"Crash & Burn" Dairy Farmers &/or Bankers go Mad

NZ & in particular Christchurch & Canterbury have been hit by more than 4000 after shocks since Sept 4th 2010 when there was a massive earthquake measuring 7.1. The damage in the city & on some farms has been dreadful & heartbreaking for families involved. See the photo where the road, hedge & fence moved in excess of a metre during the big one in Sept.
This isnt the only quake to hit NZ.
NZ dairyfarmers have gone mad & paid rediculous money for cows & land now both have crashed & some dairyfarmers will burn! Two years ago land prices in NZ got up to NZ$70 per kg of Milk Solids (the way land is often valued in NZ) today they are max NZ$40 & some farms are selling nearer to NZ$20. Two years ago dairy cows peaked at NZ$2000 today they are less than NZ$1400. Why? They went mad thats why! With total disregard for cashflow/profit or decisions based on commonsense some have made crazy investment decisions! Land was never worth NZ$70 & cows were never really worth NZ$2000. The mad crazy market drove the prices beyond what they really were worth. In areas like Canterbury there are hundreds of farms with massive new rotaries & brand new irrigation systems (centre pivots)...the capital spending is extraordinary. The capital works look impressive but the debt now looks very scarey!
The milk price didnt drive farm prices higher, the profitability of NZ farms didnt justify the extreme prices or massive capital spending......so why!!

The expectation was that land prices would forever continue to rise.....so farmers started to speculate & to farm the gain in speculative gains(increases in equity & borrowing against non real equity gains). Who supported this madness....the bankers!!!

The bankers carry much of the responsibility for the very risky lending on non existant profits & on unreal capital gains. Many farm purchases were not based on sound economics or profitability. Does this sound like Ireland? The banking crisis has hit dairyfarmers or is about to....big time!?

On our recent NZ study tour we met one young dairy farmer who bought a farm 2 yrs ago with 50% equity (based partly on cows worth NZ$2000) today that same farmer has equity of 23% & is hanging on by his finger nails. This is frightening stuff!

Now the Australian owners of the NZ banks are saying enough is enough. They are calling in much of the excessive farm debt. Farmers are getting calls demanding in some cases up to $500,000.

Now where do you get that sort of money if all banks are taking the same line???

The "Crafar case" is a very public example of the inevitable increase in farm bankruptcies.

Everyone is expecting the number of "crash & burn" dairyfarms & farm businesses to increase in NZ.

Nicola Shadbolt & partner Shane Carroll refocussed our visiting French group (from Brittany) back to the basics. Nicola emphasised the importance of profit & cash. Benchmarking in Discussion Groups must focus on the right profit ratios & on cashflow. Profit per hectare is insufficent & very risky.

A strong cashflow business can capture purchase opportunities (farms or farm business expansion)but in doing so must not lose sight of profit, return(& profit) on equity & cashflow must be strong going forward. If there are NZ farm businesses that are going to "crash & burn"....believe me there are others who have kept focussed on cashflow who will now await their opportunities. Dont get swept along with the madness of a gold rush! Cash is King!Keep focussed on cashflow & profit.

Dairy Farmers Need to Regularly Test for Soil Organic Matter

Soil Organic Matter is a very good measure of how sustainable agriculture really is today.

Soil Organic Matter (SOM) is usually highest under permanent pasture & grazing. Pasture based farmers have NOT been given the credit they are due!

Pasture based dairy farming is very beneficial to the environment.

So UK pasture based dairy farmers should be measuring & monitoring SOM% in their regular soil tests. Test for SOM% every time you soil test.Organic matter is critical for soil health and for soil productivity. It:
Provides energy for soil microbes
Supports and stabilises soil structure
Increases water storage
Stores and supplies nutrients
Builds soil biodiversity
Stores carbon
Buffers chemical behaviour such as pH
But, what is it?Organic matter derives from the growth and death of organisms.

Soil organic matter is:
The living component of the soil (roots, micro-organisms, animals and plants);
Exudates from living organisms; and
Dead, decaying and highly decomposed materials.
Organic matter is constructed from cellulose, tannin, cutin, and lignin and various proteins, lipids and sugars. These are all based on chains of carbon molecules which mean that a measure of soil organic carbon can give an indirect measure of soil organic matter.Decomposed organic matter has a black or dark brown colour and will darken soil colour.How does it get into soil?Plant growth is the primary source of soil organic matter. Photosynthesis converts sunlight, carbon dioxide and water into plant material. On death, the plant material is steadily decomposed and progressively incorporated into the soil. What is its fate in soil?Organic matter is a dynamic component of soil. Plant and animal debris is regularly added and carbon dioxide is routinely lost as soil organisms use organic matter as an energy source. This is the soil carbon cycle. If the rate of incorporation is low, or the rate of respiration is high, soil organic matter levels will decline. Thus the level of organic matter in soil is dependant on the balance between inputs and losses of soil carbon.Soil organisms rely on organic matter as their food source. In doing this some of the carbon chains of the organic matter are converted to carbon dioxide (termed respiration). Organic matter is consequently decomposed. How is it measured?

The amount of organic carbon present in the soil is used to estimate organic matter. Various experiments have shown that organic matter contains about 58% carbon. On this basis, the following relationship can be used to estimate levels of organic matter.
Organic matter(% by weight)
=
Organic carbon(% by weight)
X
1.72
Why does it matter to soil health?

The primary value of organic matter to soil health is in providing the mechanism for fuelling the soil with energy and nutrients. It provides a reservoir of metabolic energy that enables biological processes to occur.As plant remains steadily decompose in this part of the carbon cycle, secondary benefits occur. Nutrients are mobilised, soil mixing occurs, and soil structure is improved and strengthened as decomposition products adhere to physical soil particles and build aggregation.

Every tonne of Carbon in the soil is equivalent to 3.67 tonnes of CO2.

Soil Organic Matter is 58% Carbon.

On a well managed dairyfarm pasture (say 10% SOM) every hectare contains approx 260 Tonnes of Carbon in the top 30cm of soil.(Assuming a bulk density of 1.5Tonnes per cubic metre of soil). The International soil carbon stocks are measured to an agreed (IPPC) depth of 30cm.

The UK like every other country MUST protect & maintain (if not increase) their "Carbon Stocks". So Soil Carbon is vitally important.

Pasture based dairy farming is crucial to a future healthy environment.

Total C fixed through photosynthetic processes in pasture plants equates to approximately 40% of total dry matter (DM). In a pasture with an annual yield of e.g. 10t DM ha-1 yr-1 (i.e. 10t DM harvested as intake by animals), the amount of C harvested is therefore c. 4t C ha-1 yr-1. The total amount of C fixed from the atmosphere in photosynthesis is considerable, and has been measured e.g. as c. 16t C ha-1 yr-1, of which some 40-50% (6.4-8t C ha-1 yr-1) is returned to the atmosphere in plant respiration. This includes the respiration involved in the synthesis of shoot and the maintenance of shoot tissues. This figure also includes respiration from the synthesis and
maintenance of roots (some of which is expended via the shoot). Of the remaining c.8t C ha-1 yr-1 in new shoot and root tissues, only about 50% is typically harvested (hence the 4tC ha-1 yr-1 harvested), and the remainder of the plant tissues turnover and senesce to form shoot and root litter. Shoot and root litter contribute C ultimately to either respiration from the soil (and soil surface), from the microbes that consume the litter, or contribute to a potential increase in C sequestered in the soil.
Management (both fertiliser inputs and/or changes in grazing intensity) alter all of these fluxes. In general, increasing the intensity of utilisation (e.g. increasing stocking rate per se) will reduce all the fluxes, simply because it reduces vegetation cover (leaf area and so photosynthesis) although there is an optimum grazing.
Why Soil Organic Matter matters
Soil organic matter contributes to a variety of biological, chemical and physical properties of soil and is essential for good soil health.
Soil health is important to optimise productivity in agricultural systems.
Healthy, productive soil is a mixture of water, air, minerals and organic matter.
In turn, soil organic matter is composed of plant and animal matter in different stages of decay, making it a complex and varied mix of materials.
Functions of soil organic matter
Soil organic matter (SOM) is a key indicator of soil health because it plays a role in a number of key functions. These functions can be divided into three types:
biological functions of SOM
-provides nutrients and habitat for organisms living in the soil
-provides energy for biological processes
-contributes to soil resilience (the ability of soil to return to its initial state after a disturbance, for example after tillage).
chemical functions of SOM
-measure of nutrient retention capacity
-provides resilience against pH change
- main store of many key nutrients especially nitrogen and potassium.
Soil organic matter is a key indicator of soil health because it plays a role in a number of key functions.
physical functions of SOM
-binds soil particles into aggregates improving soil structural stability
-enhances water holding capacity of soil
-moderates changes in soil temperature.
There are often strong interactions between these different functions. For example, the biological function of providing energy that drives microbial activity also results improved structural stability and creates organic materials that can contribute nutritional capacity and resilience to change.
Optimising the benefits of soil organic matter
Managing soil organic matter for a maximum contribution to soil health and resilience can present a conundrum.
Decomposition and mineralisation of organic matter are required for functions such as provision of energy and nutrients. However, the maintenance or increases in organic matter help to maintain its positive effects on soil chemical and physical properties.
So, when managing soil organic matter the never-ending turnover and the need to replace and rebuild is a constant demand of good agricultural practice.
When selecting management scenarios to optimise the benefits of soil organic matter the following needs to be considered for each particular site:
- what are the most important functions that organic matter provides?
- how big is the contribution of organic matter to soil health and resilience?
Management actions that optimise the provision of these functions and maintain the contribution to soil health and resilience will ensure maximum benefit from soil organic matter.
How can we maintain or improve SOM% under dairy cow grazing in the UK?
1. Maintain permanent pastures
2. Minimize cultivation & use direct drill technology
3. Reduce Soil compaction & encourage earthworms
4. Return stored slurry to all pastures
5. Increase pasture production & the clover content & deep rooting grasses
6. Ensure sufficient S & P fertilizers are being used
7. Consider deferred pasture/sabbatical farming options including the USA concept of “Tall Grazing” at least on parts of the farm each year.
8. Soil test regularly (same time each year) & monitor SOM%.

Visit to Brookfield Farm, Ambridge...best known farm in England

It's a lovely sunny warm spring day & the grass is growing on Brookfield Farm in Ambridge. The dairy cows are out grazing pastures & David is right up with the play.....he platemeters grass, Autumn block calves, uses cross beeding & has a very good farm layout with concrete railway sleepers on the tracks.....it is a very modern farm using the latest pasture grazing technologies which are environmentally friendly & kind to the welfare of the dairy cows. Grass fed milk is healthy with high levels of Omega 3s. Beneath those lush green pastures with the attractive cross bred dairy cows....carbon is being sequested in the top soil under permanent pastures.

PS The photo at the top of this blog is NOT of Brookfield Farm but rather real live pasture grazing action from the Ankle Deep Discussion Group in Gloucestershire....just like in "The Archers".

I've just visited the best known dairy farm in England.....Brookfield Farm, Ambridge. Millions of listeners to BBC Radio 4 "The Archers" tune in either to the daily broadcast or online across the world to listen to what David & Ruth Archer are doing on their dairy farm.

http://en.wikipedia.org/wiki/The_Archers#cite_note-22

"The Archers" first broadcast on 1st January 1951 is now the longest running radio soap in the world (over 16000 episodes). "The Archers" was created from radio programs during the WW2 that were broadcast to help farmers to produce food both during & post war.

I had the privilege to meet Tim Bentinck the actor who plays David Archer.

http://www.bbc.co.uk/radio4/archers/whos_who/actors/actor_timothy_bentinck.shtml

Tim I can tell you is a great guy with a quick wit & good humour. He has a genuine interest in farming firstly being born on a sheep station in Tasmania & secondly having family faming interests & connections in England.

I work with Graham Harvey who is the Agricultural editor for "The Archers", we are keen to include pasture grazing excellence into the program & highlight some of the innovative on farm practices from the Discussion Groups. Graham has also written "The Carbon Fields" book which is about the benefits of grass fed food & to the environment of pasture based farming. http://grassrootsfood.co.uk/

Working with Graham (& ofcourse David Archer) is a unique opportunity to speak to a much broader audience. Approximately 5 million people tune into the BBC Radio 4 each evening.....not only farmers but people who live in villages, towns & cities all over the UK....plus the online listeners. Every one given the opportunity needs to become an ambassador for their industry & profession. Grass fed milk farmers need to all become ambassadors for grass fed milk & the way in which you very efficiently farm.....if you don't or won't......then who will?Graham kindly arranged the visit to the BBC studios at Birmingham. It was very interesting to watch Kate the producer, the technical staff & actors rehearse & record another episode to go to air shortly. Thank you Kate.

One of the current story lines is related to the use of dairy bred calves being used for beef. The day after I visited Brookfield Farm I made a visit to Cheshire with the Turf Accountants Discussion Group to see a young farmer rearing dairy bred beef on a grass based system. It was very successful efficient production of healthy beef. So the Archers really are up with the game!

As to "The Archers" episode we watched being recorded...

what happened?.................You may ask that .........I could'nt possibly comment!

Easy Simple Winter Feeding for Dairy Cows

It never ceases to amaze me how some farmers make every day tasks really simple while others flog themselves to the point of exhaustion trying to make expensive complicated systems work. It seems a fact of life that complicated systems are always expensive.

The simple systems always seem to work better.

It just takes us all a while to discover that truism.

Winter feeding of housed milking dairy cows is a classic example.

Sadly most dairy farmers spend hours every day feeding their cows (& at huge cost). This makes winter one hell of a drag. It also often means that feeding becomes a specialised task. Once this happens individuals are trapped in a vicious cycle of having to do it as no one else knows how or could be trusted to do it right???

In amongst the "Pasture to Profit" dairy farm Discussion Groups in the UK there are smart people with smart simple ideas & simple ways of doing things. Its a matter of searching out these simple ideas & spreading them thru the groups so we move everyone onto a new more efficient plane. Few of these ideas are truely new but they have been adapted & modified on each farm.

Chris & Richard from the Wyegraze Group in Herefordshire have a simple winter feeding system that uses a silage block cutter & self feed manual barriers that the cows move themselves. The 400+ autumn calvers are ONLY fed grass silage once every ten days (varies). The Silage block cutter (see photo) ensures that the blocks in the barriers maintain their feed quality & the silage clamp face is near perfect(not letting any air into the silage). The capital costs are minimal as the Irish made barriers are a once only cost & relatively cheap. It's a simple diet ideal for a low input autumn calving system.

Sussex is the home of self feed silage. The 'vertical paddock' is low cost & effective with either grass or maize silage. Wastage is absolutely minimal. Calculations for issues like the required eating space for each milking cow have been carefully worked out by farmer experience.....good old 'suck & see' methods.

The 'Spratt silage feeding system for dry cows is a variation on the silage blocks(or bales). A simple system for feeding dry cows on concrete yards at virtually no capital expense & very little labour as dry cows need only be fed once a week(depending on the number of blocks/bales fed & the herd size). The feeding rate can be adjusted by how quickly the wire is moved.....this also controls wastage.

KEEP IT SIMPLE

Appalling negative attitude to UK Food Production by Defra

Last week I wrote about the importance of research for pasture based dairy farmers.

I believe we must have vibrant Agricultural research teams in the UK to allow us to drive forward & compete on a world stage. I think we need to seriously back research teams with talent & imagination that understand low input pasture based dairy systems.

I'm not convinced we are getting value for money (DairyCo levies) but farmer members of the new industry research committee have written to me this week reassuring me they are trying to get a fair hearing & more research input into pasture based systems.....we wait with eager anticipation to see if they will be successful.

But is the Government really serious about food production & food security in the UK?

This week Defra have reportedly cautioned against self sufficiency in food!!!!!

http://www.farmersguardian.com/news/government-cautions-against-increased-self-sufficiency-in-food/28424.article

They write of the risks of UK extreme climatic events which would put at risk a policy of "self sufficiency". For goodness sake who are these people??? UK surely has a very favourable climate & very good soils for food production. We have willing farmers!

We are in a world threatened by massive food shortages.......the UK has the potential to hugely increase food production yet our own department is anti.....depressingly negative & anti!.

Surely given the right incentives the UK should be planning to help feed the world......but no, the Defra people are warning against even attempting self sufficiency!!!!???!!?

If this is how the policy makers see agriculture & farmers what hope is there to get increases in research funding?

Dairy farmers in the UK should be appalled by this Government's attitude & negativity.

Lets be positive

Lets sort ourselves

Pasture based dairy farmers need to organise themselves to plan & manage a research portfolio that is totally under our control.

A really good model for doing this is the Birchip Cropping Group (BCG) in arable Australia.

http://www.bcg.org.au/about.php

Discussion Groups need to react & join together to seriously consider the "Birchip model" of 'participatory on farm research'.

C'mon! We've got lots of work to do in Carbon management, Soil Sequestration, Biochar, Climatic change impact on grass growth using the EA's predictive models (exactly how is climate change going to affect our ability to grow grass in the UK?), water management, removing water from slurry, On Farm Energy reduction, summer active pasture varieties & forage crops just to name a few research priorities. Groups need to talk about dairy research priorities.

GRASS GROWTH SLOWS DRAMATICALLY....Impact on Cow Condition Scores

Grass growth has slowed due mainly to colder soil temps as frosts & dull days indicate winter has arrived with a blast.

It concerns me on a number of farms where Cow Condition scores are being monitored that condition is being lost.......are you drying cows off quickly enough to achieve the best condition score at calving???? It appears that CS is still being lost even after drying off?? You need to build this into your wintering plans & allow time for each cow to achieve calving condition. After drying off cows need to be put onto a full milking ration to pick up liveweight.....with the use of 'good drying off practices' this should not affect udder infection rates. Time is limited.

Go & look at Cow Condition NOW

Pasture Covers & Current Pasture Growth Rates

Northern Ireland 2190 KGS DM Av. cover& growth of 16kgsDM per ha per day

Dumfries 2350 & 17

Cumbria 2050 & 20

Nth Wales 2103 & 30

Nth East Wales 2300 & 10

Shropshire 2280 & 26

Staffordshire 2285 & 21

Derbyshire 2179 & 11

South West Wales 2389 & 30

South East Wales 2480 & 42

Gloucestershire 2320 & 18

Gloucestershire 2320 & 27

Somerset 2070 & 14

Dorset 2014 & 12

Dorset 1982 & 25

Hampshire 2500 & 20

Cornwall 2100 & 33

Curtins Farm Teagasc 2154 & 22

Southern Ireland 2200 & 24

Average Covers 2215 & average growth of 23kgsDMper ha per day

Very good covers but growth has dropped dramatically.

Drying off decisions now crucial!

Last week before Nuffield applications are due. Lets get some pasture based dairy farm scholars off on travel studies around the world.

Chicory..Interesting Summer Forage Option.....& Is that RAIN I hear?

Chicory is an interesting summer forage option. It is a broadleafed perennial herb with a deep tap root. Pasture to Profit Discussion Group members in different parts of the UK are very pleased with Chicory both as a summer forage crop & as part of a perennial pasture seed mix.

Without crops of Chicory some farmers in SE England & the southern coast regions would have struggled for summer feed this year due to the very dry conditions. Rotational grazing on about a 21 day rotation & strip feeding for 2-3 hours a day (to avoid tainting milk) can provide high quality feed for milking cows or heifers. As Chicory doesnt fix N so it responses well to nitrogen fertilizer if there is some moisture.

NZ trials have recorded up to 18 Tonnes DM/ha.

Chicory is best sown in the spring at either 1-2kgs/ha in a pasture seed mix or at 5-6kgs/ha if targeting a summer forage crop. The summer crop option is best sown with a vigorous clover to provide the nitrogen. Feed responses appear to be similar to turnips as Chicory has good protein levels & ME levels of 13MJ/kgDM.

Why is Chicory interesting? Massey University (NZ) has found that it contains 'Condensed Tannins' & that these may act to protect animals from internal parasites.

http://www.massey.ac.nz/~wwpubafs/2002/masseynews/nov/nov11/stories/dear_tennis.html

Chicory has elevated levels of minerals & an interesting study in NZ found that there were higher populations of earthworms under Chicory compared to regular pasture over the summer months.

Chicory only has moderate persistance say 3-4years....dont graze it in winter nor poach the ground in wet conditions. Leave at least 1500kgsDM/ha residuals to prevent too many growing points/crowns being damaged.

In the groups it is either being grown for summer forage or as an internal parasite control option.

There is plenty of discussion on our facebook group about Chicory & its merits or problems.

Check out http://www.cropmark.co.nz/products.htm

IS THAT RAIN I HEAR?

The UK has been very dry in September...no rain for 4-6 weeks in most areas. Today however the rain fell again.....we need more to encourage pasture growth & rescue newly sown crops/pasture.

Pasture growth rates are falling due to lack of rain however the Dry Matter of current pasture is very high off setting what appear to be falling average pasture covers over most of the UK. Many organic farms are out growing their conventional mates as the clover % is very high in well managed pasture swards. Organic pastures seem to consistently grow really well over summer & autumn.

Current Pasture Covers & Pasture Growth Rates

Cumbria 2650 kgsDM/ha & growth of 35kgsDM/ha/day

Cumbria 2350 & 30

Northern Ireland 2190 & 37

Nth Wales 2650 & 65

West Wales 2690 & 60

South East Wales 2610 & 24

Cheshire 2200 & 10

Gloucestershire 2455 & 34

Somerset Nth 2500 & 35

Somerset 2450 & 45

Somerset 2300 & 18

Dorset 1950 & 11

and in Cornwall (my recent French visitors discovered this is not part of England!)

Cornwall 2480 & 61

If you are using the 'Big Red Telephone' to "He or She (upstairs)...who controls rainfall over the UK" can I quietly suggest light warm gentle rain every second evening over the next 10 days ....please! No heavy falls.....oh & we'd like a dry winter too if that's not too much to ask for please! Thanks.

Dairy Cows very Sensitive to Stray Electricity

Dairy Cows are 15 times more sensitive to stray voltage than humans. Stray voltage leaks into milking parlours due to faulty electric motors or poor fittings on electrical equipment either in or near Milking Parlours.

Some UK dairy farmers know they have a problem but can neither locate nor fix the stray voltage. Others are unaware they have a problem or that it could be related to stray voltage. However there is a problem of poor cow behaviour in the parlour, elevated Bulk Milk Cell Counts & excessive mastitis due to teat end damage.

What are the signs that Stray Voltage may be a problem?

Milking Cows unsettled on the milking platform, stamping & excessive manure during milking.

Rust & bubbling of the metal at the base of steel pipes in contact with concrete.

Cows unwilling to cross gaps in the yard or concrete especially where there is exposed metal eg bridge in rotary parlour.

Cows sniffing pipework

Unusual rubbing & shine on some pipework (where cows are rubbing or backing off other pipes)

Excessive teat end damage & High Bulk Milk Cell Counts

This week Pasture to Profit Discussion Groups in England had 4 valuable days with Steve Corkill from CSL Taranaki NZ. http://www.corkillsystems.co.nz/

In the UK we lack skilled people who can identify & fix stray voltage in milking parlours. Steve & Tim brought with them a sensitive meter that measured stray voltage. They checked for stray voltage in a number of milking parlours......around motors, water pipes, across gaps in concrete. They could detect electric fence units & water heaters that were leaking neutral voltage.

Stray voltage of 0.5Volt will unsettle cows. Up to 0.8 Volts will create damage to teat ends. Between 1.5 & 2.0 Volts cows will refuse go near the offending pipework where they might touch & be frightened.

Testing the Milk Pump is especially important as the milk pump is often leaking stray voltage & it is effectively in touch with the cows udder & teats. Variable speed control units for milk pumps & Vaccumn pumps dramatically reduce the risk of stray voltage. Check out Varivac on the CSL website.

Turn off electric fences & Water Heaters during milking to reduce the risk. Electric Fence units should be 30m from the parlour & properly earthed.

Steve we need people like you or trained by you to test for Stray voltage in UK parlours. More importantly we want the problem fixed.

Fantastic meetings what great information & visual demonstration! Well done.