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Determination is Key to South Dakota Dairy’s Rich History

Wed, 06 Dec 2023 19:09:32 GMT

Tucked away in the northeast corner of South Dakota you’ll find cornstalks, jackrabbits and a 130-year-old dairy operation that runs on passion, perseverance and a focus on finding the right people. This dynamic trifecta is what makes up the unparalleled culture of MoDak Dairy in Goodwin, S.D., and it’s what led the Moes family to become a Top Producer of the Year finalist in 2023.

On any given day, brothers and co-owners Greg and Jim Moes, along with Greg’s son, Jacob, the farm’s herd manager, can be found working alongside their 40-plus employees on the operation. Whether it’s tending to the 4,000 acres of cropland or caring for the nearly 6,000 combined head of Holsteins and beef-on-dairy cattle, the Moeses aren’t afraid to get their hands dirty. In fact, it’s the springboard for their passion to dairy.

“Farming runs all the way up our family tree,” Greg says. “My great-grandparents moved here from Germany and purchased their first parcel of land back in 1894. This farm has been in the family ever since.”

The Road Back
Not long after graduating high school, the brothers made their way back to the farm with hopes of adding to its legacy.

While several of their friends moved away and pursued college, the duo say they attended the school of hard knocks.

“Neither one of us went to college,” Jim says. “We learned from experience instead.”

Complementing each other well, Jim discovered his area of expertise resided in the fields while Greg’s was with the cows. However, the pair knew learning on their own would only get them so far. They needed to take every opportunity to acquire new skills learned from others.

Whether it was a friend, neighbor or mentor, the Moes brothers knew asking questions would only propel themselves forward. And whenever a free moment presented itself, the two would stick their noses in the most recent issue of any farm magazine that was on the kitchen counter.

“My advice to any farmer is to read, read, read,” Greg says. “So much can be learned just from picking up a magazine. Whether it was articles about cover crops, cows or managing finances, we were always reading, and we still do.”

Growth That Almost Didn’t Happen
What started as 30 cows and a tiestall barn quickly grew to 300 head and a parlor. During the late-2000s, however, the Moeses had a big decision to make when it came to the future of their farm. This succession planning journey tested their perseverance.

“In 2007, my brother and I had reached a turning point in terms of what was next,” Greg says. “We didn’t know if it was time to get out of dairying or move on to the next step. I had a son, and Jim had a daughter, so we visited with them about what they wanted their future to look like. They expressed they wanted to come back to the farm, so in 2008 the decision was made to expand.”

Going from 300 cows to 2,000 cows was a monumental leap for the Moes family, but it was a decision they knew was right.

“We knew we needed to invest back into our farm — that’s a motto we’ve always lived by,” Greg says. “But milk prices came crashing down in 2009, and that was a big challenge we had to face. I was worried if we were even going to have a barn full of cows to milk at the end of the day.”

During a time when dairies across the country were throwing in the towel, the Moeses gritted their teeth and pushed on, knowing that to keep the farm around for the next generation, they would have to step up to the plate.

“Dealing with challenges is just part of the job; I don’t know a farmer who hasn’t wanted to pull their hair out at times,” Jim says. “In a way, it’s maddening because it’s always a different problem, and you don’t always know how to fix it. But that forces you to take a step back and look at what you’re presented with, then figure out who you need to get involved to help you solve it.”

With the farm on the line and the bank saying no to more loans, the Moes family turned toward their vendors for guidance.

“We were fortunate enough to have some of them provide us with operating notes to help get us by, but they also gave us advice on what we could do to survive,” Greg says. “It was a scary time, but with their collaboration, they helped put us in the driver’s seat. We brought our cost of production down and started growing more of our own feed, and ultimately, we made it through.”

They Saw the Potential
After completing the herd’s expansion, the Moeses knew they should diversify to mitigate risk in case milk prices crashed down again. With the farm already using sexed semen, the Moeses became early adopters of genomic testing technology and began selecting animals based off of their genetic potential to build a more efficient herd.

But just like any dairy, the farm had more than enough replacement heifers to fill the pipeline. That’s when the family decided to start incorporating beef genetics.

“We saw we were creating a problem by producing more heifers than we needed,” Greg explains. “It would have been easier to ship them somewhere else, but that wasn’t going to fix the issue. We sat down together to discuss a solution and said, ‘What if we tried beef?’ And it just took off after that.”

Expanding into Akaushi

Back in 2009, when milk prices were still at an all-time low, the Moes family began breeding the lower end of their milking herd to beef. Limousine semen was used in the beginning but as of recently, the family has discovered and expanded a niche for a dairy-on-Akaushi cross.

Known as the Emperor’s breed of Japan, the Akaushi breed is known worldwide for their distinct marbling that gives Akaushi beef a melt-in-your-mouth texture and a rich and
buttery flavor.

“We call it American Wagyu,” Greg explains. “It’s still relatively new in the U.S., but we are creating a market by taking our cross-breeding program and breeding dairy cattle to Akaushi. And the consumer demand seems to be there.”

Similar to 2009, the Moes family had reached a turning-point and knew they needed to reinvest in the farm.

With the beef-on-dairy area of their operation expanding and the cost of having others custom raise their replacement animals going up, the Moeses saw another opportunity to capitalize on: a new heifer facility.

“Having the heifers raised elsewhere was a big expense,” Jacob adds. “We knew that we could make a better profit if we raised the calves and crossbreds all the way out, but we didn’t have the facilities to do it right. So, in 2021, we built a new age, new concept calf barn with group housing, ventilation and a rail system for feeding calves on milk.”

The Moeses again leaned on their consultants and input from their employees to help them design the barn of their dreams, and it’s made a huge difference.

“There’s only one-and-a-half employees running that barn and managing 2,200 calves and heifers,” Jacob says. “I never would’ve thought that few of people could manage that many animals.”

People Power
For most, the word family is used to describe a person who is directly related to you. At MoDak Dairy, however, the definition stretches wider than that.

“I like to say that we have 40-some family members working here on the farm,” Greg says. “Each one of our employees is like family to us. We have people who have been with us for 35 years. We don’t just have employees; we have husbands, wives, kids, daughters, uncles and aunts all working here on this operation, and they’re the main driver behind our success.”

As the family has grown their business, they strive for continuous improvement and look for ways to make the most of their resources. An example of this is when the family made the decision to dive further into the beef-on-dairy sector. Instead of trying to navigate an unfamiliar market on their own, the Moeses enlisted the help of their lender, Farm Credit Services of America, to help them make sound business decisions.

“We communicate with them regularly so they can help us map out a plan,” Greg adds. “The beef market can be a different ballgame, so having another set of eyes on the business allows us to address challenges that we might not have seen and identify new opportunities to jump on.”

In addition, consulting companies also provide training and coaching for team members throughout the year to help build longevity within the operation.

“Many years ago, we brought in a consultant who has helped coach us through the transition process,” Greg says. “We met with him each year, and we’ve followed all the steps. It’s made a big difference with bringing Jacob on board. Having someone who you can bounce questions off of and lean on for advice is a tremendous asset.”

Making sure the farm has the right people on their team is another essential factor to MoDak’s success.

“We spend a lot of time making sure we have the right people in the right place,” Jacob says. “If somebody is going to be with us for a long time, we have to make sure that we’re putting them in the right spot for them to grow and, more importantly, for them to enjoy the job.”

The same can be said for MoDak’s team of trusted advisers and consultants.

“We put a lot of trust into these guys; they’re there to help us make the big decisions for the future of our farm,” Greg adds. “They’re a valuable piece of the equation. Having the right team members surrounding you just works better for everyone.”

Passing the Torch
For the past 130 years, the Moeses’ love for family and farming has been a key driver on their road to success. Representing the fourth generation on the farm, Greg and Jim pride themselves to have followed in their ancestors’ footsteps. And the fifth generation, represented by Jacob and other family members, continues to keep that tradition alive.

“I entered into farming to keep our dairy in the family and to pass it to future generations,” Greg says. “My goals today are the same: to see the future of MoDak Dairy as a multigenerational opportunity for future generations and for the future of families that work with us.”

Dairy Farm Sustainability Through Technological Innovation

Sun, 16 Jul 2023 12:00:00 GMT

By Stuart Taylor: Canterbury, New Zealand

Cows outnumber Kiwis here in New Zealand. It’s close, but there are more dairy cows than there are people in our country.

The big herds are fine with us because their production drives much of our economy. New Zealand may look isolated on a map, adrift in the south Pacific Ocean, but we are a trading nation that constantly exchanges goods and services with the rest of the world—and about a quarter of our exports come from dairy farms.

As we continue to build our country’s dairy production, we’re also determined to lead the way in sustainability through technological innovation. Our future depends on it.

Cows generate methane, which contributes to the rising temperatures of climate change. Dairy farmers in New Zealand, therefore, have an obligation to come up with creative solutions to this problem.

We think we have found one, thanks to EcoPond, a treatment system that removes almost all the methane emissions from effluent ponds.

An ordinary dairy cow on a typical day produces about 70 liters of effluent, which is a euphemism for waste, which is a euphemism for words that I’m not going to print.

Traditionally, a cow’s effluent flows into a stabilization pond , where it receives treatment before its release. On our farm, we use much of this liquid to feed our soil.

This process works well, but one of the byproducts of effluent ponds is the release of methane into the atmosphere. So effluent ponds can create a challenge—but they also represent an opportunity to do better.

In a research breakthrough driven by a collaboration between farmers and scientists, a co-op called Ravensdown partnered with professors at Lincoln University on New Zealand’s South Island to create EcoPond , a product that could transform effluent treatment everywhere. We’re one of two dairy farms that are now experimenting with EcoPond. Ours has 1,100 cows and exclusively produces milk.

The concept of EcoPond is simple. It intercepts effluent as it drains out of a cowshed and pumps it into a mixing coil, where it receives an injection of iron sulfate. Then the effluent flows into what by outward appearances is a standard effluent pond. But this is an effluent pond with an important difference: The iron sulfate makes it impossible for microorganisms to emit methane.

“What we found is the EcoPond technology can reduce methane emissions by 99.9 percent,” says Hong Di, a scholar of soil and environmental science at Lincoln University.

He adds, with a smile: “We’re still working on the 0.1 percent. We’ll get there.”

EcoPond delivers additional benefits. It reduces the leaching of phosphate and E. coli by 90 percent or more. It improves the carbon content of our soil. And it even smells better than a traditional effluent pond.

It’s also easy to operate. After setting it up, farmers don’t have to give it much attention. The system monitors iron sulfate levels on its own and makes necessary adjustments.

For all its advantages, however, EcoPond is only a partial solution to the challenge of cutting methane, which has many sources on dairy farms, including cow burps.

We’ve discovered during our trial period that EcoPond wipes out about 8 percent of our total methane emissions. This is an excellent result, but not a complete strategy, as we’re aiming to cut emissions by 35 percent by 2035. We’ll need to look beyond our effluent ponds to achieve the next 27 percent.

I’m confident that we can get there, but I also expect to try a lot of methods. One is to alter the mix of microorganisms that assist with digestion in the bellies of cows. Right now, these bugs emit significant amounts of methane. By changing the diets of cows, we will be able to maintain their nutrition and cut methane emissions at the same time.

Separately, we’re trying to improve our sustainability by shifting away from electric power and taking up renewables such as solar and hydro.

For now, we’re pleased with the start that EcoPond has given us—and confident that new technologies can build upon this success and take us the rest of the way.

Stuart Taylor is a dairy farmer, managing the dairy and grazing operations for Craigmore Sustainables in Canterbury and North Otago, New Zealand. Stuart is a member of the Global Farmer Network. This column originates at www.globalfarmernetwork.org

Six Straw Alternatives to Get You Through a Bedding Shortage

Wed, 14 Dec 2022 17:49:45 GMT

Weather conditions certainly took a toll on this years wheat crop, leaving straw in short supply for some farmers. This commonly used bedding material is the ideal choice for calves during the winter time. However, here are six bedding alternatives to consider when straw supplies get tight:

Chopped Corn Stalks - If you’ve just harvested a field of corn, consider saving the leftover stalks for bedding. They are widely available and very absorbent.

Chopped Soybean Hulls - Similar to corn stalks, this bedding alternative can be found soon after harvest and can be used to help keep calves clean and dry.

Wood Shavings - One of the most common alternatives to straw bedding is wood shavings. This material performs similarly to straw and provides a clean spot for calves to nest.

Almond Shells - Ground almond shells, usually found out west, can be used to help soak up excess moisture and keep dry and clean.

Peanut Hulls - Down south, this absorbent organic material can be ground to make a fine bedding similar to wood shavings.

Shredded Paper - Chopped recycled newsprint can be used for bedding and is relatively inexpensive. Consider reaching out to a nearby recycling facility to see if they can custom chop used paper.

For more on bedding materials, read:

Passing the Torch from One Generation to the Next at Steinhurst Dairy

Fri, 29 Oct 2021 15:13:49 GMT

The speech “So God Made a Farmer,” given by Paul Harvey in 1978 to the National FFA Organization, tugs at every farmer’s heart. After all, it is both admirable and an honor when a child wants to be just like their parents when they grow up. Ohio dairy farmers Kurt and Robin Steiner can attest to their brimming pride when it was announced over the loudspeaker on senior football night that their oldest son, Christian, would take over the family farm after he graduated college.

Like many farm kids, Christian, along with siblings, Nicole and Zach, were taught the values of hard work, commitment and sacrifice on their family farm, Steinhurst Dairy, in Creston. Ohio.

When they look across the landscape of their family farm, Christian and his siblings see bountiful blessings.

“You see the animals when they’re born, raised all the way up,” Christian says. “You see God’s creation every day you work outside, and you work with your family.”

Est. 1959

The importance of family runs deep for Christian, who represents the eighth generation of dairy farmers in Wayne County. His grandfather, great-grandfather and great uncles helped established Steinhurst Dairy on their current location in 1959. His father, Kurt, describes his childhood farm as a typical rural Midwestern dairy.

After graduating from Ohio State in 1988, Kurt decided to head west to California to take a job with Cargill. He worked there for two years before landing another job with a big chemical company, but deep down, Kurt knew Ohio was home. He returned to his family dairy in 1994. At the time, his family was milking 140 cows in a double-6 herringbone parlor.

Kurt came back with a team player attitude and knew he needed to be an asset to his father and his uncle, John.

“I came back with the mindset I needed to shut up and listen for a couple of years,” he says.

Slowly, the Steiner family started to expand their dairy that now sits at 600 milking cows and 1,100 acres of cropland.

Despite the hustle and bustle of farming, the Steiner’s took time to pause in 2002 to talk about succession planning and what it would take to bring Kurt and his younger brother, Eric, into the operation as partners. With the help of a family attorney, the Steiner’s put together an extensive succession plan that addressed death, buyout of partners, how long the younger generation would have to work before coming into the farm as a partner and so much more for their family dairy. This conversation is vital for any dairy operation, but the Steiner’s would realize just how beneficial it would be for them in the coming years.

Handling Grief

As if 2009 wasn’t hard enough with a lackluster dairy economy, life suddenly came to a halt for the Steiner family on Super Bowl Sunday afternoon when Kurt’s father passed away from a heart attack.

Crediting solid management, where every partner pulled their weight, and a life insurance policy the farm had on their father, the dairy was able to continue without additional headaches.

“Our dairy didn’t miss a beat as far as keeping things moving forward,” Kurt says. “You don’t plan for death, but it certainly can happen quickly.”

After their father’s death, Kurt and Eric became 54% owners and their uncle John, a 46% owner, which was outlined in the succession plan.

In 2016, John had a stroke. He was sidelined for a year, only to return for a few months before undergoing a heart valve replacement. The surgery unfortunately never allowed him to go back to work on the farm. However, his leadership continues to be appreciated by the partners today.

Just, two months ago, at the age of 52, Eric went in for prostate cancer surgery, returned home, went into cardiac arrest and passed away. Kurt recalls his last words to Eric before his surgery: “I love you. Don’t worry about coming back. We will take care of it.”

Although Kurt was referring to taking care of the dairy while his brother recovers, a life insurance policy helped take care of the farm. Kurt notes none of his business partners walked off the dairy like everyone had envisioned.

“You’re not going to be here forever, so you better have it together,” he adds.

Succession Planning Advice

Kurt readily admits his farm doesn’t have it all figured out when it comes to succession planning. He wholeheartedly believes the key ingredient is communication among the partners during the long process.

“If there’s no communication, it is never going to work,” he says.

Appreciating the younger generation’s drive and passion is something Kurt admires.

“Truthfully, I don’t think there is a greater joy than watching your kids want to take over what you’ve established,” he adds.

After graduating from Ohio State University – ATI in 2018 with a degree in dairy science, Christian oversees the calf and heifer program as well as fresh cow protocols for the farm.

According to Kurt, the farm’s culture also plays a part in succession planning because the next generation isn’t going to operate and run the family business the same hours and the same way as the previous. He believes establishing work-life balance illustrates to the younger generation they too can achieve the very same balance.

“When a kid sees dad was able to attend activities and come inside for supper, this all sets the stage for what’s next,” he notes. “If the old man is dragging down the attitude of everybody and never taking a break, why would the younger generation want to come back to work in an environment like that?”

It’s a blessing, Kurt adds, that Robin came from dairy roots.

“She understood it all from day one,” he notes. “Sometimes the spouses who are not from this kind of background watch their friends’ spouse join in on all the fun things over the weekend and if you’re spouse isn’t prepared for that, it can be a rough adjustment.”

Crediting a solid foundation built on faith and family, the Steiner’s have been able to work together on the family farm.

“If you can foster a positive culture in your operation, where members want to be together, then you realize this life is worthwhile is key,” Kurt adds.

Every quarter, the Steiner family gathers for management meetings where no finger pointing is allowed.

“Everyone is expected to come with ideas.”

Understanding it is easy to be pulled into different directions and put off conversations for another day, Kurt highly recommends not postponing transition planning for tomorrow.

“It could simply be too late,” he adds.

The one question Kurt says needs to be agreed on is the end objective for the farm.

“What is the future goal of the farm?” he questions. “If you figure that out, it makes the whole succession planning a lot easier because if everyone wants it to continue to the next generation, then you just have to figure out how to execute it.”

The key component is communication and defining expectations for all members, including non-farming family members.

“Have those uncomfortable conversations,” Robin says.

Those conversations the Steiner’s executed early on, along with open communication, hard work and strong values have allowed Steinhurst Dairy to pass the torch from one generation to the next despite a string of grief and mountains of heartache.

Outsourcing: What Can You Not Do?

Mon, 23 Nov 2020 20:07:09 GMT

You wear many hats. But are they all a perfect fit? I bet there’s a responsibility or two someone could do a little — or a lot — better than you.

“Outsourcing, coincidentally, is also one of the top ways to help your business focus on what you do best,” says Peter Martin, finance and growth consultant with K·Coe Isom.

Why Focus Pays

Not only does outsourcing align tasks with skill sets, but it also provides expense control and improved cash flow. How? Essentially you transition fixed costs to variable costs.

Variable costs, such as hourly labor, fuel and seed, can change per your wishes and are often tied to production output. Outsourcing has a long history in agriculture, Martin explains. Spraying, harvesting and other tasks have been outsourced for decades.

“But, driven by economics and the skills of outside sources, it will become increasingly common in nontraditional areas,” he says.

Think about the tasks or duties where you and your team don’t necessarily excel. An example might be human resources. “Few farms have HR departments, but you’re all dealing with HR issues,” Martin says. “Outsourcing this fixed cost will not only get you the HR expertise you need but keep you from being saddled with the fixed cost of HR personnel. Some HR services cost just $40 to $50 a month.”

Other examples could be record keeping, financial analysis or data management.

Don’t just outsource something you don’t want to do. Instead, look for tasks that fall into these general categories:

Executive-level expertise.
Highly repetitive tasks.
Specialized knowledge or tools.

Offload and Outperform

Regardless of your farm’s size or type, I’m sure you can find a way to shift responsibilities to a more efficient approach. Depending on the task, you may even be able to employ a family member who lives in a different city or that great small business on Main Street.

“Moving fixed costs to variable costs isn’t a new concept,” Martin says. “But it’s a smart one for both good times and bad. It’s about looking at your operation, figuring out your weaknesses and finding ways to offload the costs and activities that keep you from being the best producer and the business you want to be.”

Avoid Next-Door Drama

Wed, 18 Nov 2020 16:47:41 GMT

As a responsible farmer you take steps in your business not only to produce the best, highest-quality crop you can, but also to protect the health of the land or the welfare of your livestock on a daily basis. But in doing so, you may still have neighbors who aren’t happy with your operation’s impact on their lives, whether it be true or a misperception. Over time, disgruntled feelings have the potential to fester into lawsuits against your farm. Here are a few ways to practice good neighbor hygiene, and how to handle it should you find yourself facing a lawsuit.

Check in with neighbors. A quick check-in can head off issues by providing an opportunity for two-way dialog. Contacting your neighbor periodically in general and alerting them of upcoming changes to your business plan gives them an opportunity to share any issues or concerns relating to your farm that you may be unaware of.

“If a neighbor who already has some concerns about your farm—potentially unexpressed concerns—suddenly sees backhoes show up at your property, they’re going to be nervous and curious what’s going on over there. If they’ve had issues with odor or insects before, they’re going to naturally assume the worst,” says Chad Blomberg, JD, of Lathrop GPM . “That may not be true at all. Instead, you may be adding something to the farm that will make things better or you may be adding new technology. To help alleviate these concerns your neighbors might have, talk to them and help dispel misinformation about what’s going on.”

Evaluate your practices. The legal standard for a nuisance claim is unreasonable land use, so a farmer has to act reasonably in developing and implementing farm practices, and stay up to date on available technologies, equipment and management practices, says Jennifer Griffin, JD, of Lathrop GPM .

“Nearly every state has Right to Farm statutes that provide some form of protection against nuisance suits. But some states’ statutes—like Missouri’s—say that the expansion or new practice cannot create a substantially adverse effect on the environment or create a hazard to public health or safety,” she notes.

Educate your community. Building an understanding of farming practices, including the fact that your farm operates under a permit that is monitored by state and meets all requirements to continue operation can also be key in staving off lawsuits.

“Public education of members of the community can be useful in avoiding litigation and helping to mitigate misconceptions (or misinformation) about farming practices,” Blomberg and Griffin say. “Many types of information (e.g., permitting, regulatory requirements, your periodic reports) are public records, and can be shared or communicated with the community, including neighbors and others in the community who have relationships with them.”

What to do if you get served with a lawsuit.

Do you know what to do should you find yourself in a legal dispute with a neighbor? “Though catching up over a cup of coffee can go a long way in building relationships over time, after a lawsuit has been filed, the opportunity for casual conversation disappears,” says Tiffany Dowell Lashmet, JD, associate professor & extension specialist of agricultural law at Texas A&M AgriLife Extension Service. At that point, anything you say could be used against you in court and could hurt you in the long run. Once you’ve been served, you need to find legal counsel to represent you.

Don’t put insurance policies on autopilot. Blomberg, Griffin and Lashmet all agree that one of the most important steps in fighting a lawsuit is to get in touch with your insurance carrier and talk over your coverage. It is crucially important to review coverage on an annual basis and stay away from auto-renewal year after year, they say. Policies can change, and you may not be covered for what you thought you were 10 years ago.

Find resources to help you. While it may be tempting to represent yourself, it is easy to underestimate the complexity of the issues and the time it can take to resolve a suit, and it will benefit you to have expert help.

“The best-case scenario is that you’ve got an insurance company that provides you a defense. They hire you an attorney and the attorney steps in and takes over representing you,” Lashmet says. “The first phone call I would make is to my insurance company to find out if we’ve got an event for which an attorney would be provided. If not, I would recommend to anybody who’s facing a lawsuit, at least consult with an attorney to figure out what’s going on, whether it’s worth hiring someone, and determine how serious it is.”