ND3P – Partnerships
for Profit and Sustainability
Tom Risdal, Statewide Coordinator and
J.W. Schroeder, Assistant Professor
NDSU Extension Dairy Specialist
Justification
The North Dakota Dairy Diagnostic Program (ND3P) central focus is to sustain, retain and grow the state’s dairy industry by helping to enhance the income and lifestyles of our dairy farm families. With personal advisory teams, these participants are implementing changes to transition there dairy enterprise and whole farm operation for a more fulfilling and prosperous future.
Community and Industry Impact
Dairy is the original value‑added agricultural industry. According to economic research from various universities, for every one dollar spent in dairying, the associated rural community can expect it to be reinvested from 2.67 to 7 times in the form of locally purchased supplies, hired labor, equipment, taxes, etc. Intangible benefits of participation includes the development of strategic alliances among dairy operators and their many service providers and on-the-job training in methods of evaluating growth, establishing long‑term business relationships, reducing professional barriers, improving communication, and setting personal goals as well as professional growth strategies.
Quality of Life Impact
The
program’s intent is not only to enhance dairy farm profit, but to develop
strategic alliances for the farm among it s many service providers. Many
intangible benefits are derived as a result of ND3P participation and include:
methods of evaluating business growth, establishing long-term business
relationships, reducing professional barriers, and improving communication with
business partners.
Economic Impact
Directed by ND3P facilitators, dairy families monitor and
measure the impact of decisions formulated by their self-selected advisory board.
Since the inception of program, over 15% of the dairy farms permitted to sell
milk in
Accomplishments
from selected farms (57 farms have been involved in the program):
Gross Annual Economic Impact --
Farm #1: In three years lowered debt to equity ratio from 4.96:1 to 1.4:1; repayment capacity went from 0.94:1 to 2.57:1. Annual Impact = Improved debt service.
Farm #2: Instituted calf health and vaccination program, lowering death loss from 20% to 2%. Reduced the number of calves treated for sickness from 30% to 1%. = Annual Impact: $11,250
Farm #3: Developed a management and nutrition plan which discontinued the use of bST with minimal loss of milk production. = Annual Impact: $49,550.
Farm #4: Reorganized labor arrangements over a 2-year period to lower costs and improve overall efficiencies. Annual Impact: = $71,958.
Farm #5: Improved management of calf facilities raised quality of replacements which contributed to an increase in lactation of first calf heifers (compared to the previous year) by 5 pounds per cow per day. Annual Impact: = $52,613.
Farm #6: Coordinated expansion increased milking herd from 47 to 82 head. Annual Impact = $20,372.
Farm #7: Effect of implemented dairy diagnostic plan increased net worth (difference between beginning and ending balance sheets) over $25,000 for the 2005 production year. Annual Impact: = $25,000.
Impact on Net Income --
Farm #8: Increased net income, after inventory change and depreciation, from $25,221 to $436,850 in 3 years (includes total of three years income). Annual Impact: = $953,573.
The state’s only dairy marketing club, the South central Dairy-Marketing club is lead by a ND3P facilitator who assists in addressing current topics related to the dairy industry that affects dairy markets, animal health, records, contract arrangements, and price risk protection.
File: Accomplishments05.doc