What to Think About When Expanding Your Dairy Operation

By AGPROfessionals Engineers, Chad teVelde, Valene Cauhorn, and Matt Thompson

Processing, Manure Management, Land Base, and Water Rights are the Top Considerations for Expansion Plans

When considering an expansion, the main starting point should be the processor. Can the processor handle more milk at your current location? Is there additional capacity coming online, or is there a plan to ship out of state? The answer to this question is the driving factor for the expansion plans. An additional, but often overlooked consideration is the farm's available manure management land base and water availability/rights.

Expansion in dairy operations can take several forms, including increasing herd size within the existing footprint, upgrading or enlarging current facilities, adding a new production site to boost capacity, or constructing an entirely new facility to support long-term growth.

It’s All About Math – Start at the Milk Barn

When it comes to considering expansion and the best path to take, it boils down to math. The first place to look is at the milk barn. Here are questions to consider, which will help to determine if you can maximize your current barn or if it is necessary to increase the size of your milk barn:

• How many cows are you currently milking?
• How many times per day are you milking?
• Are you maximizing production per milking stall?

Let's say you have a double 30 milk barn. If you milk three times per day, you should be able to achieve five turns per hour, which means you can milk approximately 300 cows per hour within an 8-hour shift. The math equates to a current milk barn (double 30) with a maximum capacity of 2,400 cows. If you are milking less than your maximum capacity, you can expand with minimal capital investment in facilities by taking some steps to increase efficiencies. If you are already at capacity for your milk barn and want to increase production, you will need to expand your milking facilities.

If you want to increase efficiency so you can add more cows without investing in extra facilities, you might consider switching from milking three times a day to twice a day. This gives you more time to milk cows and improves the efficiency of your double 30 milk barn to handle 3,600 head. This change from three to two milkings per day may result in 10 to 15% less milk produced per cow, but in the end, you'll see a significant improvement because you'll be able to milk many more cows in the same facility.

You’ve Determined That You Need to Invest in A New or Additional Milk Barn – What is the Best Choice?

There are positives and negatives to different styles of milk barns. Knowing these attributes provides the information needed to make the decision that works best for your operation.

• Rotary Barns – While rotary barns have a lot of positive attributes, we find that they are not as efficient as other methods if you are going to be milking less than 2,500 cows. The positive aspects of rotary barns are that they allow for flexible pen sizes, you can milk more cows per employee, you have pre- and post-dip robot options, and all of the cows exit in one lane. On the negative side, a rotary has more moving parts, and if it goes out of service, milking efficiently could become very difficult while it is down.

• Parallel Parlors – These parlors require significantly less initial capital investment and offer greater flexibility for future expansion. The ability to expand is the number one feature of a parallel parlor. More labor is required in comparison to a rotary – parallel parlors can typically milk about 100 cows per employee. However, if a cow is having a problem that requires attention while milking, it is easier to spend time with them in a parallel system rather than a rotary because they are stationary and not moving.

• Robot Milking Unit – The most significant disadvantage of a robot milking unit is the high initial investment and ongoing maintenance costs. However, there are many advantages, such as no labor costs for milkers, reduced stress on cows since they can be milked where they eat, and generally high production levels with a robot milking system. Another major benefit is the increased efficiency they provide, especially when considering expansion. Many producers have added a robot milking box, a cross-vent next to their milk barn to add 400-800 cows without impacting their existing milking facility. This is a high-cost option, but it is non-invasive to the existing facility.

Cow Housing Considerations

There are several different types of housing available; some operations may stick with one style, while others may use a combination or be transitioning from one housing style to another. These housing styles range from open lots to traditional free stall, tunnel vent free stall, and cross-vent free stall barns.

• Open Lot Housing – Open lot housing is the least expensive to construct. Some of the benefits of open lot housing are good foot and leg health for cows and the ease in detecting heat cycles in cows. The negatives are that the cows and employees are impacted by weather, and there is typically a longer travel distance for cows from housing to the milking barn. Open lots require a larger square footage per cow than building housing.

• Traditional Free Stalls – This style of barn requires a slightly larger capital investment, with concrete floors and running two pens per building. They offer protection for both the cows and employees from the weather, can take advantage of natural ventilation, and can be incorporated with open lots, allowing cows to go outside. However, maintaining the environment becomes much more intensive due to the need to manage manure as a liquid and bedding on a daily basis.

• Tunnel Vent – These barns offer four pens per building, and they are designed so that air is blown down the building from one end to the other. The cows and employees are protected from the environment, and the cows are constantly kept cool. These barns require more capital investment over open lots, but the advantage is the smaller footprint, allowing for housing more cows on a smaller piece of property. Cows have a shorter travel distance to the milk barn. Like the traditional free-stall barn, the tunnel vent requires more intensive management of the environment, including manure management and bedding.

• Cross Vent – The cross vent barn provides air flow across 6 to 8 pens in one building. While they are more expensive to build than open lots, the housing cost per cow is reduced; more cows per building footprint means less cost per cow compared to other free stall barn styles. These barns have concrete flooring and have the same intensity requirements for managing manure and bedding.

The energy cost for tunnel vent and cross vent barns will be higher because fans are moving air across the buildings at all times.

Manure Management Considerations

Regardless of the type of expansion planned, the current manure management system will need to be evaluated to determine the impacts on the manure separation and storage, and land application systems. Any addition of cows to a site will impact storage and land application needs. These changes can be magnified if a new parlor or housing type is also implemented.

Housing changes from open lot to covered pens will result in double the amount of manure that is harvested off of concrete. Storage areas for scraped solids or flush/slurry storage will need to be expanded to accommodate these additional volumes. Land application of lagoon liquids and nutrients to surrounding fields needs to be accounted for, as all CAFO facilities have nutrient management plans and requirements. Increased hauling and separation technology upgrades need to be considered in the overall budget, as they will increase operating costs.

Parlor updates and changes can have increased or decreased impacts on water use and corresponding storage requirements. Any changes from water-cooled equipment or to reuse may negate moderate increases to cow throughput. The lagoon storage system will need to be enlarged to accommodate an increase in overall water use.

A preliminary nutrient management plan for a proposed change is always advisable to give guidance on liquid and solid application land base. These plans should also assess the storage system and determine whether any expansion is necessary. Slope and drainage within and around the facility should be addressed within these plans.

Another consideration of any expansion or conversion is the impact on environmental conditions. Barn systems may open opportunities for future energy projects like digesters or other technologies. Changes in manure management may impact facility odor and nuisance conditions, and proximity to neighbors and populated areas should be considered.

Water availability and water rights must be considered. Both facility water use and cropping changes to water use need to be considered. In Idaho, water can be changed from irrigation to stock and commercial uses, but this water needs to come from a primary groundwater right. Water right priority dates need to be considered, as any area cutbacks, etc., will typically impact junior/newer rights over older senior rights.

Navigating the Permitting Process When It Comes to Expansion

Prior to construction, it is important that all the permits are in place. Most counties in the state of Idaho require a land use permit for the expansion of a Confined Animal Feeding Operation (CAFO). Remodels and site plan changes can often be addressed through an administrative change; however, if animal numbers or the footprint are changing, a land use permit will likely be required. When preparing for an expansion, the following information will be needed for a land use permit:

• Water rights (will a water transfer be needed)
• Approved NMP of the expansion
• Site Plan
• Acres for Density requirements (not all counties have this requirement)
• Setback restraints: Well location, Neighbor location

Additionally, collaboration with local highway departments will be necessary.

Other permits that may be required are:

• Public Drinking Water
• Septic
• Building Permits
• Access permits

This list outlines the basic steps to start the process. It is not a comprehensive list due to the fact that permitting requirements are county and site-specific.

The Most Important Step - Assemble A Trusted Team

The most crucial step when planning to expand your dairy is to assemble a trusted team to develop a solid plan. The individuals who should be involved include your herd veterinarian, herd manager, a dairy engineer, land planner, construction team, and a dairy banker.

Our team at AGPROfessionals has designed and engineered some of the best dairy operations in the nation. For more than twenty-five years, we have focused on helping our clients reach their goals and supporting their success. If you're considering expanding your dairy operation, we would be honored to become a trusted part of your team.

Links:

Article from Michigan State University about milking three times per day HERE