Target 10 Communicator
MAY 2011 EDITION
Soils – Let’s Get Physical
Leah de Vries, DPI Tatura and Frank Mickan, DPI Ellinbank
Northern Victoria has experienced an unusually wet summer and this has impacted on pastures, cows, farm businesses and people. Coming into winter it looks as though there may be more wet conditions ahead.
As a farm’s profit is largely related to cows producing milk by utilising pasture produced at the lowest possible expense, it is important to protect the pasture base by protecting the soil structure during wet conditions.
The two physical elements of a soil that influence the ability of a plant to grow well are: the structure of the soil and the texture of the soil. In wet conditions the soil structure is a very important factor in governing how well your paddocks can withstand the wet weather and still support good plant growth.
Soil structure is the arrangement of soil particles (sand, silt and clay) into aggregates and the distribution of pore spaces in between them. The aggregates are the groups of soil particles held together by organic matter and the pores are spaces of air between the aggregates. Soil structure can therefore influence a soil’s water holding capacity, drainage and the ability of a plant’s roots to penetrate the substrate.
Large pores between soil aggregates allow good aeration of the soil, easy and rapid infiltration of water and easy plant root penetration. A well-structured soil is friable (easily crumbled), easily worked and allows emerging germinated seedlings to establish a strong root system.
A poorly structured soil has few and/or unstable aggregates and few pore spaces. This can result in unproductive, compacted or waterlogged soils that have poor aeration and drainage.
Diagram: shows the difference between soil aggregates in well-structured soil and compacted soil.
Structure is a soil property that is greatly influenced by management practices. During wet conditions, the volume of water and the weight from livestock and machinery combine to put a strain on the soil structure which directly impacts on the soil’s capacity to provide favourable growing conditions.
Inside this issue
|
Compaction and Pugging
Compaction occurs when the soil aggregates have been compressed to the extent the pore spaces between them have decreased substantially. The compaction of the soil aggregates restricts water and air from infiltrating into the soil substrate. This in turn restricts the growth of plant roots and reduces pasture growth rates.
Soil compaction can be induced when soils are wet and have less strength to resist the mechanical force imposed by grazing cows (particularly by the big girls), farm machinery and fertiliser spreaders.
Damage to the soil structure isn’t always a downwards force however. Pugging is the term used for when cows tear up the soil structure, making a mess of the paddock and wreaking havoc on the pasture.
The severity of both compaction and pugging depends on factors such as soil type, the soil moisture content, the number and size of the cows on the area and the length of time they spend grazing the paddock.
Frank Mickan, Pasture and Fodder Conservation Specialist from the Department of Primary Industries in Ellinbank, has calculated some of the effects pugging can have on pasture:
- Reduced pasture growth by 20 – 80%, depending on severity of pugging
- Reduced pasture utilisation by 20 – 40%
- Reduced ryegrass tiller density by 39 – 54%
Pugging can also reduce clover content and lead to an increase in the growth of weeds and rubbish grasses in the spring. Pugging can delay spring growth and reduced hay and silage yields. Another consequence is the paddocks become “rough as guts” to drive on, causing grief to equipment and humans. The cows don’t like walking on those areas impacted either.
The old saying that ‘prevention is better than cure’ is true when it comes to managing soil structure. Soil structure can’t be improved overnight but there are some management practices you can adopt to help minimise the damage to paddocks and maximise the growth of pastures.
As much as is reasonably possible, restrict the traffic of animals and heavy machinery on very wet paddocks. Spreading fertiliser on wet soils and cultivation of wet soils should be avoided. If the herd has to be fed supplementary feed in the paddock, try feeding out along fence lines.
High-use areas such as the ground adjacent to water troughs, gates and damaged laneways can be managed to lessen the impact of heavy traffic.
These areas need a solid foundation and a good surface. Short term measures can be used, such as hay, sawdust, gravel, wood chips or almond hulls.
On/off grazing techniques could be used to graze an area efficiently and then prevent the cows from foraging around too much once they have had their initial pasture intake. A study has shown that on pasture at optimum grazing height, after 2 hours cattle had eaten about 70% of the pasture they would eat over the full twelve hour grazing period, and after 4 hours they had consume about 80-85% of what they would eat over the full twelve hour grazing period. On shorter length pasture cows need to take a greater number of bites per kilogram of dry matter intake, and walk further to achieve similar intakes which takes the cows longer to achieve and results in more damage to the soil structure. The best outcome with on/off grazing is achieved when the pastures are grazed at the 2.5-3 leaf stage which often equates to a cover of 2200 - 2500kgDM/ha. This technique allows fast grazing with maximum intakes and minimal damage to pastures.
Stand-off areas, laneways and feedpads can be utilised in some instances, however it is a matter of balancing the supplementary feeding of cows and also utilising your pasture base.
In wet conditions soils are at risk of significant structural damage. The results of this can be seen immediately, however the impacts are both short and long term. Soil structural damage caused by compaction and pugging can prohibit pasture growth and this impacts on both the current pasture production, as well as what could be achieved in the spring by up to 40%. Good soil structure needs to be maintained in order to protect your pasture base this season.
For more information contact a DPI Dairy Extension Officer at Echuca on (03) 5482 1922, Tatura on (03) 5833 5222 or Cobram on (03) 5871 0600.
Dairy Industry Farm Monitor Project Gears Up For 2011
The Dairy Industry Farm Monitor Project for the 2010-11 financial year is about to commence, with data collection with participating farms beginning in late May.
Over the past four years the Project has analysed and discussed the performance of dairy businesses across northern Victoria, Gippsland and the south west dairy regions. In 2009-10 the project surveyed 71 farms and identified trends in productivity and profitability. In 2010-11 the project will analyse 75 dairy farm businesses across the state.
The 2009-10 annual report highlighted a tough year for the industry, with lower milk prices limiting farm income. It also found more than 80 per cent of the surveyed farms still made positive earnings before interest and tax (EBIT), the same proportion as recorded in the 2008-09 report.
DPI Farm Business Economist Daniel Gilmour said the average EBIT across all the surveyed farms was $0.65 per kilogram of milk solids sold or $507 per hectare. While still positive, this was a reduction of 37 per cent and 36 per cent respectively on profitability levels recorded in 2008-09.
Mr Gilmour said the average return on assets (not including capital gains) across the state declined from 3.8 per cent in 2008-09 to 2.2 per cent this year, with a range of -7.6 per cent to 8.8 per cent.
The top 25 per cent of producers highlighted the strength of well run dairy businesses, recording profitability levels well above the average. These farms on average recorded an EBIT of $1.61 per kilogram of milk solids, $1,320 per hectare and a return on asset of 5.6 per cent.
In July 2010 confidence in the dairy industry for the coming season was very strong, with farmers almost universally expecting an increase in farm business returns thanks to rising milk prices and stable input costs.
With milk prices expected to close for the season in the range of $5.30-$5.50/kg MS and favourable seasonal conditions it is hoped that many producers will have been able to capitalise on these conditions and post a healthy profit.
The Dairy Industry Farm Monitor Project is an initiative of the Department of Primary Industries Victoria and Dairy Australia. It is run to provide industry and government with current economic, social and environmental data which will enable Victoria’s dairy industry to monitor changes in productivity and profitability over time.
The 2010-2011 Dairy Industry Farm Monitor report will be publicly available online on July 31st and available in hard copy on August 31st.
If you would like to be involved in the Dairy Farm Monitor project and get a free business analysis please contact your local dairy extension officer at Echuca on (03) 5482 1922, Tatura on (03) 5833 5222 or Cobram on (03) 5871 0600.
To view previous editions of the Dairy Industry Farm Monitor report including business and production performance of farms in the project go to www.dpi.vic.gov.au/dairyfarmmonitor.
For further information contact Daniel Gilmour on (03) 5430 4395.
TARGET 10 TICKLERSLittle Davie's kindergarten class was on a field trip to their local police station, where they saw pictures tacked to a bulletin board of the 10 most wanted criminals. One of the youngsters pointed to a picture and asked if it really was the photo of a wanted person. |
Four focus farms for the Murray Dairy region
Murray Dairy along with the Geoffrey Gardiner Dairy Foundation has initiated four focus farms in the Murray Dairy region. The Focus Farm Project which will run for two years, will have an important emphasis on farm financial management, production, farm family lifestyle issues, irrigation and water issues.
A key feature of the Focus Farm Project is the range of farm locations, which allows the examination and discussion of different climate, soil type, feeding, irrigation, water, herd management and farm financial issues. The focus farms are located near Toolamba, Cobram, Koondrook and Tallangatta South.
Eight farm families from across the Murray Dairy region responded to the invitation for Expressions of Interest, making the selection process difficult given there were only four places available in the Project.
The four focus farm families are:
- Mark and Narelle McDonald - Tallangatta South: This year the McDonald’s are looking to milk around 400 cows on their 260ha farm. The facilitator of this focus far is John Mulvany and the mentee is Darren McCormick.
- Brothers, Colin and Ross Read – Toolamba: This year the Read’s will be milking 250 cows on their 220ha milking area. The facilitator for this farm is Cameron Smith and the mentee is Craig Rath.
- Andrew and Rebecca Phillips - Naring (between Cobram and Numurkah): The Phillips’ are aiming to milk 300 cows on 129ha this year, and are moving to a 60:40 Autumn/Spring calving pattern. The facilitator is Phil Shannon and the mentee is Melissa Spain.
- Leigh Verhey and Angela Turner – Koondrook: Leigh and Angela plan to milk 300 cows on their 130ha farm. The facilitator is Daryl Poole and the mentee is Shayne Ault.
There is also a Mentor/Mentee component to the Project, which will allow younger service providers who are currently actively involved in the dairy and farm water industries the opportunity to assist the facilitators. The valuable knowledge and experience the mentees will receive is an investment in the future for the dairy industry.
Support groups will now be formed by the focus farm to assist them with advice and ideas to help with the decision making process. Focus farmers will hold regular forums with their support groups and facilitators throughout the year. At these forums participants will help support and advise each other on the farm’s business making decisions and as a group, will build their knowledge on these key topics.
Information about the focus farms and their activities will appear regularly in publications throughout the Murray Dairy region; including the Mountain Milkline, The Country News and The Target 10 Communicator. There will also be opportunities for farm walks and field days to showcase the progress of the project to the wider dairy community.
There is also an opportunity for people to be placed on a mailing list to receive updates on what is happening on a particular farm. Regular meeting notes from that farm can also be received.
The Focus Farm Project is being led by a steering committee, chaired by Murray Dairy board member Stuart Crosthwaite. Key delivery partners include the Geoffrey Gardiner Dairy Foundation, Department of Primary Industries Victoria and the National Centre for Dairy Education Australia. Sponsorship for the project is coming from the Gardiner Foundation and Murray Dairy.
Murray Dairy’s Focus Farm Project is supported by the Geoffrey Gardiner Dairy Foundation and Dairy Australia. For more information about the Project contact Tori Rath at Murray Dairy on (03) 5833 5927.
Reproduction and Extended Lactation of the Modern Dairy Cow
For many years now, dairy farmers have been battling against the significant challenges posed by dry conditions and difficulties with poor in-calf rates. For some farmers this has led to a major shift in their thinking and their approach to managing the reproduction of their herd. The Department of Primary Industries (DPI) Victoria conducted a study of eleven Victorian dairy farms that made considerable changes to their breeding methodology. The study showed farmers made a successful transformation and would not go back to their old methods.
According to Jock MacMillan, a world-renowned reproduction specialist, “Australia seems to be stuck between American and New Zealand production systems. The Holstein clearly isn’t ideally suited to a seasonally concentrated calving pattern. Cross-breeding helps reproductive performance, but the improvement often isn’t good enough to comfortably maintain a seasonal calving herd.”
“There is a better approach to managing the modern dairy cow that involves the use of extended lactations and split calving”, says Jock. “Research in Australia, New Zealand and Ireland has shown that longer lactations are easily achieved by Holsteins of high genetic merit. A Victorian economic analysis showed that systems using split-calving and extended lactations were as profitable and involved less risk associated with seasonal growing conditions, milk price and purchase feed price than seasonal calving systems.”
The eleven happy farmers involved in the DPI study agree with Jock. They have taken advantage of the strengths of the modern dairy cow and reaped the benefits. One thing the farms all have in common is the clever use of extended lactation (EL) however; they are not all utilising the exact same methods.
“What stands out is the flexibility EL allows”, says Greg O’Brien, Dairy Extension Officer with DPI. “Some farmers are using it to change their calving patterns; others are using it to tighten the calving pattern without wasting valuable cows, whilst others are doing it to better manage labour.”
The dairy industry has been concerned that the use of EL will result in lower reproductive performance, less milk production and unprofitable farms. However the farmers involved in the DPI study have been able to demonstrate this is certainly not the case. For the eleven study farmers the use of EL ticks all the boxes above.
A series of workshops have been organised to showcase the benefits of EL to other dairy farmers and service providers, and give them a better understanding of this new approach to breeding. Keynote speaker Jock MacMillan will discuss the imperative issue of reproduction in the modern cow (including the phantom cow syndrome) and the challenge to farm systems this presents. Greg O’Brien from DPI will talk about what to expect from EL cows and how to manage them. Finally, the workshop will present the approaches used by the eleven case study farms and this will be followed by a general group discussion.
Given most farmers are finding it very difficult to maintain a seasonal calving pattern and are struggling with their in-calf rates, these workshops are not to be missed.
Workshop Information:
|
Where |
When |
Time |
|---|---|---|
|
Cohuna Golf Club - Weymouth Road, Cohuna |
Tuesday, 24 May, 2011 |
10.30am - 12.30pm |
|
Wilf Cox Kyabram |
Tuesday, 24 May, 2011 |
7pm - 9pm |
|
Katunga Recreation Reserve |
Wednesday, 25 May, 2011 |
10.30am - 12.30pm |
For more information please contact Tom Farran, Dairy Extension Officer, DPI Tatura (03) 5833 5297.
Cash Flow Is King: Can We Really Afford To Debt-Reduce This Year?
Cash flow is the key to survival of any business. Even the most profitable business on paper could be susceptible to bankruptcy if there is no cash flow. The environmental and economic conditions over the past few years have put farmers in a very peculiar position this year, with many catching up on financial reserves which have been recently depleted.
Most farmers have experienced some form of financial stress in recent times and are only now beginning to see some light of day. The grass is becoming greener with the future showing good prospects; however the banks too are hoping to see some of the accumulated debt repaid to realign their risk profiles.
However, even for those who don’t have high debt, now might not be the best time to erode the cash flow by reducing debt. This year is really more likely to be the consolidation year to get back on track and build up the cash reserves… a “buffer”, if you like.
In order to reduce debt, there needs to be cash flow available. This cash flow might be needed for a myriad of things, such as tax payments and pre-June 30 tax planning. In order to generate this cash flow, we must generate profits to fund it.
This year it looks likely that farmers will have higher profits overall and with that tax. The concern is that if cash flow is used to make debt reductions, after all outstanding creditors are paid off (previous year expenses in most cases), there might not be the funds available to allow for pre-June 30 planning strategies like prepayments, farm management deposits (FMDs), superannuation and other legitimate tax planning strategies. Having the funds to pay the tax could also be an issue.
The important thing to consider in all of the above, before paying off some debt, is to review your budgets and cash flow and talk to your farm consultant or accountant to determine if paying out debt will have a detrimental effect on your farm’s cash flow. It might be best in some circumstances (and everyone’s circumstances are different), to hold off paying down debt to ensure you aren’t left short at a time when you could make your cash flow work for you.
This article was written by Tim Kemp. Tim is a certified practising Accountant with Morrison, Jefferis & Associates based in Leongatha
Dry Cows: Up Close and Personal
Before drying off your spring calving cows it is important to make a thorough assessment of their body condition. The importance of feeding for condition in late lactation and having your cows in the right condition coming into calving is well known. The best way to be sure your cows are in the right condition score range is to get up close and personal with your cows and assess their body condition score (BCS).
Body condition scoring (BCS) is an effective way to ascertain how your cows are travelling coming into their dry period and best of all it is easy to do! Condition scoring is a visual assessment of the amount of muscle and fat covering the bones of the cow. It can be assessed independently of liveweight, gutfill and pregnancy status, and involves observing specific points of the animal.
Why is BCS important?
Body condition is vital as it affects milk production and reproductive performance; if a cow is too thin she will put the majority of her energy into maintaining herself and not into producing milk. On the other hand, over fat cows also under perform during the lactation period and have an increased risk of developing metabolic issues. Scoring the body condition enables you to compare the condition of your cows with recommended targets. Once you know what condition your cows are in, you can gauge how well your cows are going and adjust their feeding program as necessary.
The score is determined by assessing five key areas of the cow:
- The area between the tail and the pin bones.
- The inside of the pin bones.
- The backbone.
- The hips.
- The depression between the hip and pin bones.
How do your girls score?
When assessing condition score the place to start is the area between the tail and the pin. Once you’ve determined how ‘sunken’ this area is, follow the chart below to work out the cow’s condition score.
To make a condition assessment in late lactation you should score your cows eight to ten weeks before drying them off. The aim is to dry your cows off in the condition in which you want them to calve (target is condition score 4.5 – 5.5), and to maintain that condition throughout the dry period. If your cows are not within the correct BCS range you may need to review your management strategy leading up to calving and throughout early lactation to reduce the risk of metabolic disease, loss in production and a potential reduction in fertility.
Cows that are too thin or too fat are prone to metabolic problems such as milk fever and ketosis. If over 15 per cent of cows are calving in thin or fat condition, review your late lactation feeding management and if necessary modify it for next year. For cows that score below 4.5 you will need to take action to increase their body condition in order to prevent substantial losses in milk production and reproductive performance.
InCalf recommends that each time you condition score your herd you assess 70 cows regardless of the total herd size and that you try to get a representative sample of the whole herd. If you have a split or seasonal calving pattern you need to score cows from these groups separately.
Tip: Condition scoring need not be hard. Next time you are getting the cows, walk through the herd and assess some of the girls as you go. Alternatively, sneak into the paddock with a digital camera. You can compare the before and after photos when you condition score again after calving. As the camera never lies, you can use the photographs as an accurate way to monitor the progress of your cows.
Getting up close and personal with the girls and assessing their body condition score as you prepare to dry them off is an easy and cheap way of monitoring your herd. To get the best results from condition scoring it is best to condition score eight to ten weeks before dry off, just before calving and again, two weeks before mating. Recording the results each time provides you with a quick and affective way of monitoring the success of your management strategy. As you adjust your management strategy you can look back at last year to see if you’ve improved the condition of your cows at the critical times. If you invest in getting your cows in the right body condition then you can enjoy the benefits of more milk, more solids and more cows in calf.
Monthly Reminders
Pastures
- Be prepared for the amount of weeds that could germinate with new pastures. Many weeds we haven’t seen for a while will have come with the summer rains and most will be easier to control when in the seedling stage.
- Inspect emerging pastures for damage from insect pests such as red legged earthmite or lucerne flea and take action before rather than after the emerging pastures are eaten.
- Grazing can be undertaken once new pasture will not pull out of the ground when pulled up by hand. For example the leaves tear off rather than the roots pull out of the ground. Aim to graze just before the sward reaches canopy closure and ensure the stock do not over graze.
- For established pastures, pasture growth rates are slowing down. Rotations need to be lengthened to suit growth rates.
Nutrition
- How are the girls looking? Do they need more condition on them? It is much more efficient to put condition on them while they are still milking than when they are dry.
- Drying off time is getting closer, so start planning your drying off strategy now.
- Check the young stock. Make sure they are getting enough feed through the winter so they keep growing.
Other
- Cash flow position - A cash flow budget is the most reliable way of seeking a picture of the estimated bank account movement over the period from May to October. Arrangements can then be made well in advance to discuss options with your bank. Don’t leave cash inflow and outflow to luck or pressure.
What's Coming Up
Dookie Dairy Field Day
See the results of the 3 farmlet trial which is evaluating the relative profitability and sustainability of an autumn calving, annuals system under different irrigated water allocations.
Where:
Dookie Campus Dairy
2980 Midland Highway, Nalinga
When: 18 May, 2011
Time: 10.30 until 1.00pm including a BBQ
For more information about the field day and to RSVP for lunch contact Megan Quinn on (03) 5833 9200 or email mquinn@unimelb.edu.au
Cups On Cups Off Course 2011 Dates
The course runs over two days and there is a cost of $185 per person.
|
Location |
Day 1 |
Day 2 |
|---|---|---|
|
Tallangatta |
Thurs 19 May |
Fri 20 May |
|
Cobram |
Tues 24 May |
Wed 25 May |
|
Numurkah |
Tues 7 June |
Wed 8 June |
|
Echuca |
Wed 15 June |
Thurs 16 June |
|
Cohuna |
Tues 21 June |
Wed 23 June |
To find out more about dates, locations and to book your place contact Melissa Dorsett, (03) 5833 5928 or email melissad@murraydairy.com.au
