Starting a dairy farm

[RichZ]

I started up a goat dairy several years ago in upstate New York, the regulations are exactly the same. Make sure you contact NYS Dept. of Ag and Markets. They will have to approve your milking equipment, and your whole milking parlor set up. Don't build it without them first looking at what you plan to do first. If they won't approve it, you'll have to spend an awful lot of money to come into compliance. If you still have an old parlor and equipment in the barn from years ago, you won't be grandfathered, because you haven't been milking, you'll have to get approved all over again.

Have you thought of who you are going to sell your milk to? Here in New York State, your best bet is typically Stewart's. They usually give an extra dollar per hundred weight than anyone else does. You'll also need to contact Stewart's or whatever dairy you want to sell to before you get too far to see if they'll put you on their milk run.

 

[Waldershrek]

I started up a goat dairy several years ago in upstate New York, the regulations are exactly the same. Make sure you contact NYS Dept. of Ag and Markets. They will have to approve your milking equipment, and your whole milking parlor set up. Don't build it without them first looking at what you plan to do first. If they won't approve it, you'll have to spend an awful lot of money to come into compliance. If you still have an old parlor and equipment in the barn from years ago, you won't be grandfathered, because you haven't been milking, you'll have to get approved all over again.

Have you thought of who you are going to sell your milk to? Here in New York State, your best bet is typically Stewart's. They usually give an extra dollar per hundred weight than anyone else does. You'll also need to contact Stewart's or whatever dairy you want to sell to before you get too far to see if they'll put you on their milk run.

Thanks for that. That's something I had not thought about yet. Like I said, I'm doing just heifers at first to control costs on having to buy milking equipment but eventually it's something to think about.

 

[Duffster]

Thanks for that. That's something I had not thought about yet. Like I said, I'm doing just heifers at first to control costs on having to buy milking equipment but eventually it's something to think about.

What size heifers are you getting and how soon do you think you will start milking? Are you going to get a bull too?

 

[Waldershrek]

At his point I'm looking for whatever I can get but younger ones preferred. How soon I start milking will be determined by how quickly I can save money and get all my necessary equipment bought. I will be looking for a bull eventually probably although honestly I haven't really done any research in whether a bull or AI is better.


Does anybody know any online dealers I can try to start getting prices on tie stalls and watering bowls as well as other miscellaneous barn supplies?

 

[Iplayfarmer]

At his point I'm looking for whatever I can get but younger ones preferred. How soon I start milking will be determined by how quickly I can save money and get all my necessary equipment bought. I will be looking for a bull eventually probably although honestly I haven't really done any research in whether a bull or AI is better.


Does anybody know any online dealers I can try to start getting prices on tie stalls and watering bowls as well as other miscellaneous barn supplies?

I'm sure there will be different opinions, but I think AI is great. Not only do you have better production in the next generation, but you don't have to deal with a bull.

 

[Waldershrek]

I need to get rid of the old around the head stanchions and put in a new tie stall set up. How much would it cost for say a 40 cow tie stall setup brand new? Any ideas?

 

[Barry Bowen]

Best advice: STAY OUT OF DEBT! No matter what you do or how you do it, do not borrow money. Start with just a few milkers and build from there. Have you considered goats instead of cows? They eat less, cost less, and with the right research and marketing you could find the right market. Find a niche in your area, maybe organic, making cheese or butter even. Some of the large dairies have found that milking 3 times a day, at roughly 8 hour intervals increases production by as much as 30% with no increase in feed cost. Where cows have access to completely automatic milker (250K-300K per unit) the cows go through 3 times a day when they are full. You will be giving up your life and tied to the farm every day of your life now either until you stop or die which ever comes first. And the most important tip of all, STAY OUT OF DEBT! (I did it for the first 5 years of my hay making operation, do hay for horses only, but now I have one payment on a round bales, 189 per month. If I can do it, you can too)

 

[Western]

I'm no dairyman but I knew a bunch when I lived near Stephenville Texas. If it were me at your age, I would look into Christmas tree farming and/ berry production. Green houses ect tra.

I would research what is a hot commodity like blue berries and go that route. I have met 2 guys, 1 who started with 25 aces in the Christmas tree business. Last I spoke with him he owned or leased a total of 1500 acres and was a millionaire. The other guy I met when I lived in Colorado, was a millionaire from growing grapes. Seems to me prized vegetation is a better route..

I do know the dairymen I knew, you hardly ever saw them and when you did it was "worry" about the "market". The biggest complaint I heard for 11 years was the fact that foreign producers could come to the states and get low, like 2% loans for start up, many went belly up left the debt and went back home.. Of course that way what do you have to loose.

 

[mjarrels]

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

 

[Iplayfarmer]

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

When Dad had a dairy he'd control the butterfat a little by keeping some Jersey, Guernsey, and Brown Swiss cows in the herd. If he needed more butterfat, he'd put their milk in the tank, if he needed less, he wouldn't. I don't know what he did with their milk when he needed less butterfat. I know we drank some, but there had to be more than what we drank.

 

[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.