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Geographic
location of the different types of farmers is somewhat reflective
of a regional shift in dairy production. While the traditional dairy belt (Wisconsin, New York, Pennsylvania, Minnesota, Michigan, and Vermont) retains the greatest number of farmers, the Western and Southern “industrial” dairy states (California, Texas, Washington, Idaho, New Mexico, Florida, Arizona, and Oregon) have rapidly increased their share of U.S. milk production since 1950, and now produce over a third of the U.S. milk supply. These states have followed a highly industrialized pattern of production, with herd sizes typically 4 to 5 times larger than the average herd size in other regions. The differences in herd size can be not only be attributed to regional characteristics, but also to economies of scale and the way different farmers manage human capital. Regional effects indicate that, while substantial variation in herd size is associated with region alone, the majority of national variation in herd size is not due to fixed regional effects. Almost all of what might be interpreted as "scale economies" relate to managerial human capital, region, or technology and different packages of inputs. Herd size varies as expected with human capital, but the effects were weak and only a small share of variation in herd size was explained by the human capital variables. Yet no matter the type, region or herd size, most dairy farmers in the U.S. face similar concerns and pressures. One of biggest issues they deal with is cow health. As dairy farmers become increasingly pressured to maintain highly productive farms, their cows are pushed to their physical limits. It is a challenging balance for dairy farmers to maintain. The fact remains that the healthier the cow is, the more milk that it can produce, yet the more milk that a cow produces, the more stress is put on her body and the more susceptible she becomes to infirmity. If left alone to live a somewhat peaceful existence without the pressures of a dairy farming lifestyle, the average dairy cow would live more than 15 years. On today’s high-production dairy farms, however, cows live for only 3-5 years on average. What major lesson can we learn from this? High-production takes its toll on the health of cows. Dairy farmers do not have the luxury, however, of spending all of their time and energy monitoring individual cows. In fact, as today’s dairy industry is characterized by a decreasing number of farms and an overall increase in the size of farms, farmers have less and less time to spend monitoring individual cows. For precisely this reason, dairy farmers will be turning more and more to high-tech solutions for monitoring the health of their herds. Keeping cows healthy can be a formidable challenge. Moreover, that
somewhat daunting challenge is only one of many major challenges
that face dairy farmers today. The smaller farms are under increasing
pressure to raise production and lower costs to compete with the
larger and higher production farms. As U.S. cities sprawl outward
from their city centers and along major transportation corridors,
dairy farmland is being squeezed out. New neighborhoods are springing
up in the rural environments that dairy farms used to have all to
themselves. As neighborhoods surround dairy farms, new problems
develop with them. Neighbors complain about unpleasant odors and
the development drives up the cost of the land, making it difficult
or impossible for farmers to expand their operations to support
more cows. Additionally, the smaller, family-run farms often do
not know how to plan for their futures, as their children increasingly
lack interest in taking over their parent’s farms. The answer to this question is not so complicated. Dairy farmers prioritize their challenges, and they turn to experts for advice when things get beyond their own control or understanding. Take nutrition for example. Some farmers are content that, if their cows are producing milk near national or regional averages, then they do not spend much time, money or energy fine-tuning their diets. If the herd has a high rate of lameness or mastitis, then they focus on that issue. When the greatest present challenge is overcome, then they take a breath and maintain, or they redouble their efforts on the next-greatest challenge. With the health of their cows being the single greatest influencer of the farm’s profitability, it is no surprise that dairy farmers are most influenced by agricultural colleges and research institutions. These public domains are focused on research and development of the causes and cures to the health issues that most directly effect farmers. And since they are public, not for profit institutions, they are generally more reputable and reliable for information that will be in the best interest of the farmers. Young or aspiring dairy farmers attend agricultural colleges and research institutions to learn as much as they can about the increasingly challenging business, science, and art of dairy farming. Experienced dairy farmers attend seminars and courses specifically designed to meet their needs, and they rely on the educational institutions to provide them with unbiased guidance and advice. Farmers can be grouped into three categories in terms of adopting new technologies: 1. Technophiles – farmers who are very accepting
of new technologies and can’t wait to get their hands on new
products. No matter which category farmer’s fall into, they all want simplicity. They do not want to be drowned by a myriad buttons, knobs, and options. They want simple answers to already complex problems. They want to see their efforts and their expenditures regarding the new technology pay off in the short term. Let their effort and expense pay off in a few months or even a year and you may have a satisfied customer. Make them wait for a payback over several years, and they will not perceive value in the new technology. |
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