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Large Dairy Development in Large Dairy Development in the Midwest the Midwest Vreba-Hoff Dairy Development, LLC Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway Cecilia C.M. Conway 2006 National Association of County 2006 National Association of County Agricultural Agents Annual Meeting & Agricultural Agents Annual Meeting & Professional Improvement Conference Professional Improvement Conference July 24, 2006 July 24, 2006
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Page 1: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Large Dairy Development in the Large Dairy Development in the MidwestMidwest

Vreba-Hoff Dairy Development, LLCVreba-Hoff Dairy Development, LLCCecilia C.M. ConwayCecilia C.M. Conway

2006 National Association of County 2006 National Association of County Agricultural Agents Annual Meeting & Agricultural Agents Annual Meeting & Professional Improvement ConferenceProfessional Improvement Conference

July 24, 2006July 24, 2006

Page 2: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

AgendaAgenda Introduction to the Vreba-Hoff CompaniesIntroduction to the Vreba-Hoff Companies Market Trends – European & US Dairy Market Trends – European & US Dairy

IndustriesIndustries The Vreba-Hoff Project ModelThe Vreba-Hoff Project Model Siting\Permitting\Licensing RequirementsSiting\Permitting\Licensing Requirements Farm InnovationsFarm Innovations Dairy Development Positives & Dairy Development Positives &

ChallengesChallenges Working with State Extension AgenciesWorking with State Extension Agencies QuestionsQuestions

Page 3: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

IntroductionIntroductionVreba-Hoff DairiesVreba-Hoff Dairies

In 1997, the Van Bakel and In 1997, the Van Bakel and Vander Hoff families Vander Hoff families partnered to build a 3,000 partnered to build a 3,000 cow dairy facility in cow dairy facility in Hudson, Michigan Hudson, Michigan

In 2000 the second 3,000 In 2000 the second 3,000 cow facility began cow facility began operationoperation

Interest from Uncle opened Interest from Uncle opened

development opportunities development opportunities for other farm familiesfor other farm families

Page 4: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

IntroductionIntroduction

Vreba-Hoff Dairy Development LLCVreba-Hoff Dairy Development LLC– Established in 1998Established in 1998– Private, family-owned FirmPrivate, family-owned Firm– Located in Wauseon, OhioLocated in Wauseon, Ohio– Assist European & American families Assist European & American families

relocate or expand their dairy relocate or expand their dairy businessesbusinesses

Page 5: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

IntroductionIntroduction Vreba-Hoff Dairy Development assists Vreba-Hoff Dairy Development assists

with:with:

– Sale of Real Estate Overseas Sale of Real Estate Overseas (through sister (through sister company)company)

– Identification of Possible Project SitesIdentification of Possible Project Sites– Recruitment of Project FinancingRecruitment of Project Financing– Application of Necessary PermitsApplication of Necessary Permits– Coordination of Project ConstructionCoordination of Project Construction– Coordination of Family Re-settlementCoordination of Family Re-settlement

Page 6: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

IntroductionIntroduction

Since 1998 Vreba-Hoff has developed:Since 1998 Vreba-Hoff has developed:

– 2 Vreba-Hoff Owned facilities in Michigan2 Vreba-Hoff Owned facilities in Michigan– 7 Other facilities in Michigan7 Other facilities in Michigan– 12 facilities in Indiana12 facilities in Indiana– 25 facilities in Ohio25 facilities in Ohio– 23 facilities under construction or 23 facilities under construction or

developmentdevelopment Total 62 new dairy projectsTotal 62 new dairy projects Equals over 70,000 cowsEquals over 70,000 cows

Page 7: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Michigan

One New Project Under Development in Thumb Area

Page 8: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

•BlueBlue = 13 Dairies Under Development

•Green =12 Dairies Operating

Indiana

Page 9: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

•BlueBlue = 9 Dairies Under Development

•Green =25 Dairies Operating

Ohio

Page 10: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

IntroductionIntroduction

Why Focus on the MidwestWhy Focus on the Midwest

Temperate ClimateTemperate Climate

Large grain production provides Large grain production provides a consistent supply of forages a consistent supply of forages and opportunities to partner and opportunities to partner with growerswith growers

Good Infrastructure to move Good Infrastructure to move crops and milk crops and milk

DFA re-opens Adrian, Mich. dairy

processing plant

March 2006

Page 11: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

IntroductionIntroduction

Why Focus on the Why Focus on the MidwestMidwest

Good access to medical, Good access to medical, educational and social educational and social centers for the dairy centers for the dairy producers and their producers and their familiesfamilies

Over 70% of population Over 70% of population within 24 hours transport; within 24 hours transport; providing a strong and providing a strong and accessible market for milk accessible market for milk salessales

Page 12: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Market Trends - European Dairy Market Trends - European Dairy IndustryIndustry

Why Are Why Are Dutch/Dutch/

European European Farmers Farmers Desiring to Desiring to Relocate Relocate their Dairy their Dairy BusinesseBusinesses?s?

Page 13: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.
Page 14: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Dairy Farming Dairy Farming in The in The

NetherlandsNetherlands

Country Country – Small Land AreaSmall Land Area

Ohio is 2.5 times Ohio is 2.5 times larger than NLlarger than NL

– High PopulationHigh Population Population is 16 Population is 16

millionmillion Ohio’s Ohio’s

population is population is approximately approximately 70% of NL70% of NL

Page 15: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Dairy Farming Dairy Farming in The Netherlandsin The Netherlands

Market ConditionsMarket Conditions– Constant pressure to take agricultural Constant pressure to take agricultural

land out of production for housing or land out of production for housing or industryindustry

Price of Land in 2004 was $16,000/acrePrice of Land in 2004 was $16,000/acre

– Milk Production Limited by Quota SystemMilk Production Limited by Quota System

– Value of Milk Production Rights continues to Value of Milk Production Rights continues to increaseincrease

Current Milk Quota cost is $25,527 per cowCurrent Milk Quota cost is $25,527 per cow

Page 16: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Dairy FarmingDairy Farmingin The Netherlandsin The Netherlands

Future OutlookFuture Outlook

– Expansion is cost Expansion is cost prohibitiveprohibitive

The cost to add one cow The cost to add one cow to an operation is about to an operation is about $41,000$41,000

– Number of Farms to Number of Farms to DeclineDecline

Currently there remain Currently there remain 22,000 dairies left with 22,000 dairies left with about 4,500 evaluating about 4,500 evaluating the relocation of their the relocation of their businessbusiness

Page 17: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Market Trends -Market Trends -United States United States Dairy IndustryDairy Industry

Page 18: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

There are 66,830 U.S. dairy farms.-Hoard’s March 2005

Page 19: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

- 90% of farms are less than 200 cows

- Average age of a farmer is approx. 58 years old

- No successor available

Page 20: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

• The only dairy farm size growing is 500 cows+

• 60% of the cows are on farms with 200+ cows

Page 21: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Dairy Industry Trends

(source: Monsanto)

Dairy Expansion Areas

Page 22: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Market TrendsMarket Trends

0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

1978 2004

HenryFultonPutnamWoodSandusky

Livestock Population by County – Milk Cows, Heifers & CattleSource: Ohio Dept. of Agriculture

•New Dairies New Dairies are bringing are bringing cattle back to cattle back to areas which areas which previously previously held much held much larger larger livestock livestock numbers numbers

Page 23: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Market Trends - OhioMarket Trends - Ohio Market Conditions - OhioMarket Conditions - Ohio

– Milk deficit state and imports milk from other statesMilk deficit state and imports milk from other states– Significant decrease in Ohio cows numbers: Significant decrease in Ohio cows numbers:

892,000 cows892,000 cows in 1956in 1956

266,000 cows266,000 cows in 2005in 2005

– Dairy receipts represents 1/3 of the total value of Dairy receipts represents 1/3 of the total value of animal agriculture in Ohioanimal agriculture in Ohio

– Ohio boasts 94 processing and receiving plantsOhio boasts 94 processing and receiving plants

Page 24: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Market Trends - IndianaMarket Trends - Indiana Market ConditionsMarket Conditions

– Significant decrease in Indiana cows numbers: Significant decrease in Indiana cows numbers:

140,488 cows 140,488 cows in 1978in 1978

136,000 cows136,000 cows in 1999in 1999

150,000 cows150,000 cows in 2004in 2004

– State Dairy receipts equal $230 million dollarsState Dairy receipts equal $230 million dollars

– Indiana Ranks 2Indiana Ranks 2ndnd nationally in ice cream production nationally in ice cream production

Page 25: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Market Trends – United Market Trends – United States Dairy IndustryStates Dairy Industry

Market ConditionsMarket Conditions– Overall number of dairies decreasingOverall number of dairies decreasing– Trend toward larger dairies provide Trend toward larger dairies provide

owner more labor flexibility and owner more labor flexibility and economies of scaleeconomies of scale

– Increasing milk production per cow Increasing milk production per cow due to breeding methods such as due to breeding methods such as artificial insemination and improved artificial insemination and improved feed rationsfeed rations

Page 26: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Market TrendsMarket Trends

Market ConditionsMarket Conditions– Production in volume helps maintain Production in volume helps maintain

profitability during peaks and valleys profitability during peaks and valleys of milk market priceof milk market price

Page 27: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

The Vreba-Hoff ModelThe Vreba-Hoff Model

Page 28: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

The Vreba-Hoff ModelThe Vreba-Hoff Model

Farm Designed to Promote Milk Farm Designed to Promote Milk Production & Cow ComfortProduction & Cow Comfort

Focus: Farm Management Focus: Farm Management Minimize Real Estate InvestmentMinimize Real Estate Investment Partner with Local Crop GrowersPartner with Local Crop Growers

Page 29: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Farm DesignFarm Design

Page 30: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Farm Design – the Farm Design – the complexcomplex

Parlor and Freestalls in “H” design Parlor and Freestalls in “H” design to move cows efficientlyto move cows efficiently

Side Settling Basins to collect SandSide Settling Basins to collect Sand Concrete or earthen Lagoon Concrete or earthen Lagoon

structures to hold 12 months structures to hold 12 months storagestorage

Bunker area arranged to efficiently Bunker area arranged to efficiently handle feed storagehandle feed storage

Page 31: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Farm Design – Milk Farm Design – Milk ProductionProduction

Parlor Designed for Parlor Designed for EfficiencyEfficiency

Natural lighting Natural lighting benefits staff and benefits staff and animal herdanimal herd

State of the art State of the art technology for technology for monitoring dairy herd monitoring dairy herd productionproduction

Each cow is milked 3 Each cow is milked 3 times per daytimes per day

Page 32: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.
Page 33: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Farm Design -Freestall BarnFarm Design -Freestall Barn

•Barn Design promotes Barn Design promotes cow comfortcow comfort

•Feed can be accessed Feed can be accessed at all timesat all times

•Adjustable side curtains Adjustable side curtains to promote ventilationto promote ventilation

•Fans are utilized to cool Fans are utilized to cool in summerin summer

•Sand bedding keeps Sand bedding keeps cows cleaner & driercows cleaner & drier

•Easy monitoring of Easy monitoring of cattlecattle

Page 34: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Farm ManagementFarm Management - Focus on herd health, cow comfort resulting in improved production

- Cost management advantages through economies of scale

- Increased attention placed on environmental management

- Good Cow Management directly correlates to a successful dairy operation

Page 35: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Minimize Purchase of Real Minimize Purchase of Real EstateEstate

•Real Estate is minimized to reserve capital for Real Estate is minimized to reserve capital for herd investment and cow friendly facilitiesherd investment and cow friendly facilities

•Approximately 80 acres is required to Approximately 80 acres is required to construct a 2200 cow dairy facilityconstruct a 2200 cow dairy facility

Page 36: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Partnership with Local Partnership with Local FarmersFarmers

Dairy Farmers partner with local crop farmers to produce quality feed for cattle

Page 37: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Partnership with Local Partnership with Local FarmersFarmers

Manure is a natural fertilizer

Local Crop Growers reduce reliance on commercial fertilizers by using dairy manure

Page 38: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Partnership with Local Partnership with Local FarmersFarmers

Reduction in Costs for Crop FarmersReduction in Costs for Crop Farmers– Growers can sell directly to their local end Growers can sell directly to their local end

user; keep more marketing dollars in their user; keep more marketing dollars in their pocket;pocket;

– Growers can eliminate costs for drying, Growers can eliminate costs for drying, shelling and transporting crops;shelling and transporting crops;

– Growers can gain $120 - $160 per acre Growers can gain $120 - $160 per acre growing corn silagegrowing corn silage

– Growers can reduce costs of chemical Growers can reduce costs of chemical Fertilizer use and gain organic fertilizerFertilizer use and gain organic fertilizer

Page 39: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Funding of DairiesFunding of Dairies

Typical Investment Amount for Typical Investment Amount for 2,200-cow Dairy2,200-cow Dairy

EquipmentEquipment $ 440,000.00$ 440,000.00 Cows @ $2,250/cowCows @ $2,250/cow $4,950,000.00$4,950,000.00 Dairy Bldg. & LandDairy Bldg. & Land $9,000,000.00$9,000,000.00 Operating CapitalOperating Capital $1,100,000.00$1,100,000.00

Total Investment Total Investment $15,490,000.00$15,490,000.00

Investment per cowInvestment per cow $ 7,040.00$ 7,040.00

Page 40: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

New Project Siting & New Project Siting & PermittingPermitting

Page 41: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

New Project Siting CriteriaNew Project Siting Criteria 80 acres relatively flat land80 acres relatively flat land Well production of 35+ gallons/minute quality Well production of 35+ gallons/minute quality

waterwater Proximity to residencesProximity to residences Proximity to Three-Phase PowerProximity to Three-Phase Power Proximity to class A roadsProximity to class A roads Land for crop production and manure disposal Land for crop production and manure disposal

adjacent/close proximity to proposed dairy siteadjacent/close proximity to proposed dairy site Contracts established with local crop growersContracts established with local crop growers Setback required from Neighboring homesSetback required from Neighboring homes Clay soils for Lagoon constructionClay soils for Lagoon construction

Page 42: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Siting CriteriaSiting Criteria

Manure Manure Production, Production, Waste Water, Waste Water, and beddingand bedding

30 30 gallons/cow/gallons/cow/

dayday

1.0 – 2.0 1.0 – 2.0 acres/cowacres/cow

1500 – 3000 1500 – 3000 acres acres requiredrequired

Forage Forage RequirementsRequirements(Corn Silage & (Corn Silage & Alfalfa)Alfalfa)

1.0 – 2.0 1.0 – 2.0 acres/cowacres/cow

1500 – 3000 1500 – 3000 acres acres requiredrequired

Sample 1500 Cow Dairy – Feed Production & Sample 1500 Cow Dairy – Feed Production & Manure Disposal Land RequirementsManure Disposal Land Requirements

Page 43: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Site EvaluationSite Evaluation

Once possible site is identifiedOnce possible site is identified– Professional Engineering Firms Professional Engineering Firms

evaluate integrity of Siteevaluate integrity of Site– Identify if Adequate Resources and Identify if Adequate Resources and

isolation is availableisolation is available– Initial ground water and geological Initial ground water and geological

testing is initiatedtesting is initiated

Page 44: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Dairy Farm Permitting Dairy Farm Permitting

State Permits State Permits Cow number triggers requirement for Cow number triggers requirement for

permitpermit– Permit Application IncludesPermit Application Includes

Engineered Plans by a Professional EngineerEngineered Plans by a Professional Engineer Verification of manure disposal fields (Nutrient Verification of manure disposal fields (Nutrient

Management Plans)Management Plans) Emergency Spill Response PlanEmergency Spill Response Plan Notification to adjoining landowners & local Notification to adjoining landowners & local

officials of application submittalofficials of application submittal

Page 45: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Dairy Farm Permitting Dairy Farm Permitting

State Permits (Ohio)State Permits (Ohio)– Siting Setback RequirementsSiting Setback Requirements

1000 ft. from residence to manure 1000 ft. from residence to manure storagestorage

300 ft. from well to manure storage300 ft. from well to manure storage 100 ft. from property lines to manure 100 ft. from property lines to manure

storagestorage 15 feet of low permeable soils from 15 feet of low permeable soils from

bottom of lagoon to aquiferbottom of lagoon to aquifer

Page 46: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Dairy Farm PermittingDairy Farm Permitting

State PermitsState Permits– Dairy Farm Siting requires special Dairy Farm Siting requires special

requirements in areas ofrequirements in areas of Public Water Source Wellhead protection Public Water Source Wellhead protection

areaarea Floodplains & Floodways Floodplains & Floodways WetlandsWetlands Cold water HabitatsCold water Habitats Underground minesUnderground mines

Page 47: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Dairy Farm PermittingDairy Farm Permitting State PermitsState Permits

– Require regular inspectionsRequire regular inspections– Operator must maintain operational records Operator must maintain operational records

and inspection logsand inspection logs– State permitting entity inspects adherence State permitting entity inspects adherence

to permit requirementsto permit requirements LicensingLicensing

– Farms are required to be state licensed to Farms are required to be state licensed to ship Grade A Milkship Grade A Milk

– State Licensing entity inspects farm to State Licensing entity inspects farm to monitor on-farm practicesmonitor on-farm practices

Page 48: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Dairy Farm RegulationDairy Farm Regulation

Federal LawFederal Law– US Clean Water ActUS Clean Water Act

Containment of contaminated Storm WaterContainment of contaminated Storm Water Containment of Silage LeachateContainment of Silage Leachate Containment of Processed WaterContainment of Processed Water Required Operational Storm Water Pollution Required Operational Storm Water Pollution

Prevention Plan Prevention Plan Required Farm Inspections and Record Required Farm Inspections and Record

KeepingKeeping

Page 49: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Dairy Farm RegulationDairy Farm Regulation

Local PermittingLocal Permitting– Indiana allows zoning of agriculture Indiana allows zoning of agriculture

at a local levelat a local level– Ohio and Michigan have right-to-farm Ohio and Michigan have right-to-farm

legislation legislation (Ohio law is currently being challenged)(Ohio law is currently being challenged)

Page 50: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Farm Design InnovationFarm Design Innovation

Page 51: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Farm InnovationFarm Innovation

Current Design Standard = Sufficient ContainmentCurrent Design Standard = Sufficient Containment

12 month Manure storage capacity (including 12 month Manure storage capacity (including 100 year storm event)100 year storm event)

Silage Leachate containmentSilage Leachate containment Contaminated Storm Water ContainmentContaminated Storm Water Containment Operational Storm Water Pollution Prevention Operational Storm Water Pollution Prevention

PlanPlan Clean storm water retention and discharge Clean storm water retention and discharge

planningplanning Comprehensive Nutrient Management PlansComprehensive Nutrient Management Plans

Page 52: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Farm InnovationFarm Innovation

Complex EfficiencyComplex Efficiency– Move toward Carousel Parlor for Move toward Carousel Parlor for

Higher number of cowsHigher number of cows– Arrange Freestalls in “T” design to Arrange Freestalls in “T” design to

Parlor to minimize cow travelParlor to minimize cow travel

Page 53: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Farm InnovationFarm Innovation

Improved Manure ManagementImproved Manure Management– Attempts to reduce volumesAttempts to reduce volumes– Trend Towards Manure TreatmentTrend Towards Manure Treatment

Multiple LagoonsMultiple Lagoons Solids-Liquids SeparationSolids-Liquids Separation

– Encourage recycling of bedding materialEncourage recycling of bedding material Composting/DryingComposting/Drying

Page 54: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Farm InnovationFarm Innovation

Reduce Manure Volume

Cousin’s firm developed improved manure vacuum

-Turns on its own axles

-Allows more flexibility in farm Design/lagoon placement

Page 55: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Farm InnovationFarm Innovation

Getting the manure out of the barnsGetting the manure out of the barns

efficiently and economically.efficiently and economically.

Page 56: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Farm InnovationFarm Innovation

Reduce Manure VolumesReduce Manure Volumes– The Ohio State University Extension The Ohio State University Extension

supported dairy water use study:supported dairy water use study: Water meters were installed throughout Water meters were installed throughout

dairy facilitydairy facility Determined average cow water use was Determined average cow water use was

31.9 gallons per day (includes wash 31.9 gallons per day (includes wash water)water)

– Leading to better evaluation of facility wide Leading to better evaluation of facility wide water usagewater usage

– Trend toward Direct Loading of MilkTrend toward Direct Loading of Milk

Page 57: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Farm InnovationFarm Innovation

Manure Treatment

Recycling Bedding Components

-Sand

-Mechanical

-Non Mechanical

Sand Recycling Lane

Page 58: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Farm InnovationFarm Innovation

Separation of Manure SolidsSeparation of Manure Solids– Vreba-Hoff implemented system in early 06’Vreba-Hoff implemented system in early 06’

Rotary Drum ThickenerRotary Drum Thickener 16 inch screw press16 inch screw press Alum & Polymers added flocculate suspended Alum & Polymers added flocculate suspended

solidssolids Liquid run through Air flotation tankLiquid run through Air flotation tank Compost solids for beddingCompost solids for bedding Irrigate liquids at high speed on growing cropsIrrigate liquids at high speed on growing crops

Page 59: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Farm InnovationFarm Innovation

Manure TreatmentManure Treatment– Earthmentor System –(Earthmentor System –(patent pending patent pending

system developed by Ag Consultant Tom Menke)system developed by Ag Consultant Tom Menke) Mechanical Solid Separation (sand & Mechanical Solid Separation (sand &

manure)manure) Multi-lagoon system for waste treatmentMulti-lagoon system for waste treatment

Page 60: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

CENTER PIVOTrecycled water STORAGE IRRIGATION

to sand separator LAGOONSYSTEM ~ 200 acres

2nd STAGE 18.5 million gallons annually

70% of volume ~ 3"/acre

irrigation water

as needed from pond

ANAEROBIC STORMWATER

TREATMENT

LAGOON POND

1st STAGE

15% of manure Juice

volume as slurry SETTLING receptor

(~3 million gallons) BASIN 2

FEED

15% of manure SETTLING SLABvolume as separated MANURE BASIN 1

solids (~ 12,400 tons) SOLIDS commodity shed

sand

wastewater from milking center manure from barns

Earthmentor® System

Example Layout

Page 61: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Earthmentor® SystemEarthmentor® System

SummarySummary – – Advantage to DairyAdvantage to Dairy• 2.5 2.5 reduction in annual application acres reduction in annual application acres• Positive economics: manure handling costs Positive economics: manure handling costs

reduced by >50% reduced by >50% • All manure is treated and precisely appliedAll manure is treated and precisely applied• Minimizes environmental risks and farm Minimizes environmental risks and farm

nuisance potentialnuisance potential• Window of application opportunity for manure Window of application opportunity for manure

applications extendedapplications extended

Page 62: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Farm InnovationFarm Innovation

Manure TreatmentManure Treatment– Methane DigestersMethane Digesters

Cost of systems still significantCost of systems still significant Does not eliminate by-product to haulDoes not eliminate by-product to haul Energy suppliers not reimbursing fair rate Energy suppliers not reimbursing fair rate

for energy for energy (dependent on state)(dependent on state)

Page 63: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Farm InnovationFarm Innovation

Manure Treatment – What We KnowManure Treatment – What We Know

– Complete Treatment is too expensive Complete Treatment is too expensive – Partial Treatment stabilizes manure to Partial Treatment stabilizes manure to

reduce odor, solids and nutrient contentreduce odor, solids and nutrient content– Most systems are high in management, Most systems are high in management,

labor, and cost with little economic returnlabor, and cost with little economic return

Page 64: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Farm InnovationFarm Innovation

Manure Treatment – What We Manure Treatment – What We Need to Keep ResearchingNeed to Keep Researching

– How to economically remove and How to economically remove and concentrate nutrients from manure concentrate nutrients from manure for use as soil amendments for use as soil amendments

Page 65: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Dairy Development Positives Dairy Development Positives & Challenges& Challenges

Page 66: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Dairy Development Dairy Development PositivesPositives

Farm Land PreservationFarm Land Preservation– New Farm development keeps local New Farm development keeps local

land in crop productionland in crop production– 2000 cow dairy keeps 2000 acres of 2000 cow dairy keeps 2000 acres of

land as green spaceland as green space

Page 67: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Positives of Partnering with Positives of Partnering with LivestockLivestock

Economic BenefitsEconomic Benefits Dairy Farms create demand for local production crops which Dairy Farms create demand for local production crops which

yields higher profits per acre locallyyields higher profits per acre locally

Each 600 cow farm contributes approximately 3 million dollars Each 600 cow farm contributes approximately 3 million dollars annually to the local economyannually to the local economy

Each job created at the dairy creates 2.25 jobs in other sectors Each job created at the dairy creates 2.25 jobs in other sectors of the industryof the industry

A dollar increase in livestock and poultry production creates A dollar increase in livestock and poultry production creates $1.32 to $1.64 in economic activity $1.32 to $1.64 in economic activity

One farm supports approximately 100 Ohio businesses One farm supports approximately 100 Ohio businesses

(Source: The Ohio State University Extension & Ohio Livestock Coalition)(Source: The Ohio State University Extension & Ohio Livestock Coalition)

Page 68: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Dairy Development Dairy Development PositivesPositives

New Business OpportunitiesNew Business Opportunities– Heifer RaisingHeifer Raising– Feed ProductionFeed Production– Calf RaisingCalf Raising– Custom Manure ApplicatorsCustom Manure Applicators

New Career OpportunitiesNew Career Opportunities– Farm middle managementFarm middle management

Page 69: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Dairy Development Dairy Development PositivesPositives

Addition of new dairy producers Addition of new dairy producers helps maintain infrastructure for helps maintain infrastructure for dairy producers of all sizesdairy producers of all sizes– Dairy ProcessorsDairy Processors– VeterinariansVeterinarians– Milk Equipment SuppliersMilk Equipment Suppliers– Ag Equipment DealersAg Equipment Dealers

Page 70: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Dairy Development Dairy Development ChallengesChallenges

Farmers vs. Residential GrowthFarmers vs. Residential Growth– Family Farms versus “Factory Farms”Family Farms versus “Factory Farms”– Media attention is unbalancedMedia attention is unbalanced– More housing in agricultural areas More housing in agricultural areas

Increased Environmental RegulationIncreased Environmental Regulation– Air EmissionsAir Emissions

Need for Public EducationNeed for Public Education Length of Permit IssuanceLength of Permit Issuance

Page 71: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Working With OSU County Working With OSU County Extension AgentsExtension Agents

Earlier and more contact with local Earlier and more contact with local Extension Offices by VH and new Extension Offices by VH and new farmerfarmer– We welcome any comment and We welcome any comment and

suggestionssuggestions– Site Selection – we welcome Site Selection – we welcome

assistance/suggestionsassistance/suggestions– Encourage questions or voicing Encourage questions or voicing

concernsconcerns

Page 72: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Questions?Questions?

Page 73: Large Dairy Development in the Midwest Vreba-Hoff Dairy Development, LLC Cecilia C.M. Conway 2006 National Association of County Agricultural Agents Annual.

Thank you Thank you

for the opportunity for the opportunity

to speak with you.to speak with you.


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