Starting a dairy farm

[Waldershrek]

Staying out of debt is one of my main priorities which why this is such a slow start. Saving up money, buying an improvement, saving up again. I need at least a manure spreader first minimum before I can start getting calves or heifers though. Then start building up hay equipment and then forage equipment.

 

[Duffster]

One of the biggest things in the dairy business is controling the percent butterfat... customer wants 10% this month, 12% next month, 8% two months later! Can't flip a switch to make that happen! Heard management is a big deal.

mark

That would be some rich milk.

 

[blueriver]

Milk is $1.60 a gallon at some stores around here. I think you would be better served by burning your money in a wood stove to heat your house than putting it into a dairy operation. At least you get something out of it. My Amish neighbors are selling milk for less than what it costs to produce it. If they didn't grow their own cow food they would be out of business. They are working for free hoping the cows live long enough for the market to recover.

Rent the barn out for storage, you will get a better return on the investment than buying cows in todays market.

$1.60 ??? No need to buy cows ... just buy it at Steve's store and resell it ... Been years since I bought a gallon for a buck sixty ...

 

[radioman]

Dairy farming in NYS ?! I dunno- My uncle has been working on the dairy farm since he was a pup that used to be my great grandfather's. He was planning on giving the farm to his son who acutally went to agriculture college but they just went belly up few years ago. They were located north of syracuse. All the dairy farms I worked on as a kid are "retired" since there is no money into it. I am in awe of the farmers that are still in business and they managed to upscale the farms bigtime just to stay in business.

 

[Steve C]

$1.60 ??? No need to buy cows ... just buy it at Steve's store and resell it ... Been years since I bought a gallon for a buck sixty ...

It may be the economy here in Michigan, but the Aldi's stores have it for $1.60 a gallon in Bay City, the local stores "Save a Lot" in Gladwin are about 20 cents higher. The Aldi's in Coldwater used to be much cheaper on milk than the stores in central mMichigan, probably because they are closer to Indiana and Ohio, more sources and more competition. My Amish neighbors are selling milk for less than the cost of production. They are hoping the cows live long enough for the market to recover. Meanwhile they are working for free. I fell very fortunate to just be unemployed. I am not making any money...but at least I am not working for free like my neighbors are.

 

[Iplayfarmer]

...I fell very fortunate to just be unemployed...

Someone should send that comment to a news outlet. They'd have a hayday with it.

I think the best part of that comment is that we all pretty much get it due to our own personal experiences through the recent economic times.

 

[dave1949]

Someone should send that comment to a news outlet. They'd have a hayday with it.

I think the best part of that comment is that we all pretty much get it due to our own personal experiences through the recent economic times.

Ditto on that.

 

[DaveOmak]

Waldershrek, Congratulations on the drive and desire to be a business owner.

Starting a business is OK until the gov't. regulated you to death.
Suggestion. Join a co-op if one is near by. It splits costs and increases buying power.
My neighbor uses AI on his beef cattle. Says it's about 60% effective. It has its good points. You can develope a herd that produces lots of milk and small calves. Maybe you can find a market for the calves. If you develope a cow that is a great producer, use her eggs to improve your herd.
LOTS OF STUFF TO DO.
A single auto milker will milk the cows 2 or 3 times a day while you are doing other stuff. Whatever the cow wants. Teach them to walk into the stall on their own at milking time. More milkings equal more milk.
You spoke of haying equip. If you are haying your own or rented ground, try haylage. You cut and bale at 30-50% moisture. Rain will not ruin your hay. It's up and gone. No silo's to build. Higher quality hay. There's interesting reading on haylage on the web.
The others on the site had some great ideas. Cheese, butter etc. Higher return on investment. Best of luck and wishes. Dave

 

[Duffster]

The local guys are gettin ~$15/hundred for milk.

If farmer can't make money at that then they should probably get out now.

 

[Iplayfarmer]

The local guys are gettin ~$15/hundred for milk.

If farmer can't make money at that then they should probably get out now.

I'll say it again...

Milk is not going to stay low forever.

Anyone who can make it through this hard time will be in great shape when the prices go up. Everyone I know of in the dairy industry is operating at a loss right now. They are holding out with the knowledge that eventually prices will come back up to where they can make money again. The only unknown is how long it will take for the prices to come back up.

The same market cycles happen in all farming sectors.