May - June 2020 • KDDC • Page 1
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Milk MattersM a y - J u n e
w w w. k y d a i r y. o r g
KENTUCKY
Supported by
JUNE IS DAIRY MONTH!
Lean Dairy Farming
page 8
KDDC Milk Program
page 14

May - June 2020 • KDDC • Page 2
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
2020 KDDC Board of
Directors & Staff
Executive Committee
President: Freeman Brundige
Vice President: Charles Townsend, DVM
Sec./Treasurer: Tom Hastings
EC Member: Tony Cowherd
EC Member: Greg Goode
EC Past President: Richard Sparrow
Board of Directors
District 1: Freeman Brundige 731.446.6248
District 2: Josh Duvall 270.535.6533
District 3: Keith Long 270.670.1388
District 4: Bill Crist Jr. 270.590.3185
District 5: Tony Compton 270.378.0525
District 6: Mark Williams 270.427.0796
District 7: Greg Goode 606.303.2150
District 8: Steve Weaver 270.475.3154
District 9: Jerry Gentry 606.875.2526
District 10: Terry Rowlette 502.376.2292
District 11: Stewart Jones 270.402.4805
District 12: John Kuegel 270.316.0351
Equipment: Tony Cowherd 270.469.0398
Milk Haulers: Mike Owen 270.392.1902
Genetics: Dan Johnson 502.905.8221
Feed: Tom Hastings 270.748.9652
Nutrition: Dr. Jeffrey Bewley 270.225.1212
Dairy Co-op: Stephen Broyles 859.421.9801
Veterinary: Dr. Charles Townsend 270.726.4041
Finance: Todd Lockett 270.590.9375
Heifer Raiser: Bill Mattingly 270.699.1701
Former Pres.: Richard Sparrow 502.370.6730
Employee & Consultants
Executive Director: H.H. Barlow
859.516.1129
kddc@kydairy.org
DC-Central: Beth Cox
PO Box 144, Mannsville, KY 42758
bethcoxkddc@gmail.com
859.516.1619 • 270-469-4278
DC-Western: Dave Roberts
1334 Carrville Road, Hampton, KY 42047
roberts@kydairy.org
859.516.1409
DC-Southern: Meredith Scales
2617 Harristown Road, Russell Springs, KY 42642
mescales2@gmail.com
859.516.1966
DC-Northern: Jennifer Hickerson
4887 Mt Sterling Road, Flemingsburg, KY 41041
j.hickersonkddc@gmail.com
859.516.2458
KDDC
176 Pasadena Drive • Lexington, KY 40503
www.kydairy.org
KY Milk Matters produced by Carey Brown
President’s Corner Freeman Brundige
I
t’s been two months since my first article and the
pandemic is still influencing every decision we
make. We have faced a lot of hard decisions
to make because of something we had no fault in
causing. Explaining how the grocery store is out of
milk or will only let you buy one gallon on the same
day that you had to dump the milk your cows have
produced down the drain is hard to do.
Conference calls and telecommunication has become
a way of life. Hard on older people with gray hair. In
college our computers were the size of small rooms.
Guess that is showing my age.
One thing I would like to get across to all of our members, is the dedication
and unbelievable talents of our staff. No matter what the task or crisis we have
had to deal with they have more than risen to the occasion. I always knew they
were capable advisors, but my appreciation has doubled after working with them
through this stressful time for all dairyman. Call them if you need help and
thank them for a job well done when you get the chance.
Overall dairy has fared fairly well in the assistance offered us. Thankfully,
many of us took advantage of the DMC Insurance we helped to pay for. The old
adage that insurance is something you have but never hope to use is certainly
true.
We have many issues still to address again as I stated in the last issue maybe
we can get the health problems behind us, so we can concentrate on them.
Thanks!
Importance of Nutrient Management
• Nutrient management helps reduce contamination to waterways by plant
nutrients
• Improve soil fertility
• Prevents soil deterioration
• Enhance plant productivity
• Reduce costs of chemical fertilizers
• Provide balanced nutrition to crops
• Prevents leaching of nutrients from the soil
Dairy producers are required to have a nutrient management plan for their
operation. Nutrient management plans however are also a resourceful tool for
your operation with many benefits that positively impacts it. KDDC is here to
help any producer that needs one written or has one that needs to be renewed
and updated. Feel free to reach out to your consultant with any questions or to
schedule a time to get one written.
Dave Roberts: 859-516-1409
Beth Cox: 859-516-1619
Meredith Scales: 859-516-1966
Jennifer Hickerson: 859-516-2458

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work together to increase your herds efficiency and overall
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The support behind the product matters.
For more information please contact
Elizabeth Lunsford
Territory Sales Manager
elunsford@alltech.com
859.553.0072

May - June 2020 • KDDC • Page 4
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Executive Director Comments
H H Barlow
E
veryone in America has been
affected in some way, unfortunately,
most in a very negative way. The
negative has played out in our dairy world
in a severe way.
In January 2020, I think every dairy farmer
and all our support industries were very optimistic about a
great year. At our Dairy Partners meeting in Bowling Green
in February, there was such a positive spirit that we had put
the past four extremely tough years behind us. Then, in two
weeks’ time, everything changed. I remember sitting in a UK
regulatory meeting in early March in Lexington when they
announced the SEC Basketball Tournament had been cancelled
and UK was shutting down classes. I really could not believe it
was true.
The dairy supply and distribution networks were the first to
feel the shutdown. Who would ever believe groceries would
have empty milk shelves? I still do not get the run on toilet
paper…Where’s the Sears Roebuck catalog when you need it??
The sight of milk being poured down the drain was tragic, such
beautiful, nutritious food being thrown away.
We operate in a unique industry. During several interviews,
the one big question always was, “Why is milk being
dumped?”. Very few people have any comprehension of what
it takes to get that milk in the bottle or block of cheese. It
is a long way from the cow to the dairy case. I am daily so
thankful to see that milk truck coming down the road. We
must remember how many people and all the processes that
our product goes through before it gets to the consumer. I wish
everyone could tour a milk plant…They are truly amazing! It
is so disappointing that our KDDC summer tour of the Bel
Cheese plant in Leitchfield was cancelled.
Cancellations have become a way of life. It was bad enough
for basketball tournaments to be cancelled, but what about
school, senior prom and graduations. My granddaughter
worked for years for her degree and now there is no graduation
ceremony. Please pray for all graduates at every level to know
they still truly succeeded in accomplishing something that is
exceedingly valuable.
Our dairy world did not escape cancellations. All the 4-H
and FFA events have been cancelled at least through June, no
celebration of June Dairy Days. Life as we have always known
it has been altered in 2020. My prayer is, “Never again”.
That brings us to the financial side of this pandemic, where
we don’t know the extent of all the ramifications. With all
food services closed except for carry-out, the commodity
cheese prices dropped to $1.00/lb. in April. They have since
rebounded to $1.96/lb. Most dairy economists think the prices
won’t hold as we go through summer. No one really knows
where they are headed.
As I write this, restaurants are opening back up. After eating
out three days in a row at extremely popular venues, we were
disappointed at the small number of patrons, especially since
the management and workers went to such great lengths to
make certain that everything is sanitary in every way conforming
to state and federal regulation. Getting back to normal might
take much longer than expected, especially if people are
restrained by fear.
Milk prices are extremely volatile. The forecast for mailbox
prices is low from June through August. Since Kentucky markets
are Federal Order V and VII fluid markets, we face a two-month
lag period compared to component markets, which results in our
prices not recovering as fast as the commodity cheese and butter
prices.
President Trump and USDA announced Coronavirus Food
Assistance Program (CFAP). He pledged to put $19 billion in
agriculture with $3 billion in actual food purchases for food
banks and $16 billion in direct payments to farmers. Dairy fared
well in both programs with between $500 million in purchases of
cheese, butter, milk powder and fluid milk. Of the $16 billion in
direct payments to farmers, dairy is receiving $2.9 billion. This
is good considering the $16 billion covers beef cattle, pork, corn,
soybeans, specialty crops and much more…every agriculture
commodity.
USDA announced on May 19 that all dairymen will receive
$4.71/cwt for all milk produced in January-March 2020 and
possibly another $1.49/cwt at a later date. There is a $250,000
cap per farm owner entity. This cap will affect many of the large
dairy operations in the US.
The CFAP stimulus payment is a real shot in the arm for every
dairyman and is to be paid in mid-June. Dairymen should also
receive payments for their corn, beans and cull cows sold from
January-April 15. Call your FSA office starting May 26 to set up
an appointment for signing up.
Also during this time, Dairy Margin Insurance is going to make
payments starting for March milk. Because of the depressed
prices, the DMC payment will be over $3/cwt for at least three
months. I’m very thankful that KDDC worked hard last Fall
to get dairymen signed up for the DMC and paid up to $1,000
incentive for the dairymen who signed up for the full 5 years.
With many financial assistance programs available, hopefully all
dairymen can survive the low prices caused by the pandemic.
Another stroke of misfortune hit 80 Kentucky dairymen
through the Dean bankruptcy. It was announced in April that
DFA bought 40 Dean processing plants and Prairie Farms bought
10. Thankfully, the 80 independent dairymen that shipped
directly to Dean will not lose their market like some did in 2018.
However, those same producers did not receive their May 15
settlement check for April milk. Word is that the money will
come later but it has put a terrible hardship on those producers,
as well as their vendors.
Enough market, KDDC is still very active and available to help
every dairyman, whether for quality problems, expansion ideas,
nutrient management plans or energy grants. Call us anytime and
we will be there to help.
Our MILK program is undergoing major changes as explained
in other articles in this newsletter. The KDDC board and staff
are working on our 2021-2022 Agriculture Development Board
grant proposal. We are exploring new ideas to continue our
programs.
There has never been a time like this in any of our lives, but
with perseverance and God’s help, we will all get through it.
Don’t hesitate to call someone if you are depressed. Stay close to
your family and pray without ceasing. God bless everyone who
reads this and break out the ice cream on the hot summer days.
What do you say about a life altering event
that you have absolutely no control over?

May - June 2020 • KDDC • Page 5
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Commissioner's Corner
Ryan Quarles
A
s I write this, the Kentucky agriculture community
are celebrating beef month and looking forward to
celebrating June as dairy month in Kentucky. Since
we cannot gather together, I hope you and yours will
join me in raising a glass of ice-cold Kentucky milk (or a
cone of Kentucky Proud ice cream) in an appreciation to
dairy producers. Post it on your Facebook account, and
encourage your friends to do the same!
The big news of recent weeks involves the recently unveiled
producer aid packaged released by the U.S. Department of
Agriculture. While there are talks in Congress of additional
funding, it is important that you take advantage of this
opportunity right now by contacting the Farm Service Agency,
the agency overseeing distribution of the funds. We continue to
stay in contact with the U.S. Department of Agriculture, making
sure that Kentucky has a seat at the table.
I am incredibly proud of how our farm families have handled
the pandemic. Even though we have faced unprecedented
supply chain issues, the likes of which we haven’t seen in our
lifetime, you and your families have risen to the challenge,
and you have not disappointed. One only has to look online
to see #StillFarming to witness the incredible resiliency of the
American farmer, who is still putting a crop in the ground,
raising livestock, and producing much needed food for our
communities.
I know many of you are on hard times right now, and are
facing – or already have faced – some difficult decisions in the
coming days, weeks, and months. This pandemic didn’t help
trends already present in our agricultural economy. Please know
that the Kentucky Department of Agriculture stands ready to be a
resource for you and your families during this time. I encourage
you to stay up-to-date with updates from the Kentucky
Department of Agriculture online at www.kyagr.com/covid19.
The one way we are going to make it through this is by working
together.
Dairy Revenue Protection (DRP) Is Here!
This recently released USDA product (DRP) is designed to
protect dairy farmers from the decline in quarterly revenue
from milk sales. Contact us today for more information
about protecting one of the biggest risks to your operation.
In Business Since 1972
1-800-353-6108
www.shelbyinsuranceagency.com
sia@iglou.com
We are an equal opportunity provider

May - June 2020 • KDDC • Page 6
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Coronavirus Food Assistance Program (CFAP) Update
Will Snell and Kenny Burdine
T
oday (May 19, 2020), the White House and
USDA announced details of the Coronavirus
Food Assistance Program (CFAP) as part of a
White House briefing on the U.S. Food Supply. The
direct payment portion of this program is designed to
compensate farmers who have suffered losses due to
COVID-19.
Background: On April 17, 2020, U.S. Secretary of Agriculture
Sonny Perdue announced the CFAP which evolved from funding
provided in the Coronavirus Aid, Relief, and Economic Security
(CARES) Act, the Families First Coronavirus Response Act
(FFCRA), and other existing USDA funds. CFAP will provide
$19 billion, with $16 billion in direct payments to eligible
farmers ($9.5 billion from the CARES Act and the remaining
$6.5 billion from the Commodity Credit Corporation (CCC)) and
$3 billion to purchase fresh produce, dairy and meat to support
the ag economy and provide food for needy families as part of
USDA’s Families Food Box Program. The remaining portion of
this fact sheet outlines the direct payment provisions of CFAP.
Eligible Payments: CFAP will provide financial assistance
to producers of agricultural commodities who have suffered a
5% or greater price decline (from mid-January to mid-April) or
who had losses due to market supply chain disruptions due to
COVID-19 and face additional significant market costs.
Eligible Commodities
• Non-specialty crops including malting barley, canola, corn,
upland cotton, millet, oats, soybeans, sorghum, sunflowers,
durum wheat, and hard red spring wheat
• Wool
• Livestock: cattle, hogs, and sheep
• Dairy
• Specialty Crops including various fruits, vegetables, and nuts
Additional eligible commodities, including
aquaculture and nursery crops, will be announced at a
later date. Plus, USDA indicated that the agency will
consider additional commodities not identified in the
final rule if they meet eligibility requirements.
Payment Limitations: CFAP payments will be
capped at $250,000 per individual and not limited per
commodity as was originally reported. Payments will
be excluded for any one individual or legal entity with
an adjusted gross income (using averages of 2016, 2017,
and 2018 tax years) exceeding $900,000 unless at least
75% of the income is derived from farming. The final
rule outlines specifics for various legal entities including
corporations where up to three individuals who meet
USDA’s requirements for being actively engaged in
farming will be eligible for up to three separate payment
limits.
Livestock Payment Details
• For livestock including cattle, swine, and ovine, the
CARES act payment rate will be multiplied by the per head
volume of sales between January 15, 2020 and April 15, 2020
in each of the livestock categories listed below. The CCC
payment rate will be multiplied by the highest inventory
number in each of those categories from April 16, 2020
through May 14, 2020.
• For dairy, the CARES Act payment rate will be multiplied
by 1st quarter milk production. The CCC payment rate will
be multiplied by 1st quarter milk production times 1.014
(seasonal production increase for the second quarter).
• For wool, eligible inventory will be the lower of either (1)
50% of the producer’s self-certified unpriced inventory
as of January 15, 2020 or (2) 50% of the producer’s 2019
production. This level is multiplied by the CARES and CCC
payment rates.
Crop Payment Details
• An average payment rate per unit (bushel, pound, or
hundredweight) will be determined for each eligible non-
specialty cropbased on the decline in the weekly average of the
futures prices (or weekly average of the cash prices, if futures
prices are unavailable) between the average for the week of
January 13-17, 2020, and the average for the week of April
6-9, 2020.
• If the decline in price is 5 percent or greater between these two
time periods, a payment for that commodity is triggered.
• Producers of non-specialty crops will be paid based on
inventory held as of January 15, 2020.
• A single payment will be made based on 50 percent of a
producer’s 2019 total production or the 2019 inventory as of
January 15, 2020, whichever is smaller, and multiplied by the
commodity’s applicable payment rates below split between
funding provided by the CARES Act and funds from the
Livestock Categories
Unit of
Measure
CARES Act
Payment
Rate
CCC
Paymemt
Rate
Dairy Cwt $4.71 $1.47
Slaughter Cattle (mature cattle) Head $92 $33
Slaughter Cattle (fed cattle) Head $214 $33
Feeder cattle less than 600 lbs Head $102 $33
Feeder cattle 600 lbs or more Head $139 $33
All other cattle Head $102 $33
Pigs (any swine under 120 lbs) Head $28 $17
Hogs (any swine 120 lbs or more) Head $18 $17
Lambs and yearlings Head $33 $7
Wool (graded,clean basis) Lb $0.71 $0.78
Wool (non-graded, greasy basis) Lb $0.36 $0.39

May - June 2020 • KDDC • Page 7
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Commodity Credit Corporation (CCC).
Application/Payment Process and Details
• Signup will begin on May 26, 2020 at one’s local Farm
Service Agency (FSA) office. Click here for a list of local
offices in Kentucky. Producers must submit a completed
CFAP application either in person, by mail, e-mail, or fax
to their local FSA office.
• USDA indicates that the application form and a payment
calculator for producers will be available online once
signup begins.
• USDA will require several forms/information (e.g.,
tax identification number, farm operating structure,
conservation compliance, adjusted gross income to ensure
eligibility, and direct deposit information) must be on file
at the local FSA office as part of the application process.
• Eligible farmers will receive 80% of their CFAP payment
in the initial distribution with the remaining 20% being
paid at a later date if funds remain available, not to exceed
the $16 billion funding limit.
• USDA will not require an individual to have crop insurance
coverage to be eligible for payment under CFAP.
Non-specialty Crops
Unit of
Measure
CARES Act
Payment
Rate
CCC
Paymemt
Rate
Barley (malting barley only) bushel $0.34 $0.37
Canola pound $0.01 $0.01
Corn bushel $0.32 $0.35
Upland Corn pound $0.09 $0.10
Millet bushel $0.31 $0.34
Oats bushel $0.15 $0.17
Sorghum bushel $0.30 $0.32
Soybeans bushel $0.45 $0.50
Sunflowers pound $0.02 $0.02
Wheat, Durum bushel $0.19 $0.20
Wheat, Hard Red Spring bushel $0.18 $0.20
Cowherd Equipment & Rental, Inc.
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1483 Old Summersville Rd.
Campbellsville, KY 42718
270-465-2679
270-469-0398
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Hagedorn 5440
Manure Spreader
Silage Defacer
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Cowherd Dairy Supply
For chemicals, supplies and more
from our dairy to yours, Cowherd’s
has all of your dairy needs.
Cowherd Dairy Supply
1483 Old Summersville Rd.
Campbellsville, KY 42718
270-465-2679 or
270-651-2643
• Boumatic Milking Equipment and
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• Chore-Boy Parts
• BouMatic Coolers
• J&D Manufacturing
• IBA Chemicals
• Mueller Milk Tanks
Penta 4930
BouMatic
Feed
pusher
• SCR Systems
• Up North Plastics Available

May - June 2020 • KDDC • Page 8
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Lean Dairy Farming
Dr. Jeffery Bewley, PhD, Alltech Dairy Housing and Analytics Specialist
REDUCE WASTE, CREATE FLOW, INCREASE VALUE
P
rinciples of lean manufacturing have been applied in
multiple industries for decades. The concepts were
started in the 1960’s in manufacturing operations
like Toyota. Recently, this concept has made its way into
agriculture. Lean is a production system and a management
philosophy, focused on creating more value with less
resources. We work with different tools to systematically
identify and reduce production waste. Progressive dairy
operations have applied this concept to improve their
organization processes and culture. Lean thinking employs
5 key principles toward identification of 8 types of waste,
both described below. Lean is an approach toward
viewing the dairy farm as a complete system. With lean
thinking, dairy producers focus on getting the right things
in the right place at the right time in the right quantity.
Improving flow and reducing waste leads to higher quality
and reduced costs. A key concept in lean is Kaizen, which
means “change is good” and fosters a culture dedicated to
continuous improvement. Lean employees are proactive
rather than reactive and focus on working smarter rather
than working harder.
1. Definining and creating value to the customer begins
with thinking of the customer as the next internal stage in the
process rather than as someone buying an end product. For
example, the cow is the customer to the feed process. In a lean
culture, each process is considered individually with respect to
how maximimum value can be delivered to the next internal
customer in the process. In this example, the goal should be to
deliver high quality feed to the right animals at the right time
in the right place. This begins with understanding the needs of
the cow and developing a system to ensure these goals are met.
With a lean mindset, we focus excluslively on activities that add
value.
2. Creating flow in work processes helps improve
efficiencies. This concept can be applied to many processes
within the dairy operation, such as milking, feeding, heifer
raising, harvesting, and breeding. This involves establishing and
continuously standard operating procedures with optimal work
flow in mind.
3. Mapping the value stream describes the process of
mapping out each process and looking for waste. This is
accomplished by involving all members of the team involved in
a particular process. Generally, this involves a series of post-
it notes to mark and move steps in the process. The goal in
mapping the process is to go to Gemba (where value is created).
Each activity is definied as value added or non value added and
timed. Spaghetti diagrams are used to depict movement and
vidually identify inefficiences. Once the current state is mapped,
then the team starts to plan for the future state with minimal
waste.
4. Establishing pull means to begin with the end in
mind and only deliver what brings value. A great example of
establishing pull is a restaurant that prepares and delivers food
only as it’s ordered as opposed to preparing large quantities of
food in hopes that someone orders it (push). Within the dairy
system, historically we have often produced heifers with a push
approach rather than a pull approach. Recently, dairy producers
have started producing heifers with the end goal of how many
replacemens are needed (pull).
5. Continuous improvement is an essential principle of
lean. A lean culture embraces change, continually evaluates
process, accepts feedback, and improves constantly.
White board meetings are another key aspect of Lean. White
board meetings are a simple concept. They involve weekly
employee meetings around a white board. To increase meeting
effectiveness, these meetings are standing meetings (no sitting),
limited to 15 minutes, agenda-driven, and set with a positive
tone. Agenda items may include what has happened in the
last week, what good things occurred, and what wastes and
improvements were identified.
PICK Charts are used to determine what projects to spent time
on. Items are placed into the four quadrants depicted below
based on impact and effort level.
Visual Management. Lean involves many visual management
tools. These can include white boards or other forms of
communication around the dairy to improve communication
among team members. Some possible items to include on
these boards include farm maps, key performance indicators
(KPI’s), production and quality goals, maintenance needed,
supplies needed, planting and harvesting plans, treatments and

May - June 2020 • KDDC • Page 9
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
vaccinations needed, watch cow lists, problems or wastes
identified, actions for the day, week, or month, team priorities,
holiday and vacation plans, special projects, safety issues, and
emergency plans. An example of a visual management tool
from the Alltech On-Farm Support Team is depicted below.
5S is another important strategy for improving workflow in
a lean production system. An infographic describing the 5S
process is provided below. 5S includes the use of colors and
labels to help improve communication. For example, labeling
pens and feed bins as shown below improves communication
among employees and suppliers.
Examples of the Eight Wastes in the Dairy System
Defects Poor processes, sick or dead cows, poor feed, shrink, communication problems
Overproduction More produced than needed, extra heifers, extra supplies
Waiting For machines, cows, or colleagues
Non-utilized Talent Not asking for employee input, having employees in positions that don’t fit their strengths,
Transportation Wrong machinery for the job, poor logistics for cow, people or equimpent flow
Inventory Purchasing too many supplies or parts, more than what is needed
Motion Using the wrong tools for a task, not thinking about ergonimics within milking process, looking for tools
Extra Processing Cleaning when unnecesary, dirty fans, inefficient energy use
Fowler Branstetter
Dairy Business Unit
317-315-4017
fowler.branstetter@elanco.com

DeLaval calf feeder CF1000S
Automatic calf feeders are an efficient and effective method to achieve intensive calf
feeding. Automatic calf feeders, such as the DeLaval CF1000S, offer the ability to
manage and track the feeding program of each animal. Significant labor savings are
also a potential benefit of the CF1000S.
✓ Calves growing faster
✓ Healthier calves
✓ Control over feeding cost and calf feeding operation
✓ Lower mortality and morbidity rates
✓ Earlier reproduction
Rear healthy
calves in less time and less work.
Helps in identifying health
issues early
lower mortality and morbidity rates.
Rear up to
25 - 100 calfs with one CF1000S.
CalfApp and CalfCloud
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Maximize calf growth
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Having a heifer in weight
ready
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productive sooner and increase her
returns to the farm.
Improves social development
of the calf – natural behavior.
Complete control
over the milk feeding to each calf.
Key benefits
Eric Risser
423-368-7753
Zack Burris
270-576-7001

May - June 2020 • KDDC • Page 12
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
V shape dairy recovery? Economists
define a “V” shape recovery as a
sharp decline with a quick, sustained
recovery. Chicago Mercantile
Exchange (CME) block and barrel
cheddar and butter meet the first two
requirements as shown on the graph.
Block cheddar was over $1.90/lb. the
first of February, then fell to $1.00/lb.
on April 15. Over a four-week period,
blocks doubled and closed at $2.5525/lb. on June 5. Barrels and
butter follow a similar pattern. Butter remained over $1.80/lb.
for the first two months of the year before falling to $1.10/lb. on
April 23, then closed at $1.9250/lb. on June 5.
Cheese and butter’s price decline is due to the coronavirus
and the resulting shutdown of much of the economy, especially
food service which utilizes about 50% of the nation’s dairy
production. Why are prices now rebounding and making the
“V”? My list includes:
• As government shutdown restrictions are lifted, the food
service supply chain must be refilled. That is now happening,
and cheese plants are operating at full throttle to fill the demand.
• Government dairy purchases. The Coronavirus Relief Act
authorized USDA to purchase $317 million in dairy products
to use for food aid. Plus, the Secretary of Agriculture is using
$120 million from Section 32 funds to purchase additional dairy
products. To put this in perspective, at $3.00/lb., $437 million
will purchase 145.7 million lbs. of cheese. It takes about 1.45
billion lbs. of milk to produce this cheese volume which equates
to about 4% of the total estimated U.S. milk production in May
and June. $437 million of dairy product purchases makes an
impact.
• When the economic shutdown started many cooperatives and
proprietary plants quickly implemented various milk reduction
programs. These programs reduced milk production, now making
it difficult for some cheese plants to meet demand.
• I look at the CME as a market of last resort. If a plant has
no other viable market to sell cheese or butter it offers it at the
Exchange. This is one of the reasons cheese and butter prices
dropped so low. Food service orders dried up, plants needed
to move product, and there was no other alternative. On the
other hand, if buyers cannot find product, the Exchange offers a
potential place to do so. Reports indicate some companies with
USDA contracts to fill Family Food Boxes, have turned to the
CME to purchase cheese, thus increasing CME prices.
Sustained recovery? As stated above, the third requirement
for a “V” recovery is sustained prices. Will cheese and butter
prices remain at these levels? Eventually, the food service supply
chain will be filled, and government purchases will end at some
point. However, the stock market is getting back closer to pre-
coronavirus levels. As businesses reopen, people are going back
to work, employment is improving. All of this helps improve
consumer confidence and bodes well for dairy demand.
On the supply side, April milk production was 1.4% higher
than last April. The nation’s dairy herd had 49,000 more head
than a year ago. Only five states (Florida and Georgia were
two) of the 24 milk reporting states had lower production than a
year earlier. In the top two states, California was only up 0.3%,
and production was flat in Wisconsin. Production continues to
increase in Texas, with April production 4.9% greater than last
April. Milk production numbers for the next two months will tell
us the impact of the various milk reduction programs. However,
the impact on production by coronavirus assistance payments to
dairy farmers (about $6.20/cwt. on first quarter milk production)
and dairy margin coverage payments (April payment of $3.47/
cwt. at the top level) is an unknown.
As expected with the food service shut down, dairy product
inventories grew significantly in April, especially for butter and
NDM. As of April 30, the butter inventory is 26.8% higher than
last April. Butter production set a new monthly record high in
April. The nonfat dry milk (NDM) inventory is 41.1% higher.
Better news, total cheese inventory at the end of April was only
up 6.1%. Preliminary reports indicate improving demand, along
with less milk, is drawing these inventories down. We will
know exact numbers when USDA releases the May supply and
demand data. My forecast is cheese and butter prices will soon
start retreating. How much prices retreat all depends on supply
and demand. How much dairy products consumers buy and how
much milk dairy farmers produce.
Blend prices. As stated previously, the large and quick
Dixie Dairy Report
June 2020
Calvin Covington
ccovington5@cs.com
(336) 766-7191

May - June 2020 • KDDC • Page 13
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Milk Prices
FMMO 5
www.malouisville.com
May 2020
Class 1 Advanced Price
(@3.5%BF)
$ 16.35
June 2020
Class 1 Advanced Price
(@3.5%BF)
$ 14.82
FMMO 7
www.fmmmatlanta.com
May 2020
Class 1 Advanced Price
(@3.5%BF)
$16.75
June 2020
Class 1 Advanced Price
(3.5%BF)
$15.22
PROJECTED* BLEND PRICES – BASE ZONES – SOUTHEASTERN FEDERAL ORDERS
MONTH APPALACHIAN FLORIDA SOUTHEAST
($/cwt. at 3.5% butterfat)
April 2020 $17.49 $19.35 $17.75
May $15.13 $17.57 $15.45
June $15.83 $16.96 $16.43
July $19.38 $21.38 $19.85
August $19.37 $21.59 $19.91
September $19.23 $21.07 $19.70
Projections in bold
decreases and increases in dairy product prices, makes it more difficult to project.
Please keep this in consideration as you review blend price projections. Due to the
lag between the dairy product prices used to calculate order prices and CME prices,
plus Class I advanced pricing, southeast dairy farmers will not see any significant
improvement in blend prices until the July milk check. The May and June Class I
Movers are $12.95/cwt. and $11.42/cwt., respectively. The July Class I Mover is
projected at $17.35/cwt. In addition, due to the new method of calculating the Class
I Mover implemented about a year ago (averages Class III and IV prices instead
of using the higher of), southeast dairy farmers will not directly receive the full
benefit from record high cheese prices in their milk checks. As shown below, May
blend prices are projected $2.00 to $2.35/cwt. lower than April. A small increase is
projected for the Appalachian and Southeast orders in June, but a lower blend price in
Florida. This is due to the Appalachian and Southeast orders having a higher Class II,
III, and IV utilizations. The large increase in blend prices is projected for July.

May - June 2020 • KDDC • Page 14
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
KDDC MILK Program
Jennifer Hickerson
“The only thing that never changes is that
everything changes” – Louis L`Amour
T
he year 2020 has definitely proven to be a year of
unprecedented change. Thus far it has not been
kind to dairy, we can only hope that as we near mid-
year the signs of an upward turn will hold steadfast and
continue the duration of the year.
In 2007 the Kentucky Dairy Development Council (KDDC)
implemented the Market Incentive Leadership for Kentucky
Program or what came to be known simply as the MILK
Program. The goal of the original program was to increase
production within the state while maintaining good quality.
To qualify a producer established a base and was required to
increase the base either by 5% or 10% each year. They had to
keep Somatic Cell Count (SCC) equal to or below 300,000 and
have a Pre-Incubation count (PI) of equal to or below 20,000.
The participant was also required to participate in Dairy Herd
Improvement Association (DHIA), have a minimum of six tests
per year and test at least once per quarter. At this time, the
maximum an eligible farm could receive was a $15,000 cap for
the year. Fifty percent coming from KDDC and fifty percent
coming from the milk marketer. By 2011 herds participating in
the program had increased averaging 25% more milk per cow
than the state average.
The year 2013 marked a record year for the KDDC MILK
Program, distributing the amount of funds to KY dairy farmers
in the amount of $981,879.95. The program at that point had
generated an increase in milk production over base production in
the amount equivalent to 7,611 tanker loads. Further the MILK
Program participants had increased milk quality from lowering
their average SCC from 395,000 to 250,000. Quality herd
improvement continued into 2014, producers on the program
averaged 21,300 pounds of milk per cow and 237,000 SCC
average for that year.
In 2016 a noticeable shift had begun. A demand for higher
quality not necessarily higher quantity was emerging. The year
2016 also marked the year that dairy producers were introduced
more in-depth to the F.A.R.M program and the requirements
within it from the milk cooperative agencies.
Kentucky dairy farmers ranked 1st in the U.S. in the March
2017 issue of Hoards Dairyman for increased production
per cow over the past 5 years according to the USDA/NASS
information with over 3,700 lbs. increase per cow. In 2017 the
MILK Program saw significant changes to the overall program.
In 2017 the program changed and put more emphasis on the
quality instead of production. At that time, the program was
separated into two parts with a tier premium level for each
section.
2017
Chart #1-Premiums are based on SCC– PIC Average for the month.
(Max per producer is $6,000 per year)
Total Premium SCC PIC
$0.25/cwt ≤ 200,000 ≤ 20,000
$0.13/cwt 200,001 - 250,000 ≤ 20,000
$0.08/cwt 250,001 - 300,000 ≤ 20,000
Chart #2-SCC cell count by percentage of herd <200,000 SCC. (Max
per producer is $6,000 per year)
Total Premium % of cows SCC PIC
$0.25/cwt 85% ≤ 200,000 ≤ 20,000
$0.13/cwt 75% ≤ 200,000 ≤ 20,000
$0.08/cwt 65% ≤ 200,000 ≤ 20,000
First section was based on the continuation of the quality
standards as in the past, 20,000 PI must have been met and a tier
scale for monthly average SCC from milk market records was
developed (see above) for quality premiums. The addition of the
Animal Care Program participation segment was also introduced
in this year along with the addition of the second section. The
second section was a focus on quality based on the percentage
of cows having below a 200,000 SCC from DHIA test. The
new changes brought uncertainty to the dollars that would be
qualified for by producers so the decision to decrease the cap
per producer to $12,000.00 was made with the ability to qualify
for $6,000.00 in each section of the new revised program. This
program became effective April 1, 2017.
We evaluated the current MILK Program qualifications and
results from the changes after we had a completed yearly cycle.
In 2019 we increased the tier premiums from $.25, $.13, $.08
to $.30, $.15, and $.10 respectively per cwt. We also increased
the producer cap back to $15,000.00 per year, $7,500.00 cap for
each section of the program. The 2019 program year had a total
payout of $684,188.00 going out to those participating producers
that qualified. Lifetime totals for the MILK Program at the end
of 2019 were $9,553,627.04.
The MILK program was based on a collaborative partnership
with all Kentucky’s Milk Marketing Procurement Organizations.
Then 2020 brought unforeseen changes to everything imaginable
and the MILK Program was no exception. KDDC was notified
after the first quarter that support from all milk cooperatives was
not going to be possible, voiding the program as it was. KDDC
staff swiftly sought other possibilities and scenarios to protect
producers from losing the program funds and all the benefits
that it delivers to Kentucky’s dairy industry. After many hours
of deliberation and with the support of the Kentucky Agriculture
Development Board it was decided that KDDC would continue
to issue their portion of the program with the program criteria
not changing for the year 2020.

May - June 2020 • KDDC • Page 15
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
2020
Chart #1-Premiums are based on SCC– PIC Average for the month. (Max per producer is
$7,500 per year)
Total Premium SCC PIC
$0.30/cwt ≤ 200,000 ≤ 20,000
$0.15/cwt 200,001 - 250,000 ≤ 20,000
$0.10/cwt 250,001 - 300,000 ≤ 20,000
Chart #2-SCC cell count by percentage of herd <200,000 SCC. (Max per producer is
$7,500 per year)
Total Premium % of cows SCC PIC
$0.30/cwt 85% ≤ 200,000 ≤ 20,000
$0.15/cwt 75% ≤ 200,000 ≤ 20,000
$0.10/cwt 65% ≤ 200,000 ≤ 20,000
Payments are scheduled to stay on the
same payment cycle. Changes that producers
will see are that payments will be coming
directly from KDDC and will no longer be
located on your milk check and stub. If any
producer has questions, please reach out to your
consultant. Every producer should have or will
be receiving information on the changes and a
form that we will need completed for process of
payments. Find here a program chart for 2020.
Remember KDDC is always working for the
Kentucky dairy producers’ best interest. We
look forward to revising the MILK Program for
2021 and developing a beneficial program for
Kentucky dairy producers.
Kohl: Transforming the “Black
Swan” into a “Phoenix”
Maureen Hanson
T
his illustration, created at the Centers for Disease
Control and Prevention (CDC), reveals ultrastructural
morphology exhibited by coronaviruses. Note the
spikes that adorn the outer surface of the virus, which
impart the look of a corona surrounding the virion, when
viewed electron microscopically. A novel coronavirus,
named Severe Acute Respiratory Syndrome coronavirus 2
(SARS-CoV-2), was identified as the cause of an outbreak
of respiratory illness first detected in Wuhan, China in
2019. The illness caused by this virus has been named
coronavirus disease 2019 (COVID-19). ( CDC )
The total impact of the COVID-19 crisis on American
agriculture is far from a final assessment. David Kohl, President
of AgriVisions, LLC and Professor Emeritus of Agricultural and
Applied Economics at Virginia Tech University, recently shared
his insights on the situation during several of the Professional
Dairy Producers of Wisconsin’s “Dairy Signal” webcasts.
Kohl sees the “black swan” event of COVID-19 in three
phases, both for agriculture and society as a whole. “At first, she
was a ‘dirty bird,’ causing massive disruption and volatility in
nearly every segment of American agriculture,” he said. “When
the economy starts to open up, I think she will be an ‘angry
bird,’ creating widespread social, political and economic angst.
That phase will last at least through the election in the fall.”
Eventually, Kohl envisions the third stage as the “phoenix”
phase. In Greek mythology, the phoenix was a bird that emerged
from the ruins of destruction as a stronger, smarter and more
powerful creature than before.
Still, Kohl cautioned that the path between now and the
phoenix stage could be a rough one. He said he receives calls
daily from farmers seeking counsel on how to best navigate the
crisis. His current advice:
1. Get your financials in order. Asses your first-quarter results for
2020, and carefully document all of your losses.
2. Conduct a 3-to-4-year trend analysis. Evaluate how COVID-
19 has impacted the trend of your farm’s profitability.
3. Assess equity depletion. Divide losses into equity to determine
the rate at which you currently are burning equity.
4. Reach out to your lender. One option that many agricultural
bankers are utilizing is switching to interest-only, principal-
deferred payment plans in the short term.
5. See your accountant. Before you proceed with any partial or
full liquidation, find out the potential tax implications of doing
so.
6. Seek financial and/or mental health counseling resources if
needed. There is no shame in seeking counsel, whether formally
or informally. Sometimes just a conversation with a trusted, older
mentor can help you keep things in perspective.
Kohl believes that rather than a “V-shaped” rebound, the U.S.
economy will follow a “Nike-swoosh-shaped” recovery, largely
because consumers will not instantly get back on their feet. “But
we don’t know if it will be a ‘size 6’ or ‘size 14’ shoe! We are
looking at 30 to 40 million unemployed people, plus a large
percentage of others whose incomes will be reduced,” he shared.
“They will be pulling in their horns and going back to the basics
for quite a while.”
A huge element of that scenario is the restaurant and food
service trade. The dramatic impact on the dairy business created
by restaurant and institutional closures will not heal overnight.
About 60% of U.S. butter and 50% of cheese is consumed away
continued on page 19 →

May - June 2020 • KDDC • Page 16
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Byproduct Feeding
Tom Hastings - Burkmann Nutrition
L
ike most of you I thought I had lived through a lot
during my lifetime but as we have discovered things
can always change. A few short months ago we were
discussing the prospect of improved dairy markets amid
one of the most prosperous economies the country has
ever known. Then the world changed.
A month ago when I was asked to write this article the
purpose was to offer nutritional and economic alternatives to
widely used dried distillers grains. For a short period of time it
looked like distillers grains may reach record prices or may have
limited availability. Kentucky is home to the country’s largest
Bourbon production industry, the distillers grain byproducts
from this industry are high in protein and energy. It is also very
palatable to dairy cattle and replacement heifers. Over the years
it has become an important component of what Kentucky farm
families feed their dairy cattle. Over the past two decades the
ethanol industry has also grown and increased the availability of
fermented dried grains to the nations livestock feed industry.
As Covid 19 moved the country into lockdown and overall
demand for petroleum began to slow, the Russians and the
Saudis were engaged in what seemed to be a battle for crude oil
market share. The Russians refused to slow production to help
stabilize falling oil futures and the April crude futures contract
fell from a high in December 2019 of over $60.00 a barrel into
negative territory. Ethanol had no method of competing with
these historically low crude oil prices and by some accounts
as much as half of the industries production capacity was shut
down. The price of ethanol distillers grain did rise as much as
much as $50.00 per ton and we saw a short-term spike in our
Kentucky distilling byproducts also. Thankfully, the rise was
short lived and as demand slowed with spring grass availability
and production slowdowns from other livestock segments. The
market quickly returned to its previous price levels.
Even though this market did correct itself with the same speed
that all of our lives changed it is still worth a few words about
formulation value of these important byproducts. Had dried
distillers grains stayed up $50.00 per ton there would have been
economic impact to our dairy farmers. In this scenario lets
assume the farmer is feeding 4 pounds of dried distillers per head
per day. The increased cost is about ten cents per head per day.
Every penny matters but we need to use a high level of caution
at this price point, a loss of even 1 pound of milk production
per head per day could cost more than the increase in distillers
grain. In the nutrition business trained professionals review a
long list of mission critical nutrients to ensure the highest level
of milk production for the lowest possible investment. We refer
to this as ration optimization. This process isolates the nutrient
targets and utilizes all available combinations of ingredients to
achieve the desired outcome. Experienced nutritionists know
there are limits to this process, the old saying the cows can’t eat
the paper is very true but farmers and nutritionists alike should
always be looking for best possible economic solution for their
on-farm nutrition needs. Combinations of other byproducts with
high levels of rumen undegradable protein are available and the
critical nutrients can be met if price pressures get too high. I
would encourage all dairy farmers to consult with a nutrition
professional on a regular basis for the purposes of maximizing
milk production, milk components and providing the highest
level of nutrition at the best possible cost.
The Kentucky distilling industry and the byproducts it creates
are valuable to all Kentucky livestock producers. We need
to utilize these products whenever possible and hope that we
never again face the discussion of price increases for the reason
we have of the last few months. All the best to our valuable
Kentucky Farm Families.
Heat, Humidity, and Dairy Cattle Reproduction
George Heersche, Jr., PhD - University of Kentucky
D
airy cattle reproductive performance suffers when
cows are stressed by heat and humidity. The
two largest impacts of heat-humidity stress are
decreased estrus detection efficiency and increased
embryo loss. Cows are not as active when they are hot
which makes it harder for us to catch them in standing
heat. Heat-humidity stress does not decrease the rate
of fertilization after cows are inseminated. However,
heat-humidity stress has a large negative impact on
development of the embryo during the first few days after
fertilization.
Keeping cows as cool as possible in the summer will put more
milk in the tank and result in fewer trips to the semen tank.
We should use shade, water and ventilation to cool cows at the
feed bunk and in the holding pen, and use shade and ventilation
to cool cows where they rest. Providing plenty of cool fresh
drinking water 24/7 is mandatory. We also should avoid
overcrowding cows and make sure shade, water and feed are
in close proximity so cows can get to all three with a minimum
amount of effort. Also, work with your nutritionist to make the
appropriate adjustments in the ration during hot weather.
Using natural service is not the solution to the summer fertility
problem because bulls are also subject to heat stress. They are
less active and have lower quality semen when they are hot. To
add insult to injury exposure of temperatures over 85 degrees for
two or three days can significantly reduce semen quality for the
following four to five weeks.

May - June 2020 • KDDC • Page 17
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
T
he way the public and the media perceive animal
agriculture’s environmental impact can, and should,
change. New research from Oxford University and the
University of California, Davis have recently debunked some
of the most critical and long-standing myths surrounding
animal agriculture. But can this breakthrough overcome
animal agriculture’s bad reputation?
The current narrative about animal agriculture says that
ruminant livestock animals (e.g., beef cattle, dairy cattle, etc.)
produce methane. Methane is a potent greenhouse gas. Thus,
animal agriculture is bad for the environment.
During a keynote presentation for the Alltech ONE Virtual
Experience, Dr. Frank Mitloehner, professor at the University of
California, Davis and air quality specialist, boldly proclaimed a
path for animal agriculture to become climate-neutral.
Yes, “you heard me right — climate-neutral,” said Dr.
Mitloehner. He said he would like to, “get us to a place
where we have the impacts of animal agriculture that are not
detrimental to our climate.”
Myth #1: Methane (the most common greenhouse gas, or
GHG, in animal agriculture) acts just like other GHGs in the
environment.
Fact: The three main greenhouse gases, carbon dioxide,
methane and nitrous oxide, all impact the environment in
critically different ways, especially as it relates to their source,
life span in the atmosphere and global warming potential.
Carbon dioxide and nitrous oxide are known as “stock gases.”
Stock gases are long-lived gases and once emitted will continue
to build up in the atmosphere. Carbon dioxide, for example,
has an estimated lifespan in the atmosphere of 1,000 years,
meaning carbon dioxide emitted from the year 1020 may still be
in the atmosphere today. Methane, on the other hand, is a “flow
gas.” Flow gases are short-lived gases and are removed from
the atmosphere at a more rapid pace. Methane’s lifespan in the
atmosphere is approximately 10 years. This means a flow gas
like methane would impact the environment for a duration that is
nearly 100 times shorter than the stock gas carbon dioxide.
What causes these gases in the first place? Carbon dioxide is
created by the burning of fossil fuels. Fossil fuels are used as
the energy source to power most homes, vehicles and industry
globally. As the graph below depicts, Dr. Mitloehner refers to
stock gases like carbon dioxide as a “one-way street” because
they only accumulate in the environment over time due to their
long lifespan.
Methane can be produced in a variety of methods, but most
commonly, it’s produced through the rumination process in beef
and dairy livestock (i.e., belching). As a short-lived flow gas,
“The only time that you really add new additional methane to
the atmosphere with the livestock herd is throughout the first
10 years of its existence or if you increase your herd sizes,”
explained Dr. Mitloehner. Methane levels do not increase if herd
sizes remain constant because methane is being broken down at
the same rate it is being produced.
3 MYTHS DEBUNKED:
Animal agriculture's real impact on the environment
Brian Lawless
Important Greenhouse Gases to Know
Gas Molecular Name Gas Type
Lifespan in the
Atmosphere (Years)
Global Warming
Potential (GWP100)
Carbon Dioxide CO2
Stock 1,000 1
Methane CH4
Flow 10 28
Nitrus Oxide C2
O Stock 110 265
continued on page 18 →
“What I'm saying here by no means (is) that methane
doesn't matter,” he continued. “While that methane is in the
atmosphere, it is heat-trapping, it is a potent greenhouse gas. But
the question really is, do our livestock herds add to additional
methane, meaning additional carbon in the atmosphere, leading
to additional warming? And the answer to that question is no.
As long as we have constant herds or even decreasing herds,
we are not adding additional methane, and hence not additional
warming. And what I just said to you is a total change in the
narrative around livestock.”

May - June 2020 • KDDC • Page 18
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
Alternatively, carbon dioxide is created from extracting fossil
fuels that are millions of years old and are trapped under the
Earth’s surface.
“These long-lived climate pollutants are only emitted,” said
Dr. Mitloehner. “They are put into the atmosphere, but there's no
real sink for it in a major way.”
The image above demonstrates that carbon dioxide and
methane are very different types of gases (stock versus flow) and
have very different lifespans in the environment (1,000 years
versus 10 years), but what about their global warming potential?
Myth #2: The current method for assessing the global
warming potential (GWP100) of greenhouse gases properly
accounts for all important variables.
Fact: The initial method for calculating GWP100
misrepresents the impact of short-lived flow gases, like methane,
on future warming. The new “GWP*” is an improved and more
representative measurement.
The initial GWP100 measures produced by the Kyoto Protocol
nearly 30 years ago marked a very positive step for assessing
global warming. The initial documents included many footnotes
and caveats to account for variability and unknown values.
“But the footnotes were cut off, and people ran with (it),” said
Dr. Mitloehner. “And in my opinion, that was a very dangerous
situation that has really gotten animal agriculture into a lot of
trouble, actually, quite frankly.”
The current GWP100 measurement generates an over-
assessment of methane’s contributions to global warming.
Currently, in short, GWP100 measurements are all standardized
to a billion tonnes of carbon dioxide equivalent. So, all non-
carbon dioxide emissions are converted by multiplying the
amount of the emissions of each gas by its global warming
potential over 100 years value. Methane has a GWP100 value
of 28, meaning it is 28 times more potent than carbon dioxide in
the atmosphere.
Unfortunately, this type of calculation completely omits
the fact that flow gases, like methane, are destroyed after
approximately 10 years and would not continue for the entire
100-year duration as described in the GWP100 formula.
Additionally, it underestimates the impact that stock gases, like
carbon dioxide, would have that persist in the environment for
1,000 years.
Dr. Mitloehner cited Dr. Myles Allen from Oxford University
as the pioneer of a new calculation called “GWP*.” The new
GWP* calculation better accounts for both gas intensity and
gas lifespan in the atmosphere in its measurements of global
warming. This is a new narrative to explain global warming
emissions and, Dr. Mitloehner said, “you will see it will gain
momentum, and it will become the new reality” soon.
Myth #3: To keep up with increasing demand and global
population growth, the United States has continued to increase
its numbers of beef and dairy cattle, thus increase methane
emissions.
Fact: The United States reached peak beef and dairy cattle
numbers in the 1970s and has reduced its number of animals
every decade since, resulting in 50 million fewer cattle in total.
Over the last half-century, the United States has made
tremendous progress to improve efficiency and increase
productivity while also reducing total beef and dairy cattle
numbers. For example, in 1950, the U.S. dairy cow herd peaked
at 25 million cattle. Today, the dairy herd is approximately 9

May - June 2020 • KDDC • Page 19
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
million cows, yet it is producing 60% more milk — that’s
significantly more milk with 14 million fewer cows!
Though cattle numbers have continued to increase in countries
such as India and China, this means the United States has
not increased methane output — thus not increasing GHG
contributions from livestock — over the last five decades.
So, what does all this mean?
Animal agriculture, unlike any other sector, can not only
reduce its GHG output, but can also create a net cooling effect
on the atmosphere (i.e., actively reduce global warming).
The three scenarios shown below demonstrate the important
differences between carbon dioxide and methane, and their
ability to generate global cooling. With rising emissions,
warming carbon dioxide increases at a growing rate, while
methane also increases. With constant emissions, warming from
carbon dioxide continues to increase while methane no longer
contributes to additional warming.
“But now, the thing that really excites me, and that's the
third scenario,” said Dr. Mitloehner. “So, imagine this scenario
here, where we decrease methane by 35%. If we do so, then
we actively take carbon out of the atmosphere. And that has a
net cooling effect. If we find ways to reduce methane, then we
counteract other sectors of societies that do contribute ― and
significantly so ― to global warming, such as flying, driving,
running air conditioners and so on.”
Examples of Dr. Mitloehner’s 35% reduction scenario have
proven to be possible. Over the last five years alone, California
has reduced methane emissions by 25% via a combination of
improved efficiency and incentives for anaerobic digesters,
alternative manure management practices and other technologies.
Though the narrative on animal agriculture has been negative
on climate change, there is now increasing hope and new data to
debunk even the most long-standing criticisms.
Dr. Mitloehner concluded, “because I know if we can do
it here (in California), it can be done in other parts of the
country and in other parts of the world. If we indeed achieve
such reductions of greenhouse gas, particularly of short-lived
greenhouse gases such as methane, then that means that our
livestock sector will be on a path for climate neutrality.”
from home, and some economists predict 10 to 15% of U.S.
restaurants will not re-open when the rest of the economy
does.
Other elements of great concern to Kohl going forward are:
• The possibility that other countries will take
out our energy complex, undermining America’s energy
independence.
• Further consolidation in the economy, with big
companies gaining even more control.
• Knee-jerk reactions in agriculture resulting in falling
land prices and the return of an “80’s-like” farm crisis.
For now, Kohl advises managing the things you can
control, and managing around those you can’t. “Re-evaluate
your personal and business goals, and think about how you
will reinvent yourself and create your own ‘phoenix,’” he
suggested. “Also, avoid listening to the media as much as
possible.”
Kohl said this also is an important time to take stock in
business, family and personal, as well as mental, physical and
spiritual, blessings. “Never equate your self-worth to your net
worth,” he advised.
Reprinted with permission Dairy Herd Management June 2020
continued from page 15

May - June 2020 • KDDC • Page 20
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
R
isk is inherent in most agricultural ventures, and no one
knows that better than today’s dairy farm families.
But, like most businesses affected by the COVID-19
outbreak, dairy farms are taking a strong hit from an economic
perspective in an already tough market environment.
And while there may not be any easy answers for the many
issues dairy farmers face, there are ways they can proactively
manage their risk.
American Farm Bureau Federation’s chief economist Dr. John
Newton said it is always good to be prepared for the unexpected
from an insurance perspective, even when the unexpected is
nowhere in sight.
“When we look at the dairy industry, at the end of 2019, we
saw some of the highest prices that we'd seen in some time, but
we can't let that lull us into a false sense of security,” he said.
“We need to protect against potential downturns, and there are a
variety of programs available to help producers manage that risk
through the farm bill.”
According to information from the USDA’s Economic
Research Service, U.S. dairy cash receipts were forecast to be
nearly $42.5 billion this year. If those calculations had proved
to be correct, it would have represented a more than $7 billion
increase over 2018 numbers. Unfortunately, the unexpected
happened; the coronavirus hit, markets closed, and prices
declined, creating the perfect storm to justify the need for risk
management tools.
A couple of those tools include the USDA’s Dairy Margin
Coverage (DMC) and Dairy Revenue Protection (DRP)
programs.
“We saw some producers putting insurance in place through
these two programs into 2020, and at that time you didn't think
you'd need it, but you got it just in case,” said Newton. “Now, in
the face of significant price declines related to the coronavirus,
those producers who were proactive and managed their risks are
going to have an easier time weathering the downturn.”
Statistical information included in a recent report from AFBF
noted that current price expectations (at the time the report was
written) indicated that a farmer covering five million pounds of
milk, and covering milk at the maximum $9.50 coverage option,
could receive nearly $100,000 during 2020. The challenge is that
very little milk – only 28 billion pounds – was enrolled in DMC
at the maximum protection level. As a result, few producers will
actually receive this safety net protection.
A recent study by the University of Minnesota, “Impact of
COVID-19 on Dairy Margin Coverage and Dairy Revenue
Protection Projected Indemnities in 2020,” estimated that as of
April 2, “DRP was likely to make nearly double the indemnity
payments to dairy farmers than USDA’s DMC program would.
DRP was projected to pay more than $900 million to dairy
farmers, and DMC was expected to make payments totaling
nearly $500 million.”
One key difference between the two programs is that DMC
has a yearly opportunity to sign up while DRP is sold every
day, according to Newton. New prices are posted every day,
and because milk prices have seen some recent increases, he
said now's the time to grab that insurance and protect against a
potential downturn later in the year.
“For our crop producers out there, insurance is a key
component of their business, and it's slowly being adopted by the
dairy industry,” said Newton. “But we finally have something
that I would consider to be one of the best insurance tools ever
delivered for the dairy industry, and now's the time to use it.”
The Importance of Revenue Protection for Dairy Farms
COVID-19 proved to be an eye-opener for many dairy producers
Kentucky Farm Bureau
Comprehensive Nutrient Management Plans (CNMPs). Livestock manure management and water
quality BMPs. Ky Division of Water permitting and compliance. Ben Koostra - Professional
Engineer and NRCS Technical Service Provider - Lexington - 859-559-4662
To place a classified ad, contact any of the KDDC Dairy Conultants or Carey Brown at (859) 948-1256
ClassifiedAds

May - June 2020 • KDDC • Page 21
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
T
o assist with the massive number of people in need of
basic nutrition during the COVID-19 crises, members
of Southland Dairy Farmers have pitched in to help
their local communities through donations of fluid milk and
monetary contributions, including Agape Food Bank and
Good Samaritan Food Bank in Kentucky.
Southland Dairy Farmers and its affiliate Southwest Dairy
Farmers to date have provided over $25,000 in assistance to
fifteen different food banks in six states.
Southland Dairy Farmers is a USDA-qualified program
that supports local dairy farmer members across the southeast
through initiatives that educate consumers about dairy products,
nutrition, and the dairy process. Dairy farmers support the
program through the USDA’s mandatory check-off assessment.
“Our mission at Southland Dairy Farmers is to provide support
to our local dairy farm families and their operations,” said Jim
Hill, CEO of the promotion and education group. “When the
COVID-19 pandemic hit our markets, our dairy farm members
made it very clear that they wanted funding to be allocated to
programs that helped those most in need.” Hill added, “When we
were looking at COVID-19 related programs to help, it became
apparent that local food banks were in dire need, and it also
appeared that their situation would become worse. So, all our
budgeted funds for this effort went to local food banks, those
that rely solely on donations and private funding. It just made
sense – local dairy farmers helping local food banks in their own
communities and states.”
The list of organizations benefitting from the Southland and
Southwest Dairy Farmers’ efforts includes: Emmaus House
(Garden City, KS); Friendship Feast Association of Dodge City
(Dodge City, KS); God’s Storehouse (Danville, KY); Agape
and Good Samaritan (Russellville, KY); The Kitchen and Life
360 (Springfield, MO); FeedNC (Mooresville, NC); Fifth Street
Ministries (Statesville, NC); 4 Kids and Community (Perkins,
OK); Food on the Move (Tulsa, OK); Food Bank of West Central
Texas (Abilene, TX); High Plains Neighbors Feeding Neighbors
(Amarillo, TX); Forney School District (Forney, TX); Hereford
Food Pantry (Hereford, TX); Hill Country Daily Bread (Boerne,
TX); Hopkins County Coronavirus Community Response
(Sulphur Springs, TX); and God’s Storehouse (Danville, VA).
“Through the hard work of our employees from the Southland
and Southwest Dairy Farmers, and all of our dairy farm
members, we know we have helped – and will continue to help –
a significant number of people,” added Amanda Phelps, Director
of Community Outreach for the dairy group. “And that is really
what we’re all about. People in these communities know they
can count on their local dairy farmers in both good times and
bad."
About Southland and Southwest Dairy Farmers
The Southland Dairy Farmers and Southwest Dairy Farmers
are an alliance of dairy farmers from Kentucky, Virginia, and
North Carolina, as well as Texas, New Mexico, Arizona, Kansas,
Missouri, and Oklahoma. Member dairy producers pool their
resources to provide consumer education programs
in dairy nutrition, to promote dairy product use, and provide
dairy product information. All initiatives of the Southwest and
Southland Dairy Farmer are directed by the members.”
About Southland and Southwest Dairy Farmers
The Southland Dairy Farmers and Southwest Dairy Farmers
are an alliance of dairy farmers from Kentucky, Virginia, and
North Carolina, as well as Texas, New Mexico, Arizona, Kansas,
Missouri, and Oklahoma. Member dairy producers pool their
resources to provide consumer education programs
in dairy nutrition, to promote dairy product use, and provide
dairy product information. All initiatives of the Southwest and
Southland Dairy Farmer are directed by the members.
Dairy Farmers Assist Kentucky Food Banks
Southland Dairy Farmers Lend a Hand During Pandemic

May - June 2020 • KDDC • Page 22
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
D
espite the remainder of time at school this year
being cut short due to COVID-19, school nutrition
professionals continue their commitment to serving
nutritious meals to their students. The Dairy Alliance is
helping fulfill this commitment.
The Dairy Alliance is awarding Special Alternative Feeding
Grants to schools within its 8-state coverage to fund equipment
to safely distribute milk with student meals. These can be used
with GENYOUth’s COVID-19 Emergency School Nutrition
Fund, assisting schools nationwide in providing school meals
containing essential nutrition to students during the Coronavirus
pandemic, funding up to $3,000 in grants per feeding site.
By April 30, The Dairy Alliance and GENYOUth had awarded
Special Alternative Feeding Grants totaling $35,600 to 12
districts across Kentucky, with these special grants providing
funding for coolers and other equipment at 216 school sites. This
equipment allows school districts to continue feeding during
COVID-19 school closures into the summer months, with the
ability to be used during future school years.
These grants are helping school districts throughout the state.
The Dairy Alliance awarded districts like Mercer County Schools
grants to provide coolers for aid in safely transporting meals to
students throughout the county, each meal being served with
a cold milk. Barren County Schools also received a grant for
safely distributing meals served with milk to the 81% of students
the district continues to provide meals to during the closure.
These schools continue to support their students when they
have needed resources. Serving over 20,000 meals a week in
April, Henry County Schools is making a huge impact in its
community through its new grant-funded coolers. So is Jefferson
County Public Schools, who served over 12,000 students a day
by the end of April. And Bowling Green Independent School
District is using their buses and grant coolers to not only serve
nutritious meals with milk, but also provide a gallon of milk to
each student for the week.
These and other school systems are demonstrating their
enduring support to their communities even after school ends.
Supporting this dedication, The Dairy Alliance continues to
encourage meals served with milk through Special Alternative
Feeding Grants so that equipment can contribute to nutritious
meals now and in the future.
Serving Milk Through Special Alternative Feeding Grants

May - June 2020 • KDDC • Page 23
KDDC is supported in part by a grant from the Kentucky Agricultural Development Fund
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Bluegrass Dairy & Food
Burkmann Feeds
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Shaker Equipment Sales
Southland Dairy Farmers/Southwest
Dairy Museum
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Dairy Farmers of America ME
Farm Credit Mid-America
Givens and Houchens Trucking
Mid-South Dairy Records
Select Sires Mid America
Todd County Animal Clinic
Trenton Farm Supply
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Advanced Comfort
Grain Processing Corp.
KVMA
Luttrull Feeds
Prairie Farms
Owen Transport
RSI Calf Systems
South Central Bank
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Central Farmers Supply
Double “S” Liquid Feed
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Limestone & Cooper
Maryland & Virginia Milk Producers
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Liberty District Dairy Show, Casey County Co.
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JUL 02-03
Kentucky Jr. Livestock Expo. East, Morehead.
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JUL 17
Harrodsburg 4-H District Show, Mercer Co.
Fairgrounds, 9:30 E.T.
JUL 24
KDDC Board Meeting, Taylor County extension
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AUG 20-30 Kentucky State Fair, KFEC, Louisville, KY
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Kentucky Milk Conference, Lake Barkley State
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