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Dairy Profit Teams

profit team

A traditional Dairy Profit Team offers participating dairy farms a broad-based approach to making better decisions and improving profitability through the use of a profit team. Participating farms enrolled in the program must have the goal of increasing profitability and total milk flow from the farm. Teams are required to meet at least four times a year, and the teams must be willing to engage in a strategic review and comprehensive planning process for the entire dairy farm operation.

Annual funding levels for a traditional Dairy Profit Team are:
-- $1,500 for new teams
-- $1,000 for existing teams

The funding can be used to cover the cost of paid team members as well as discovery-related costs associated with the team's work. All expenses must be submitted to the Center for Dairy Excellence within 60 days of incurring the expense for reimbursement. Meeting notes and other requested reports should also be provided on a timely basis. Those requested reports are outlined in the guidelines below.

For an application, click here.

For guidelines, click here.

The Program:

  • New Dairy Profit Teams are eligible to receive up to $1,500 in funding from Jan. 1 - Dec. 31, 2012. Funding for profit teams in existence prior to Jan. 1, 2012, are eligible to receive $1,000.
  • The Center and the Penn State Extension Dairy Team provide a “start- up” training workshop for new teams and assign a support person to each team to provide resources and share successful ideas from other teams. Click here for dates and times of upcoming team training sessions.
  • Once accepted into the program, the producer must choose team members, which could include key farm management, lender, nutritionist, veterinarian, accountant and A.I. or DHIA representative, as well as a team facilitator. The facilitator’s role is critical to the team, so facilitators are encouraged to attend Facilitator Training Workshops. If you need help in identifying a facilitator for your team, please contact Heidi Zimmerman.
  • Farms participating in the program in 2012 must identify three goals for the team and provide them to the center. Dairy Profit Team farms must also complete the Monthly Monitor Tool and determine the farm's Income Over Feed Costs using resources from Penn State Extension Dairy Team.
  • The producer can also enlist the service of a Practical Dairy Advisors (PDA), who is an experienced producer hired by the Center to serve as an advisor for a dairy farm involved in the profit team or target team programs.
  • The Profitability Assessment Dairy Tool (PA Dairy Tool) developed by Penn State Extension is available to help the team drill down to specific bottlenecks in the operation.
    Please note: To use the PA Dairy Tool, farms must have detailed financial data available for input into the tool. The spreadsheet they must use to collect data, along with instructions on how to complete the spreadsheet, are available online at http://www.das.psu.edu/research-extension/dairy/pa-tool.
  • The profit team meets preferably monthly or bi-monthly to do comprehensive evaluations of the farm operation, including both financial and performance records. A minimum of four meetings during the year is required. Target areas of improvement are identified, and goals are set for each area. Action plans are prepared.
  • Activities and results must be monitored and reported to the Center for Dairy Excellence as requested. And additional plans/strategies are developed as the Team meets routinely. Next highest priority items are incorporated into the plan/activities as time and manpower allow. 
  • All farms are expected to have a budget and complete a cost of production worksheet to share with team members. All dairy farms must provide an broad "areas of emphasis and focus" for 2011 to the Center for Dairy Excellence and to team members.
  • Teams must evaluate their risk management resources and are encouraged to use the Center for Dairy Excellence's risk management services. Teams should plan to have Alan Zepp, risk management specialist for the Center, attend at least one meeting or identify what other resources they will use to fulfill this requirement.

For more guidelines, click here.

For more information, contact Program Manager Heidi Zimmerman at 717-346-0849 or hzimmerman@centerfordairyexcellence.org.