Given the current economic challenges facing dairy producers, many are finding that “the way we’ve always done things” is not working anymore. Consequently, dairy managers are considering all sorts of opportunities to improve their bottom line. Across the dairy industry, farmers are exploring potential actions ranging from incremental production changes, to developing new markets for milk or calves, to launching entirely new enterprises. Some farms are even contemplating strategies to reduce labor on the farm so that one or more family members can pursue off-farm employment for supplemental income.
There is a big leap from considering options to making a significant change on the farm. During a down cycle, many farmers are preoccupied with immediate cash flow concerns at the expense of financial analysis and planning. This can impair a farm’s decision making processes and limit its ability to act on opportunities that could improve profitability. Various industry stakeholders have recognized a need for education and support around financial analysis and business planning, in order to help dairy farmers improve decision making and chart a course toward long-term farm viability.
In September 2018 our team joined a collaborative effort, led by PRO-DAIRY director Thomas Overton and funded by Chobani, to address this need for dairy producers across the central New York region. This partnership resulted in a workshop titled Blueprint for Change: Navigating Dairy Decision Making, held in four locations during the final week of October 2018. Our South Central NY Dairy and Field Crops Team hosted one of the four sessions at CCE Broome on November 2, which drew seventeen participants plus two PRO-DAIRY representatives, one NY FarmNet representative, and three members of our team.
Mary Kate Wheeler worked collaboratively with Bonnie Collins from CCE Oneida County and Nicole Tommell from the Central NY Dairy, Livestock and Field Crops Team to develop and deliver an interactive presentation. The talk reviewed factors driving change in the dairy industry, then outlined a systematic process for decision making on the farm. Participants broke up into small groups to practice applying the problem-solving process to a real-world example. The presentation ended with a summary of resources available to farmers to support business planning, decision making, farm safety, and mental health.
One such resource is the Dairy Acceleration Program (DAP), which provides funding to support the organization and analysis of farm financial records. Farms may also use DAP funds for strategic business planning to improve farm viability or prepare for a farm business transition. Caroline Potter, DAP program coordinator, attended the session to discuss the DAP program and answer questions from the audience. In addition, Brenda O’Brien, farm family consultant with NY FarmNet, gave a brief presentation on the business and personal resources that FarmNet offers, including counseling on stress management and mental health.
How does a program like Blueprint for Change translate to farm-level impacts? The best indicator that we can measure is the number of farms that, after attending the workshop, have done additional work with members of our team to improve recordkeeping, benchmark financial performance, form an advisory group, or undertake additional business planning. As of February 2019, our team has provided additional education and support to farms from the workshop audience to address the following topics:
- Training on how to use QuickBooks
- Improving farm financial record keeping
- Benchmarking the financial performance of the business
- Forming a Dairy Profit Team
- Applying for funding through the Dairy Acceleration Program
These efforts are ongoing, and will continue to influence the decisions and directions of farms that attended the original Blueprint for Change workshop.