Managing for Dairy Profitability

The Managing for Dairy Profitability program is comprised of a variety of workshops in each of the key areas that dairy managers should emphasize to improve their chances for success:

Evaluating Your Dairy's Financial Performance
Calculating Feed Costs to Manage Cash Flow
Cash Flow Planning #2 - Plan Your Farm's Cash Flow Statement

You may enroll in all of the programs, or choose just the ones that you need to strengthen your skills in a particular area.

Calculating Feed Costs to Manage Cash Flow - Webinar Series

This webinar series is for nutritionists.

December 4, 11, and 18, 2009
Offered online, at no charge.
Time: 11:30 a.m. to 1:30 p.m. EST

Registration deadline is December 1; Call toll-free 888-373-7232 or click on this link to register online. You will receive an agenda, program materials, and training site URL by follow-up email.

Click here for a program flyer.

This is a three-part series, with each session building upon the previous one. Each session will be offered in real-time, via the internet. This series is designed to show nutritionists how they can calculate clients' income over feed cost using the Penn State Income Over Deed Cost Tool, and use this information to help clients create and manage a viable cash flow plan for their dairy.

Participants must have a high-speed internet connection and speakers on their computer in order to see and hear the presentation. A microphone is recommended so participants may ask questions during the training. Participants who don't have a microphone may type in their questions and submit them to the instructors. A conference call via phone will follow each session from 1:30 to 2 p.m. to permit time for additional questions from everyone.

Cash Flow Planning: Plan Your Farm’s Cash Flow Statement (Class #2)

Why is a cash flow plan important?

At the end of each year, producers need to evaluate and benchmark their dairy operations. After identifying strengths and weaknesses, summarizing and benchmarking cost of production, and identifying production opportunities, the producer is ready to plan a cash flow for the coming year that reflects the business climate that is expected that year.

The cash flow provides a guide for both the manager and farm advisors to understand what it takes for the farm to achieve profitable income levels and to experience adequate cash flow.

But developing the cash flow plan is only the first step and, since business conditions constantly change, the producer must review the plan against actual performance on a regular basis in order to make the adjustments needed to achieve or improve on planned outcomes. The process is repeated each year as another business cycle begins.

Please note: Registration is closed for the October 15, October 19, and October 20 workshops. Registration is still open for the January 21 workshop at Carlisle, PA.

January 21 , 2010
Cumberland County Cooperative Extension Office
310 Allen Road, Carlisle, Pa.

Time: 9:30 a.m. to 2:30 p.m.
Fee: $30 per person
Attendance is limited to 20. Laptops with Excel 2007 or 2009 are required. Laptops will be available for an additional charge of $25 per laptop, payable at the workshop. We encourage you to bring your own, if possible.

Click here for a program agenda.

This workshop provides a hands-on opportunity to actually plan a dairy cash flow for your farm for 2010. The tools presented in Class #1 will be used to assemble the data needed to allow producers to accurately prepare a cash flow for their farm.

We suggest that multiple members of the same farm attend, along with a farm advisor who wants to assist in the process. Addressing issues like the need for operating credit, financing capital investments and troubleshooting plans that don’t work well will be included. After calculating the dairy cash flow, producers will learn how to use this information to calculate an Income Over Feed Cost breakeven they can use to monitor financial performance throughout the year. Producers will be asked to bring their data to the workshop to use in the planning process. Some intermediate knowledge of computers helpful.

Evaluating Your Dairy’s Financial Performance

February 10, 2010
Family Traditions Lighthouse Restaurant
4301 Philadelphia Avenue, Chambersburg, Pa.

March 18, 2010
Clinton County Cooperative Extension Office
47 Cooperation Lane, Mill Hall, Pa.

March 19, 2010
Mifflin County Cooperative Extension Office
152 East Market Street, Suite 100, Lewistown, Pa.

March 22, 2010
Jefferson County Cooperative Extension Office
180 Main Street, Brookville, Pa.

Time: 9:30 a.m. to 2:30 p.m.
Fee: $30 per person
Attendance is limited to 20. Laptops with Excel 2003 or 2007 are required. Laptops will be available for an additional charge of $25 per laptop, payable at the workshop. It is encouraged that you bring your own laptop, if possible.

The first step in financial management is to evaluate and benchmark your dairy operation to determine strengths and weaknesses. This includes calculating and benchmarking cost of production and looking at production opportunities for the farm. These workshops will provide the skills to help producers calculate cost of production for their farms and determine areas for further in-depth analysis.

Tools may include the FINAN year-end analysis tool, the Penn State Profitability Assessment (PA) Dairy Tool and PA Dairy Drill-Down tools. Multiple years of historical data provide the information needed to accurately project cash flow and determine the need for adjustments in future plans. Participants will be asked to bring their farm data to the workshops. Some intermediate knowledge of computers would be helpful for this workshop. Need help collecting and summarizing your data? Attend the Dairy Alliance accounting workshops offered this fall and winter.

Program instructors

• Tim Beck, Extension educator
• Mark Douglass, Extension educator
• Virginia Ishler, nutrient management specialist

Program developers

• Tim Beck, Extension educator
• Mark Douglass, Extension educator
• Virginia Ishler, nutrient management specialist
• Andrew Martin, Extension educator