Dairy Sense: Sustainability of Component Fed Herds
November 2020
Production Perspective
Pennsylvania is unique compared to other regions of the country due to herd size and milk cow facilities. According to the 2017 National Agricultural Statistics Service, the average number of milking cows is 76. Tie stall or stanchion barns are commonplace and feeding milk cows conventionally is still prevalent. As the industry continues to move into unchartered territory due to the pandemic, is this feeding approach sustainable?
The Extension Dairy Team works with many component-fed herds, and the following comparisons exclude intensive grazing operations. Fourteen herds of similar size, with half feeding conventionally and half feeding a TMR, were evaluated on production and financials from 2019. The component-fed herds milked, on average, 44 cows with 25,081 pounds sold per milking cow compared to the TMR cohorts of 73 milking cows, averaging 27,891 pounds sold per milking cow. Both groups had similar milk prices paid in 2019. The component-fed herds had $300 less milk income per cow compared to the TMR-fed herds. That is not surprising with fewer cow numbers and lower production, but that is only one side of the equation.
Total feed costs were very similar between the two groups. This includes home-raised and purchased for the milk cows, dry cows, and heifers. The component-fed herds spent $2,151 per cow compared to the TMR-fed herds of $2,247. Since there is almost three thousand pounds less milk volume per cow produced in component-fed herds, feeding management may be an opportunity for this group. This would entail the feeding sequence of forages, to grains and energy, to protein feeds to mimic the approach of a TMR. There may be opportunities in the grain feeding schedules for fresh cows and first-calf heifers. Component-fed herds do not have the ability to feed numerous commodities and tend to feed a complete grain mix or high moisture corn and a protein supplement. Their advantage is feeding the individual animal compared to group feeding with a TMR in free-stall housing
The total outflow between the two feeding approaches was almost identical at $4,000 per cow. This includes feed cost, dairy and operating expenses, owner draw, and loan payments. Controlling expenses does not appear to be the problem when comparing the different feeding approaches. Milk production and milk income are the bottlenecks for conventionally fed herds, which is illustrated by their breakeven income over feed cost of $9.10 per cow compared to the TMR fed group of $8.68 per cow. Another metric to use is the gross milk price breakeven, where the component-fed herds need $20.56/cwt compared to $18.42/cwt for the TMR herds to cash flow.
Improving milk income by increasing milk production is not a simple task. Housing and cow comfort could be major factors limiting dry matter intake. Many of the tie stall or stanchion barns are antiquated and have not been updated in decades. Correcting inadequate stall size and ventilation are major expenditures. Another challenge with small herds relates to small acreage. Multiple cuttings of hay-crop forage can result in dramatic changes in quality throughout the storage structure, making it difficult to adjust rations in a timely fashion. This can hinder lactating cows from receiving consistent diets and the correct amount of nutrients, especially energy and protein, over time.
Milk income appears to be the greatest threat to the sustainability of Pennsylvania's smaller-sized farms, regardless of the feeding approach. Increasing cow numbers to increase production is not an option for cows housed in tie stall or stanchion barns. Herds utilizing a TMR are reaping the benefits of slightly better production and a more competitive income over feed cost. However, there is probably opportunity in component-fed herds to revisit basic feeding management concepts to improve animal performance. With the unknowns associated with the pandemic and weather conditions on the markets, focusing on feeding management in conventionally fed herds would appear to be a smart strategy.
