The Milk Regulatory Equity Act of 2005 has a loophole large enough to drive a herd of Holsteins through, despite the measure’s being touted as closing a loophole.

The legislation was passed in March with supporters saying it would close a loophole that allowed Hein Hettinga’s business in Arizona and others like it to both produce and bottle milk, and then sell it at cut-rate prices without government regulation. Hettinga sees nothing wrong with selling his milk at about half of what his competitors do.

However, when the fine print was read, it was discovered that the legislation excluded the state of Nevada from federal milk regulations.

Source: Chicago Tribune/ Andrew Martin, July 4, 2006
Source URL: http://www.chicagotribune.com/news/nationworld/chi-
0607040210jul04,1,5591205.story?track=rss

This week, five University researchers are taking a stand in the debate over whether ethanol from corn grain requires more fossil fuel energy to produce than it delivers. Led by Jason Hill, a postdoctoral associate in the department of ecology, evolution, and behavior and the department of applied economics, the team has published the first comprehensive analysis of the environmental, economic, and energetic costs and benefits of ethanol and biodiesel, two fuels derived from plant sources. In the pages of the Proceedings of the National Academy of Sciences, they report that ethanol, used in lieu of gasoline, supplies 25 percent more energy than the energy (mostly fossil fuel) consumed in producing it, while biodiesel from soybeans, a substitute for diesel fuel, supplies 93 percent more.

Source: University of Minnesota/ News Release/ Deane Morrison, July 10, 2006
Source URL: http://www1.umn.edu/umnnews/Feature_Stories/Ethanol_fuel_presents_a_cornundrum.html

Following are some of the headlines from news articles highlighted this week:

• Latest Suspect Canadian Cow Born After Feed Ban
• UT Researchers Find Prions with Blood Test
• Fastest University in the West to Go Organic Dairy
• CT Begins Dairy Farm ‘Reinforcement Program’
• EU Report: Ag Trade Developments of WTO Players

Click to read more of these and other news stories.

As milk prices are dropping the interest in milk marketing is increasing. Judging by the number of calls I have had over the past few weeks there seems to be a lot of questions about put options as a milk pricing tool.

Put options (puts) are a milk marketing tool that can be used to set a minimum Class III milk price. One put option represents 200,000 pounds of Class III milk. They are bought and sold daily on the Chicago Mercantile Exchange (CME). Put options are available for every month for which Class III futures contracts are traded.

Source: University of Minnesota/ Margot Rudstrom, July 8, 2006
Source URL: http://www.extension.umn.edu/dairy/dairystar/07-08-06-Rudstrom.htm

Recent attention has focused on how rising energy prices have increased grain production costs. However, energy is not the only factor causing cost increases. Of the $50 increase in per acre costs between 2003 and 2005, less than half are directly attributable to rising energy prices.

Source: Farmdoc/ University of Illinois/ Gary Schnitkey and Dale Lattz, July 10, 2006
Source URL: http://www.farmdoc.uiuc.edu/manage/newsletters/fefo06_11/fefo06_11.html

Following are some of the market news and analysis highlighted from the past week:

• Corn Growers Optimistic on Overseas Markets
• UK: Milk Use Rising; Stability on Horizon?
• Crop Development Overrides USDA Acreage Report
• Potential for Using Grains in Ontario Coal Plants

Click to read more of these and other market articles.

We examined combination therapy with both lactoferrin (Lf) and antibiotics on clinical mastitis due to Staphylococcus aureus (S.aureus) on drying cows.

These results indicated that the efficacy of combination therapy with antibiotics and Lf caused antibacterial effect of antibiotics and inhibition of pro-inflammatory cytokine and chemokine production with Lf via the inhibition of NF kappa B activation.

Source: Effect of combination therapy with lactoferrin and antibiotics against staphylococcal mastitis on drying cows. Journal of Veterinary Medical Science 68 (3): 205-211, 2006. Komine, Y.; Komine, K.; Kai, K.; Itagaki, M.; et al.

Preparturient heifers (n = 561) from 9 herds in 6 US states and 1 Canadian province were enrolled in a study to test the hypothesis that prepartum intramammary therapy would cure existing intramammary infections (IMI) and lead to increased milk production, reduced linear somatic cell count (LSCC), and improved reproductive performance.

This trial demonstrated that prepartum intramammary antibiotic therapy did reduce the number of heifer IMI postpartum. Milk production, LSCC, and reproductive performance during the first 200 d of the first lactation were not significantly affected by treatment. Given these results, use of prepartum intramammary antibiotic therapy in heifers as a universal strategy to increase milk production in first-lactation dairy cows may not be warranted.

Source: Effects of prepartum intramammary antibiotic therapy on udder health, milk production, and reproductive performance in dairy heifers. Journal of Dairy Science 89 (6): 2090-2098, 2006. Borm, A.A.; Fox, L.K.; Leslie, K.E.; Hogan, J.S.; et al.

"Heifers should be charted at least 5 times before they reach two years of age. This can be done at times of deworming, vaccinations, breeding, or pregnancy checks, so it is not an additional chore" says Tom Bailey and Julia Murphy, Extension Specialists at the Virginia-Maryland Regional College of Veterinary Medicine at Virginia Tech. The cost of raising replacement heifers is the second highest input cost on the dairy, next to feed. Efficiencies in the replacement heifer area have significant impact on overall farm profitability. One of the primary influences in the cost of raising replacements is the average age at first calving. Researchers Heinrichs and Lammers of Penn State indicate that "raising dairy heifers to an adequate size and with an age at first freshening between 22 to 24 months can optimize profitable milk production."

Source: University of Minnesota/ Neil Broadwater, June 17, 2006
Source URL: http://www.extension.umn.edu/dairy/dairystar/06-17-06-Broadwater.htm

Commonly used foot baths to prevent lameness in dairy cows may not only reduce crop yields but also contribute to the copper load in farm fields. To look at how the use of the foot baths' copper sulfate affects three crops' quality and yields and to give farmers an idea of how much copper may be kept in field soil, a research project, funded by the Northern New York Agricultural Development Program (NNYADP), which is supported, in part, by Cornell University, is now under way.

Copper sulfate is the most cost-effective treatment for controlling hairy heel warts that cause lameness in dairy cows. However, much of the copper sulfate used in the cows' foot baths is disposed of in manure slurry applied to farm fields.

Source: Cornell University/ News Release/ Kara Dunn, July 7, 2006
Source URL: http://www.news.cornell.edu/stories/July06/copper.cows.kd.html