WEBVTT 00:00:10.509 --> 00:00:13.429 Welcome to the Bullvine Podcast, where we cut 00:00:13.429 --> 00:00:15.910 through the dairy industry's noise to deliver 00:00:15.910 --> 00:00:19.510 the unfiltered truth. Today, we're tackling the 00:00:19.510 --> 00:00:22.250 billion -dollar question, should your dairy grow 00:00:22.250 --> 00:00:26.179 its own grain or stick to milking cows? New research 00:00:26.179 --> 00:00:29.620 from Penn State reveals a shocking 15 % energy 00:00:29.620 --> 00:00:33.039 savings for farms that grow their feed. But equipment 00:00:33.039 --> 00:00:36.299 dealers won't tell you about the $500 ,000 price 00:00:36.299 --> 00:00:39.880 tag or the 15 -year payback period. We'll dissect 00:00:39.880 --> 00:00:42.439 the brutal economics, expose the hidden risks 00:00:42.439 --> 00:00:44.859 for high -producing herds, and share real -world 00:00:44.859 --> 00:00:47.100 case studies from dairies that made grain work 00:00:47.100 --> 00:00:50.380 and those that went bankrupt trying. Stick around 00:00:50.380 --> 00:00:54.000 to hear why a 650 -cow New York operation calls 00:00:54.000 --> 00:00:56.960 grain their secret profit center, while a Wisconsin 00:00:56.960 --> 00:01:00.960 farmer says, growing corn nearly sunk us. Plus, 00:01:01.140 --> 00:01:03.259 we'll give you a step -by -step tool to decide 00:01:03.259 --> 00:01:06.159 if this gamble could save or sink your dairy. 00:01:06.700 --> 00:01:09.879 No BS, just the facts you need. Let's dig in. 00:01:10.060 --> 00:01:12.540 Welcome back to The Deep Dive, where we try to 00:01:12.540 --> 00:01:14.519 wade through all the information out there for 00:01:14.519 --> 00:01:17.400 you. Today, we're tackling a question that, well, 00:01:17.540 --> 00:01:19.900 it's probably popped up a few times lately. Should 00:01:19.900 --> 00:01:23.159 your dairy get into growing its own grain? Is, 00:01:23.239 --> 00:01:25.680 you know, a smart move for the bottom line, maybe 00:01:25.680 --> 00:01:29.359 even energy independence? Or is it a risky detour? 00:01:29.519 --> 00:01:31.459 Yeah, that's really the core issue, isn't it? 00:01:31.640 --> 00:01:35.019 We've got some fascinating stuff here. Research 00:01:35.019 --> 00:01:36.959 pointing one way, heart economics pointing another. 00:01:37.260 --> 00:01:39.739 It's definitely not a simple yes or no answer 00:01:39.739 --> 00:01:42.780 you might get from, say, your nutritionist or 00:01:42.780 --> 00:01:45.090 banker. We're going deeper. Exactly. I mean, 00:01:45.090 --> 00:01:46.989 on one hand, you hear about this Penn State research 00:01:46.989 --> 00:01:49.189 showing some, frankly, pretty surprising energy 00:01:49.189 --> 00:01:52.409 savings, like up to 15 % for farms growing their 00:01:52.409 --> 00:01:55.109 own feed. That sounds great. But then you look 00:01:55.109 --> 00:01:57.090 at the price tag on a combine. Right. Suddenly 00:01:57.090 --> 00:02:00.049 that 15 % feels a bit different. So that's the 00:02:00.049 --> 00:02:02.170 real tension here. Our mission today is to unpack 00:02:02.170 --> 00:02:05.189 all of this, the research, the costs, the real 00:02:05.189 --> 00:02:07.510 world stuff, and give you a clear picture of 00:02:07.510 --> 00:02:09.849 when growing grain might make sense for a dairy 00:02:09.849 --> 00:02:12.699 and, well, when it probably doesn't. And it seems 00:02:12.699 --> 00:02:15.020 like good timing, too. Our sources say there's 00:02:15.020 --> 00:02:17.419 a definite upswing in interest in this idea across 00:02:17.419 --> 00:02:19.960 different dairy regions. There really is. And 00:02:19.960 --> 00:02:21.879 it's not just out of the blue. Farmers are looking 00:02:21.879 --> 00:02:25.400 hard at feed costs, thinking about supply chain 00:02:25.400 --> 00:02:28.060 security after the last few years. And that flexibility, 00:02:28.419 --> 00:02:32.039 being able to use land for grain or forage, that's 00:02:32.039 --> 00:02:34.060 definitely appealing, too. Absolutely. That control 00:02:34.060 --> 00:02:37.490 factor is tempting. Like our sources say, you 00:02:37.490 --> 00:02:40.169 really got to evaluate your own situation carefully 00:02:40.169 --> 00:02:43.210 before jumping in. So, OK, let's start with this 00:02:43.210 --> 00:02:45.990 shocking energy advantage the Penn State research 00:02:45.990 --> 00:02:48.270 found. Tell us about that. Right. So the good 00:02:48.270 --> 00:02:51.259 news. as one source puts it. They found northeast 00:02:51.259 --> 00:02:53.659 dairy farms growing their own grain could cut 00:02:53.659 --> 00:02:57.680 fossil energy inputs by, yeah, up to 15 % compared 00:02:57.680 --> 00:03:00.139 to farms importing all their feed. They compared 00:03:00.139 --> 00:03:03.240 farms, same herd size, same milk output, but 00:03:03.240 --> 00:03:05.560 different levels of feed self -sufficiency. And 00:03:05.560 --> 00:03:08.039 yeah, ones doing both forage and grain on farms 00:03:08.039 --> 00:03:11.520 saw that 15 % drop in energy per turn of milk. 00:03:11.599 --> 00:03:13.759 Okay, 15%. That's not small potatoes. So where's 00:03:13.759 --> 00:03:16.520 that saving coming from? Magic. Not quite magic. 00:03:16.680 --> 00:03:20.020 It's mostly about importing way less feed, 71 00:03:20.020 --> 00:03:22.800 % less than the study. Think about it. Growing 00:03:22.800 --> 00:03:25.800 feed, say, in the Midwest, often relies heavily 00:03:25.800 --> 00:03:28.740 on synthetic nitrogen fertilizers. Making those 00:03:28.740 --> 00:03:31.180 fertilizers, that takes a lot of energy. Right. 00:03:31.219 --> 00:03:33.000 It's not free energy baked into the fertilizer 00:03:33.000 --> 00:03:36.159 bag. Exactly. But when you grow grain on farm, 00:03:36.439 --> 00:03:40.550 you can leverage your own resources better. Manure 00:03:40.550 --> 00:03:43.289 becomes a key nutrient source. Legumes in the 00:03:43.289 --> 00:03:45.949 rotation help fix nitrogen naturally. The Penn 00:03:45.949 --> 00:03:48.389 State team actually saw nitrogen inputs were 00:03:48.389 --> 00:03:51.289 four times higher for the imported corn compared 00:03:51.289 --> 00:03:53.689 to their trial farm using manure and legumes. 00:03:53.789 --> 00:03:56.150 Four times. Wow, that's a huge difference. It 00:03:56.150 --> 00:03:57.870 really is. And it's not just Penn State saying 00:03:57.870 --> 00:04:00.270 this. Research out of the University of Wisconsin 00:04:00.270 --> 00:04:02.789 -Madison backs it up. They found integrated crop 00:04:02.789 --> 00:04:04.750 livestock systems could cut purchase fertilizer 00:04:04.750 --> 00:04:08.259 needs by up to 80 percent. And their long -term 00:04:08.259 --> 00:04:10.500 trials showed diverse rotations could keep yields 00:04:10.500 --> 00:04:13.400 up while cutting input costs, maybe $40 to $70 00:04:13.400 --> 00:04:16.019 an acre compared to continuous corn. Okay, so 00:04:16.019 --> 00:04:18.980 the energy efficiency side looks, well, pretty 00:04:18.980 --> 00:04:21.459 compelling on paper. Less fertilizer, less transport. 00:04:21.740 --> 00:04:24.180 But let's bring it back to the farm level, that 00:04:24.180 --> 00:04:27.800 15 % overall energy saving. How does that line 00:04:27.800 --> 00:04:31.500 up with... where a dairy actually uses energy 00:04:31.500 --> 00:04:33.800 day to day. What are the big hogs on the power 00:04:33.800 --> 00:04:35.660 bill? That's a really important connection to 00:04:35.660 --> 00:04:38.199 make. Yeah. NYSERDA report that's the New York 00:04:38.199 --> 00:04:40.079 State Energy Research and Development Authority 00:04:40.079 --> 00:04:44.180 broke it down. Ventilation, big one, about 25%. 00:04:44.180 --> 00:04:47.540 Lighting, close behind at 24%. Milk cooling, 00:04:47.720 --> 00:04:51.180 22%. Vacuum pumps, 17%. Then you get down to 00:04:51.180 --> 00:04:53.680 manure handling, water heating. Those are around 00:04:53.680 --> 00:04:56.259 4 % each. And actual feeding equipment, only 00:04:56.259 --> 00:04:59.379 about 3%. 3%. Wow, okay. So the energy saved 00:04:59.379 --> 00:05:01.360 by growing grain is mostly before it even gets 00:05:01.360 --> 00:05:03.259 to your farm gate in the production and transport. 00:05:03.459 --> 00:05:06.180 But the big energy users on the farm fans, lights, 00:05:06.300 --> 00:05:08.740 cooling, aren't directly changed by where the 00:05:08.740 --> 00:05:12.220 grain comes from. Precisely. That 15 % reduction 00:05:12.220 --> 00:05:15.439 is significant environmentally, for sure. But 00:05:15.439 --> 00:05:17.019 it doesn't mean your farm's electricity bill 00:05:17.019 --> 00:05:20.100 will suddenly drop by 15%. The savings are mainly 00:05:20.100 --> 00:05:23.180 upstream. It's a critical distinction when you're 00:05:23.180 --> 00:05:25.420 thinking about your farm's direct operating costs. 00:05:25.879 --> 00:05:28.000 Right. Okay, so the energy piece is complex. 00:05:28.220 --> 00:05:30.920 That leads us to this fundamental point the sources 00:05:30.920 --> 00:05:33.759 kept hitting. Milk comes first. Sounds obvious, 00:05:33.879 --> 00:05:36.839 maybe. It sounds obvious, but it's easy to lose 00:05:36.839 --> 00:05:39.379 sight of. You're a dairy farmer. Your main job, 00:05:39.420 --> 00:05:41.360 your core business, is making milk efficiently. 00:05:41.939 --> 00:05:44.519 Everything else should support that. So the question 00:05:44.519 --> 00:05:47.699 is, does adding a whole grain enterprise truly 00:05:47.699 --> 00:05:50.420 help you make milk better or more profitably? 00:05:50.779 --> 00:05:54.500 Or does it pull resources your time, your people's 00:05:54.500 --> 00:05:57.069 time, your capital? Away from the cows. Yeah, 00:05:57.110 --> 00:05:59.389 I can see that. Especially where high -quality 00:05:59.389 --> 00:06:01.269 forage is king, you wouldn't want to compromise 00:06:01.269 --> 00:06:03.209 your haylage quality because you're stretched 00:06:03.209 --> 00:06:05.810 too thin trying to manage grain crops, too. Exactly. 00:06:05.990 --> 00:06:08.350 You need to be honest. Do you have the land, 00:06:08.490 --> 00:06:11.610 the time, the labor to add grain acres without 00:06:11.610 --> 00:06:13.410 messing up your forage planting and harvesting 00:06:13.410 --> 00:06:15.709 schedule? If things are already tight, adding 00:06:15.709 --> 00:06:17.990 another big job could cause problems everywhere. 00:06:18.370 --> 00:06:20.290 Right. Can't chase the grain dream while the 00:06:20.290 --> 00:06:22.829 forage harvester sits idle or the cows are waiting. 00:06:23.790 --> 00:06:26.509 Okay, this leads us straight into the scary part 00:06:26.509 --> 00:06:29.930 for many. Equipment costs. This isn't just about 00:06:29.930 --> 00:06:32.389 buying a bit more seed, is it? Not even close. 00:06:32.910 --> 00:06:35.970 Forget just seed. Fertilizer. Herbicide costs. 00:06:36.029 --> 00:06:38.529 You're talking major capital. Specialized stuff. 00:06:38.990 --> 00:06:42.129 Combines. Grain planters. Drills. They're not 00:06:42.129 --> 00:06:46.050 cheap. These storage bins. Maybe dryers. You 00:06:46.050 --> 00:06:47.990 need people to run it all. More labor. And the 00:06:47.990 --> 00:06:50.449 land itself. If you put 200 acres into corn for 00:06:50.449 --> 00:06:53.600 grain, that's 200 acres. not growing forage or 00:06:53.600 --> 00:06:55.639 maybe not rented out, that's a real cost, the 00:06:55.639 --> 00:06:58.079 opportunity cost. Absolutely. So yeah, the energy 00:06:58.079 --> 00:07:00.339 savings are nice to talk about, but the economics, 00:07:00.600 --> 00:07:02.980 way more complicated. The sources suggest that 00:07:02.980 --> 00:07:05.639 often growing your own grain only really pencils 00:07:05.639 --> 00:07:07.920 out financially when commodity prices are high. 00:07:08.040 --> 00:07:10.540 When they drop, you might wish you'd just bought 00:07:10.540 --> 00:07:12.759 it. It really makes you ask, if I have, say, 00:07:12.920 --> 00:07:14.980 half a million dollars to invest, where does 00:07:14.980 --> 00:07:17.579 it make the biggest impact? A new combine. Or 00:07:17.579 --> 00:07:20.319 maybe better bedding or parlor upgrades? That's 00:07:20.319 --> 00:07:23.120 exactly the critical question. Okay, let's dive 00:07:23.120 --> 00:07:24.920 into some of those numbers. University of Minnesota 00:07:24.920 --> 00:07:28.079 Extension laid out some typical costs. A new 00:07:28.079 --> 00:07:31.180 combine. Yeah, I saw that. $300 ,000, up to half 00:07:31.180 --> 00:07:33.839 a million bucks. Yeah. And depreciating $20 ,000 00:07:33.839 --> 00:07:36.439 to $50 ,000 a year. Ouch. And that's just the 00:07:36.439 --> 00:07:39.639 combine. A corn planter. $80 ,000 to $150 ,000. 00:07:40.040 --> 00:07:43.000 Grain drill, maybe $40 ,000 to $80 ,000. Then 00:07:43.000 --> 00:07:45.939 storage bins priced per bushel, maybe $1 .80 00:07:45.939 --> 00:07:50.519 to $2 .50 a bushel capacity. Handling gear, augers, 00:07:50.600 --> 00:07:53.319 conveyors, another $25 ,000 to $80 ,000. Ed and 00:07:53.319 --> 00:07:56.600 maybe a dryer, $40 ,000 to $150 ,000 there too. 00:07:56.779 --> 00:08:00.199 So for a medium dairy, maybe 150, 300 cows trying 00:08:00.199 --> 00:08:03.069 to grow even just... half their grain, you could 00:08:03.069 --> 00:08:04.769 easily be looking at over half a million dollars 00:08:04.769 --> 00:08:07.129 in capital. And that's before fuel, maintenance, 00:08:07.329 --> 00:08:09.389 labor. Exactly. It adds up incredibly fast. And 00:08:09.389 --> 00:08:11.009 this ties into that Penn State extension warning 00:08:11.009 --> 00:08:12.970 about false efficiency. You think you're saving 00:08:12.970 --> 00:08:14.689 energy or being self -sufficient, but you create 00:08:14.689 --> 00:08:16.230 this huge financial burden with the equipment, 00:08:16.350 --> 00:08:18.050 maybe straining other parts of the operation. 00:08:18.290 --> 00:08:20.110 Grain growing can definitely fall into that trap. 00:08:20.370 --> 00:08:22.069 Okay. So you bite the bullet, you buy the iron. 00:08:22.329 --> 00:08:24.230 When does it actually start paying you back? 00:08:24.910 --> 00:08:26.750 Cornell looked at this break -even stuff, right? 00:08:26.810 --> 00:08:30.069 And it varies a lot. Hugely. Depends on your 00:08:30.069 --> 00:08:31.930 farm size, what equipment you might already have, 00:08:32.090 --> 00:08:35.110 and crucially, what grain prices are doing. For 00:08:35.110 --> 00:08:37.409 a smaller place, maybe 50, 100 acres of grain. 00:08:37.809 --> 00:08:40.110 Cornell figured the break -even corn price might 00:08:40.110 --> 00:08:44.309 need to be $5 .80 to $7 .25 a bushel. And the 00:08:44.309 --> 00:08:47.009 payback could be 15 plus years if you bought 00:08:47.009 --> 00:08:50.049 all new gear. 15 years. 15 years. Wow, that's 00:08:50.049 --> 00:08:52.009 a long horizon. Does it get better for bigger 00:08:52.009 --> 00:08:54.289 farms? Yeah, it does improve with scale. Medium 00:08:54.289 --> 00:08:57.850 farms say 100, 250 acres of grain. Maybe breakeven 00:08:57.850 --> 00:09:02.250 is $4 .75 to $5 .60 corn. Payback might drop 00:09:02.250 --> 00:09:06.149 to 8 to 12 years, get up to 250 plus acres. Breakeven 00:09:06.149 --> 00:09:09.809 could be $4 .10 to $4 .80. And maybe you see 00:09:09.809 --> 00:09:12.330 a positive ROI in 5 to 8 years. Scale is definitely 00:09:12.330 --> 00:09:15.009 key. Right. And these numbers assume buying everything 00:09:15.009 --> 00:09:16.970 new. If you've already had some gear or use the 00:09:16.970 --> 00:09:19.159 custom operators, it could look better. For sure. 00:09:19.440 --> 00:09:22.299 If you can use existing planters or drills or 00:09:22.299 --> 00:09:25.080 rely on custom harvesting, that cuts the upfront 00:09:25.080 --> 00:09:28.200 investment significantly. But you still have 00:09:28.200 --> 00:09:30.919 storage costs, handling costs, and with custom 00:09:30.919 --> 00:09:33.320 guys, you're relying on their schedule. Can they 00:09:33.320 --> 00:09:35.600 be there exactly when you need them? That's a 00:09:35.600 --> 00:09:38.250 risk too. This whole thing just screams opportunity 00:09:38.250 --> 00:09:41.710 cost, doesn't it? If you have that capital, is 00:09:41.710 --> 00:09:44.850 grain gear the best use for it on a dairy? That 00:09:44.850 --> 00:09:47.490 is the million -dollar question. Exactly. Limited 00:09:47.490 --> 00:09:49.850 capital. Where does it give you the best return 00:09:49.850 --> 00:09:52.149 for improving milk production, your core business? 00:09:52.710 --> 00:09:56.350 Is it the combine? Or is it new freestalls, better 00:09:56.350 --> 00:09:58.889 ventilation, a more efficient parlor? Things 00:09:58.889 --> 00:10:01.090 that directly touch the cows in the milk check. 00:10:01.519 --> 00:10:04.440 That NYSERDA energy pyramid idea seems relevant 00:10:04.440 --> 00:10:07.000 here. Analyze first, then efficiency upgrades, 00:10:07.320 --> 00:10:09.700 then big capital projects. Makes total sense. 00:10:09.919 --> 00:10:12.919 Go for the low -hanging fruit first. Better bedding, 00:10:12.919 --> 00:10:14.659 improved ventilation, those investments directly 00:10:14.659 --> 00:10:17.399 impact cow health and production. Money tied 00:10:17.399 --> 00:10:19.259 up in a grain drill isn't directly making your 00:10:19.259 --> 00:10:21.340 cows more comfortable or productive. And the 00:10:21.340 --> 00:10:23.200 example they gave of variable speed drive on 00:10:23.200 --> 00:10:25.980 a vacuum pump. Saves significant energy, potentially 00:10:25.980 --> 00:10:28.559 pays back much faster than a whole grain enterprise. 00:10:28.940 --> 00:10:31.720 Exactly. Those targeted efficiency gains within 00:10:31.720 --> 00:10:35.120 the dairy itself often offer quicker, more certain 00:10:35.120 --> 00:10:37.399 returns than launching a whole new farming venture. 00:10:37.639 --> 00:10:39.679 Okay, let's switch focus to the cows themselves. 00:10:40.460 --> 00:10:43.759 High -producing herds and homegrown grain. The 00:10:43.759 --> 00:10:46.440 sources suggest that can be tricky. It's not 00:10:46.440 --> 00:10:49.019 just about growing it cheaply. No, definitely 00:10:49.019 --> 00:10:50.879 not. Think about commercial grain suppliers. 00:10:51.240 --> 00:10:54.419 They blend grain from lots of sources. That gives 00:10:54.419 --> 00:10:56.440 them incredible consistency in the nutritional 00:10:56.440 --> 00:10:59.490 profile. It also dilutes any potential issues 00:10:59.490 --> 00:11:03.309 like mycotoxins from one specific batch. Achieving 00:11:03.309 --> 00:11:06.129 that same consistency on farm with smaller batches 00:11:06.129 --> 00:11:08.690 is just harder. And those high -end cows pushing 00:11:08.690 --> 00:11:11.929 90, 100 pounds or more, they're sensitive, like 00:11:11.929 --> 00:11:14.450 that producer said. Even small energy swings 00:11:14.450 --> 00:11:16.750 in high -moisture corn can mess them up. Totally. 00:11:17.049 --> 00:11:18.669 They have way less wiggle room nutritionally. 00:11:18.690 --> 00:11:20.669 And storage becomes absolutely critical. You 00:11:20.669 --> 00:11:22.990 can't just pile it in an old shed. You need proper 00:11:22.990 --> 00:11:26.169 drying, aeration, monitoring to prevent spoilage 00:11:26.169 --> 00:11:28.470 and quality loss. That loss is called shrink. 00:11:28.769 --> 00:11:31.710 Shrink. Right. That's moisture loss, spoilage, 00:11:31.730 --> 00:11:34.870 pests. And the Wisconsin research said typical 00:11:34.870 --> 00:11:38.309 losses can be, what, 4 % up to 15 % for corn? 00:11:38.529 --> 00:11:40.590 Yeah, depending on storage and management. Even 00:11:40.590 --> 00:11:43.210 a few percent shrink at today's prices adds up 00:11:43.210 --> 00:11:45.509 fast. It eats away at any savings you thought 00:11:45.509 --> 00:11:48.259 you had. So you need the capital for good storage, 00:11:48.299 --> 00:11:50.000 and you need the management time to actually 00:11:50.000 --> 00:11:53.519 keep that grain in top condition. Okay, we've 00:11:53.519 --> 00:11:56.659 painted a challenging picture, but it's not impossible, 00:11:56.860 --> 00:11:59.940 right? The sources did mention some success stories. 00:12:00.120 --> 00:12:02.120 Dairy's making it work. What's their secret? 00:12:02.399 --> 00:12:04.240 Yeah, absolutely. There are successful examples. 00:12:04.720 --> 00:12:07.120 Michigan State Research looked into this. One 00:12:07.120 --> 00:12:09.980 model is the large -scale integrated dairy, like 00:12:09.980 --> 00:12:13.159 that 650 Cow Farm in New York. They farm 1 ,800 00:12:13.159 --> 00:12:16.159 acres. over a thousand of that in grain. A big 00:12:16.159 --> 00:12:17.919 part of their success is just scale. They can 00:12:17.919 --> 00:12:20.399 justify owning the big equipment, multiple combines, 00:12:20.740 --> 00:12:23.080 trucks, etc. Makes sense. Economies of scale 00:12:23.080 --> 00:12:25.240 kick in. What else? They have a dedicated grain 00:12:25.240 --> 00:12:27.580 management team, almost separate from the dairy 00:12:27.580 --> 00:12:30.700 side. It gets the focus it needs. They've invested 00:12:30.700 --> 00:12:33.259 in modern storage with monitoring. Their equipment 00:12:33.259 --> 00:12:35.440 is sized right, so grain harvest doesn't delay 00:12:35.440 --> 00:12:38.539 forage harvest. They use a specialized crop consultant. 00:12:38.980 --> 00:12:42.100 And crucially, they track grain as a separate 00:12:42.100 --> 00:12:44.580 profit center. That farmer said they treat it 00:12:44.580 --> 00:12:47.620 like its own business unit, comparing costs directly 00:12:47.620 --> 00:12:50.000 to market prices. Right, treating it like a distinct 00:12:50.000 --> 00:12:52.159 business. Okay, what about the other example, 00:12:52.340 --> 00:12:54.820 the mid -sized farm in PA? They had a different 00:12:54.820 --> 00:12:57.860 approach. Yeah, the 320 cow dairy. Their success 00:12:57.860 --> 00:13:00.279 comes more from partnerships. They share equipment 00:13:00.279 --> 00:13:03.320 and expertise with neighboring grain farms. This 00:13:03.320 --> 00:13:06.080 avoids that massive upfront capital cost. They 00:13:06.080 --> 00:13:08.279 focus mainly on corn, buy other grains. They 00:13:08.279 --> 00:13:10.200 use custom harvesters, but have agreements that 00:13:10.200 --> 00:13:12.620 prioritize their timing. So collaboration is 00:13:12.620 --> 00:13:15.789 key for them. What else works? Flexibility. They 00:13:15.789 --> 00:13:17.750 can decide late in the season whether to chop 00:13:17.750 --> 00:13:20.370 a field for silage or harvest it for grain, depending 00:13:20.370 --> 00:13:23.370 on needs and conditions. That's huge. They also 00:13:23.370 --> 00:13:25.669 have relationships for emergency grain purchases 00:13:25.669 --> 00:13:28.370 if needed, and they do intensive soil testing 00:13:28.370 --> 00:13:31.250 to maximize manure nutrients. They figure their 00:13:31.250 --> 00:13:33.889 production costs are usually 15 -20 % below market, 00:13:34.029 --> 00:13:37.429 and that silage flexibility is a big win in dry 00:13:37.429 --> 00:13:40.929 years. So clearly no single recipe for success. 00:13:41.429 --> 00:13:44.500 Scale helps. Partnerships help. but both need 00:13:44.500 --> 00:13:47.379 serious management and planning. Now, you mentioned 00:13:47.379 --> 00:13:50.100 regional differences and maybe a research gap. 00:13:50.279 --> 00:13:53.500 That 15 % energy saving in the Northeast, that 00:13:53.500 --> 00:13:55.860 might not apply everywhere. Exactly. The Penn 00:13:55.860 --> 00:13:58.820 State study was, well, in Pennsylvania, a big 00:13:58.820 --> 00:14:00.899 chunk of their energy saving came from not trucking 00:14:00.899 --> 00:14:02.980 grain all the way from the Midwest. If you're 00:14:02.980 --> 00:14:04.779 already in the Midwest or another major grain 00:14:04.779 --> 00:14:07.460 area, that transportation energy saving disappears. 00:14:07.799 --> 00:14:10.019 Your potential advantage is much smaller, maybe 00:14:10.019 --> 00:14:11.799 zero. Right. Depends where you're starting from. 00:14:12.139 --> 00:14:14.919 Yeah. And even Penn State noted that while their 00:14:14.919 --> 00:14:17.120 system using on -farm fuel production lowered 00:14:17.120 --> 00:14:19.980 energy inputs, it needed more land and might 00:14:19.980 --> 00:14:22.460 not actually save money at current fuel prices. 00:14:22.620 --> 00:14:24.720 Again, energy efficiency doesn't always equal 00:14:24.720 --> 00:14:26.879 economic efficiency. They aren't always the same 00:14:26.879 --> 00:14:29.539 thing. Michigan State also compared specialized 00:14:29.539 --> 00:14:32.440 areas versus diversified ones growing feed. What 00:14:32.440 --> 00:14:34.419 did they find? It was interesting. They looked 00:14:34.419 --> 00:14:37.899 at about 246 farms. They found that under 500 00:14:37.899 --> 00:14:40.899 acres, the farms specializing in milk production 00:14:40.899 --> 00:14:44.139 buying most feed actually had an 11 % higher 00:14:44.139 --> 00:14:47.240 return on assets than the diversified farms growing 00:14:47.240 --> 00:14:50.120 lots of grain. But that advantage -vantage for 00:14:50.120 --> 00:14:53.240 the really big farms, over 500 acres, suggests 00:14:53.240 --> 00:14:55.059 that at large scale, the grain economics can 00:14:55.059 --> 00:14:58.039 work. But for smaller to mid -size, specialization 00:14:58.039 --> 00:15:00.620 often paid better. So for many folks listening, 00:15:00.779 --> 00:15:02.840 focusing intensely on milk production might be 00:15:02.840 --> 00:15:04.720 the smarter financial play, according to that 00:15:04.720 --> 00:15:06.779 study. Okay, let's try to boil this down. When 00:15:06.779 --> 00:15:09.340 might growing grain actually make sense? What 00:15:09.340 --> 00:15:11.840 are the green lights? Okay, based on everything, 00:15:12.139 --> 00:15:15.559 favorable conditions would include having significant 00:15:15.559 --> 00:15:18.139 excess land, Truly beyond your forage needs, 00:15:18.340 --> 00:15:20.399 already owning some key grain equipment helps 00:15:20.399 --> 00:15:22.700 a lot. Having management who actually knows grain 00:15:22.700 --> 00:15:25.279 farming or access to good specialists. Being 00:15:25.279 --> 00:15:27.480 located far from grain belts, like the Northeast 00:15:27.480 --> 00:15:30.240 example, where transport costs are high for purchased 00:15:30.240 --> 00:15:32.899 feed. Having the scale maybe two plus acres per 00:15:32.899 --> 00:15:35.220 cow to make equipment ownership viable. Having 00:15:35.220 --> 00:15:37.559 good modern storage at the capital to build it. 00:15:37.740 --> 00:15:40.000 And, you know, having the right soil and climate. 00:15:40.299 --> 00:15:42.559 Plus, enough financial cushion to handle the 00:15:42.559 --> 00:15:44.580 learning curve. Maybe some losses initially. 00:15:45.019 --> 00:15:47.220 That's a solid checklist. Now, the flip side, 00:15:47.399 --> 00:15:49.700 what are the big red flags, the warning signs 00:15:49.700 --> 00:15:52.720 that say danger, Will Robinson? Big warning signs. 00:15:53.159 --> 00:15:55.779 If you're already struggling to make enough high 00:15:55.779 --> 00:15:58.820 -quality forage, if your team equipment, labor, 00:15:59.000 --> 00:16:01.740 management is already stretched thin, if your 00:16:01.740 --> 00:16:04.139 focus is pushing really high production per cow, 00:16:04.419 --> 00:16:07.019 remember that sensitivity issue. If you're in 00:16:07.019 --> 00:16:09.120 a major grain region where it's cheap to buy 00:16:09.120 --> 00:16:12.679 locally, If investing in grain means not investing 00:16:12.679 --> 00:16:15.299 in cow comfort or crucial dairy facility upgrades, 00:16:15.580 --> 00:16:18.759 that's a huge red flag. Lack of good storage. 00:16:19.100 --> 00:16:21.600 Always struggling to get field work done on time. 00:16:21.700 --> 00:16:24.399 And, frankly, having limited financial reserves 00:16:24.399 --> 00:16:27.259 to handle a bad crop year or low prices. It really 00:16:27.259 --> 00:16:29.139 forces an honest look in the mirror, doesn't 00:16:29.139 --> 00:16:31.779 it? At your resources, your skills, your farm's 00:16:31.779 --> 00:16:33.820 core strengths. Like the source said, success 00:16:33.820 --> 00:16:35.899 here isn't luck. It's about a clear -eyed assessment 00:16:35.899 --> 00:16:38.940 of your unique situation. Exactly. Dr. Stevenson 00:16:38.940 --> 00:16:41.080 from Wisconsin quoted in the source, summed it 00:16:41.080 --> 00:16:43.720 up well. The advantage varies hugely by size, 00:16:43.840 --> 00:16:46.120 management, region. He said the winners tend 00:16:46.120 --> 00:16:48.779 to be either intensely focused on milk or big 00:16:48.779 --> 00:16:50.659 enough to run both milk and grain effectively 00:16:50.659 --> 00:16:53.220 as separate, well -managed enterprises. So those 00:16:53.220 --> 00:16:56.159 core questions keep coming back. Does this help 00:16:56.159 --> 00:16:59.379 my main mission making milk? Do I really have 00:16:59.379 --> 00:17:01.539 the capacity for this complexity? Where does 00:17:01.539 --> 00:17:04.420 my capital do the most good? Maybe for some, 00:17:04.500 --> 00:17:07.240 that 15 % energy saving in the Northeast, if 00:17:07.240 --> 00:17:09.599 they have the scale and setup, aligns energy 00:17:09.599 --> 00:17:12.640 goals and economics. But for lots of others, 00:17:12.779 --> 00:17:15.200 focusing on the cows, optimizing that core dairy 00:17:15.200 --> 00:17:18.220 business is probably still the best bet. The 00:17:18.220 --> 00:17:20.339 truth isn't always convenient, as we like to 00:17:20.339 --> 00:17:22.660 say at The Bullvine. That's spot on. And look, 00:17:22.680 --> 00:17:24.500 before you get serious, there are some pointed 00:17:24.500 --> 00:17:26.720 questions you absolutely need to ask specific 00:17:26.720 --> 00:17:29.099 people. Right. Like your equipment dealer. Don't 00:17:29.099 --> 00:17:31.099 just ask the price. No way. Ask for the total 00:17:31.099 --> 00:17:33.619 annual cost of ownership depreciation, maintenance, 00:17:33.759 --> 00:17:36.119 finance. Ask how many acres they think you really 00:17:36.119 --> 00:17:38.579 need to justify that machine. Ask about custom 00:17:38.579 --> 00:17:41.160 work options as an alternative. And crucially, 00:17:41.279 --> 00:17:43.519 what's their parts and service situation during 00:17:43.519 --> 00:17:45.960 harvest? Can they keep you running when time 00:17:45.960 --> 00:17:48.240 is critical? Good ones. And your nutritionist. 00:17:48.359 --> 00:17:51.359 You need a frank talk. What quality variations 00:17:51.359 --> 00:17:54.220 should you expect from homegrown grain? How will 00:17:54.220 --> 00:17:56.339 that impact your high producers? What testing 00:17:56.339 --> 00:17:58.740 should you plan on? What storage and processing 00:17:58.740 --> 00:18:00.859 methods did they recommend for your setup and 00:18:00.859 --> 00:18:03.720 your cows? Okay. And definitely your financial 00:18:03.720 --> 00:18:06.740 advisor or lender. Yeah. Compare this investment 00:18:06.740 --> 00:18:08.779 directly to other uses for that capital on the 00:18:08.779 --> 00:18:11.339 dairy side. Calculate your realistic break -even 00:18:11.339 --> 00:18:14.079 cost, all in. How does the extra debt affect 00:18:14.079 --> 00:18:16.339 your overall financial health, your flexibility, 00:18:16.660 --> 00:18:19.400 and what risk management tools... crop insurance 00:18:19.400 --> 00:18:21.940 marketing strategies should you use for the grain 00:18:21.940 --> 00:18:24.740 side? Okay, let's quickly recap the biggest takeaways 00:18:24.740 --> 00:18:28.660 then. One, potential 15 % energy savings in feed 00:18:28.660 --> 00:18:31.099 production, especially far from grain belt, but 00:18:31.099 --> 00:18:33.019 that doesn't always equal economic savings for 00:18:33.019 --> 00:18:37.019 the farm. Two, equipment costs are huge, 300k, 00:18:37.099 --> 00:18:39.599 500k for just a combine needs scale. Payback 00:18:39.599 --> 00:18:42.380 can be very long, 8 -15 plus years for smaller 00:18:42.380 --> 00:18:45.950 farms. Three, Successful integrated farms often 00:18:45.950 --> 00:18:47.990 have separate grain management, modern storage, 00:18:48.170 --> 00:18:50.190 and are either large -scale or use partnerships 00:18:50.190 --> 00:18:53.630 effectively. 4. High -producing herds are sensitive 00:18:53.630 --> 00:18:56.349 to grain quality variations. Specialized milk 00:18:56.349 --> 00:18:58.349 production is often more profitable under 500 00:18:58.349 --> 00:19:01.609 acres. 5. Use those checklists' favorable conditions 00:19:01.609 --> 00:19:03.650 versus warning signs to assess your own farm 00:19:03.650 --> 00:19:05.849 realistically. Exactly. It's that trade -off. 00:19:05.930 --> 00:19:08.490 Energy potential versus financial risk and management 00:19:08.490 --> 00:19:11.150 complexity. Penn State showed the energy angle 00:19:11.150 --> 00:19:13.369 in one region, but economics depend on your scale. 00:19:13.720 --> 00:19:16.259 Setup. Management. Success seems possible at 00:19:16.259 --> 00:19:19.160 600 plus cows with dedicated resources, but smaller 00:19:19.160 --> 00:19:21.960 farms face big hurdles with costs and ROI. It 00:19:21.960 --> 00:19:23.779 always comes back to, does grain growing advance 00:19:23.779 --> 00:19:26.359 or distract from making milk? Data often suggests 00:19:26.359 --> 00:19:28.680 specialization wins for dairies under 500 acres. 00:19:28.880 --> 00:19:31.400 Well, that was certainly a deep dive into the 00:19:31.400 --> 00:19:33.859 grain growing question. Thanks for joining us 00:19:33.859 --> 00:19:36.099 as we sorted through the pros, cons, and complexities. 00:19:36.799 --> 00:19:39.480 It is definitely not a simple decision, and hopefully 00:19:39.480 --> 00:19:41.460 this conversation gave you some valuable things 00:19:41.460 --> 00:19:43.799 to think about for your own operation. Yeah, 00:19:43.900 --> 00:19:46.240 we really hope so. We definitely encourage you 00:19:46.240 --> 00:19:48.200 to think about the points that hit home for you 00:19:48.200 --> 00:19:50.940 and talk them over with your own advisors, your 00:19:50.940 --> 00:19:54.440 lender, nutritionist, consultant. Consider this 00:19:54.440 --> 00:19:57.079 discussion just the start. It's a big strategic 00:19:57.079 --> 00:19:59.970 question for your dairy's future. So after chewing 00:19:59.970 --> 00:20:01.869 on all this, are you leaning more towards the 00:20:01.869 --> 00:20:04.349 potential of homegrown grain? Or are you thinking 00:20:04.349 --> 00:20:06.990 it's better to double down on optimizing everything 00:20:06.990 --> 00:20:09.690 that goes into that bulk tank? The answer, as 00:20:09.690 --> 00:20:11.930 we've seen, is really unique to your farm's story. 00:20:12.130 --> 00:20:14.670 Until our next deep dive, keep farming smart. 00:20:25.130 --> 00:20:27.450 including our exclusive decision checklist and 00:20:27.450 --> 00:20:30.049 equipment cost breakdown, visit thebullvine .com. 00:20:30.430 --> 00:20:33.789 Before we go, here's your takeaway. Growing grain 00:20:33.789 --> 00:20:36.809 isn't about pride, it's about profit. For some, 00:20:36.869 --> 00:20:40.490 it's a lifeline. For others, a distraction. Only 00:20:40.490 --> 00:20:43.630 your land, labor, and ledger can decide. Next 00:20:43.630 --> 00:20:46.230 week, we're exposing how carbon credits are paying 00:20:46.230 --> 00:20:50.589 dairies $1 ,200 per cow and why 80 % of farmers 00:20:50.589 --> 00:20:53.869 are getting scammed. Until then, this is Hostname 00:20:53.869 --> 00:20:56.559 reminding you, In dairy, you don't get what you 00:20:56.559 --> 00:20:59.480 deserve. You get what you negotiate. Innovate 00:20:59.480 --> 00:21:00.319 or evaporate.