AWARD-WINNING CHEESES -- THAT'S OUR FOCUS!
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F FM F E EA B BR R RC U UH A R R2 Y 0 1 2 0<br />
0 1 0<br />
AwArd-winning cheeses --<br />
NATIONAL Perfect ThAT’s DAIRY survey our QUALITY scores focus! <strong>AWARD</strong>s<br />
make PLATINUM Perfect moments!<br />
WINNERs
Published Monthly by:<br />
swiss Valley Farms<br />
Cooperative<br />
P.O. Box 4493<br />
Davenport, IA 52808<br />
563.468.6600 FAX 563.468.6613<br />
www.swissvalley.com<br />
Nancy Feeney<br />
Editor/ Member Relations Mgr.<br />
Swiss Valley Farms, Co. will produce,<br />
distribute and sell value-added, quality<br />
products for our:<br />
Customers & Consumers<br />
Owner/Members<br />
Workforce<br />
Swiss Valley Board Officers<br />
Chair<br />
Pam Bolin................................................Clarksville, IA<br />
Vice Chair<br />
Randy Schaefer....................................Blue Grass, IA<br />
Assistant Secretary<br />
Jeff Nimtz...............................................Monticello, WI<br />
Assistant Treasurer<br />
James Schmitt.............................................Sherrill, IA<br />
swiss Valley Directors<br />
Loyde M. Beers.......................................Eastman, WI<br />
Steve Klug.....................................Spring Grove, MN<br />
Dale Humpal.........................................Ridgeway, IA<br />
Francis Leibfried..................................Cuba City, WI<br />
G. Joe Lyon....................................................Toledo, IA<br />
Ken Schmitz..............................................Norwalk, WI<br />
Patrick Schroeder..............................Lancaster, WI<br />
Eugene Smith........................................Clinton, WI<br />
William Strief..................................................Farley, IA<br />
N ow more t h a n e ve r<br />
RIsk MANAgEMENT Is kEY<br />
by Don Boelens<br />
With the volatility in the<br />
dairy markets this past year<br />
and the struggles the dairy<br />
producer faced with the rise and fall of<br />
all commodity prices, we felt it would<br />
be appropriate to dedicate a couple<br />
of articles to “risk management.” Risk<br />
management can be used in a variety of<br />
different ways, but as many of you are<br />
aware, the goal is always the same . . . to<br />
secure a profit.<br />
With the increase of technology and<br />
the availability of information, risk<br />
management is becoming increasingly<br />
important in a dairy operation. One of<br />
the important aspects of utilizing risk<br />
management tools is to understand your<br />
costs of production and lock in your<br />
inputs along with securing the revenue<br />
stream to cover those costs to provide<br />
a profit margin for your operation.<br />
Another important aspect is to not be a<br />
“Monday morning” quarterback or coach<br />
when it comes to risk management.<br />
Dairy producers need to know their<br />
costs and lock in their inputs and secure<br />
their revenue stream to lock in their<br />
profit. They should not look back and<br />
watch what “might have been” and<br />
wish what they might have done. The<br />
correct solution is to evaluate the issues<br />
that created a different outcome to help<br />
evaluate the future trends when using<br />
risk management.<br />
Beginning on Pg. 12 is an article on<br />
Dairy Gross Margin Insurance, a new<br />
risk management tool. It was co-authored<br />
by Dr. Brian Gould and Dr. Victor<br />
E. Cabrera, both from the University<br />
of Wisconsin – Madison. Please read<br />
the article to see if this might be a tool<br />
you would find helpful in your dairy<br />
operation.<br />
Brian Gould is an Associate Professor<br />
in the Department of Agricultural and<br />
Applied Economics where he teaches<br />
CEO Don Boelens<br />
classes in Applied Econometrics and in<br />
Applied Demand Analysis. Dr. Gould<br />
received his Ph.D. from the Department<br />
of Agricultural Economics at Cornell<br />
University in 1983. Between 1988 and<br />
2004, Dr. Gould was Senior Research<br />
Scientist in the Wisconsin Center for<br />
Dairy Research where he was Director<br />
of the Dairy Marketing and Economics<br />
Program. He assumed his current<br />
Associate Professor position in January<br />
2005. Dr. Gould developed and currently<br />
maintains the University of Wisconsin’s<br />
Understanding Dairy Markets website<br />
http://future.aae.wisc.edu.<br />
Dr. Victor E. Cabrera holds a B.S.<br />
degree in Agricultural Engineering from<br />
La Molina (Peru) Agrarian University.<br />
In 1997, he received an M.S. degree in<br />
Farming Systems Research and Extension<br />
at the University of Florida Department<br />
of Agricultural Communication and<br />
Education. In 2001, he received his<br />
Ph.D. from the University of Florida,<br />
School of Natural Resources. In 2004,<br />
Victor accepted a Postdoctoral position<br />
with the University of Miami, where<br />
he undertook farm-level risk analyses.<br />
In 2008, he joined the Department of<br />
Dairy Science faculty at the University of<br />
Wisconsin - Madison.<br />
page SWISS VALLEY FARMS DAIRYMAN
M a r k Y o u r C a l e n d a r<br />
DIsTRICT REP MEETINg Is MARCh 3 RD<br />
This is an early heads up to all Swiss Valley Farms<br />
District Representatives.<br />
The Spring District Representative Meeting has<br />
been scheduled for Tuesday, March 23 rd in Dubuque,<br />
Iowa at the Midway Hotel off Hwy. 20.<br />
This is the one meeting a year where all the district<br />
representatives get together to meet with Swiss Valley<br />
Farms CEO Don Boelens, Board members and the<br />
Management Team. Individual Management Team<br />
members will make reports and we will get insight<br />
into what could be happening in the dairy industry<br />
in the coming year from Phil Plourd of Blimling and<br />
O N T H E CO V E R :<br />
Associates, our milk futures’ contractors.<br />
The meeting will get underway at 10 a.m. and<br />
conclude by 2 p.m. Be sure to check with your district<br />
director regarding any carpooling possibilities.<br />
You will be getting an official invitation and RSVP<br />
card in the mail shortly.<br />
Co-op members should relay to their area district<br />
representative any questions or suggestions for the coop<br />
that they might want presented at this meeting. A<br />
complete list of these district representatives will be in<br />
the March 2010 issue of the DAIRYMAN.<br />
NOLT FAMILY ENJOYS A PERFECT SURVEY SCORE<br />
Joe and Anna Mary Nolt<br />
discovered that it really pays off to<br />
keep the barn and the cows clean.<br />
That’s because the Elma, Iowa couple<br />
just received a perfect score on their<br />
federal survey.<br />
The Nolt’s have been in dairy for<br />
nearly six years, starting their own set<br />
up shortly after they married. Their<br />
dairy is on 160 acres and they raise<br />
most of their feed.<br />
They milk 48 Holsteins and<br />
house them in a newly built tie stall<br />
barn. What helped them to achieve a<br />
perfect survey score? “We like to keep<br />
the cows and the barn clean,” Joe says.<br />
“It’s more fun to go into the barn that<br />
way for us, too.” Joe says that Anna<br />
Mary plays a big part in keeping their<br />
milk quality high. “She keeps the<br />
milk house really clean,” Joe says.<br />
Their Swiss Valley Farms field rep<br />
is Jim Murphy out of West Union,<br />
Joe and Anna Mary Nolt enjoy farm life with their children Gerald<br />
and Kaylene.<br />
Iowa. “I think Murphy is the best<br />
field rep we could wish to have,” Joe<br />
says. The couple have two children,<br />
Gerald & little Kaylene. On this<br />
month’s cover, Joe and Gerald enjoy<br />
the warmth of the cows, the dogs and<br />
the barn on a cold January day.<br />
FEBRUARY 2010 page 3<br />
CO-OP NEWs<br />
INDUsTRY CO-OP NEWs
36 years of milk awards for members<br />
QUALITY <strong>AWARD</strong> COVERAgE<br />
Every winter, Swiss Valley Farms honors its many Blue Ribbon Quality Milk Award winners at its district<br />
On meetings. September This year 1, marked at the very the program’s 36th year. Co-op members work hard year-round to meet Swiss Valley<br />
Farms beginning quality milk of her standards. reign as The end result of all of this effort is millions of pounds of high quality milk that<br />
the cooperative the 2009-2010 turns into delicious Iowa State dairy products.<br />
Dairy Princess, Katie Adams was<br />
settling The into list of her Quality new princess Award duties winners as begins here and will continue next month as well. Swiss Valley Farms applauds<br />
well as everyone life as a freshman who received dairy awards science this year. Good luck in the coming year with your quality milk production.<br />
Your major efforts at Iowa are greatly State University. appreciated. This<br />
farm DISTRICT girl suddenly 4 had a good deal & on TERESA<br />
her (These plate! names were left off GUTTENBERG, IA<br />
the Distrist 4 list in last<br />
But Katie is used to ha STEFFEN, KENNETH J<br />
month’s issue.)<br />
NEW VIENNA, IA<br />
17 YEAR <strong>AWARD</strong><br />
22 YEAR <strong>AWARD</strong><br />
GERNER, rd work. JAMES Growing A up on BRIMEYER, a THOMAS W<br />
Waucoma, GARBER, IAIowa<br />
family farm, SHERRILL, IA<br />
she GERNER, helped LORAS out in J the dairy CLEMEN, and DANIEL J<br />
GARBER, IA<br />
participated in many 4-H programs. HOLY CROSS, IA<br />
GERNER, RICHARD B 24 YEAR <strong>AWARD</strong><br />
Adaway GUTTENBERG, Dairy consists IA of her parents,<br />
BRIMEYER, DANIEL A<br />
Scott SCHLITZER, and Jeannie, TWILA and Colder<br />
brother & DEB<br />
Nathan DUBUQUE, and his IA wife Annie. Sisters SHERRILL, IA<br />
Nicole, 18 YEAR 25, <strong>AWARD</strong> and Jackie, 21, have MOSER, all TODD M<br />
FREIBURGER,<br />
helped out on the farm through COLESBURG, the IA<br />
LAVERNE<br />
25 YEAR <strong>AWARD</strong><br />
years, HOLY just CROSS, like Katie. IA Younger brother<br />
CLEMEN, WAYNE<br />
Joey, FREIBURGER, 16, is the only RICKone<br />
now left NEW at VIENNA, IA<br />
home HOLY to CROSS, help. Together, IA this family 27 YEAR <strong>AWARD</strong><br />
milks 19 YEAR 170 <strong>AWARD</strong> cows, mainly Holsteins, JAEGER, LEON<br />
ANTHONY BROTHERS<br />
with a few Brown Swiss, Ayrshires & CONNIE<br />
HOLY CROSS, IA<br />
SHERRILL, IA<br />
and HAMMERAND,<br />
Jerseys included in the herd.<br />
SCHLITZER, MARK<br />
TIMOTHY Katie’s mother used to be active DUBUQUE, IA<br />
in the DUBUQUE, dairy until IA a serious accident SCHLITZER, MARVIN<br />
in the 21 YEAR barn on <strong>AWARD</strong> Aug. 7 put her on DUBUQUE, the IA<br />
KEEHNER, DARRYL<br />
sidelines. Jeannie was in a maternity<br />
stall when a cow in labor charged<br />
her, slamming her against the wall<br />
twice. Jeannie managed to crawl out<br />
of the pen and get help. She suffered<br />
10 broken ribs and several cracked<br />
vertebra and was airlifted to the<br />
Rochester hospital. While she was in<br />
tremendous pain, the doctors kept<br />
telling her she was one lucky woman<br />
to even be alive.<br />
28 YEAR <strong>AWARD</strong><br />
DUWE, LOREN<br />
GARNAVILLO, IA<br />
PFEILER BROTHERS<br />
FARM INC<br />
HOLY CROSS, IA<br />
29 YEAR <strong>AWARD</strong><br />
OVERMANN, GARY<br />
& CARLYNE<br />
EARLVILLE, IA<br />
30 YEAR <strong>AWARD</strong><br />
VENTEICHER, DAVID<br />
STRAWBERRY PT, IA<br />
VENTEICHER, PAUL<br />
EDGEWOOD, IA<br />
VENTEICHER,<br />
RICHARD<br />
EDGEWOOD, IA<br />
DISTRICT 2<br />
1 YEAR <strong>AWARD</strong><br />
COULTHARD DAIRY<br />
CUBA CITY, WI<br />
DARLINGTON RIDGE<br />
FARMS LLC<br />
CHINO, CA<br />
DEN-RAY FARMS<br />
MORRISON, IL<br />
FRIEDERICH, WARD<br />
& JANELL<br />
SAVANNA, IL<br />
HIDDEN VALLEY<br />
FARMS INC<br />
BELMONT, WI<br />
LEARY, STEPHEN E.<br />
OREGON, IL<br />
LEIBFRIED DAIRY<br />
FARMS LLP<br />
CUBA CITY, WI<br />
LEIBFRIED, KENNETH<br />
CUBA CITY, WI<br />
MORHARDT, KEITH<br />
ELIZABETH, IL<br />
RUNDE, SIMON B<br />
CUBA CITY, WI<br />
RUNKLE, DAVID W<br />
KENT, IL<br />
RUNKLE, LORRAINE E<br />
KENT, IL<br />
SCHNEIDER, SAM D<br />
CUBA CITY, WI<br />
District 2: 9-Year<br />
Jeannie’s injuries kept District her 2: 10-Year in the Award<br />
Award Jerry Kuhl Mike Leahy Jr. Gratiot,<br />
Hazel hospital Green, WI for two weeks WI and then,<br />
District 2: 29-Year Award<br />
Charlie Hamilton<br />
(accepting for William)<br />
Cuba City, WI<br />
District 2: 9-Year Award<br />
Tom Kaiser Cuba City, WI<br />
District 2: 21-Year Award<br />
Dan Tranel Cuba City, WI<br />
page SWISS VALLEY FARMS DAIRYMAN
TIMMERMAN, SAM<br />
& JEAN<br />
CUBA CITY, WI<br />
WIEDERHOLT, JAMES<br />
& NANCY<br />
CUBA CITY, WI<br />
WIEGMAN, JOHN JR.<br />
CUBA CITY, WI<br />
2 YEAR <strong>AWARD</strong><br />
BERLAGE, DONALD<br />
& MERRI<br />
ELIZABETH, IL<br />
BRANT, GERALD<br />
CUBA CITY, WI<br />
BRANT, JILL M<br />
CUBA CITY,WI<br />
DIETZEL RIDGE ACRES<br />
CUBA CITY, WI<br />
HIGHWAY DAIRY<br />
FARMS LLC<br />
DARLINGTON, WI<br />
MUELLER, JAMES J<br />
& JOAN<br />
CUBA CITY, WI<br />
NICE, ELDON P<br />
MORRISON, IL<br />
3 YEAR <strong>AWARD</strong><br />
MILLER, ELLEN J.<br />
EAST DUBUQUE, IL<br />
MILLER, ROBERT M<br />
HAZEL GREEN, WI<br />
MILLER, ROBERT P<br />
EAST DUBUQUE, IL<br />
MILLER, ROCKIE<br />
BELMONT, WI<br />
District 1: 7-Year Award<br />
District 2: 18-Year Award<br />
Lazy M Farms, Laura<br />
Randy Theill Cuba City, WI<br />
Richter, Stitzer, WI<br />
District 1: 25 Year Award:<br />
District<br />
Bernard<br />
2:<br />
&<br />
23-Year<br />
Linda Cliff<br />
Award<br />
Tom Bloomington, Kunkel Cuba WI City, WI<br />
MILLER, SHELLY M.<br />
HAZEL GREEN, WI<br />
MILLER, THOMAS A<br />
HAZEL GREEN, WI<br />
4 YEAR <strong>AWARD</strong><br />
THEILL FARMS<br />
EAST DUBUQUE , IL<br />
6 YEAR <strong>AWARD</strong><br />
BUSCH, JAMES D.<br />
CUBA CITY, WI<br />
7 YEAR <strong>AWARD</strong><br />
SCHOLLMEYER,<br />
AELRED<br />
SHULLSBURG, WI<br />
SCHOLLMEYER, DAVID<br />
SHULLSBURG, WI<br />
SCHOLLMEYER,<br />
WILLIAM<br />
SHULLSBURG, WI<br />
9 YEAR <strong>AWARD</strong><br />
J & M FARM<br />
HAZEL GREEN, WI<br />
KAISER, TOM & JULIE<br />
CUBA CITY, WI<br />
10 YEAR <strong>AWARD</strong><br />
LEAHY, MIKE JR<br />
GRATIOT, WI<br />
PLACKE FARMS INC<br />
CUBA CITY, WI<br />
11 YEAR <strong>AWARD</strong><br />
GROEZINGER,<br />
NORMAN<br />
STOCKTON, IL<br />
District 1: 21Year Award:<br />
District Gerald 16: & Judy 8-Year Breitsprecker<br />
Award Robert<br />
& Lancaster, Rita Dreier WI Tomah, WI<br />
13 YEAR <strong>AWARD</strong><br />
PEARCE, RICHARD J<br />
ELIZABETH, IL<br />
17 YEAR <strong>AWARD</strong><br />
BUDDEN, GARY<br />
CUBA CITY, WI<br />
18 YEAR <strong>AWARD</strong><br />
THEILL, RANDY<br />
CUBA CITY, WI<br />
21 YEAR <strong>AWARD</strong><br />
TRANEL, DAN J<br />
CUBA CITY, WI<br />
23 YEAR <strong>AWARD</strong><br />
KUNKEL FARMS<br />
PARTNERSHIP<br />
CUBA CITY, WI<br />
24 YEAR <strong>AWARD</strong><br />
FLIKKEMA, HUBERT<br />
FULTON, IL<br />
26 YEAR <strong>AWARD</strong><br />
HAMILTON, JOHN W<br />
& EVIE<br />
CUBA CITY, WI<br />
29 YEAR <strong>AWARD</strong><br />
HAMILTON, WILLIAM J<br />
CUBA CITY, WI<br />
31 YEAR <strong>AWARD</strong><br />
PLEASANT-VIEW<br />
DAIRY FARM<br />
CUBA CITY, WI<br />
DISTRICT 16<br />
1 YEAR <strong>AWARD</strong><br />
BAUMGARTEN,<br />
DENISE J<br />
TOMAH, WI<br />
BAUMGARTEN, GENE<br />
TOMAH, WI<br />
FREIT, JAMES<br />
BANGOR, WI<br />
FREIT, ROBERT<br />
ROCKLAND, WI<br />
KELLEY, KURT<br />
ELROY, WI<br />
KROENER, BETTY<br />
BANGOR, WI<br />
KRUEGER, DOUGLAS E<br />
MINDORO, WI<br />
PEACEFUL VALLEY<br />
DAIRY LLC<br />
NORWALK, WI<br />
ZASTOUPIL FARMS LLP<br />
TOMAH, WI<br />
2 YEAR <strong>AWARD</strong><br />
DOBBS, JOEL O.<br />
ONTARIO, WI<br />
DREIER, RANDY D<br />
NORWALK, WI<br />
MATHISON, ROBERT<br />
TOMAH, WI<br />
3 YEAR <strong>AWARD</strong><br />
CLARK, CAROLYN C<br />
WILTON, WI<br />
4 YEAR <strong>AWARD</strong><br />
MIKSHOWSKY, RANDY<br />
BANGOR, WI<br />
District 1: 15genkopf District 1: 5 Yearrman<br />
Lancaster, District 16: WI 5-Year Award Larry & Roxanne<br />
Hall & their sons Eric, left,<br />
Maier<br />
& Brian<br />
Stitzer,<br />
Tomah,<br />
WI<br />
WI<br />
NOVEMBER FEBRUARY 2010 2009 page<br />
MEMBER NEWs
District 16: 18-Year Award<br />
Ronald & Lynda Hurtz<br />
Rockland, WI<br />
5 YEAR <strong>AWARD</strong><br />
HALL, LARRY F<br />
& ROXANNE<br />
TOMAH, WI<br />
7 YEAR <strong>AWARD</strong><br />
BAILEY, MICHAEL<br />
& JEAN<br />
TOMAH, WI<br />
GORHAM, FLORIEDA<br />
TOMAH, WI<br />
8 YEAR <strong>AWARD</strong><br />
DREIER, ROBERT<br />
& RITA<br />
TOMAH, WI<br />
EVERGREEN RIDGE<br />
DAIRY LLC<br />
HILLSBORO, WI<br />
SCHROEDER, CRAIG A<br />
WONEWOC, WI<br />
VLASAK, STEVEN<br />
ELROY, WI<br />
9 YEAR <strong>AWARD</strong><br />
MARX, ALLAN E<br />
CASHTON, WI<br />
RUF, ALAN S<br />
& COLETTE<br />
MAUSTON, WI<br />
District 16: 7-Year Award Mike & Jean<br />
Bailey, Florieda Gorham Tomah, WI<br />
District 16: 16-Year Award Linda Rego<br />
with children Rebekah, Rachel & Joshua<br />
Elroy, WI<br />
11 YEAR <strong>AWARD</strong><br />
SUN RAY DAIRY LLP<br />
MINDORO, WI<br />
13 YEAR <strong>AWARD</strong><br />
BERG, JEFF<br />
& JOHANNA<br />
LA CROSSE, WI<br />
16 YEAR <strong>AWARD</strong><br />
REGO, DAVID<br />
& LINDA<br />
ELROY, WI<br />
17 YEAR <strong>AWARD</strong><br />
SCHMITZ, KENNETH<br />
& MARLUS<br />
NORWALK, WI<br />
18 YEAR <strong>AWARD</strong><br />
HURTZ, RONALD L<br />
& LYNDA<br />
ROCKLAND, WI<br />
DISTRICT 17<br />
1 YEAR <strong>AWARD</strong><br />
ADAWAY DAIRY LLC<br />
WAUCOMA, IA<br />
JOHANNINGMEIER,<br />
MIKE<br />
MONONA, IA<br />
District 16: 8-Year Award<br />
James Reed Hillsboro, WI<br />
District 16: 17-Year Award<br />
Kenneth & Marlus Schmitz<br />
Norwalk, WI<br />
JOHANNINGMEIER,<br />
STEVE<br />
MONONA, IA<br />
LINDERBAUM, DENNIS<br />
& EILEEN<br />
OSSIAN, IA<br />
MOON, DAN & NANCY<br />
MONONA, IA<br />
SCHMITT, ALAN<br />
DBA RAND-AL FARMS<br />
FORT ATKINSON, IA<br />
WAGNER, STEVEN<br />
MONONA, IA<br />
WALZ, JEFF<br />
& MELINDA<br />
WEST UNION, IA<br />
2 YEAR <strong>AWARD</strong><br />
CAROLAN, KEVIN<br />
& DONNA<br />
CALMAR, IA<br />
HENKES, LESLIE ANN<br />
LUANA, IA<br />
HENKES, TRENT<br />
LUANA, IA<br />
3 YEAR <strong>AWARD</strong><br />
CROSSROADS DAIRY<br />
POSTVILLE, IA<br />
District 17: 7-Year Award<br />
L’Dean Henkes Monona, IA<br />
District 16: 8-Year Award<br />
Steven & Sherry Vlasak<br />
Elroy, WI<br />
PATTISON, LEE & SARA<br />
GARNAVILLO, IA<br />
4 YEAR <strong>AWARD</strong><br />
LAMBORN FARMS LLC<br />
LUANA, IA<br />
OYLOE, RONALD<br />
DECORAH, IA<br />
TIESKOETTER, LEON<br />
POSTVILLE, IA<br />
5 YEAR <strong>AWARD</strong><br />
SVENDSEN, LARRY A<br />
& MARY<br />
OSSIAN, IA<br />
6 YEAR <strong>AWARD</strong><br />
KURTH, DAVID G<br />
ST OLAF, IA<br />
KURTH, GARY & ANNE<br />
LUANA, IA<br />
7 YEAR <strong>AWARD</strong><br />
HENKES, DARYL<br />
MONONA, IA<br />
HENKES, DUSTIN<br />
MONONA, IA<br />
HENKES, L’DEAN<br />
MONONA, IA<br />
District 17: 21-Year Award Leo<br />
& Brenda Schroeder Castalia, IA<br />
page SWISS VALLEY FARMS DAIRYMAN
District 17: 17-Year Award Brent & Marty<br />
Garbes & children Maggie, Hanna & Adam &<br />
granddaughter Kaylin Waukon, IA<br />
KRIENER, DALE<br />
RIDGEWAY, IA<br />
KRIENER, DONALD<br />
RIDGEWAY, IA<br />
KRIENER, LARRY<br />
RIDGEWAY, IA<br />
LENTH, TERRY<br />
LUANA, IA<br />
RAPSON, DAVID<br />
HAWKEYE, IA<br />
8 YEAR <strong>AWARD</strong><br />
HUMPAL, DARRYL G<br />
RIDGEWAY, IA<br />
SCHMITT, STEVEN M<br />
HAWKEYE, IA<br />
12 YEAR <strong>AWARD</strong><br />
LANTZKY, BRIAN<br />
& HEIDI<br />
HAWKEYE, IA<br />
14 YEAR <strong>AWARD</strong><br />
KOEHN, DAVID A<br />
ELKADER, IA<br />
MC NALLY DAIRY<br />
MONONA, IA<br />
STENCE, LILLIAN R<br />
ELKADER, IA<br />
District 19: 10-Year Award Alice &<br />
Arnold Gudex Campbellsport, WI<br />
15 YEAR <strong>AWARD</strong><br />
THOMPSON, LARRY<br />
& LIANE<br />
MONONA, IA<br />
16 YEAR <strong>AWARD</strong><br />
FRANKS, KENT<br />
ST OLAF , IA<br />
RUFF, JOHN<br />
MONONA, IA<br />
17 YEAR <strong>AWARD</strong><br />
GARBES, BRENT N<br />
WAUKON, IA<br />
GIBSON & SONS<br />
WAUKON, IA<br />
18 YEAR <strong>AWARD</strong><br />
LANDT, NEIL<br />
LUANA, IA<br />
21 YEAR <strong>AWARD</strong><br />
KLOSTERMAN, RICH<br />
& SANDY<br />
WEST UNION, IA<br />
SCHROEDER, LEO<br />
& BRENDA<br />
CASTALIA, IA<br />
District 19: 9-Year Award<br />
Linda Hodorff Eden, WI<br />
District 17: 5-Year Award Larry<br />
& Mary Svendsen Ossian, IA<br />
District 19: 9-Year Award Cheryl<br />
& Dave Wagner Seymour, WI<br />
34 YEAR <strong>AWARD</strong><br />
BRINCKS, DON I<br />
OSSIAN, IA<br />
DISTRICT 19<br />
1 YEAR <strong>AWARD</strong><br />
BROCKMEYER, PAUL<br />
WHITEWATER, WI<br />
DAMROW, DON<br />
JUNEAU, WI<br />
DELAIN, CHAD<br />
KEWAUNEE, WI<br />
LAMBRECHT, JEFF<br />
DENMARK, WI<br />
PAPLHAM, HARVEY D<br />
KEWAUNEE, WI<br />
PAPLHAM, MARY E<br />
KEWAUNEE, WI<br />
ROBERS FARMS LLC<br />
BURLINGTON, WI<br />
VOGEL, REBECCA<br />
HELENVILLE, WI<br />
WARD, BRECK N<br />
ELKHORN, WI<br />
District 19: 11-Year Award Tom & Joan<br />
Oberhaus Waukesha, WI<br />
2 YEAR <strong>AWARD</strong><br />
FINK, KEITH<br />
FORT ATKINSON, WI<br />
LENSMIRE, THOMAS<br />
& JANE<br />
CLEVELAND, WI<br />
MESS, EUGENE R<br />
WATERTOWN, WI<br />
MESS, MARY BETH<br />
WATERTOWN, WI<br />
PETERSON, BRUCE A<br />
MALONE, WI<br />
3 YEAR <strong>AWARD</strong><br />
BREUCKMAN, CHAD<br />
COLUMBUS, WI<br />
HOLEWINSKI, NEAL J<br />
PULASKI , WI<br />
PRZYBYLSKI, GARY D<br />
KRAKOW, WI<br />
SCHAEFER, JEFFREY G<br />
WATERTOWN, WI<br />
SCHAEFER, KURT<br />
WATERTOWN, WI<br />
SCHAEFER, SUSAN<br />
WATERTOWN, WI<br />
District 20: 10-Year Award<br />
Don Ingvalson Caledonia,<br />
MN<br />
FEBRUARY 2010 page<br />
MEMBER REFERENCE NEWs
District 20: 8-Year<br />
Award Katie Olson<br />
Atwater, MN<br />
WEIER, HARRY A<br />
DEERFIELD, WI<br />
4 YEAR <strong>AWARD</strong><br />
MESS, CLARENCE<br />
& CATHERINE<br />
WATERTOWN, WI<br />
SAUER DAIRY FARM<br />
WATERLOO, WI<br />
6 YEAR <strong>AWARD</strong><br />
BUSY BEE ACRES, LLC<br />
MARKESAN, WI<br />
RENGO FARMS<br />
WATERTOWN, WI<br />
7 YEAR <strong>AWARD</strong><br />
DEAVER, MIKE<br />
EDGERTON, WI<br />
8 YEAR <strong>AWARD</strong><br />
LAMBRECHT FARMS<br />
KEWAUNEE,WI<br />
9 YEAR <strong>AWARD</strong><br />
HOFA PARK DAIRY<br />
FARM LLC<br />
SEYM<strong>OUR</strong>,WI<br />
District 23: 13-Year Award Jeff<br />
Nimtz Monticello, Wis<br />
District 20: 22-Year<br />
Award Gerald Bratland<br />
Spring Grove, MN<br />
District 20: 24-Year Award Lee<br />
& Gordy Meyer Caledonia, MN<br />
MOORE FARMS INC.<br />
ELKHORN, WI<br />
SECOND LOOK<br />
HOLSTEINS LLC<br />
EDEN, WI<br />
10 YEAR <strong>AWARD</strong><br />
GUDEX, ALICE G<br />
CAMPBELLSPORT, WI<br />
KABARA, JAMES<br />
PULASKI, WI<br />
PASZEK, DENNIS<br />
& CHRIS<br />
JUNEAU, WI<br />
PETERSON, PER K<br />
WHITEWATER, WI<br />
VANDOSKE DAIRY<br />
FARMS LLC<br />
CLEVELAND, WI<br />
WELTER, KRIS<br />
& PHILLIP<br />
WHITEWATER, WI<br />
11 YEAR <strong>AWARD</strong><br />
OBERHAUS, THOMAS<br />
& JOAN<br />
WAUKESHA, WI<br />
DISTRICT 20<br />
1 YEAR <strong>AWARD</strong><br />
HAMMELL, EDWARD<br />
CALEDONIA, MN<br />
STUEWE, PAUL<br />
COLOGNE, MN<br />
TSCHUMPER,<br />
KENNETH<br />
LA CRESCENT, MN<br />
2 YEAR <strong>AWARD</strong><br />
BAUER, ROBERT J<br />
DAKOTA, MN<br />
DRINKALL, RANDY<br />
RUSHFORD, MN<br />
ELMHORST, MICHAEL<br />
& EVANGELINE<br />
PAYNESVILLE, MN<br />
District iDistrict 23 5-Year 23 5-Year Award Award Richard<br />
District<br />
Esser<br />
23: 8-Year Award<br />
Richard Middleton, Esser WI Middleton, Eugene Theis Waunakee, WI<br />
WI<br />
District District 17: 20: 7-Year 9-Year Award Award<br />
L’Dean Ray Pick Henkes Elgin, Monona, MN<br />
IA<br />
District 20: 13-Year Award<br />
Don Sexton Millville, MN<br />
LASKA, RICHARD<br />
& CAROL<br />
WINONA, MN<br />
LINDQUIST, DALE<br />
HAMBURG, MN<br />
LINDQUIST, RENEA<br />
HAMBURG, MN<br />
THILL, LAVERNE F<br />
WINONA, MN<br />
3 YEAR <strong>AWARD</strong><br />
KETCHUM, ROBERT C<br />
& TERRI A<br />
UTICA, MN<br />
4 YEAR <strong>AWARD</strong><br />
BLOCK, JAMES<br />
HAMBURG, MN<br />
BOLTMANN, ANGIE<br />
HAMBURG, MN<br />
BOLTMANN, REBECCA<br />
HAMBURG, MN<br />
BOLTMANN, ROBERT<br />
HAMBURG, MN<br />
GERDES, WILLIAM<br />
CALEDONIA, MN<br />
District 1 15-Year Award Kendrick Henkel,<br />
Loretta Kephart, Doug Kephart<br />
Fennimore, WI<br />
page SWISS VALLEY FARMS DAIRYMAN
KLUG, DARRELL J<br />
SPRING GROVE, MN<br />
KLUG, MATTHEW<br />
SPRING GROVE, MN<br />
KLUG, STEVE & ANNA<br />
SPRING GROVE, MN<br />
VANDERZEE, RANDY<br />
& BETTY<br />
DAKOTA, MN<br />
8 YEAR <strong>AWARD</strong><br />
OAT HILL<br />
ATWATER, MN<br />
REPS, DENNIS L<br />
& MARCIA<br />
UTICA, MN<br />
REPS, TRAVIS<br />
UTICA, MN<br />
SIEGLE, SANDRA<br />
SCHREMPP<br />
COLOGNE, MN<br />
SIEGLE, STEVEN D.<br />
COLOGNE, MN<br />
9 YEAR <strong>AWARD</strong><br />
PICK, GARY<br />
ELGIN, MN<br />
PICK, RAY<br />
ELGIN, MN<br />
10 YEAR <strong>AWARD</strong><br />
INGVALSON FARMS<br />
CALEDONIA, MN<br />
13 YEAR <strong>AWARD</strong><br />
SEXTON FARMS<br />
MILLVILLE, MN<br />
District 1 15-Year Award Kevin<br />
Pluemer Livingston, WI<br />
16 YEAR <strong>AWARD</strong><br />
ALDINGER, ROGER<br />
WINONA, MN<br />
17 YEAR <strong>AWARD</strong><br />
BRATLAND, DARIN<br />
SPRING GROVE, MN<br />
18 YEAR <strong>AWARD</strong><br />
SCHUMACHER, PAUL<br />
& JENNIFER<br />
HOUSTON, MN<br />
20 YEAR <strong>AWARD</strong><br />
SELKE, WILLIAM<br />
DAKOTA, MN<br />
22 YEAR <strong>AWARD</strong><br />
BRATLAND, DURON<br />
SPRING GROVE, MN<br />
BRATLAND, GERALD<br />
SPRING GROVE, MN<br />
24 YEAR <strong>AWARD</strong><br />
HENDEL FARMS<br />
CALEDONIA, MN<br />
MEYER FARMS DAIRY<br />
CALEDONIA, MN<br />
SELKE, WALTER<br />
DAKOTA, MN<br />
DISTRICT 21<br />
1 YEAR <strong>AWARD</strong><br />
BALK II, LEO A<br />
WAUCOMA, IA<br />
BUTLER, GLENN<br />
KENSETT, IA<br />
JELSMA DAIRY LLC<br />
DENVER, IA<br />
POELMA DAIRY LLC<br />
ALLISON, IA<br />
SNOW ROCK DAIRIES<br />
CLARKSVILLE, IA<br />
STEPPE, RICHARD E<br />
& LAREEN A<br />
STEAMBOAT ROCK, IA<br />
TUKKER DAIRIES<br />
ROLFE, IA<br />
2 YEAR <strong>AWARD</strong><br />
DUTCHLAND DAIRY<br />
ROLFE, IA<br />
HODSON-DIRKSEN<br />
FARMS LLC<br />
PLYMOUTH, IA<br />
JOHNSON, DUANE A<br />
PARKERSBURG, IA<br />
JOHNSON, ROY A<br />
PARKERSBURG, IA<br />
LINDSAY, BRIAN<br />
NORA SPRINGS, IA<br />
NOLT, JOSEPH<br />
& ANNA MARY<br />
ALTA VISTA, IA<br />
3 YEAR <strong>AWARD</strong><br />
BLASBERG, ALLEN<br />
TRIPOLI, IA<br />
BLASBERG, DOUG A<br />
TRIPOLI, IA<br />
NOLT, REUBEN<br />
& VERA<br />
ALTA VISTA, IA<br />
SONBERG FARMS, LLC<br />
OSAGE, IA<br />
STAUFFER, TITUS<br />
CHARLES CITY, IA<br />
TEN HOEVE DAIRY<br />
WAVERLY, IA<br />
WIESE, WAYNE W<br />
NEW HARTFORD, IA<br />
4 YEAR <strong>AWARD</strong><br />
BALK, GERALD<br />
WAUCOMA, IA<br />
HOLSTEIN<br />
MARKETING<br />
CENTER OF IA<br />
FREDERICKSBURG, IA<br />
6 YEAR <strong>AWARD</strong><br />
ARENDS, DARWIN<br />
& DULCI<br />
ACKLEY, IA<br />
GRAND CENTRAL<br />
JERSEYS LLC<br />
BRISTOW, IA<br />
WEAVER, CURVIN M<br />
OSAGE, IA<br />
11 YEAR <strong>AWARD</strong><br />
BALK, ALLEN - DBA<br />
BALK BROS<br />
WAUCOMA, IA<br />
CURTIS, CHRIS<br />
& TRACY<br />
AURORA, IA<br />
GIBRALTER FARMS<br />
IOWA FALLS, IA<br />
19 YEAR <strong>AWARD</strong><br />
MILLER, RONALD W<br />
CLARKSVILLE, IA<br />
20 YEAR <strong>AWARD</strong><br />
HOFMEISTER,<br />
DALLAS & PAT<br />
GENEVA, IA<br />
21 YEAR <strong>AWARD</strong><br />
MEYER, RICHARD<br />
& MICHELLE<br />
IOWA FALLS, IA<br />
DISTRICT 23<br />
1 YEAR <strong>AWARD</strong><br />
HOFFMAN, DON A.<br />
& MARY<br />
WAUNAKEE, WI<br />
HOFFMAN, JEREMY M<br />
WAUNAKEE, WI<br />
HOFFMAN, KEVIN A<br />
WAUNAKEE, WI<br />
HOFFMAN, NATHAN J<br />
WAUNAKEE, WI<br />
JENSON, BRUCE<br />
GRATIOT, WI<br />
JENSON, CHRISTA<br />
GRATIOT, WI<br />
WILLIAMS, BETTY<br />
GRATIOT, WI<br />
2 YEAR <strong>AWARD</strong><br />
EVERT, HARLAND F<br />
MAZOMANIE, WI<br />
EVERT, SCOTT A<br />
MAZOMANIE, WI<br />
GORDER, RICHARD<br />
MINERAL POINT, WI<br />
FEBRUARY 2010 page<br />
MEMBER MEMBER CO-OP NEWs<br />
NEWs
HELLENBRAND,<br />
BRENT N<br />
CROSS PLAINS, WI<br />
MILLER, NICHOLAS<br />
& BARB<br />
MONTICELLO, WI<br />
STATZ, KEVIN F<br />
CROSS PLAINS, WI<br />
ZIEGLER, CRAIG A<br />
WAUNAKEE, WI<br />
ZIEGLER, FRED V<br />
WAUNAKEE, WI<br />
3 YEAR <strong>AWARD</strong><br />
DEVRIES, DELBERT<br />
ORANGEVILLE, IL<br />
HESSENIUS, CRAIG<br />
FREEPORT, IL<br />
LAUFENBERG, KOTY J<br />
CROSS PLAINS, WI<br />
ORCHARD, WILLIAM R<br />
JANESVILLE, WI<br />
WESSELS, JIM R<br />
MCCONNELL, IL<br />
5 YEAR <strong>AWARD</strong><br />
ESSER, RICHARD J<br />
MIDDLETON, WI<br />
6 YEAR <strong>AWARD</strong><br />
H D FARMS LLC<br />
LODI, WI<br />
ThE INsURANCE CENTER OFFERs sChOLARshIPs<br />
The Insurance Advisory Council of The Insurance<br />
Center (T.I.C.) is pleased to announce that it is time for<br />
students to apply for one of their six $500 scholarships.<br />
This is their 21 st year of offering scholarships. Three of<br />
these scholarships are provided by WPS Health Insurance<br />
and three are provided by T.I.C. Inc.<br />
To be eligible for a scholarship, students must be<br />
high school graduates who are continuing their education<br />
Iowa Division of Midwest<br />
Dairy Offers Extra Scholarships<br />
The Iowa Division of Midwest Dairy Association<br />
will be awarding 23 educational awards—three<br />
$1,500 awards, eight $500 awards and twelve $250<br />
awards. Applicants who qualify include any Iowa<br />
producer who funds Midwest Dairy Association,<br />
the producer’s spouse, the producer’s children or<br />
grandchildren. These awards apply to any college<br />
major or degree. Any former applicant or scholarship<br />
winner can reapply for subsequent years. Application<br />
deadline is March 1, 2010. To get an application, go<br />
to www.midwestdairy.com and click on Checkoff<br />
Information / Scholarships.<br />
STATZ, ALLAN R<br />
BLACK EARTH, WI<br />
STATZ, VERNON W<br />
BLACK EARTH, WI<br />
7 YEAR <strong>AWARD</strong><br />
FASSBENDER, PAUL G<br />
MAZOMANIE, WI<br />
MAIER, EUGENE H<br />
CROSS PLAINS, WI<br />
MAIER, JULIE K<br />
CROSS PLAINS, WI<br />
8 YEAR <strong>AWARD</strong><br />
AUSTIN, RAYMOND<br />
BLACK EARTH, WI<br />
THEIS, A. DAVID<br />
WAUNAKEE, WI<br />
THEIS, EUGENE<br />
WAUNAKEE, WI<br />
10 YEAR <strong>AWARD</strong><br />
DIERICKX, CRAIG<br />
& ALICE<br />
MONTICELLO, WI<br />
13 YEAR <strong>AWARD</strong><br />
NIMTZ, JEFF S<br />
MONTICELLO, WI<br />
NIMTZ, JULIE M<br />
MONTICELLO, WI<br />
in an agricultural related field while attending a postsecondary<br />
college, university or technical school program.<br />
To get an application form for this scholarship, contact<br />
Nancy Feeney in Swiss Valley Farms Member Relations<br />
Department by calling 563-468-6640 or e-mail her at<br />
nancy.feeney@swissvalley.com.<br />
The deadline for returning applications to the T.I.C.<br />
is March 15.<br />
hAVE YOU LOggED IN<br />
TO ThE PRODUCER-ONLY<br />
WEBsITE LATELY?<br />
You can access your dairy’s milk test information, check<br />
history and milk assignments, as well as see the most<br />
recent future milk contracting information by logging<br />
into the producer-only portion of www.swissvalley.com.<br />
Before you can log in, you must get your own personal<br />
pin number by contacting your Swiss Valley Field Representative.<br />
Make the most of this newly improved, member-only<br />
website. It can be a valuable tool for your dairy operation.<br />
page 10 SWISS VALLEY FARMS DAIRYMAN
G e t T h o s e C a m e r a s O u t !<br />
gET IN ThE CALENDAR PhOTO CONTEsT<br />
It’s not too early to start taking photos for the 2011<br />
Swiss Valley Farms Member Calendar. Remember, a good<br />
calendar needs photos from all the seasons!<br />
Photo quality and sharp focus are major considerations.<br />
A picture must be enlarged to 11” by 9” in order to fit on<br />
a calendar page. Large file digital photos are the best. If<br />
you don’t have a digital camera, make an 8” by 10” print<br />
of your photo and submit that. Only submit photos that<br />
you personally have taken. Photos taken by non-member,<br />
professional photographers can not be used.<br />
Fill out the form below and include it with your<br />
submission. If you are e-mailing the photo, include all of<br />
this information in your e-mail at the time of submitting<br />
the photo. Then please mail a signed copy of this form to<br />
Nancy Feeney at the address below.<br />
Name of person who took the Photo:<br />
_______________________________________<br />
Address:________________________________<br />
City:_______________State:_______ Zip:_____<br />
Phone Number:__________________________<br />
E-mail address:__________________________<br />
Farm Name or Producer #:_________________<br />
Names of people in the photo:______________<br />
Where was the photo taken:________________<br />
Who is your Swiss Valley Field Rep?__________<br />
Signature of Contributor:____________________<br />
Important Information:<br />
• All submitted photos become the property of<br />
Swiss Valley Farms Cooperative.<br />
• The entry form on this page will serve as a<br />
permission slip to use the photo in printed materials<br />
and/or for advertising purposes. All entries must<br />
provide all of the requested information in order<br />
to quality.<br />
• No images will be returned.<br />
• By signing the official entry form, you understand<br />
that the images will not be returned and each<br />
photo submitted comes with full and exclusive<br />
rights for Swiss Valley Farms Cooperative to<br />
print the photo, without credit, in Swiss Valley<br />
Farms literature, without further obligation to<br />
the photographer or those people who have their<br />
person or items in the photo.<br />
• Please submit Landscape/Horizontal photos only,<br />
so they will fit on a horizontal calendar page.<br />
• Submit your entries by Sept. 30, 2010 to:<br />
OR<br />
E-mail photos to:<br />
nancy.feeney@<br />
swissvalley.com<br />
Cash prizes will<br />
be awarded for<br />
the top three<br />
photos.<br />
Swiss Valley Farms Cooperative<br />
Calendar Photo Contest<br />
P.O. Box 4493<br />
Davenport, Iowa 52808<br />
FEBRUARY 2010 page 11<br />
CO-OP NEWs
N e w R i s k M a n a g e m e n t T o o l<br />
LIVESTOCk GROSS MARGIN FOR DAIRY<br />
In 2007, the Federal Crop Insurance<br />
Corporation approved a new livestock<br />
revenue insurance program: Livestock<br />
Gross Margin Insurance for Dairy Cattle<br />
(LGM-Dairy). This program that became<br />
available at end of August 2008 represents<br />
a new risk management tool that allows<br />
dairy farm operators to purchase insurance<br />
to protect against unanticipated decreases in<br />
their gross margin defined as the difference<br />
between estimated milk revenue and imputed<br />
feed costs. Unlike most crop insurance<br />
policies, the USDA does not provide producer<br />
premium subsidies. To participate in LGM-<br />
Dairy, the dairy herd will need to be located<br />
in one of the 35 LGM-Dairy eligible states.<br />
(Iowa, Illinois, Wisconsin and Minnesota are<br />
all eligible states.)<br />
The key relationships that determine<br />
insurance premium level are the amount of<br />
expected milk production insured (+), the<br />
portion of gross margin elected not to be<br />
insured (-), expected feed use (-/+), expected<br />
milk price (+), expected feed prices (-),and the<br />
volatility in milk and feed markets at sign-up<br />
(+). The last 3 items are beyond the control<br />
of the producer as they are determined by<br />
market conditions at sign-up.<br />
In general, the LGM-Dairy program<br />
can be used to establish a floor of revenue<br />
available for covering other variable and<br />
fixed production costs. The protection<br />
offered by this program is analogous to the<br />
use of bundled options in the establishment<br />
of a dairy gross revenue floor. This bundled<br />
option strategy would consist of the use of<br />
Class III put and corn/soybean meal call<br />
options. Our preliminary analyses suggest<br />
that under normal market conditions the<br />
premium costs of participating in the LGM-<br />
Dairy program with reasonable deductible<br />
levels are much less expensive than the use of<br />
the bundled option strategy offering the same<br />
level of revenue protection. This program also<br />
has an advantage versus the use of a bundled<br />
options strategy as there is no minimum size<br />
required for program participation.<br />
General Program Structure<br />
Dairy gross margins are defined as milk-<br />
By Brian W. gould, Associate Professor in the<br />
Department of Agricultural and Applied Economics,<br />
and Victor E. Cabrera, Assistant Professor in the<br />
Department of Dairy Science, University of Wisconsin-<br />
Madison<br />
based revenue minus imputed purchased feed<br />
costs. Under the program, milk revenues are<br />
the product of the farm’s covered expected<br />
milk production and associated Class III<br />
prices. Feed costs are the costs of expected<br />
feeding of corn and soybean meal equivalents<br />
over the insurance period multiplied by the<br />
associated corn and soybean meal prices<br />
where these feed prices are based on futures<br />
prices at the Chicago Mercantile Exchange.<br />
It is important to understand that the farmspecific<br />
milk price received and feed prices<br />
paid are not used in the gross revenue<br />
calculations used to determine indemnities<br />
but based on Class III milk and corn/<br />
soybean meal futures prices. That said, there<br />
is no actual futures/options market activity<br />
associated with this program. These markets<br />
are used only to provide estimates of expected<br />
and actual prices.<br />
LGM-Dairy can only be purchased<br />
during a very short window at the end of<br />
each month. Specifically, the insurance sales<br />
period begins as soon as the RMA reviews<br />
the market data after the markets close on<br />
the last business Friday of each month. The<br />
sales period ends at 8:00 PM (Central Time)<br />
on the next day, Saturday. The LGM-Dairy<br />
dairy product<br />
can only be<br />
purchased from<br />
an authorized<br />
crop insurance<br />
agent.<br />
There are<br />
twelve insurance<br />
periods each<br />
calendar year.<br />
Each insurance<br />
period lasts<br />
11 months<br />
and no coverage<br />
is allowed the<br />
first month. This implies that at most, 10<br />
months of gross margins can be insured<br />
under any one policy. For example, if a<br />
producer wants to cover margins starting in<br />
June 2010, the contract must be purchased<br />
at the end of April, 2010. Over the contract<br />
life the percentage of expected monthly<br />
production covered by the contract can vary<br />
from 0% to 100% of each month’s expected<br />
production. Thus any contract can cover<br />
from 1 to 10 months of expected production<br />
and any portion of each month’s production.<br />
This illustrates the program’s flexibility in<br />
meeting the risk management objectives of a<br />
particular producer.<br />
LGM-Dairy pays indemnities when<br />
the actual gross margin calculated over the<br />
life of the insurance contract is less than<br />
the contract expected gross margin that is<br />
determined when the insurance is purchased.<br />
If an indemnity is due the RMA will make a<br />
payment after the last covered month.<br />
A Wisconsin Example<br />
We illustrate LGM-Dairy with an<br />
example for an average 250 head Wisconsin<br />
dairy farm using premium data for October<br />
2008 to show what happens when an<br />
indemnity is in fact paid. It should be<br />
page 1 SWISS VALLEY FARMS DAIRYMAN
emembered however that, like any other<br />
insurance policy, the producer hopes not to<br />
receive an indemnity as that would imply<br />
that actual market conditions were better<br />
than anticipated when the revenue insurance<br />
was purchased.<br />
Milk production for Dec. 2008 – Sept.<br />
2009 could be covered by this contract.<br />
For this analysis we use average Wisconsin<br />
monthly (2008) per cow productivity for<br />
this size operation as our example. Over the<br />
10 month period we assume that 812 tons<br />
of corn equivalent and 105 tons of SBM<br />
equivalent are need to produce the 41,424<br />
cwt over the above 10 month period. The<br />
expected monthly production and feed use<br />
are shown in columns 2-4 of Table 1.<br />
With the October 2008 contract being<br />
purchased at the end of business on October<br />
20 th , by program rules, the 10 months of<br />
expected Class III corn and soybean meal<br />
prices for months covered by the insurance<br />
contract are determined from average of<br />
the Class III corn and soybean meal futures<br />
contracts closing settle prices obtained on<br />
October 28 th , 29 th and 30 th . These average<br />
values are shown in the 5 th – 7 th columns of<br />
Table 1.<br />
The last column of Table 1 provides a<br />
representation of the hypothetical insurance<br />
contract desired by the producer. In this<br />
example, we assume the producer wants to<br />
insure 50% of the monthly gross revenues<br />
over Dec ‘08 – Feb ‘09 followed by 75% for<br />
Mar ‘09 – May ‘09. The producer is assumed<br />
not to insure his revenue over the final 4<br />
months of this contract.<br />
Table 2 is used to show the performance<br />
of LGM-Dairy for this hypothetical<br />
Wisconsin dairy farm under alternative<br />
insurance deductible levels. At $0 deductible,<br />
the producer generates a Gross Margin<br />
Guarantee (GMG) of $170,065 or $10.93/<br />
cwt of covered milk. The associated premium<br />
of $.80/cwt represents 7.3% of the GMG. In<br />
comparison, at $1.50/cwt GMG deductible,<br />
the premium is reduced to $0.23/cwt, a 71%<br />
premium reduction. The resulting GMG is<br />
reduced only 14% to $9.43/cwt. The second-<br />
to-last column in<br />
this table shows<br />
the premium costs<br />
per cwt of all milk<br />
regardless of whether<br />
it is insured as it is<br />
the farm’s total milk<br />
production that will<br />
be used to generate<br />
the income to pay<br />
this premium. This<br />
premium ranges from<br />
$0.30/cwt under $0<br />
deductible to $0.09/<br />
cwt under $1.50<br />
deductible.<br />
One of the reasons we chose October<br />
2008 as our example is that we know that<br />
there was a significant drop in Class III milk<br />
prices starting in January 2009 and that there<br />
would likely be an indemnity payment under<br />
any reasonable insurance contract design. As<br />
shown in Table 3, the actual gross margin<br />
is $116,929 given the insurance contract<br />
design and does not change with deductible.<br />
The fourth column of this table shows the<br />
insurance indemnity which is equal to GMG<br />
– AGM when AGM is less than the GMG<br />
which is the case under all deductibles. From<br />
Table 3, we see that the indemnity per cwt<br />
of all milk ranges from $1.283 under the<br />
$0 deductible to $0.719 under the $1.50<br />
deductible option. The net indemnity (i.e.,<br />
indemnity – premium) per cwt of all milk<br />
was found to range from $0.982 to $0.632.<br />
Educational Resources Available<br />
The University of Wisconsin has<br />
developed an extensive website devoted<br />
to making available educational resources<br />
devoted to LGM-Dairy. This website is<br />
located at: http://future.aae.wisc.edu/lgm_<br />
dairy.html. We have developed two software<br />
systems to estimate LGM-Dairy premiums.<br />
The first can be used to undertake “what-if”<br />
analyses using actual LGM-Dairy premium<br />
data from July 2009 onward and simulated<br />
premium data from Jan. 2000- June 2009.<br />
This historical premium calculator can be<br />
found at: http://future.aae.wisc.edu/lgm_<br />
dairy.html#2. A second web-based premium<br />
calculator has been developed to estimate<br />
the forthcoming month’s premiums. This<br />
forward looking premium calculator can be<br />
found at: http://future.aae.wisc.edu/lgm_<br />
premium/.<br />
For more information concerning this insurance<br />
program feel free to contact either Prof. Brian<br />
Gould (bwgould@wisc.edu) or Prof. Victor Cabrera<br />
(vcabrera@wisc.edu) at the University of Wisconsin-<br />
Madison.<br />
FEBRUARY 2010 page 13<br />
INDUsTRY MEMBER CO-OP NEWs<br />
NEWs
s w i s s v a l l e y f a r m s<br />
FIELD PERsONNEL & sTATs<br />
Field Department & Procurement Division Directory<br />
Chris hoeger VP, Procurement<br />
Eldridge, IA 52748<br />
Office 563.468.6628<br />
Mobile 563.340.7943<br />
Nancy Feeney Member Relations<br />
3855 Manchester Dr • Bettendorf, IA 52722<br />
Office 563.468.6640<br />
Mobile 563.320.4815<br />
Tim Genthe Lab & Safety Manager<br />
803 S. School St. • Cuba City, WI 53807<br />
Office 563.583.7669<br />
Home 608.744.3515<br />
marv Thompson Raw Milk Sales<br />
617 Monroe St. • Sparta, WI 54656<br />
Office 608.366.1770<br />
Home 608.269.4850<br />
Ron Brenner Field Supervisor<br />
527 Jackie Lane • LaCrosse, WI 54603<br />
Office 608.366.1770<br />
Home 608.781.0535<br />
Thomas Tegeler Field Supervisor<br />
1320 1 1/2 St. SW • Dyersville, IA 52040<br />
Office 563.583.7669<br />
Home 563.875.2059<br />
Randy heisel<br />
259 E. Lakeview Dr. • LaFarge, WI 54639<br />
Home 608.625.2045<br />
Mobile 608.386.6681<br />
mike howald<br />
7105 N. Freeport Rd. • Forreston, IL 61030<br />
Office 815.938.2651<br />
Fax 815.938.9151<br />
Somatic Cell Range % of A Farms<br />
0 - 100,000....................................................... 4 %<br />
100,001 - 200,000..................................... 28%<br />
200,001 - 300,000...................................... 29%<br />
300,001 - 400,000...................................... 20%<br />
400,001 - 500,000........................................ 8%<br />
500,001 and above................................... 12%<br />
Kara Koopmann<br />
6142 Roller Coaster Rd. • Epworth, IA 52045<br />
Plant 563.583.7669<br />
Home 563.876.3900<br />
Roger lenius<br />
319 9th St. • Waverly, IA 50677<br />
Office 319.352.5463<br />
Home 319.352.5015<br />
Ken ley<br />
225 S. Clifton • Livingston, WI 53554<br />
Plant 608.348.3932<br />
Home 608.943.6240<br />
lynne melchert<br />
117 Culver Rd. NE • Hopkinton, IA 52237<br />
Office 563.926.2363<br />
Home 563.926.2794<br />
Jim murphy<br />
430 Linden • West Union, IA 52175<br />
Office 563.422.5789<br />
Mobile 563.380.0393<br />
Jim Schmitz<br />
304 Dale Dr. • Montfort, WI 53569<br />
Office 608.943.1172<br />
Cell 563.599.2400<br />
Cheryl Zablocki-Wagner<br />
W 1919 Hofa Park Dr. • Seymour, WI 54165<br />
Office 920.822.2933<br />
Mobile 563.663.1306<br />
Bob Zielsdorf<br />
309 North St. • Sparta, WI 54656<br />
Office 608.366.1770<br />
Home 608.269.5452<br />
Somatic Cell Range % of B Farms<br />
0 - 100,000..................................................... 3%<br />
100,001 - 200,000.................................... 11%<br />
200,001 - 300,000......................................11%<br />
300,001 - 400,000......................................23%<br />
400,001 - 500,000......................................... 3%<br />
500,001 and above................................... 49%<br />
During the Month of December<br />
these Swiss Valley Farms<br />
Members averaged below 100,000 for<br />
their Somatic Cell count.<br />
ALDINGER, ROGER 93,000<br />
BAUS, RON & MARY 84,000<br />
BREUCKMAN, CHAD 72,000<br />
BRIMEYER, DANIEL A & DEB 82,000<br />
BRIMEYER, DEREK 82,000<br />
CAROLAN, KEVIN & DONNA 42,000<br />
DEVRIES, DELBERT 92,000<br />
DREIER, RANDY D. 83,000<br />
DUWE, LOREN 74,000<br />
FASSBENDER, PAUL G. 87,000<br />
GILBERTSON, LARRY 93,000<br />
GINGERICH, STEVE 93,000<br />
HENDEL FARMS 67,000<br />
HODSON-DIRKSEN FARMS LLC 88,000<br />
JOHNSON, DUANE A 81,000<br />
JOHNSON, ROY A 81,000<br />
KETCHUM, ROBERT C & TERRI A 80,000<br />
LAUFENBERG, KOTY J. 91,000<br />
LINDSAY, BRIAN 84,000<br />
MAIER, EUGENE H. 85,000<br />
MAIER, JULIE K. 85,000<br />
MEIER, BRIAN 78,000<br />
MEIER, CHERYL 78,000<br />
MEIER, MIKE 78,000<br />
MIKSHOWSKY, RANDY 79,000<br />
MILLER, MERLYN W 54,000<br />
PETERSON, PER K. 91,000<br />
SCHAEFER, JEFFREY G 86,000<br />
SCHAEFER, KURT 86,000<br />
SCHAEFER, SUSAN 86,000<br />
SCHMITZ, KENNETH & MARLUS 75,000<br />
SCHUMACHER, PAUL & JENNIFER 71,000<br />
THOMPSON, LARRY & LIANE 54,000<br />
VALLEY VIEW DAIRY INC 98,000<br />
WEIER, HARRY A 83,000<br />
sWIss VALLEY FARMs<br />
WELCOMEs NEW MEMBERs<br />
hIDDEN VAllEY FARmS INC<br />
BELMONT, WI<br />
SCOTT ThEIll<br />
CUBA CITY, WI<br />
page 1 SWISS VALLEY FARMS DAIRYMAN
Y C S P R I N G B R E A K<br />
YC’ERs, LAsT ChANCE TO REgIsTER<br />
YC’ers, don’t miss your chance to get in on the FUN!<br />
Swiss Valley YC Conference is Feb. 26 & 27, 2010 in Prairie du Chien, Wis<br />
Registrations are coming in for this year’s Young<br />
Cooperator’s Spring Break. We are also seeing lots of new<br />
faces in the registrations. This is always fun!<br />
This year’s two-day Young Cooperator Conference is<br />
set for Feb. 26 and 27 in Prairie du Chien, Wisconsin. We<br />
will be using the meeting room facilities at Huckleberry’s<br />
Restaurant off Hwy 35 and lodging at the Quiet House<br />
Hotel next door. As always, YC’ers who register for the<br />
meeting by 10:30 a.m. are eligible for the Early Bird Door<br />
Prize Drawing, which could get you a whirlpool room at<br />
the Quiet House. It pays off to get there on time!<br />
Also new this year are some extra special door prizes.<br />
You will have to be there to find out what they are and<br />
to have a chance to win! So put the conference on your<br />
calendar and fill out your registration form now!<br />
One of the main events scheduled for this conference<br />
is a tour of the co-op’s award-winning Swiss cheese facility<br />
in Luana on Friday afternoon followed by a farm tour<br />
at Kent and Sandy Franks dairy in St. Olaf, Iowa. On<br />
Saturday morning, there will be a “Mattitude” workshop<br />
with Matt Booth from Dubuque, Iowa. As we all know,<br />
attitude is everything! During his workshop, Matt will<br />
focus on improving your attitude, communication,<br />
personal development, goal setting and leadership skills.<br />
Also on Saturday will be a lecture from Janet Snow,<br />
a nutritionist from BASF, who tell you ways to get more<br />
nutrition out of your corn rations.<br />
One particular highlight to every YC Spring Break is<br />
the Friday night banquet. As usual, there will be a fun<br />
activity following this banquet, something our YC’ers<br />
always look forward to!<br />
An important aspect of this YC Spring Break is the<br />
opportunity it gives young dairy producers to get to<br />
know other young members within the cooperative.<br />
Connections are made and friendships are formed -- some<br />
that can last a lifetime.<br />
Your conference registration materials are below.<br />
Make plans to attend and get your registration materials<br />
mailed back to Swiss Valley Farms. Any co-op member or<br />
herds person of a Swiss Valley Farms member between the<br />
ages of 18 and 45 is eligible to attend and participate in<br />
this conference. The hotel room, meals and speakers are<br />
all covered by the co-op. A $10 per person fee is all that<br />
is required.<br />
Also, give some thought to participating in the 2010<br />
Outstanding Swiss Valley Young Cooperator Contest,<br />
which will be held during this event. To get an entry form<br />
for this contest, just contact Nancy Feeney in the Swiss<br />
Valley Farms Members Relations Dept. at 563-468-6640.<br />
Or e-mail her at nancy.feeney@swissvalley.com.<br />
Spring Break &<br />
Two-Day Conference Registration Form<br />
Get your registration in ASAP. Registration deadline is Wednesday, February 17, 2010.<br />
Include your $ 10 per person check with your form.<br />
YES! Reserve a room for me at this YC Spring Break February 26-27, 2010 in Prairie du Chien, Wis<br />
Name ________________________________________________ Phone_____________________<br />
Address _________________________________________________________________________<br />
Producer# ________________ Do you require a smoking room? �Yes �No<br />
Mail this form and your check to Swiss Valley Farms Cooperative, YC Spring Break<br />
PO Box 4493<br />
Davenport, IA 52808<br />
FEBRUARY 2010 page 1<br />
CO-OP NEWs
Your copy of<br />
Dairyman<br />
S W I S S V A L L E Y F A R M S C O O P E R A T I V E<br />
Post Office Box 4493<br />
Davenport, IA 52808<br />
Address Service Requested<br />
YC’ers, Last ChanCe to Get<br />
reGistered for ConferenCe!<br />
The 2010 Young Cooperator ConferenCe<br />
will be held feb. 26 & 27<br />
in prairie du Chien, Wis.<br />
Members between the ages of 18 to 45 are eligible to attend.<br />
Your registration materials are on Pg. 15. don’t miss out, yc’ers!<br />
There’s lots to do:<br />
FUN sPEAkERs ....... ChEEsE PLANT T<strong>OUR</strong> .......<br />
gREAT DOOR PRIzEs ....... NEW PEOPLE TO MEET ....... gREAT FOOD<br />
....... ThE PERFECT WINTER gET-AWAY!!!<br />
PRSRT STD<br />
U.S. POSTAGE<br />
PAID<br />
Permit No. 141<br />
Davenport, IA
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