For Zach and Heidi Kreger of Kreger Farms, a 75-cow dairy in Tioga County, Pennsylvania, knowing their numbers and making their finances work is important to them since they both work full-time at the farm. By learning from outside consultants and taking advantage of programs like the Dairy Decisions Consultants (DDC) Grants through the Center for Dairy Excellence, Zach says they are trying to streamline and enhance their farm’s accounting process.
“We’re trying to get an accounting program that’s a little more user-friendly. We want to work with the DDC consultant to get data set up, so we can get reports that are functional to us without spending a lot of time on them,” he shared. “For example, with the old system, we would get all our year-end numbers and then I would sit down and make up my own Excel sheet and basically copy everything over. We want to work with somebody and get [a new program] set up, so we can use it without spending countless hours moving information around.”
Along with simplifying the accounting and cost analysis process, Zach is hoping to glean some three-year data that can help him discover areas to improve financially.
“Because we’ll have the data available, we’re going to try putting together three-year historical data. Since 2020, I haven’t really gotten a good feel for where our numbers have trended. That’s one of the things we’re going to look at and then try to build on that going forward,” he added. “I’m hoping I can flip from year to year to see where we might have spent more than we should, and then come up with ways to do better.”
Zach finds that his drive for continuous improvement on the financial side also connects to some of their goals on the cow side.
“You can always find a way to work financials back into the cows. If a certain cost is too high, what can we do at the cow level to improve upon those costs?” he said.
Beyond financial planning, the Kregers have worked with several consultants over the years who have helped them make other management decisions. Through meetings with their team of consultants, they decided to switch to a new type of soybeans last year and started feeding their calves milk in 2020 – a decision that made a significant difference in calf health. The consultants have also helped them with reproduction and using activity monitors to make breeding decisions.
Over the last year, the Kregers started evaluating a new piece of technology: a robotic feed pusher for their tie-stall barn. This type of technology is common in tie-stall barns in Canada but not the United States, so Zach talked with consultants to figure out if the technology could help with some of the challenges they face with employee management.
“Employee management is one of our driving factors [for this type of new technology]. It’s hard to find good employees. We started looking at ways we could save time and effort, because there are only 24 hours in a day and you can only work about 20 of them,” he said.
They ultimately decided to install the feed pusher. Thanks to a Dairy Excellence Grant from the Center for Dairy Excellence to support farm-level improvement projects, some of the upfront costs were covered. Whether Zach and Heidi are pursuing new technology that would transform their barn or strategizing with consultants on financial planning, accountability is what keeps them going.
“When my wife and I made the decision that we were both going to be on the farm full time, we knew the finances had to work. Our consultants can sit down with us and tell us what’s working and what isn’t working. That’s the kind of accountability you need. We’re driven to do better because of it,” he added.
The Dairy Excellence Grant program is open until November 1, 2024. This is a competitive grant designed to help dairy producers improve cow comfort, milk production per cow, or efficiency through farm-level improvement projects. Grant recipients will receive a 50 percent match, up to a maximum matching level of $5,000. Visit www.centerfordairyexcellence.org/dairy-excellence-grants to learn more or contact Melissa Anderson at 717-636-0079.
The Dairy Decisions Consultants (DDC) Grant is now open for the 2024-25 year on a first-come, first-served basis. Dairy farms can receive up to $4,500 in funds to work with a consultant in one of seven key areas of business. Visit www.centerfordairyexcellence.org/ddc to learn more or contact Melissa Anderson at 717-636-0079.