WHA Hosts Barn Meetings Focusing on Getting Started in Registered Holsteins

By Crystal McNett, Assistant Editor
Thursday, April 5, 2007 4:25 PM CDT

The Wisconsin Holstein Association is hosting five barn meetings throughout the state this spring.

Various young Holstein breeders have volunteered as examples of young farmers getting started in the business. Nova Holsteins, the Kamm family of New Richmond; Rock-N-Hill II Holsteins, Chris and Kathie McCullough of Juda; Mickilcrest Holsteins, Mike and Jill VanSchyndle of Cuba City; and Ragnar Holsteins, Mark and Angie Ulness of Valders; have already hosted their barn meetings. Jim and Tammy Fahey of Jimmy Dairy in Edgar will be hosting their meeting on April 9 at 11 a.m.

Agri-View was a member of the crowd during Mark and Angie Ulness' barn meeting on March 26.

Ragnar Holsteins consists of 76 Registered Holsteins with a rolling herd average of 28,585 pounds of milk, 3.9 percent fat, 1,110 pounds of fat, 3.2 percent protein and 911 pounds of protein on twice-per-day milking and a 109.6 percent breed age average.

The herd is housed in 76 head-to-head tie-stalls with mattresses and tunnel ventilation. Heifers are raised on-farm in sand-bedded freestalls. The calves are raised in calf hutches in a greenhouse-like calf barn and are transitioned into group pens before moving into the heifer shed.

Mark and Angie started purchasing the farm from Mark's mother, Ava, in May 2002, four months before they were married. "So I was in over my head before I got married," Mark joked.

When they began farming, Mark and Angie purchased the cattle and the machinery and rented the land and the facilities. They were able to get financial support from the Farm Service Agency's young farmer program and from Denmark State Bank.

At that time, Angie worked for the Holstein Association as a regional field representative in Eastern Wisconsin, which proved to be a very valuable steady income when milk prices were at their extreme lows. In contrast, when milk prices reached record highs, Mark and Angie made the wise decision to pay off a large portion of their loan. "We even surprised them a little for young people starting out," Mark said. "Its always nice when a banker's surprised for those reasons."

Angie began working full-time on the farm in August 2005 after the birth of their son Garrett, now 2. Mark and Angie also have a daughter, Clarissa, age 3.

The Ulnesses have worked their way up to owning the machinery, cattle, buildings and the 80 acres the buildings sit on. They continue to rent additional acreage from Mark's mother.

Mark and Angie farm in a partnership with Mark's uncle, Loren Ulness, cropping the land together and sharing the machinery expenses. Loren was a partner in the farm when Mark's parents began farming and continues that partnership in much the same way with Mark and Angie. "He's been a huge help over the years with his experience and knowledge of farming. Angie and I are both cow people, that's no secret to anybody, but we are learning about all aspects of farming. It's helped immensely to have somebody like Loren who's been a staple in the farm as many years as he has been," Mark explained.

Chad Frank works part-time and has been with the Ulnesses since they started, and they also work with the Lakeshore Technical College Dairy Herd Management Program and have been the host farm for four students since 2002. Mark and Angie both grew up on registered Holstein farms and have been involved in the Holstein industry their entire lives.

The Ulnesses are beginning to market their genetics to supplement their milk income. They have recently signed their first artificial insemination (A.I.) contract on a cow in addition to selling several show calves and cows over the years.

Both of the Ulnesses' lenders have farming roots and have been supportive of their desire to farm with registered cattle. They have an understanding of extra costs with things like classifying and milk testing, Mark explained.

Pat Knowles of Knowles, Brandt and Associates in DePere, was Ava's consultant and transitioned with the farm to become Mark and Angie's consultant. They found this very valuable that he was able to understand both sides of the transition.

"We're not here to tell you to get bigger," Knowles explained. "Whatever you are going to do, just make sure you can do it properly."

Jack Olsen, president of Denmark State Bank, also offered advice to those interested in getting started in the dairy business.

It's kind of an exciting time to be in the dairy business, Olsen explained, "not only for those of you milking cows, but also for us who are financing you." We've had a fair amount of success on those units that have concentrated our efforts on those who have put their equity in cattle as you can see from Mark and Angie's success.

"I think the banking community, in general, is trying to be a little more innovative in structuring packages that involve some of us with parents and easing parents out of the operation," Olsen noted. The rapidly appreciating real estate and cattle markets are requiring more money to get started nowadays, he added.

As you begin investigating purchasing a farm, get in contact with a consultant who is willing to spend some time with you and learn about your operation and give advice, Knowles advised. Find someone you can trust.

Equity is a very limiting factor when getting started in farming, Knowles explained. Investing in cattle can prove to be most profitable and with the right rental agreement can lead to a successful farm purchase. "Don't get too excited about owning any land or any equipment, unless you can marry the right young lady or the right young man that's got some financial position," he quipped. "And that works, too."

You really have to pay attention to your numbers, Olsen added. I know of too many farmers who are very hard workers, but don't work smart.

When purchasing your first cattle, Knowles recommends purchasing somewhat of a mixed herd. A good number of springing heifers is okay, but milking cows are necessary also to prevent a "hole" in the bulk tank. Also to be avoided are many older cows which will create an extremely high cull rate. Building up youngstock numbers is an essential investment, Olsen added.

When looking for a facility to begin farming, be very critical of the facility. Look at the efficiency of the facility in terms of labor as well as stall size and cow comfort issues, just to name a few.

For those who are interested in purchasing high-end registered cows, the lenders recommend starting slow. A common approach is buying a few more valuable animals and expanding their genetics by embryo transfer in order to keep milk flow up in the herd. It all needs to pay off and you need to get there first. "For the first year or two it needs to come from the milk tank," Olsen added. As lenders we need to see a good return on the producers investment at 10 or 12 percent.

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