Pennsylvania Agriculture Secretary Russell Redding is right: Dairy’s future requires new ways of thinking. Actually, it mandates it, because change isn’t just an option — it happens. Here are a few ideas to think on from Pennsylvania Center for Dairy Excellence and Cornell University’s ProDairy program:
• Transitioning to organic might be a possibility. Several larger retail grocery chains operating in Pennsylvania are bringing in their private label organic milk from other states because not enough is produced in Pennsylvania, according the Center for Dairy Excellence.
But carefully study the market trends and seek expert analytical advice before pursuing. Be sure to read American Agriculturist’s 2016 article "Trouble ahead for Northeast organic milk shift."
• Research affordable financing options if considering a major production change, such as cheese-making, ice cream or yogurt. Pennsylvania’s Department of Community and Economic Development has financing programs for small businesses available through your county’s certified Economic Development Organization. USDA Rural Development also offers Value-Added Producer Grants to help one or a group of farmers finance a feasibility study, a business plan or some much-needed equipment.
• Diversify income sources. Consider transitioning some acreage to organic corn or soybean production. Demand for Pennsylvania-grown organic feed grains, particularly soybeans, for the booming organic poultry industry is large and expanding.
• Gain market leverage by forming a cooperative with other farmers or joining an existing one. PDA works with the Keystone Development Center, which helps new and emerging cooperatives.
• Take another look at the Margin Protection Program. Congress recently made MPP changes to improve its effectiveness in states like Pennsylvania. Contact your Farm Service Agency office for details.
Other suggestions and tools can be found at centerfordairyexcellence.org.
ProDairy resources
Here are two Cornell website links with a variety of personal and business management tips:
1. New York Farm Net has a Stress on Farm Families fact sheet.
2. Cornell Pro-Dairy’s March e-Alert Managing in Challenging Times covers the following topics:
• 10 key herd management opportunities on dairy farms during low-margin times
• Feeding strategies during challenging times
• Key opportunities to optimize 2018 crop production efficiency
• Do’s and don’ts for dairy farmers facing financial difficulty
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