Management Notes for December 2016

Management Notes are prepared by staff from the College of Agriculture, Food and Rural Enterprise (CAFRE). Questions and comments are welcome to allow CAFRE to address the issues that are important to you. Please contact the author directly. CAFRE is a college within the Department of Agriculture, Environment and Rural Affairs (DAERA).

Select sires suitable for improving your herd

Dairying

Prepared by: Trevor Alcorn

e-mail:           trevor.alcorn@daera-ni.gov.uk

telephone:     028 8225 3421                                            

Sire selection

Selecting bulls from an AI catalogue or for natural service is one of the most important decisions you can take as a dairy farmer. Why – because it will significantly influence the type of cows you will have milking in five years time. Your decision on breeding replacements should not be taken lightly. Base it on your answers to the following two questions:

1. What type of system and cows do you want in five years?

As a general guide, bulls chosen from an AI catalogue should have a high £PLI of over £400. However there will be considerable variation between these bulls with some having high milk production potential (PTA Milk of over 700) while others will exhibit excellent milk quality (PTA BF% and PR% over 0.10), fertility (PTA Fertility over 12.0), lifespan (PTA Lifespan over 0.5) or a combination of these. Consider what traits or range of traits is important to you.

Bulls suited to a completely housed system will not suit someone who is spring calving or wants to make the most from grazed grass.

2. What is the current genetic merit of my herd?

Information on genetic merit is available to pedigree registered herds through their breed society or milk recorder. For non-pedigree herds that milk record the same information is available for each cow if her sire is identified and a herd genetic summary will be available. 

However, for herds that don’t milk, record assessing genetic merit is more difficult but as a general guide each cow has half the genetic merit of her sire. For example, a cow sired by Oman (O-Bee Manfred Justice) who has PTAs of 445 for milk, 0.06 for BF% and 0.08 for PR% will have a PTA of 222 for milk, 0.03 for BF% and 0.04 for PR%.

Bull selection

Based on your answers to the two questions; select bulls with one or more of the following traits that will rectify current areas of weakness in your herd and meet future plans.

PTA Fertility typically ranges from -15 to +15 and bulls with higher figures have better fertility. Each one point increase in Fertility Index, for example from 2 to 3 is predicted to decrease calving interval by 0.5 days and increase non-return rates by 0.5%.

PTA Lifespan is expressed in terms of lactations and takes account of the main reasons cows are culled from a herd - infertility, lameness and mastitis. It typically ranges from -0.5 to +0.5 and bulls with positive PTA Lifespan should increase progeny longevity. For example, daughters from a +0.5 bull are predicted to survive, on average, 0.5 lactations longer than those from a bull with a PTA of zero.

PTA SCC is expressed as a percentage and typically ranges from -30 to +30. Bulls with a negative PTA SCC should reduce future heifer SCC with each 1% change in a sire’s SCC PTA predicted to change his daughters SCC by 1%. For example, the SCC of daughters from a bull with a PTA SCC of -10% will be 10% lower than daughters from a bull with a PTA SCC of zero. Due to the strong link between SCC and mastitis SCC PTA will also reduce mastitis incidence.

There are about 850 Holstein bulls available in the United Kingdom across the range of AI companies. An excellent tool is available on the AHDB Breeding+ website to filter the list of bulls according to the specific selection criteria of your herd. 

Beef and sheep

Prepared by:   Darryl Boyd

e-mail:            darryl.boyd@daera-ni.gov.uk

telephone:      028 7138 4309

Beef 

Clean cattle

Producing clean cattle for slaughter is important as it reduces the risk of food poisoning from E coli.  What can be done at farm level to help produce clean cattle? The following are a few areas to consider:

• Feed dry matter (DM) affects the DM of the faeces. The wetter the faeces the more risk of contamination. Diets containing high levels of roots or silage are likely to have lower DM than ad lib concentrate diets.
• An excess of minerals can cause mild scouring, for example sodium can cause excessive urine production. To avoid this use an appropriate well balanced mineral.
• Unnecessary high protein levels in finishing diets can lead to loose faeces.
• Acidic and high quality silages result in low dry matter faeces. Providing long straw will help.
• Make changes to the diet gradually to avoid upsetting the rumen microbes and causing scours.
• Rapid air changes reduce dampness (humidity) and therefore sweating. Bedding/slats will dry quicker.
• Belly clipping can help depending on the time of finish through winter but is extremely dangerous and should never be attempted without the correct handling facilities. Complete tail clipping is much safer to carry out and some farmers who finish cattle suggest it reduces contamination.
• As cattle are sent for slaughter maintaining correct stocking rates on slats for the remaining cattle is critical to cleanliness. Under stocking isn’t an issue on straw bedded pens. Table 1 provides recommended space allowances for cattle being finished on slats or straw.

Sheep

Many farmers scan ewes this month, 12-14 weeks after introducing the ram to the flock. Scanning identifies barren ewes as well as ewes carrying singles, twins or triplets. Based on the scanning results separate the flock into appropriate groups determined by litter size and body condition and feed accordingly. This will allow you to better target meal input and help ensure a strong viable crop of lambs.

As December is a relatively quiet month it is a good time to prepare for housing. Thoroughly wash all housing and carry out any maintenance that is required.

Feeding lambs concentrate can be a rewarding experience or an expensive necessity. Good feed conversion efficiency is essential to cover the cost of the concentrates but it can vary from 5:1 to 10:1.The impact of a good feed conversion and changing concentrate prices on margin is shown in Table 2. The calculations assumes a lamb gains 12kg live weight to finish and has a value of £22.80 (£1.90/kg LW), with additional variable costs of £3.50.

Suckler cows

Spring calving suckler cows calving from mid-February onwards should now be receiving a good quality pre-calving mineral mix, supplementing six to eight weeks before calving. Selenium, iodine and copper are generally low on Northern Ireland farms but this varies geographically. With this in mind get your vet to take random blood tests for trace elements from your spring calving herd. This will allow you to provide the right formulation. Getting the mineral balance right will produce livelier calves at birth which is beneficial for suckling and labour input. It also reduces the number of retained placentas resulting in cows getting back in calf quicker. There are many ways to get minerals into your cattle but most farmers mix them with the feed, as part of a TMR, sprinkle them over the forage in a passage way or use boluses.

Finance

Prepared by:   Jason McFerran

e-mail :            jason.mcferran@daera-ni.gov.uk

telephone:       028 9442 6810

Investing in your business

Everyone likes to get a good deal and the thought of getting ‘free money’ in the form of a grant certainly grabs the attention of most farmers. But how do you decide if it is the right thing for your business?

The Farm Business Improvement Scheme offers farmers the opportunity to apply for grant aid for their farm. The Capital Scheme has two separate tiers – Tier 1 and Tier 2 with the grant rate of funding for both tiers set as 40% of eligible costs. 

• Tier 1 is for projects costing from £5,000 - £30,000 (eligible costs) and is primarily aimed at the purchase of equipment and machinery readily available to farmers and growers.
• Tier 2 is for projects costing from £30,000 - unlimited (with £250,000 maximum grant) and is primarily for construction projects and the purchase of higher value equipment linked to the needs indentified in the farmer’s business plan.

More details on the scheme and how to apply can be found on the DAERA website

Whether you are thinking of investing £5,000 on a piece of equipment or £500,000 on a large scale building, you should ask yourself two questions:

1. Is the investment worthwhile?

To answer the ‘worthwhile question’, you need to consider whether the investment is worth the time, money and effort involved. It is vital that you base your thinking on the realistic performance of your business. No one is better placed to work out whether an investment is worthwhile, than the person managing the business. However, it is good to take a step back and consider things carefully. The Capital Scheme application requires you to submit a business plan to show the impact of the investment. You will need to explain the benefits it will bring over the coming years weighing this up against the costs. Work this out firstly in cash terms using whatever financial and physical records you have for the business as a starting point. Benchmarking figures or other management accounts, including your accountant’s report, are important other sources of information. You then need to weigh up any non-financial implications, for example will there be any change to the labour requirement, animal welfare improvement, environmental issues or health and safety? The financial and non-financial implications have to be looked at together in order to make a decision on whether the investment is worthwhile.

2. Is the investment feasible?

Can you afford to make it happen? No matter how good an idea is, if you can’t afford to pay for it, it shouldn’t happen. By completing a cash flow forecast, factoring in the financial costs and benefits of the investment, you will see how it will impact your business. For smaller purchases, a one year cash flow may suffice, but for large projects you should take a longer view, showing the cash flow implications for several years. Any Tier 2 applications, for projects over £30,000 worth of spend, will have to include a five year cash flow plan.

Your bank or other lender has a key role to play in answering this question. Even if you are successful in securing a grant of 40%, the other 60% has to be paid for. Your bank must be satisfied that you are able to cover the 60% and there is the facility in place to do so. The business will also have to cover the full cost of the investment in the short term, until the grant is paid, (including the VAT). Cash flow remains a real challenge to farm businesses and in some cases may be the stumbling block that stops investment happening at this time. Your bank may also require a cash flow or business plan to help them assess your proposal.

Your accountant can also provide you with good advice, taking into account any tax implications or allowances that you can avail of.

The answer to either the ‘worthwhile’ or the ‘feasible’ questions may be ‘no’ at present, but circumstance could change in the future. Applying for the grant under Tranche 2, in autumn 2017 may be the best option. This would give you sufficient time to think and plan fully for your proposal, as well as completing all the necessary potential planning requirements of the project.

Summary

Any investment should be well thought out and only take place if it is both worthwhile and feasible for the business. Use your own farm data along with advice from the bank, accountant and other professionals to make an informed decision.

Information technology

Prepared by:   Ronan Coll

e-mail :            ronan.coll@daera-ni.gov.uk

telephone:       028 9442 6865

Why use DAERA online services?

DAERA online services are designed to help you reduce many of the paper based transactions required by DAERA. They are free, easy to use, available 24/7, safe and secure. The online services also help you comply with legislation, reduce potential errors and give access to detailed information about your business and animals. The services are supported through a dedicated online services helpdesk and bespoke training courses provided by CAFRE.

Amongst the services on offer are:

• APHIS online - herd keepers register over 500,000 calf births every year and over 340,000 of these are now notified online.  APHIS online enables you to notify animal births and deaths (MC1), complete movement notifications (MC2), access up to date animal information and most recently use the online system as your herd book.
• Single Application and Maps - 62% of Single Applications were submitted online in 2016. The built-in error alerts and warnings help prevent incorrect applications being made. You can view and make changes to your map while within the online single application. Doing this automatically updates your field data table which means there is no need to complete a paper LPIS Correction Form for the majority of cases. Using the online service means you can complete and submit the form at a time that’s convenient to you and receive instant confirmation of your submission. Once you submit your application you can make changes to the form right up to the application closing date.
• CAFRE Nutrient Calculators – these five calculators are designed to help you comply with the Nitrates Action Programme measures on nutrient limits, manure storage requirements and record keeping. They make complex calculations and record keeping easier and could also help you improve soil fertility and crop yields, whilst making potential savings on chemical fertiliser usage and ultimately improve water quality. 
• Farm Investment Planner - this is designed to assist you with mapping potential capital investment (primarily construction) on your farm business. It can be used to label existing or proposed buildings or mark those for demolition. The approximate dimensions of buildings are displayed including the length of each wall and the area of the building to assist you with scoping out the general layout of your potential construction project. You can also draw freehand or measure distances or areas which could be useful for planning cattle laneways, length of fencing or drainage which will assist with preparing costs before deciding to proceed with your investment.
• BovIS - the Bovine Information System (BovIS) is a suite of online applications which aim to give the producer the tools to monitor livestock performance and make informed management decisions to improve production efficiency and overall profitability.

The BovIS carcase benchmarking application provides beef producers with a facility to view, analyse and rank the performance of slaughtered animals which have passed through Northern Ireland abattoirs. The BovIS growth rate calculator provides beef and dairy farmers with a facility to quickly and easily evaluate the growth performance of cattle within their herd. The greenhouse gas calculator enables dairy farmers to calculate the carbon footprint of their production system at farm level. There is currently a beef tool under development.

• CAFRE Benchmarking – benchmarking is the first step to find out how your business is performing. The CAFRE Benchmarking service helps you assess your business performance and compare physical and financial results with previous years, other similar farms and industry standards. The system delivers a financial and physical report for each enterprise on the farm, and a whole farm report which identifies reasons for variation, areas where improvements can be made and provides information to set realistic physical and financial performance targets.

To find out more about these services, training courses or register for DAERA online services:

Telephone 028 9442 6699

Email: onlineservices@daera-ni.gov.uk

Text: Easy to 67300

Or visit the DAERA website

Give it a go ... use DAERA online services today!

Notes to editors: 

1. Follow us on Twitter: @daera_ni 
2. All media enquiries to DAERA Press Office, pressoffice.group@daera-ni.gov.uk or tel: 028 9052 4619.

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