk cooling, a plate cooler, energy efficient fans and lights, and conversion to three phase power. – Doug Young, Spruce Haven Farm, NY Through a series of updates, we have cut our members energy use in half and are reducing our impact on the environment at the same time. Becoming more sustainable is helping our bottom line, which is important during these tough economic times. Anson White, United Dairymen of Arizona We cut our energy bill in half by installing a [variable speed drive]. Energy rebates paid for half the system, and the energy savings paid for our portion within one year. Scott Silveira, Banos Royal Farms, CA The site assessment gave me a lot of ideas. Even if we cant do it all now, we have ideas for down the road. The variable speed drive and the milk pre-cooler are our priority for now. We try to do something every year and now we have a guide for what to work on next…lighting. Kenneth A. Smith, Smith Farms, NY 4

5. The typical process for capturing the savings from energy efficiency Audits involve a 1-3 hour on-site assessment by a trained professional Audits typically cost $1,250- $3,500 The USDA, states, and/or utilities often cover most of the cost of an audit Typically, a farm energy audit identifies energy and cost savings opportunities between 10%-35%, with a 1-5 year payback, depending on incentives, financing, and the type of improvement The USDA REAP program can provide incentives for equipment purchases (e.g., loans, rebates), and the USDA is working on a more coordinated incentive program 5 Energy Audit Operational Changes/ Investment in Equipment Generate Energy and Cost Savings 1 – 2 year payback period 10%-35% energy/cost savings 123

6. Can your farm benefit from an energy audit? Do you have a vacuum pump variable speed drive in your milking system? (Y=0, N=1) Do you have a plate cooler in your cooling system (used to cool the milk using ground water)? (Y=0, N=1) Do you have scroll compressors in your bulk tanks? (Y=0, N=1) Will you like to upgrade to energy efficiently lighting (if you have incandescent lights, metal halide lamps inside the barn, or T12 lighting throughout the barn?(Y=1, N=0) Do you have Compressor Heat Recovery? (Y=0, N=1) Are you interested in replacing circulation fans in your barn with more efficient fans? (Y=1, N=0) Are you interested in replacing your existing boiler or hot water heater with a biomass boiler? "or "Are you interested in replacing an existing heater that has storage tank with an instant hot water heater? (Y=1, N=0) Are you interested in replacing your existing chiller (if applicable)? "or" Is your chiller more than 20 years old? (Y=1, N=0) Total 6 If your score is greater than 3, you may benefit from an energy audit (see next page) Call EnSave for a free consultation, or fill out the survey below Dairy Milking and Cooling Questionnaire Courtesy of 1-800-732-1399

7. How much money could your farm potentially save? NRCS Energy Estimator for Animal Housing: http://ahat.sc.egov.usda.gov/http://ahat.sc.egov.usda.gov/ 7 Sample

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10. 10 Potential annual savings of $3,372 Sample

11. How can you sign up for a low-cost energy audit for your farm? Cost-share audits can come from one or more sources: USDA – Natural Resource Conservation Service –Agricultural Energy Management Plans (AgEMPs) – contact your local NRCS office for more details: http://offices.sc.egov.usda.gov/locator/app?agency=nrcs http://offices.sc.egov.usda.gov/locator/app?agency=nrcs – Rural Development –RD funds state, county, municipality, local utility audit programs –Contact your RD office for more information: State programs – E.g., Focus on Energy (WI), NYSERDA (NY) – Contact your states energy or environment office for more details Utility programs – Contact your local utility provider and ask about their energy audit program 11

12. Most common energy conservation measures on dairy farms The most common energy conservation measures on dairy farms include: Variable speed drive vacuum pumps Plate milk precoolers Energy efficient lighting Refrigeration heat recovery For more ideas on energy efficiency, visit the Best Practices section of USDairy.com http://www.usdairy.com/sustainability/BestPractices/Pages/Bestpractices.aspx#Milk%20Production 12 Source: North East Agriculture Technology, Corp., http://www.mainerural.org/energy/fieldguide/dairyfarms.pdfhttp://www.mainerural.org/energy/fieldguide/dairyfarms.pdf