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Professional Dairy Managers of PA Annual Members Meeting. Kurtland Farms “Our Top 10 Milestones”. Tim Kurtz Kurtland Farms. 2006 – Profit Team Start. CDE Initiative 125 Cows Prompted by Frustration Need for Outside Resources and Guidance Quality of Life Important!.

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Kurtland farms our top 10 milestones

Kurtland Farms“Our Top 10 Milestones”

Tim KurtzKurtland Farms


2006 profit team start
2006 – Profit Team Start

  • CDE Initiative

  • 125 Cows

  • Prompted by Frustration

  • Need for Outside Resources and Guidance

  • Quality of Life Important!


2007 developed 3 year strategy
2007 – Developed 3-Year Strategy

  • Dairy Alliance Initiative

  • Five-week Hands-on Workshop

  • SWOT Analysis

  • Need for Business Plan

  • Benchmarking

  • Cost of Production


Needed answers
Needed Answers

  • What is the long-termviability of dairying in this community?

  • What is the long-term profitability of current facilities?

  • What are the bottlenecks & limiting factors?

  • Is there enough land?

  • What are other options for the farm?


Immediate action steps
Immediate Action Steps

  • Short Term:

    • Ventilation, Sexed Semen, 3X milking, Written SOPs, Amino Acid ration balancing, Shot program

  • Long Term:

    • Becoming involved in dairy industry organizations

    • Vital to gain additional perspective


2009 began expansion exploration
2009 – Began Expansion Exploration

  • Involved Lending Institution,Engineering Consultant, & Construction Company

  • Environmental grant availability???

    • Building site was obvious

    • Extremely tight budget

    • Grants seemed only hope

    • Had to be permitted but not guaranteed


2010 denied waiver
2010 – Denied Waiver

  • Required Land Development Plan

  • Added Considerable Cost

  • Lesson learned: Need highestlevel of experience on team

  • Jeff Ainslie consulted

  • Started 2-year process of designing economically viable facility

  • Numerous trade shows, workshops, phone calls, emails and consultations


2011 transformation team start
2011 – Transformation Team Start

  • Focused on challenges

  • Assisted with engineering & permitting costs

  • Penn State Extension Feasibility &Cash Flow Analysis

  • Brought clarity and credibility

  • Brought new level of energy


2011 operation of satellite
2011 – Operation of Satellite

  • Adjoining Dairy

  • Opportunity for additional cows and feed availability

  • Employees stayed with operation

  • Allowed for more specialized employee responsibilities

    Allowed Us to Keep Replacements & Streamline Labor Force

    Within 3 Months of 3X Milking, Added 15 # Per Cow Per Day




June 2012 began relationship with new bank
June 2012 – Began RelationshipWith New Bank

  • Financing MostChallenging Part of Project

  • Always Kept Open Lines of Communication

  • Explored All Options





220 Cow Robotic Free Stall Barn, Manure Storage & Processing -- Start Up: 3/18/13 Goal: 7.8 million lbs. of milk per yr

Does Not Include Cattle Or Start-Up Costs


Robotic milking a n atural f it
Robotic Milking: A -- Start Up: 3/18/13 Natural Fit

  • Voluntary milking gives cow more flexibility and lowers stress

  • Labor skills even more important

  • Enhances positive consumer attitudes


Composted manure solids
Composted Manure Solids -- Start Up: 3/18/13

  • Manure recycled via press separator and compost drum

  • Clean, comfortable stalls are deep bedded

  • Environmentally responsible

  • Additional revenue stream


Precision advantages
Precision Advantages -- Start Up: 3/18/13

  • Accuracy of information

  • Detection of abnormalities

  • Analyzable data

  • Production Efficiencies


Too much information
Too Much Information? -- Start Up: 3/18/13

  • Need to decide what information is needed, when it is needed and where to find it

  • Monitor on a broader level

  • Investigate attentions in more detail

Cows have averaged 85 pounds per day for past six months in robotic barn.


Healthy cows profit teamwork success
Healthy Cows=Profit -- Start Up: 3/18/13 Teamwork=Success

  • Many skill sets needed.

  • Appeals to next generation

  • Mission statement values: Profitability, Quality of life, Stewardship, Having Fun, Honor God


Future
Future? -- Start Up: 3/18/13

  • 100% robotic

  • Transition to next generation of ownership



Jeff ainslie transformation team member site planning permitting engineering

Jeff Ainslie -- Start Up: 3/18/13 Transformation Team MemberSite Planning / Permitting / Engineering


Kurtland farms take homes
Kurtland -- Start Up: 3/18/13 Farms - Take Homes

  • Lenders talk about the 3 (or now more) C’s of credit

  • In the quest to construct a new dairy facility, we should be talking about the Four P’s:

    • Planning

    • Patience

    • Perseverance

    • Permitting


Planning
PLANNING -- Start Up: 3/18/13

No offense to the builders -- but the details of the barn can wait until a landowner knows what he or she can do where on their property.


Patience
PATIENCE -- Start Up: 3/18/13

  • 7/15/10 Timeline Discussed @ Kurtland


Perseverance
PERSEVERANCE -- Start Up: 3/18/13

  • PENNVEST: 4th try was a charm!

  • Caernarvon Sewer Authority / Lancaster CD / others….

  • Berks Conservations District came through


Permitting
PERMITTING -- Start Up: 3/18/13

  • It is involved…and likely to get more so…

  • It is complicated…and likely to get more so…

  • It is different for every project at every location...

  • It is costly in more ways than one….


Kurtland farms take homes1
Kurtland -- Start Up: 3/18/13 Farms - Take Homes

  • PLANNING

    • Headlock dimensions can wait – confirm what you can do on your property, and what regulations will apply to you

  • PATIENCE

    • “My excavator is ready….we’re starting in a month” – unfortunately, you are probably not…

  • PERSEVERANCE

    • Stick with it and work with people that will help you get there

  • PERMITTING

    • It’s a reality – but take the time early on to learn what rules and regulations actually impact you and your project


Fulton bank perspective from lamar king

Fulton Bank Perspective -- Start Up: 3/18/13 From Lamar King


Agricultural lending in 2013
Agricultural Lending in 2013 -- Start Up: 3/18/13

  • Communicate with Your Lender

  • Prepare/Budget/Understand Your Financials

  • 5 Cs of Credit

    • Capacity (Cash Flow)

    • Capital

    • Character

    • Conditions

    • Collateral


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