Starting a dairy farm

[Waldershrek]

Looking for anybody's experiences here starting a dairy farm. I want to start with just heifers at first to keep costs down. My parents have a former dairy barn and some land I'll be using but the barn needs to be outfitted for cows as it hasn't been used for many years in that capacity. Any tips, helpful advice, list of stuff I'll need for the barn would be appreciated.

 

[Duffster]

Buy your heifers as soon as possible as the prices are rising quickly.

 

[Iplayfarmer]

You picked a heck of a time to get into the dairy industry. Profit margins are painfully low right now. With as many dairy farmers folding, though, you should be able to get outfitted cheap. You have the right structure if you don't have to buy the land.

Best advice I can give you for the next few years is don't finance it if you don't have to. Milk a few less cows if you have to so you can keep your overhead down.

You'll need milkers and a tank and all the piping in between. You need hot water going to your barn and Stancheons. Make sure to keep good records of which cows produce how much, etc. You'll also need a place for the inspectors to do their thing. A corner with a cabinet and a desk ought to be enough.

Keep everything as clean as you can. Iodine is cheap, and it's the best way to keep a little problem from becoming a big problem.

You can forget vacations and trips for the next couple of years until you get the operation to a point where you can trust leaving someone else to take care of it for a few days. The cows don't care if it's Sunday or Christmas or if you broke your leg putting up hay. They need to be milked.

Start looking for recipes that use cream.

 

[ultrarunner]

I come from a long line of family Dairy Farmers... my cousin was the last to give up the family farm although I have another that is actually expanding...

Your ahead because you know what to expect and are going into it willingly... the cousin that gave it up hated and resented being tied down 7 days a week...

There are some small producers that have niche markets for certified organic dairy products...

With many small producers getting out... it may just be perfect timing and work to your advantage...

The biggest threat I see after lack of desire is debt... too much debt seems to just snowball.

The cousin that has expanded was able to do so because neighboring farms let her lease their land very cheap to keep the AG exemption or something like that and she was able to pick-up dairy equipment very cheap... she never buys anything new... likes to pay cash.

 

[randy41]

I think you should check out the market first and see what kind of income you're gonna get from your products.

 

[dave1949]

About a dozen organic dairy producers here got the rug pulled out from underneath them by Hood. They aimed at the organic market for higher income and their own farming desires. Takes at least three years to get organic certification. When the economy went down, Hood said they didn't have a market for the higher priced organic milk, so they are cancelling the contracts. Sort of leaves those dairy farmers in a bind.

I read all the time that milk producers here are not getting enough to cover their cost of production. I would try to figure out why, and how to overcome that before jumping in too far. It has not much to do with cows, it's about having a viable business plan.
Dave.

 

[JJT]

Looking for anybody's experiences here starting a dairy farm. I want to start with just heifers at first to keep costs down. My parents have a former dairy barn and some land I'll be using but the barn needs to be outfitted for cows as it hasn't been used for many years in that capacity. Any tips, helpful advice, list of stuff I'll need for the barn would be appreciated.

Where are you in upstate NY? I'm in the Fonda/Fultonville area and could hook you up with some experienced dairymen. Other than our Amish neighbors with their organic milk and no/low labor costs, nobody today is making money milking cows.

 

[Duffster]

Where are you in upstate NY? I'm in the Fonda/Fultonville area and could hook you up with some experienced dairymen. Other than our Amish neighbors with their organic milk and no/low labor costs, nobody today is making money milking cows.

Pretty broad statement.

 

[Steve C]

Looking for anybody's experiences here starting a dairy farm. I want to start with just heifers at first to keep costs down. My parents have a former dairy barn and some land I'll be using but the barn needs to be outfitted for cows as it hasn't been used for many years in that capacity. Any tips, helpful advice, list of stuff I'll need for the barn would be appreciated.

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.

 

[Waldershrek]

I know I chose a bad time to start this venture




My plan to keep costs down is buying used machinery and the fact I don't have to buy land or a barn even though it will have to updated and equipped for cows. It seems to me all the people that are having trouble making ends meet is the ones who have financed everything and have the latest and greatest along with the payments that go with them.


I grew up and worked on a farm but my parents got out of it when I was a kid. I'm 25 now and have always had the desire to get back into it and it's an idea that keeps coming back to me so I'm starting to look at costs, prices, creating a business plan etc.

I am just south of Syracuse

 

[Wayne County Hose]

I grew up on a dairy farm. He knows he's not getting into it now for the money. It's about sticking it to the man and not having to punch a time clock. If you have to ask, you wouldn't understand.

Good luck Waldershrek. Many dairy farmers around here are moving to NY to farm believe it or not. Find some older, seasoned or retired farmers in the area. Most of the time, they are excited to share their knowledge. Find these guys, and listen.

Be smart, sometimes buying something more expensive costs less in the end.
Don't try to do everything yourself.
I know farmers that have organic cows on one side of the barn, regular on the other. When the organic cow needs medicine, they go on the standard side for 2 years, lol.

Good luck.

 

[dave1949]

As someone else mentioned, some farms are doing better with a 'value added' approach. Don't sell raw milk, sell processed milk products such as cheese, yoghurt, ice cream etc. At least you have the ability to capture the profit that normally goes to someone further downstream. Of course, it takes a different set of capital investment and knowledge.

I think you could find young folks with the skills and interest to produce cheese for example, that aren't fortunate enough to own land, buildings, etc. Partnering with the right folks may be viable. You each bring something to the table.
Dave.

 

[mjarrels]

Guy next door milks about 265 cows. I can get by with a 15,000 dollar tractor, his cost 100,000 dollars and he needs at least 3. 250,000 dollar combine (used about a week per year) Four huge silos (hard to tell what they cost). Probably has 500,000 dollars in other equipment too. Its 24/7 from sunup well past sundown. Did have a cell repeater installed on top of his largest silo which earns him extra income.

mark

 

[Steve C]

I know I chose a bad time to start this venture




My plan to keep costs down is buying used machinery and the fact I don't have to buy land or a barn even though it will have to updated and equipped for cows. It seems to me all the people that are having trouble making ends meet is the ones who have financed everything and have the latest and greatest along with the payments that go with them.


I grew up and worked on a farm but my parents got out of it when I was a kid. I'm 25 now and have always had the desire to get back into it and it's an idea that keeps coming back to me so I'm starting to look at costs, prices, creating a business plan etc.

I am just south of Syracuse

I fully understand the desire to get back into farming, but I think it is a bad time to get into a Dairy operation. Perhaps there is some other aspect of farming that you could ease into. Perhaps hay production, organic chickens, and turkeys perhaps. Something that doesn't have you competing with megga farms. My Amish neighbor sells organic chickens and he has people who drive 300 miles round trip from the city on week ends to buy them! It is nuts to me but who am I to say......

We are buying one of his Organic turkeys for thanksgiving however. It cost a little more than a store bought bird but not by much, and we are getting it fresh the day it is processed and it isn't being pumped full of water to make it weigh more like the big processors do. It is a win win situation. I get a good bird and he gets a little money. I wouldn't drive 300 miles to buy one though, but some people will

 

[Iplayfarmer]

I fully understand the desire to get back into farming, but I think it is a bad time to get into a Dairy operation.

I respectfully disagree. Last year was a bad time to get into dairy farming because all of the equipment, etc. was full price and shortly after that milk prices took a nose dive.

Right now is a great time to get into dairy farming, but only if you can stick it out at a loss for a few years. Equipment, etc. is going to be very cheap because everyone with a tough overhead structure is going out of business. Milk prices will equilibrate soon enough and anyone who makes it through this down turn will be back in the black again.

The reason everything is so bad right now is because a few years back two things happened. China discovered that they like milk, and Australia had a drought. This led to increased demand and a decreased supply. Everyone expanded wherever they could to meet the supply. The drought ended in Australia, and China's economy went down so fewer there are drinking milk. This happened at the same time that all of the increase in production from the US hit the market. Now there's a glut driving prices down, and those who financed to expand can't pay thier bills.

The next discussion could be lengthy, but I'll abbreviate it... What goes down must come up.

Take a firefighter's approach to business: When everyone else is running out, you run in.

 

[Steve C]

I respectfully disagree. Last year was a bad time to get into dairy farming because all of the equipment, etc. was full price and shortly after that milk prices took a nose dive.

Right now is a great time to get into dairy farming, but only if you can stick it out at a loss for a few years. Equipment, etc. is going to be very cheap because everyone with a tough overhead structure is going out of business. Milk prices will equilibrate soon enough and anyone who makes it through this down turn will be back in the black again.

The reason everything is so bad right now is because a few years back two things happened. China discovered that they like milk, and Australia had a drought. This led to increased demand and a decreased supply. Everyone expanded wherever they could to meet the supply. The drought ended in Australia, and China's economy went down so fewer there are drinking milk. This happened at the same time that all of the increase in production from the US hit the market. Now there's a glut driving prices down, and those who financed to expand can't pay thier bills.

The next discussion could be lengthy, but I'll abbreviate it... What goes down must come up.

Take a firefighter's approach to business: When everyone else is running out, you run in.

The part about sticking it out at a loss for a couple of years would be problamatical for me. My pockets are not that deep. I suppose it is true, it takes money to make money....perhaps the origional poster has the capacity to pull it off, I don't know.

 

[MossRoad]

Have any of you seen the automatic milking systems? I'll assume they are probably too expensive for a start up, but who knows. I have friends that are dairy farmers. They never took a vacation.... ever! 4 kids all grew up on the farm. They never left it until they went to college. 3 of them never returned. 1 stayed and after his folks retired, he has to do it all himself, 24/7/365. No girlfriend. No way to meet one. They have a really nice small lake out back. He doesn't have time to go fishing. They only recall going for a swim maybe twice in their lives. Anyhow, I've seen a few videos on the automatic milkers. It at least gives them some time to go to a movie, or out to dinner once in a while. Also, you can get someone to watch it for you and take a vacation once in a while.

YouTube - Totally automated milking
YouTube - How automatic milking works

 

[Duffster]

Have any of you seen the automatic milking systems? I'll assume they are probably too expensive for a start up, but who knows. I have friends that are dairy farmers. They never took a vacation.... ever! 4 kids all grew up on the farm. They never left it until they went to college. 3 of them never returned. 1 stayed and after his folks retired, he has to do it all himself, 24/7/365. No girlfriend. No way to meet one. They have a really nice small lake out back. He doesn't have time to go fishing. They only recall going for a swim maybe twice in their lives. Anyhow, I've seen a few videos on the automatic milkers. It at least gives them some time to go to a movie, or out to dinner once in a while. Also, you can get someone to watch it for you and take a vacation once in a while.

Moss, if they never left/leave the farm it was by their own choice. I grew up on a dairy farm and we always had time off. I put myself through college ( and had plenty of beer money LOL) relief milking for local farmers. It was nothing to milk 2 or 3 herds of cows on a Saturday evening in the summer.

 

[Waldershrek]

Well I won't be milking right away and I don't think and automatic setup is gonna be in the budget anytime soon.

 

[Iplayfarmer]

...perhaps the origional poster has the capacity to pull it off, I don't know.

What gives me hope is that the land and barn are already bought.

I've heard that any business needs to plan on losing money for the first 5 years. Kind of discourages a guy from wanting to go into business.