Work on Sustainability

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1 Cost of Manure Application Mark Stephenson Director, Center for Dairy Profitability Work on Sustainability We re closing in on defining what this term means but few are comfortable with a single definition yet. Like so many things, it may be hard to define, but you know it when you see it (or don t see it). Population is growing and there are many challenges to feeding a world population. Right now, its less about adequate calories More about quality of diet more protein Why It Matters United Nations Forecast What we do in the next 10 years will shape Earth and Humanity for the next 100 years 1

2 Why It Matters United Nations Forecast What we do in the next 10 years will shape Earth and Humanity for the next 100 years 2010 FAO Report Keep Drilling Down Supply chain contribution to carbon footprint of fluid milk consumed in the U.S. 2

3 Practices Differ by Region Canola meal Region 5 Dairy Feed Almond hulls Supplement Wheat silage Grain Oat hay Alfalfa haylage Wheat straw DDGS Oat silage Citrus pulp Alfalfa silage Corn Corn gluten Soybean meal Corn germ Barley Hominy Region 1 Dairy Feed Supplement Alfalfa hay Protein mix Alfalfa silage Grain Soybean meal Wheat Grass silage DDGS straw Region 3 Dairy Feed Corn Cottonseed SoyB Supplement Alfalfa silage O Wheat straw Protein mix Soybean Alfalfa hay Canola Alfalfa haylage H meal meal Corn gluten Beet pulp Alfalfa hay Alfalfa haylage Corn Alfalfa silage Whey Barley Cottonseed Wheat mill run Region 4 Dairy Feed Alfalfa haylage Supplement DDGS Alfalfa hay Cottonseed Sorghum silage Molasses Grass hay Canola meal Corn Corn gluten Wheat straw Oat silage Cotton waste Supplement Oat hay Protein mix Hominy Soybean meal Soybean meal Cotton waste Corn DDGS DDGS SoyBeans Grain Grass hay Cottonseed Region 2 Dairy Feed Cottonseed Bermudagrass Rye haylage hay Grass hay Alfalfa haylage Fat Molasses Pulp big mix Triticale silage Soy hulls Alfalfa hay Wheat midds SoyBeans Wheat Grass silage straw Wheat silage Grain Citrus pulp Pasture Alfalfa silage Soy hulls Sorghum silage Where Are The Dairy Cows? Change in Milk Intensity. 3

4 Worst Drought in 1,200 Years? GHG Impacts Differ by Farm Own the Issue Dairy industry has become concerned about GHG Consumers > Retailers > Processors > You Are there best practices with respect to GHG? Much work in this area right now Why would I adopt them? Altruistic nature you saying it s the right thing to do regardless of the cost. Regulations are imposed government saying it s the right thing to do and leveling the playing field. Might be lower or equal cost you saying it s the right thing to do and I might improve my bottom line. 4

5 Cornell Study Recently completed. This project will have comparable results. Compare Wisconsin with New York Descriptive Statistics Average Min Max Average number of cows ,246 Estimated total manure gallons per year 9.6 mil 3.9 mil 16 mil Gallons spread per labor hour 11,308 5,468 26,860 Average distance to fields (one-way miles) Estimated gallons spread per cow per year 11,703 8,979 16,411 Manure equipment investment per cow $264 $138 $442 Analytic Statistics Gallons of manure application capacity in a 10 hour day Manure application capacity in a 10 hour day as a percent of total annual manure Estimated days needed per year to spread manure Gallons of fuel used per 1,000 gallons of manure spread Estimated annual cost of manure application per cow Estimated annual cost of manure application per cwt. milk produced Average Min Max 234,473 57, , % 0.8% 5.0% $134 $80 $230 $0.53 $0.30 $0.85 5

6 Cost per 1000 Gallons $18.00 $16.00 $14.00 $12.00 $10.00 $8.00 $6.00 $4.00 $2.00 $0.00 $17.05 $11.31 $7.56 Average Min Max Operating Costs Ownership Costs Custom Services Total Costs Cost Relationships Cost Relationships 6

7 Cost Relationships Cost Relationships Manure Cost Calculator 7

8 Manure Cost Calculator Manure Cost Calculator Stay Tuned We will be looking for volunteers to estimate their costs of production. Relatively easy to collect data. Generate your farm report. When all farm data are collected, we will provide participants with a personalized benchmark report. May help us understand the tradeoffs between better greenhouse gas practices and the costs of changing them. 8

9 Questions? 9