Clean Under the Couch Cushions… - Professional Dairy ... · Land O’ Lakes Cows Match Jersey...

Dairy’s Bottom Line

PROFESSIONAL

DAIRY

PRODUCERS OF

WISCONSIN

1-800-WIS-PDPW

And save up! It’s time for somefun at the PDPW EducationFoundation Live & Silent Auctionsat the 2007 PDPW AnnualBusiness Conference!

Live auction1) Registered Jersey Calf –

high performance pedigree andshow aged; K&K Iatola Milky Way.Sponsors: Alto Dairy Cooperative;Land O’ Lakes Cows Match JerseyBlend; Cooperative Plus, Inc.; ABSGlobal; WI Jersey BreedersAssociation; K&K Jerseys – Allenand Bonnie Kracht; Show and sta-ble halters donated by Nasco

2) 10 Bird Pheasant Hunt atHunter’s Park Game & ShootingClays by Brillion. A guide, dog andbird cleaning for Fall 2007 season.Sponsor: Diamond V

3) Suite Comfort Cruises,Kewaunee – four people for a fivehour charter fishing outing orcombination fishing, sighting andshopping with a Tiara Yacht.Sponsor: Land O’ Lakes

4) Redefining the Milky WayQuilt. Sponsor: Karla Zimmerman,Fox Lake

5) Stihl Chain Saw Package.Sponsor: Landmark ServicesCooperative, Cottage Grove.Accessories: Helmet with safetyfeatures, case, extra chain.Sponsor: Johnson Sales, Inc.,Arlington

6) Four Packer Tickets.Sponsor: George Twohig, Chilton;Attorneys for Agriculture, Twohig,Rietbrock & Schneider

7) Kalahari Resort Package.Sponsor: ARM & HAMMERAnimal Nutrition

Silent auctionA sampling of silent auction

materials include:• Bonnie Mohr Print “Place

Called Home”• Culvers Custard for a year• Floral arrangement• Pedal tractor• Motel and meal package• BettyLou Cruise tickets• Blanket• McCann OutFitters

Canoe/Motel/Meal Package• Packer tickets• Badgers Men’s basketball

tickets…to name a few!

The Live Auction will takeplace in the evening after theentertainment on March 13. TheSilent Auction will continuethroughout the PDPW AnnualBusiness Conference, March 13-14. All proceeds will benefit thePDPW Education Foundation.

Clean Under the Couch Cushions…

Captain James Lovell to deliverout of this world address.

Page 4••••

PDPW Board of Directorscandidates outlined.

Page 5••••

Three candidates vie for membershipon the Education Foundation Board.

1••••

Charlie Arnot provides tipsfor speaking at public hearings.

Page 16••••

Farm Bureau pushingfor viable guest worker program.

Page 17••••

Governor Doyle proposesdairy plant tax credit.

Page 29••••

Inside this issue...

Sharing ideas, solutions, resources and experiences that help dairy producers succeed.

This quilt stitched by Karla Zimmerman, Fox Lake, mimics thetheme of PDPW’s Annual Business Conference - Redefining theMilky Way. It will be auctioned off live at the conference theevening of March 13.

Photo by Karen Topel

Milky Way Quilt

Volume 9: Issue 2

February 2007Annual BusinessConference Issue

On March 13 theProfessional Dairy Producersof Wisconsin will be hostingits Annual BusinessConference at the AlliantEnergy Center in Madison.One of the pre-conferencesessions (9:15–10:30 a.m.) is apanel of three leaders in theWisconsin dairy industry whohave a wide range of manurehandling systems. This groupof people will share with youtheir knowledge on manurestorage, handling, application,digestion and further process-ing of manure. This group willbe able to talk about thepotential improvements inmanure management, the eco-nomics of manure handlingand distribution and thepotential environmental bene-fits of each of these handlingsystems.

The first producer on thepanel is Joe Bragger, the firstparticipant in theUW–Discovery FarmsProgram. The Bragger familydairy operation consists oftwo milking facilities. Thehome farm is a 150-cowfreestall operation with a liq-uid manure system designedand installed through the pri-ority watershed program.Heifers and dry cows arehoused on and around thisfarm, and the manure is large-ly from a variety of beddedpack areas. The second farmis a few miles down the roadand consists of a 60-cow tiestall barn with daily haulmanure. The challenges facedon this dairy include the han-dling of both liquid and solidmanure from storage anddaily haul systems, in an areaof the state where the slopesand distance to surface waterpresent a challenge on a yearround basis.

The second presenter onthe panel is Gary Boyke. Garyand his wife, Rose, farm in anarea of the state where homesare encroaching on theiroperation and they want to

remain in the area and beseen as good neighbors. Thisfarm has experienced signifi-cant growth in the past 15years and storing and han-dling manure in the typicalmanner was not feasible anylonger. The Boykes traveledoverseas and across Americaresearching methanedigesters before investing inthe latest technology. Theywere aggressively pursuingnew technologies that wouldbe acceptable to their neigh-bors, as well as installing amanure management systemthat enhanced their farm’sprofitability. For those farmsthinking about investing in ananaerobic digestion system,you need to come and listenas Gary shares his experi-ence, suggestions and hisstory.

The third panelist is JohnVrieze, one of the largest andmost innovative producers inWisconsin. John farms inWestern Wisconsin in a partof the state with increasingurban pressures from theTwin Cities area. In the pastfew years John has doneextensive research on manurehandling systems and innova-tive technologies that willimprove his farm’s profitabili-ty and reduce the potentialfor negative environmentalimpacts. We have asked John

to talk about his anaerobicdigester and what happens tothe manure coming out of thissystem. He is working on anoverall waste-treatment sys-tem that not only separatesthe liquids and solids, but uti-lizes new technologies includ-ing clarifying the wastewaterstreams. This industry innova-tor shares what he’s learnedand talks about where he seesthe next generation ofmanure management systemsand other land applicationtechnologies heading in thefuture.

If you’re thinking aboutmodifying your dairy opera-tion or evaluating how to han-dle manure in the future, youneed to listen to this panel.These leaders in the dairycommunity are willing to talkabout what they have learnedabout manure managementsystems. They have made sig-nificant investments in time,energy and money and theirexperiences can help youmake the right decisions foryour operation. There arethree ways to register for thePDPW conference - online atwww.pdpw.org; call PDPW at800-947-7379 or send yourcheck to: Professional DairyProducers of WI, P.O. Box 2,Fox Lake, WI 53933.

By Dennis Frame

PDPW

Board of DirectorsPresident

Kevin GriswoldIxonia

[email protected]

Vice PresidentDean Strauss

Sheboygan Falls920-467-1357

[email protected]

SecretaryEllen Killian

Independence715-985-3351

[email protected]

TreasurerJim KrugerWestfield

[email protected]

Marion BarlassJanesville

[email protected]

Doug KnoepkeDurand

[email protected]

John RuedingerVan Dyne

[email protected]

Jay RichardsonSpring Valley

[email protected]

Joe ThomeMalone

[email protected]

Contact PDPW at:P.O. Box 2

Fox Lake, WI [email protected]

EditorialKaren Topel

[email protected]

AdvertisingBrenda Murphy608-250-4157

[email protected]

Dairy’s Bottom Line is publishedsix times a year by PDPW withcooperation from Agri-View.

Cover photos by WMMB and Agri-View

Shelly MayerSlinger

[email protected]

Kim Brown PorkornyWaupun

[email protected]

Julie GabrisFox Lake

[email protected]

Susan OrthCommunication Specialist

[email protected]

Eric LiebetrauFond du Lac

[email protected]

Frank FriarBaraboo

[email protected]

Pete GiacominiVerona

[email protected]

Jim LoeferValders

[email protected]

PDPW AdvisorsPDPW Staff

‘Discovery Farms’

Panel to Compare Manure Handling Systems

2 PDPW - Dairy’s Bottom Line • February 2007ST

http://www.pdpw.org;

mailto:[email protected]










http://www.pdpw.org











Four candidates are seek-ing positions on PDPW’sBoard of Directors this com-ing March at the AnnualBusiness Conference. EricHillan, Charlie Knigge, GaryRueggsegger and RussellStrutz are all advocates forthe state’s dairy industry.Here, Dairy’s Bottom Line,provides a look at each of thecandidates.

Eric Hillan

Born in South Dakota andraised in Waukesha, EricHillan was the son of a pedia-trician and voice lessoninstructor. He found his lovefor agriculture spending hissummers back in SouthDakota with his brother onhis grandparents’ grain farm.When his grandfather unex-pectedly passed away, Hillantried to take over the farmand ran it for one yearbetween his junior and senioryear of high school. Realizinghe wanted to do more at hisyoung age he returned toWisconsin to finish highschool and went on to studyagronomy and dairy scienceat UW-Madison. That’s wherehe met his wife Carol, as theyboth worked on the campusdairy farm.

They took over her par-ents’ dairy farm in the fall of1982, with fresh bachelor’sdegrees in tow. The dairynear Ladysmith now houses235 cows, both milking anddry, and employs two full-time and five part-time

employees. The Hillans crop750 acres in corn, alfalfa andsoybeans. “We try to do avery good job with what wehave,” Hillan says. Whichincludes a new parlor andfreestall set-up that celebrat-ed a one-year anniversary inOctober.

Hillan appreciates theseminars held by PDPW andsays they challenge whatyou’re thinking. “You’re chal-lenged to defend your farm’spractices in your own mind,”he says. “Sometimes it’s validand sometimes it’s not.”

The seminars also allowyou to “obtain a concentratedamount of information in ashort amount of time. Noother organization does thatas well as PDPW,” Hillansays.

“The perception of thedairy industry has changedfundamentally,” he says, not-ing PDPW has been instru-mental in that change.

Sixty years ago peoplefarmed because they likecows and didn’t want to workwith others. That’s still truetoday, but many producersare being transformed to bebetter managers.

“What PDPW has done forthe State of Wisconsin wasmake more of its No. 1 indus-try,” Hillan notes.

What’s unique to theorganization is its constantturnover of the board andpersonnel.

“Each new person hasideas and different percep-tions than the current boardmembers,” he says. “Thiskeeps the board young andvibrant.”

Turnover is extremelyimportant to an active organi-zation. If you keep the sameboard, Hillan says, the ideasremain static.

Plus, PDPW’s board ofdirectors encompasses differ-ent sized dairies that have adifferent approach to prob-lems.

“It’s an organization Iwant to be a part of,” he says.

Charlie Knigge

Omro dairyman CharlieKnigge purchased his firstcows when he was a sopho-more in high school and hasbeen farming ever since withhis father Pete. He did spendtwo years at Farm andIndustry Short Course at UW-Madison and brought thatknowledge back to the farm.They operate 650 total acresand milk 120 cows with two

robotic milkers. The herdaverages 24,000 pounds ofmilk.

PDPW helps them net-work with positive people inthe dairy industry. “They’reupbeat and always lookingfor new information and solu-tions,” he says. “It’s a benefitto be around people likethat.”

Knigge also says theorganization offers a lot ofgood educational seminarsthat he’s made a point ofattending.

“PDPW is another outletfor dairy producers to gaininformation and network withprogressive producers to gainoutlook and better their busi-ness,” he says.

Knigge would like to be aPDPW board member to helpthe industry and to gain moreexposure to things off the

See Board, on Page 7

PDPW Board of Directors Candidates Up For Election

February 2007 • PDPW - Dairy’s Bottom Line 3ST

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By Crystal McNettAssistant Editor

“Houston, we have a prob-lem.”

Uttered by Capt. JamesLovell on that fateful day inApril 1970, this is perhaps oneof the most recognized phrasesin America. Announcing a crip-pling malfunction with theOdyssey’s oxygen system, theApollo 13 mission turned fromlanding on the moon to sur-vival.

Professional DairyProducers of Wisconsin is hon-ored to welcome CaptainJames Lovell to the PDPWAnnual Business ConferenceMarch 14, to share the famousstory of a successful failure.Lovell will take attendees tothe moon and share the ten-sion-filled cockpit of Apollo 13from one of the few peoplewho truly lived it.

As he reveals his experi-

ences in space, Lovell will con-nect with dairy producers andtheir familys i t u a t i o n sand everydaychallenges.Lovell willshare hiscourageousjourney as herelates theskills theteam mas-tered to turn a failed systeminto a successful mission. Hismessage is not only a storyabout space travel, but alsoconnects with the needs to suc-ceed in today’s dairy industry.

No stranger to the dairystate, Lovell attended UW-Madison for two years prior tograduating from the U.S. NavalAcademy. In addition, his sonwas a student at St. John’sMilitary Academy in Delafield

See Lovell, on 6

Capt. James Lovell

Apollo 13: Successful FailureCaptain James Lovell is the record holder for time in spacewith over 715 hours. One of his four flights included com-manding one of the most famous NASA missions - Apollo13. Lovell will share his famous story of a successful failureat the PDPW Annual Business Conference on March 14.

Photos courtesy of Keppler Speakers

Captain James Lovell to GiveOut of This World Insight


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Professional Dairy Producers of WisconsinCalendar of Events



Annual Business Conference Alliant Center, Madison March 13 & 14PDPW’s hallmark, business-management conference aligning high-reaching dairy producers and industry representatives toshare ideas, solutions, resources and experiences.

Foot Health Seminar Appleton April 10 & 11A one-day seminar showcasing new strategies in foot health that will help producers improve on-farm profitability throughincreased mobility, production, and longevity.


Continued from Page 3dairy farm. “I try to help makea difference in the industry,”he says.

Gary Rueggsegger

The turning point to enteragriculture for GaryRueggsegger came at theyoung age of 12. He recalls,his mother decided he neededto be occupied so she foundhim a job on a farm. Since theneverything he’s done has “beenrelated in some shape, form orfashion to agriculture,” hesays. Gary went on to obtainan undergraduate degree atUW-Platteville and a graduatedegree in dairy cattle nutritionfrom UW-Madison.

In 1998, along with hisbrother-in-law and father-in-law, Rueggsegger startedMaple Ridge Dairy in Stratford.They have 1,000 cows, milkingand dry, and 2,000 acres togrow feed for the cows.Maintaining a family farm isvery important to the partnersin Maple Ridge Dairy andthey’ve developed a manage-ment team and system theybelieve will keep the farm fam-ily-oriented for years to come.

“PDPW provided a goodopportunity for us to get addi-tional training in the dairyarea,” he says. “It’s valuable inthat aspect.”

Education topics includebusiness management, nutri-tion, health, personnel man-agement and much more. Itprovides a good medium to getnew ideas and stay currentwith what’s happening in theindustry.

“It’s a nice arena to estab-

lish networks with other dairyproducers. You learn just asmuch or more visiting withothers,” Rueggsegger says.

With over 1,000 members,PDPW has pretty impressiveparticipation. That’s because“it’s allowed a good forum forthe dairy industry to gettogether and participate andwork on certain issues andchallenges,” he says.

A positive organizationitself, PDPW has worked toportray that to the public.Rueggsegger says, “PDPW haspromoted a positive image ofthe dairy industry in Wisconsinand I think that’s very impor-tant.”

PDPW has also helped fos-ter education to the dairyindustry and producers in thestate.

“I would like to give some-thing back for what it’s donefor us at the dairy and thedairy industry,” Rueggseggersays of his decision to run for aposition on the board of direc-tors.

His varied backgroundallows him to bring in a newperspective to the board. “Ihave a different perspectiveand I look at things a little dif-ferently,” he says.

Rueggsegger has alsoserved on PDPW’s program-ming committee for manyyears and says he’s ready forthe next step of participation.

Russell Strutz

The fifth generation on hisTwo Rivers dairy farm, RussellStrutz grew up in the business.Following high school, heattended UW-Madison’s Farm

and Industry Short Course andhas been back home workingwith his father ever since.Strutz was the only one of fivesiblings to return to the farm.

In the early 90s, they had astanchion barn with 120 cowsand grew forage, grain andvegetables. “The future of thedairy industry was to get moreefficient in producing milk,” hesays. Therefore, a few yearslater the farm grew to 425cows. They abandoned thestall barn and built a brand-new parlor and freestall set-up.Since then they’ve made a fewmore changes and now milk650 cows, raise 550 young-stock and grow 900 acres offorage, both alfalfa and corn.

“PDPW is all around edu-cation,” says Strutz. He’sattended every AnnualBusiness Conference andalways brought somethingback to the farm that he’sincorporated someway.

By working closely withvarious state departments,

PDPW aids the industry ineducating its members andteaching communication whilelistening to both sides of anissue.

Attending the Manager’sAcademy, Strutz noticed firsthand how PDPW listens to itsmembers and addresses anyindustry issues raised at futureseminars.

“I believe in the things thatthey do for dairy farms inWisconsin,” he says. “It’s anasset all dairymen need as aresource to use.”

A forward thinker, Strutzlikes to know the next thingcoming down the line before itbecomes an issue. He’d like tobecome a PDPW Board mem-ber to help get educationalinformation on those subjectsto the board and members.

“Being on the board andgetting information out thereis something I believe in,”Strutz says.

By Karen Topel

Board


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Like the work on the farm, thereis always more to do. That’show members of the

Professional Dairy Producers ofWisconsin (PDPW) EducationFoundation Board view their workthis year. “We feel a bit like a toddlermoving from taking those first stepsto running down the hall. We havemomentum but we need more devel-opment and coordination to bring itall together,” says Judy Rupnow, serv-ing her second year as a PDPWEducation Foundation board mem-ber.

The PDPW Education Foundationwas established in 2002 by producersto support educational projects andprograms that would otherwise gounfunded. “Our role starts wherePDPW’s ends,” says Rupnow. “Wefund projects that the parent organi-zation may not, either becauseresources are limited or the scope ofthe project falls outside of the organi-zational charter.”

As the charitable arm of theProfessional Dairy Producers ofWisconsin, the PDPW EducationFoundation’s role is to ensure fundingfor education programs that prepareproducers for issues that will impactthe way they do business. “The beliefthat our success as an industry isdependent on the knowledge, leader-ship talents, and passion of our mem-bers, is what fuels our vision – to cre-ate a legacy of learning for the dairyindustry,” says Rupnow.

“We live in a global economy,issues are more complex, theyinvolve multiple stakeholders andthey don’t exactly stop at the state

lines. Issues like land use, urbanencroachment, animal welfare, sus-tainability and others can pose athreat to a dairy producer’s success,”Rupnow adds. PDPW EducationFoundation ensures that programsexist to help producers deal proac-tively and positively with theseissues.

“Some issues are like a train whis-tle. We hear it; we know something iscoming down the tracks,” she says.“Our role is to make sure producersare equipped with the tools they needto stop the train, move before thetrain arrives or jump on board.”

The PDPW EducationFoundation’s efforts focus on trainingdairy producers in public affairs,leadership and communications skillsand preparing youth for careers indairy.

One of those efforts is ACE –Agriculture Community Engagement.Spurred by urban spread into agricul-tural areas, the program wasdesigned to help local elected offi-cials understand agricultural landuse. Working in conjunction with theWisconsin Towns Association and theWisconsin Counties Association, ACEopens communication channelsbetween elected officials and agricul-tural residents. Dialogue about howland use decisions impact the com-munity encourages informed deci-sion-making.

Another area of critical concernfor PDPW Education Foundation isyouth development. The YouthLeadership Dairy Derby is a weekendlock-in for teenagers. Parents say thisprogram has motivated their chil-

dren’s interest in agriculture. “Onemom said her daughter and friendwere so excited after the Dairy Derbythey began working to start an FFAchapter in their high school,” saysRupnow.

When asked what’s next for thePDPW Education Foundation,Rupnow talks about building for thefuture. She says the FoundationBoard’s role is not providing the pro-grams, but rather to ensure that pro-grams can happen. She says theBoard is working to establish givingvehicles and raise awareness of theFoundation.

The first steps include establish-ing an annual giving campaign and anhonorarium program. “I Believe,” theFoundation’s annual awareness andgiving campaign, began about twoyears ago. The Foundation Board isformalizing the program to ask for acontribution along with the reasonseach donor believes in the future ofthe dairy industry.

The Foundation also is formaliz-ing its Memorial/Honorarium pro-gram. Donations can be given tohonor a special occasion or mile-stone, or given in memory of a per-son. “The Foundation offers a way tohonor and remember dairy industryleaders through a donation thatbuilds a strong future for the industrythose individuals love,” says Rupnow.“It gives deeper meaning to PDPWEducation Foundation’s vision – alegacy of learning.”

The two campaigns are just thestart for the PDPW Education

See Foundation, on Page 31

Education Foundation: Always More to Do

Judy RupnowCounselor

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‘The Business Edge’

General Robert E. Lee’sdisastrous decision to orderConfederate General GeorgePickett to charge the Unionline at Gettysburg, Pa.,marked the turning point ofthe U.S. Civil War. How didLee reach this point? AsWharton Professor MichaelUseem points out in his newbook, “The Go Point: WhenIt’s Time To Decide, KnowingWhat To Do and When To DoIt,” there were a series of “gopoints” before Pickett’scharge, where critical deci-sions were made by leaderson both sides of the conflict,that ultimately led to Lee’sdefeat at Gettysburg and theSouthern surrender a shorttime later.

Lee first made the deci-sion to take the battle to theNorth, hoping that by march-ing into Union territory hecould seize the initiative andperhaps break the will of theNorth. A second “go point”occurred when Lee arrived inGettysburg and sent instruc-tions to general RichardElwell to “carry the hill occu-pied by the enemy, if hefound it practicable.” Thevague message and Elwell’sinexperience led Elwell to beovercautious. At thatmoment, he very likely couldhave seized the high groundbefore the Union forces werefirmly entrenched. Instead,he waited as “some of themost fateful seconds ofAmerican history tickedpast,” in the words of one his-torian.

Finally, when Lee madethe decision to order Pickettto attack the Union troopsentrenched on CemeteryRidge, he chose not to conferwith his senior officers. Leetook his own counsel and sodid not have the opportunityto hear the severe misgivingshis men had about the ill-

fated initiative until it wasalready in motion.

It was “go points” such asthese that determine the fateof a company or a nation.Lee’s choices offer lessonsabout understanding thecapabilities of others in mak-ing decisions (such asElwell’s inexperience) andconsulting with associates inmaking important decisions(which Lee failed to do inplanning his final assault).

Creating a template

In his book, Useem takesreaders through the decisionprocesses of leaders at criti-cal “go points.” The storiesexamine firefighters in theheat of wildfires, bondtraders at Lehman Brothers,Marines on training exercis-es, and leaders of organiza-tions from Hewlett-Packardand Lenovo to Tyco andEnron.

While some books ondecision making might offersimple recipes, Useem’s les-sons are drawn from deci-sions in context. As withLee’s choices at Gettysburg,they are filled with the grittydetails that make such deci-sions complex. Then, Useemdraws out the lessons thatcan be applied to future deci-sions. He encourages readersto use these lessons to forgetheir own “decision tem-plates” to guide their choicesin the future.

For example, he learnedthe lesson of examining thepast from Liu Chuanzhi, whocreated the Chinese companythat would become Lenovo.With the acquisition of IBM’spersonal computer line in2005, it became the thirdlargest personal computercompany worldwide. Beforestarting the company,

See Decisions, on Page 20

How Leaders Decide

At the ‘Go Point’


PDPW’s EducationFoundation is set up to meetthe needs of the industry ona greater scale.

Three candidates wouldlike to lend their expertise tothis Foundation by servingon the board.

Keith Engel

A farm boy fromHampshire, Ill., Keith Engelwas one of five boys in hisfamily, all of them very closein age.

After receiving a degreein animal science with adairy science emphasis fromthe University of Illinois, hesaw there wasn’t enoughroom for him to return hometo the Registered Holsteintiestall operation. All of hisbrothers are involved in agri-culture and some are homeon the farm, which nowmilks 150 cows, somebelonging to Engel.

His first job was withMidwest Dairymen Companyas a field representative.Seven years later he becamethe ProMilk specialist forWestfaliaSurge. He supportsdealers and dairymen withmilk quality information inWisconsin, Northern Illinois,the UP and Eastern Iowa.

“PDPW has been atremendous value toWestfaliaSurge,” he says.“The networking experiencesand exciting platform foreducation for producers andindustry is a recipe for suc-

cess.”The organization helps

the industry by bringing pro-gressive dairy producerstogether so they can be moreprofitable and bring forth thebest light for the public.“Through education andthrough networking PDPWcreates better stewards indairy producers inWisconsin,” Engel says.

He’d like to serve on theEducation Foundation boardbecause “I feel PDPW hasdone a lot for me and myproducers and I want to givesomething back,” he says. Asan 11 year dairy quiz bowlcoach he also fully believesin educating youth.

Deb Reinhart

Along with her husbandDavid Geiser, Deb Reinharthas owned and operated thesame farm since she camehome from college in 1975.They milk 250 cows threetimes a day in aparlor/freestall set-up.

Reinhart’s primaryresponsibilities are calf andyoungstock care and han-dling financial and humanresources for the dairy,which employees six full-time and two part-time labor-ers. Many of the employeesare Hispanic and she haslearned enough of the lan-guage to communicate effec-tively with them.

See Education, on Page 14

Three Ready to Serve on PDPW’s

Education Foundation Board


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Crossroads Ag LLCElk Mound

Customer One CooperativeMarathon

Dave JeanquartLuxemburg

Dennis SchopfSturgeon Bay

Door County CooperativeSturgeon Bay

Farmers Coop - GalesvilleGalesville

Farmers Coop -West SalemWest Salem

Farmers Cooperative OilHixton

Farmers ElevatorCompany LTDWaupun

Federation CoopBlack River Falls

Frontier FSJefferson

Frontier FS - MarshfieldMarshfield

Frontier FS - WautomaWautoma

Gallis SchmitzNorwalk

Gary Kropp Seed SalesSeymour

General Farm SupplySpencer

Grand River Co-opMarkesan

Gundrum Brothers -West Bend & EdenWest Bend

Harmony Country Co-opUnity

Harold StrasserTurtle Lake

Heartland Coop Services- AthensDorchester

Heartland Coop Services- DorchesterDorchester

Heartland Coop Services - OwenDorchester

Hegg Seed SalesEttrick

John KringsArkansaw

Kettle Lakes CooperativeRandom Lake

Kris Charpata(Charapata Seed Sales)Peshtigo

Larsen CooperativeNew London

Larson Feed, Inc.Thorp

Leroy Feed MillBrussels

Maribel Grain CompanyMaribel

Medford Cooperative, Inc.Medford

Melvin BaneckSeed ServiceRipon

Merlin Reierson AtM & J FarmsRio

Merlin SutterFountain City

Northside ElevatorLoyal

Olsen's Mill Inc.Berlin

Olsens Crop ServiceStevens Point

Precision Ag ServicesEllsworth

Precision Ag ServicesMilltown

Precision Ag ServicesNew Richmond

Progressive FarmersCooperativeGreenleaf

Pulaski ChaseCooperativePulaski

Rice LakeFarmers UnionRice Lake

Richard KammRoberts

Ridgeland/ChetekCooperativeRidgeland

Rio Creek Feed MillAlgoma

Robert BiadaszAmherst

Servco FS CooperativeAntigo

Sheldon Coop ServicesSheldon

Sherwood ElevatorSherwood

Shirley Feed Mills Inc.DePere

Sparta Co-op ServicesSparta

The DeLong CompanyClinton

Tisch Mills Farm CenterTisch Mills

Tom HerrmannLarsen

Tom's Seed Service Amery

Tomah CooperativeServicesTomah

Ulrich Feeds, Inc.Stratford

United CooperativeBeaver Dam

Valders CoopValders

Western WisconsinAg SupplyBeldenville

William Hoyer Seed SalesBrillion

Wisconsin RiverAgronomy LLC - AdamsAdams

Zeitler Agri-CenterColeman

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Continued from Page 11Reinhart has previously

served on PDPW’s board and

she says, “PDPW has done so

much for our business. The

opportunity to interact with

that caliber of producers

helped us grow from 80 to

250 cows and manage the

changes that come with

growth.”

She adds, “PDPW has

really helped the dairy indus-

try in Wisconsin to thrive.” It

has helped producers learn

the skills necessary to make

the transition from dairying

as a lifestyle to dairies that

need to run like a business

yet have fun doing it. “PDPW

producers are upbeat, proac-

tive and very passionate,”

says Reinhart.

While serving on the

board, she was active on the

Foundation Advisory

Committee. Now, if elected

to the Foundation Board,

she’d like to look at the

future of the industry and

reach out to the youth. “I’m

excited to be involved in that

endeavor.”

Judy Rupnow

Growing up on a smalldairy farm in Ixonia, JudyRupnow watched her fatherbreach further into the indus-try as a bulk milk hauler.

Now working atMorgan&Myers, a marketingcommunications firm,Rupnow works with a varietyof agricultural clients, includ-ing some in the dairy indus-try.

The “relationships and

networking PDPW provides

is very valuable” to her and

her business, she says, espe-

cially considering the caliber

of producers and industry

members in PDPW. Farm to

plate issues are something

Rupnow works with every-

day. The insight she gains

from PDPW allows her to

provide that insight and lead-

ership to her clients.

As someone who works

on the consulting side, she

views the issues PDPW read-

ies producers for are invalu-

able. “As the production

chain comes closer together

and becomes more integrat-

ed, PDPW offers an incredi-

ble, forward-looking oppor-

tunity to keep producers pre-

pared,” Rupnow says.

The Education

Foundation offers opportuni-

ties the main organization

can’t do. “Our role is ensur-

ing funding that keeps dairy

producers learning and ready

to be proactive,” she says.

“I believe in the dairy

industry and can see it

changing. The Education

Foundation is part of the

solution for dairy producers

to remain viable in a dynamic

market. I have served two

years on the PDPW

Education Foundation board

and feel that my experience

with fundraising and brand-

ing can continue to help the

Foundation grow and serve

the entire dairy industry.”

By Karen Topel

Education


tm

“Attorneys for Agriculture”

Twohig, Rietbrock

& Schneider

102 North Madison Street, Chilton, WI 53014 (920) 849-4999

TM

Proud to be a part of PDPW andWisconsin’s agricultural community.

‘Living the Mission’

Whether it’s from your

family or friends, most of

you have probably been sub-

ject to the following advice,

“You should go to the doctor

and get a check-up.” Just as

it’s important for you to get a

“check-up” to evaluate your

health, your dairy operation

needs a financial “check-up.”

By taking the time to analyze

your operation’s financial

health, you’ll be able to

determine what aspects get a

clean bill of health, where

bandages are needed and

what should undergo major

surgery.

“It’s very important for

dairy producers to conduct

periodic financial updates,”

says Greg Schopen, regional

vice president, Badgerland

Farm Credit Services,

Dodgeville. “The operation’s

financial position should be

analyzed annually on an

accrual basis, at a minimum.

Ideally, analysis should be

completed at the same time

each year, and should occur

more frequently during times

of low milk prices or expan-

sion.”

Armed with the right

financial knowledge, produc-

ers can better manage and

make more informed deci-

sions on their operations. In

a time of low milk prices and

a difficult economic environ-

ment, you need to make sure

records are kept, financial

measures are calculated and

the meaning of the measures

is understood. Knowledge is

a key to business success.

“An increase in the depth

and understanding of accu-

rate financial records is

needed to maintain long-term

viability,” says Schopen. “You

need to know where you’re

at.”

Determine financial health

“Every lender has specif-

ic underwriting guidelines,”

says Schopen. “We encour-

age producers to analyze a

number of financial meas-

ures.”

Schopen says the most

important measure to evalu-

ate is net accrual earnings,

both historical and project-

ed. Adequate earnings are

needed to pay expenses,

make loan payments and

meet your and/or family liv-

ing needs. A look at earnings

helps determine how much

additional capital debt, if

any, you can take on.

“Earnings are your future,

and they determine where

you can go from here. If you

can’t support present or addi-

tional capital obligations,

changes are needed,” adds

Schopen.

Besides earnings, a num-

ber of financial measures

reflecting liquidity, solvency,

profitability, repayment

capacity and efficiency

should be calculated. Some

of these measures include

working capital, owner equi-

ty, collateral and capital debt

per cow, says Schopen. A cal-

culation of your cost per

hundredweight of production

for all operating expenses is

See Fit, on Page 18

Get Your Dairy Operation Financially Fit


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A producer has manyimportant roles and not all ofthem are the familiar or com-fortable variety.

While a goodly number ofWisconsin producers have hadconsiderable experiencespeaking before groups bothlarge and small, not as manyhave spoken before legislatorsat a public hearing.

But help is on the way. Charlie Arnot, CMA

Consulting in Kansas City, Mo.,will be providing tips on howproducers can best get theirpoints across, when they arespeaking at a public hearing,before a large or small group,or in a simple one-on-one con-versation.

Arnot, a consultant andpublic speaker, grew up on asmall Nebraska farm. He hasfirst hand knowledge of whatit is to raise farm animals andgrow alfalfa hay.

“CMA Consulting special-

izes in issues management andpublic relations across thefood chain,” Arnot told Dairy’sBottom Line.

At the upcoming PDPWAnnual Business Conference,Arnot will be talking about the“animal welfare issue – how toengage the entire dairy chainin animal welfare and how theindustry should best addressthe issue.”

His message hasn’t beenderived simply from his ownfarm background, however. It’sfrom bringing together stake-holders – including producers,industry organizations fromacross the country, as well asleading processors and foodcompanies.

Arnot said there are threeprimary elements a producerneeds to think about as he orshe prepares a presentation.

“First, I encourage produc-ers to embrace their moralobligations to provide for ani-

mal well being. They shouldthink of animal welfare just asconsumers think of that issue,which is that producers havean obligation to provide foranimal welfare beyond just theeconomic incentive.

“Secondly, there are specif-ic standards that we have touse that allow us to measurethe effectiveness of the presen-tation.

“Third, develop an effec-tive communications cam-paign to tell the story of whatthe industry itself is doingabout animal welfare,” Arnotsaid.

For PDPW members,Arnot will be conducting atraining session on how toaccomplish those three objec-tives.

“We’ve put together a step-by-step curriculum to help pro-ducers prepare for and partici-pate in a public hearing orforum and be successful in

delivering their message,”Arnot said.

It probably goes withoutsaying that the most successfulstrategy for speaking at a pub-lic hearing is to understandand lay the groundwork inadvance.

Whether the issue is onedealing with the environmentor animal welfare, a successfulstrategy involves developmentof a strategy for working withemotional people who will bespeaking at a public venue.

“Producers are great whenit comes to production issuesbut it makes many of them real-ly uncomfortable when itcomes to getting their messageacross during a public hearing,”Arnot said.

To be effective, Arnot says,“you have to put yourself onthe side of the audience and letthem know you share their val-

See Words, on Page 22

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Dairying - and all of U.S.agriculture - requires lots oflabor. Increasingly, more andmore of that labor is hired.

And, immigrants supplymore and more of that hiredlabor. But if Congress passesthe wrong kind of immigrationreform legislation, dairyingand the rest of agriculture willsuffer, warns Austin Perez,director of congressional rela-tions for the American FarmBureau Federation.

Perez will share his insightinto where U.S. immigrationpolicy is headed and itsimpact on dairy producersand the economy during theProfessional Dairy Producersof Wisconsin’s (PDPW)Annual Business Conference.The conference takes placeMarch 13 and 14 at the AlliantEnergy Center, Madison.

“If federal immigration leg-islation is enacted that fails totake into account the uniqueneeds of agriculture - whichinclude our increasingdependence on hired labor,our extreme vulnerability tocompetitively priced foreign-grown produce and our inabil-ity either to absorb costincreases or pass those on -we will all watch as Congresstakes literally billions of dol-lars out of the pockets offarmers and sends them to ourcompetitors overseas,” saysPerez.

If Congress enacts legisla-tion that deals only with bor-der security and enforcement,the impact on the agriculturalsector will be “enormous,”says Perez.

“Most of the harm will beborne by agriculture’s fruitand vegetable segments. Theywill lose $5 billion to $9 billionannually,” the Farm Bureauspokesman predicts.

But the rest of agriculturewill suffer, too. The FarmBureau estimates that netfarm income in other seg-ments will fall by $1.5 billionto $5 billion each year.

“The fruit and vegetablesector as it now exists woulddisappear,” says Perez. “Fromone-quarter to one-third ofoperators in the sector - whichis especially dependent onhired labor - would be uncom-petitive. In all likelihood, theywould go out of business.”

That would impact U.S.grocers and consumers, too.More foreign produce wouldfill the gap. As a result, bil-lions of dollars that now stayin the U.S. will flow overseas.

Perez points out that theFarm Bureau’s analysis ofwhat would happen is found-ed on data and surveys fromthe USDA and the departmentof labor. He says the numbersreflect trends and factors thathave been taking place in agri-culture for years and decades.

“After almost a century oflosing surplus labor, the farmworkforce has been stable forthe last 15 years, at just underthree million,” notes Perez.“Two-thirds of the workforceis made up of family labor,and one-third is made up ofhired labor. With unemploy-ment in the broader ruraleconomy low, there is noreadily available pool of laborto draw on to replacemigrants outside the farm sec-tor.”

Higher wagesHere’s what the Farm

Bureau predicts will happen ifCongress passes legislation to“immediately deprive” agricul-ture of many of its laborers.

Wages would rise. Thatwould happen as farmers filljob vacancies by biddingagainst other farmers andother employers who are alsofaced with a labor shortage.For example, wage rates inthe construction industrywould climb.

“The current averagehourly wage of $9.75 for farmworkers would have toincrease to at least $11 perhour - and more likely to the

$14.50 paid for cleaning andconstruction labor,” saysPerez. “Those represent laborcost increases of between 13percent and 48 percent - anunsustainable hit on Americanagriculture.”

More hired labor usedAgriculture’s dependence

on hired labor has grown forseveral reasons, the FarmBureau notes. One of the mostimportant changes has comein the consumer market.

“Consumer demand forfresh fruits and vegetablesthat have to be harvested byhand to avoid mechanicaldamage has grown to almosthalf of the total harvest. Themagnitude of the labor neededrules out the use of familylabor,” according to Perez.

“In addition,” he says,

“other sectors of agricultureare undergoing consolidationand restructuring that alsoincrease the demand for hiredlabor. These market and struc-tural forces make it difficult toreverse dependence on hiredlabor.”

But mechanization canonly do so much. Perezexplains that most of the easygains from replacing peoplewith mechanization havealready been made.

“Since mechanization gen-erally saves money, producershave already adopted avail-able technologies,” he says.“Moreover, increasing mecha-nization to offset the loss ofmigrant workers woulddepend on public-privateinvestment in technology

See Immigration, on Page 19

Farm Bureau Spokesman: Agriculture

Needs Viable Guest Worker Program


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Continued from Page 15valuable. You should know

your specific breakeven

price, as well.

Improve financial health

Once the financial meas-

ures have been calculated,

the next step is to take a look

at your operation compared

to industry benchmarks.

Before you can make

improvements, you need to

know how you’re doing in

relation to the financial stan-

dards, says Schopen. Once

that’s done, use the knowl-

edge to sharpen management,

increase revenue and reduce

expenses where needed.

Schopen says lenders also

are looking more at produc-

tion benchmarks, such as

annual cull rates and preg-

nancy rates, than they had in

the past.

“Ultimately, it’s the opera-

tion’s performance from a

production standpoint that

determines financial perform-

ance,” says Schopen. “So,

take a look at your produc-

tion levels compared to

industry benchmarks.”

Having a written business

plan also can be valuable,

says Schopen. When specific,

measurable financial goals

and benchmarks are set, the

plan can serve as a road map

for the future and a basis for

growth that’s not decided on

impulse.

Your lender as a partner

A lender that understands

your operation, is concerned

with your long-term success

and with whom you’re com-

fortable talking to can be a

strong business partner.

“The relationship with

your lender is very important,

because he or she can serve a

valuable role on your opera-

tion,” says Schopen. “When

communication is open, you

can utilize a lender as a

resource for information or

advice before problems get

too big. When communication

is not there, it’s often too late

by the time a producer talks

to the lender.”

Schopen says lenders can

provide a wealth of financial

information, such as inform-

ing you of production and

financial alternatives for your

operation, providing refer-

ences and resources to help

you address potential profit

areas and strengths and

weaknesses, advising you

how much capital debt per

unit you can handle and

reviewing you annual finan-

cial position to determine

true accrual earnings. Every

operation is different, and

lenders recognize that.

An examination of your

operation’s financial health is

essential, especially during

times of volatile milk prices.

Make it a priority to check

vitals and determine your

business’ strengths, weak-

nesses, opportunities and

threats. Not only will you get

the results of past perform-

ance, you’ll be able to write

the prescription for future

success.

Farm Credit Wisconsin,

a collaborative effort of the

Farm Credit associations

serving Wisconsin, is com-

mitted to supporting the

state’s dairy industry and

was the first-ever PDPW

Mission Sponsor. Its member

associations include AgStar

Financial Services,

Badgerland Farm Credit

Services, FCS Financial

Services and GreenStone

Farm Credit Services.

Fit


Continued from Page 17development and a longenough lead time for changesto go from the drawing boardto the field. Even then, itwould mean American produc-ers waiting literally years for asolution which then mightallow them to recapture mar-kets already lost to foreigncompetitors.”

For some aspects of agri-culture, mechanization willnever be a complete solution,Perez adds.

Another critical part of thesituation is the fact that U.S.farmers generally take whatthey are offered in the way ofprices. They do not generallytell buyers what the price isgoing to be. That means farm-ers can’t pass higher laborcosts along to consumers, saysthe Farm Bureau spokesman.

Dairy hard hitAside from the specialty

crop sector, the impact of high-

er farm labor costs would befelt the most by livestock oper-ations such as dairy farms,says Perez. The livestockfarms are places structuralchanges in agriculture haveincreased producers’ depend-ence on hired labor.

“In dairy and many otherlivestock categories, the typi-cal farm family workforce hassimply become too small tooperate enterprises largeenough to capture economiesof scale,” he explains. “Theselosses compare to a sectorincome average of $56 billionper year over the last decade.”

All of agriculture will beharmed by fewer farm laborersand the resulting higher wages,the Farm Bureau says.

“These labor cost issuescannot be viewed in isolation,”asserts Perez. “They threatenAmerican agriculture at thesame time natural gas prices -which are a key component offertilizer production - have

remained at record high levels.A significant component ofU.S. fertilizer production hasalready moved offshore, andU.S. farmers have seen fertiliz-er prices rise more than 36 per-cent over the last 18 months.”

Temporary workersTo settle the immigration

issue and not harm agriculture,the Farm Bureau wants legisla-tion that sets up a temporaryworker program. It says a pro-gram like this would do sever-al things:

• Allow agriculturalemployers to pay no more thanan average prevailing wage ina particular agricultural occu-pation and region.

• Provide an uncappednumber of temporary workervisas that each lasts severalyears and is renewable multi-ple times but eventually ends.

• Not impose more strin-gent requirements on agricul-ture than on other sectors of

the economy, including hous-ing, transportation paymentguarantees and the hiring ofworkers after the contractperiod has begun.

• Not expand labor laws,including the Migrant andSeasonal Agricultural WorkerProtection Act (MSPA), or oth-erwise provide temporary agri-cultural workers with privaterights of action in state or fed-eral court.

• Offer a legitimate, fairopportunity for some agricul-tural workers to apply for per-manent resident visas.

At their 2007 annual meet-ing, Farm Bureau delegatesoverwhelmingly reaffirmedtheir support for comprehen-sive immigration reform thatimproves farmers’ timelyaccess to legal farm workers.They also underscored theneed for an improved tempo-rary agricultural guest worker,

See Workers, on Page 22

Immigration


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Continued from Page 10Chuanzhi was a researcher atthe Chinese Academy ofSciences until 1984. He hadno experience as an entrepre-neur or business leader. Hehad no formal business train-ing. But he made it a disci-pline to sit down with his topaides at the end of everyweek and review every majordecision of the past five days.As he told Useem in an inter-view, the purpose of thedebriefing was “to ensurethat we don’t make [thesame] mistakes in thefuture.”

Useem said such storiesare what make lessons aboutdecision making memorable.“Through the crucible ofbeing in the classroom andtrying to get across ideas thatreally stick, I have found thatdecision principles devoid ofpractical embeddedness tendnot to stick,” he said. “If pre-

scriptions for decision mak-ing are anchored in a case,they are more easily remem-bered and more readilyrecalled at a point of deci-sion. If drawn from personalexperience, they are evenmore memorable and retriev-able when facing a go point.”

When the time is right

With real decisions, lead-ers sometimes have onlyhours, minutes, or even sec-onds to make the right choic-es. They have to know whento gather information ratherthan rushing in, but also haveto be able to pull the triggerwhen the time is right.

How can a leader knowwhen the moment is right?The Marine Corps uses a 70-percent rule. “In making adecision, you want to reachthe 70-percent level of confi-dence, not wait until you are99 or 100 percent sure,”

Useem said. “Conduct yourdue diligence, but when youreach 70-percent confidence,don’t wait for perfect data. Itis important to be right butalso timely.”

When acting with only 70-percent confidence, “you areinevitably going to makesome mistakes,” Useem said.And it is essential to learnfrom them. “Good decisionsnow are paved with errors inthe past decisions that youhave reviewed and come tounderstand.” He recalled adiscussion with CharlesElachi who directs the JetPropulsion Laboratory,NASA’s contract agency forunmanned space missions.When the mission to Mars in1998 ended in failure, the toptwo managers were ready toresign. Elachi refused to letthem. He said, “We havespent $400 million trainingyou. You have to learn fromthose mistakes, and I am sureyou will not repeat them.”

On the other hand, lead-ers cannot rush in. They needto carefully assess the situa-tion, even in the heat of themoment. Useem spoke withTom Boatner, group managerof fire operations for theNational Office of Fire andAviation, who recalled a les-son he learned from a firesupervisor early in his career.Boatner and other young fire-fighters on the crew wholanded at a fire site in Alaskawanted to plunge in to battlethe blaze. But his more expe-rienced supervisor, RobertBurritt, quickly but meticu-lously assessed the situationand then issued orders to dif-ferent teams. In about 15minutes, Burritt calmed theteam and created a clear planof action. While Boatner waschafing at the bit at the time,it was a lesson he never for-got throughout this long anddistinguished career. Hewould remember this imageof Burritt coolly and calmlyassessing the situation. Thisbecame part of his own deci-

sion template.

Making better decisions

“Go points” are momentswhen leaders truly demon-strate their leadership andtheir value. Useem recallsconversations with severalsenior executives that gosomething like this: “Much ofthe year I am overpaid, butfrom time to time I am mak-ing very consequential deci-sions, and then I truly earnmy keep. Much of my leader-ship comes down to makingthe right decision at the rightmoment.”

What is the value of mak-ing better decisions? Whilethis can be difficult to assessin life, a simulation thatUseem uses in the classroomoffers some insights. The caseis based on the actual experi-ence of People’s ExpressAirline, the pioneering dis-count airline launched in1980, which collapsed just sixyears later. Students areasked to make their own deci-sions about building the air-line. While the decisions ofPeople’s Express founderDonald Burr took the actualcompany into bankruptcy,some managers in the simula-tion have achieved marketcaps of $2 billion or morebased on making better deci-sions.

Can it be learned?

Can better decision mak-ing be learned or is the capac-ity for making good decisionssomething you are born with?While some decision makersare naturally talented, andthey are often hired for thatskill, all managers can learnto make better decisions.Useem notes that participantsin the People’s Express simu-lation do much better the sec-ond time around, with a visi-ble payoff. “People who gothrough it once with goodfeedback on their first-rounddecision making almost

See Learned, on Page 32

Decisions


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Continued from Page 16ues. Tell them how you wantto be a good neighbor andshare those commitments.

“Being able to speak pub-licly and deal with an emotion-al audience means letting oth-ers complete what they aresaying and wait until they havecompletely finished with theirtestimony and are done – thatmay even mean until they aredone crying,” he added.

When a producer steps for-ward the first thing to do isacknowledge the situation.“Obviously, the issue is impor-tant to the other speakers andyou have to let them know it isimportant to you as well.Acknowledge and then say, ‘letme tell you what we do - toprotect the environment/carefor our animals – for all of us’,”Arnot recommended.

Simply put, “you have toput yourself on the same sideas the audience. This gives youan opportunity to talk about

what you are going to do toaddress the concerns,” Arnotsaid.

People on the other side ofan issue “are usually not inter-ested in hearing about scienceuntil they understand youshare their concern. You haveto find that common value as aplace to begin that conversa-tion so it will be meaningful,”Arnot emphasized.

Arnot plans to breakPDPW members into groups,and then have them workthrough an exercise on howthey will prepare for a publichearing. “The groups will haveto develop their own strategy,discuss that strategy and thenprovide feedback so they havesome sense of how it allcomes together,” Arnot said.

Arnot’s workshop willoccur on March 13 starting at4 p.m. during the PDPW busi-ness conference.

By Joan Sanstadt

Continued from Page 19or H-2a, program.

Said American FarmBureau President BobStallman, “We came closer lastyear than we ever have to get-ting true immigration reform.Farm Bureau members werefrustrated by Congress’ inabili-ty to finish the job. The mes-sage that the delegates aresending is that they will contin-ue to push for comprehensiveimmigration reform.”

Bills in CongressTwo bills dealing with

immigration law reform havebeen introduced into Congress.Together, the measures areknown as AgJOBS legislation.

In the House, the bill is H.R.371 and was introduced byReps. Chris Cannon (R-Utah),Adam Putnam (R-Florida),Howard Berman (D-California), GeorgeRadanovich (R-California),Tom Reynolds (R-New York),and Devin Nunes (R-California). The Senate bill is S.340. Its main sponsors are

Dianne Feinstein (D-California)and Larry Craig (R-Idaho),along with judiciary committeeleaders Patrick Leahy (D-Vermont) and Arlen Specter (R-Pennslyvania).

These two bills wouldreform the temporary workerprogram and regulations ofundocumented workers. TheAgJOBS provision was part ofthe immigration reform bill thatpassed the Senate last year.However, it was not part of theHouse immigration bill.

Perez points out that theFarm Bureau joined with theBush Administration and con-gressional leaders just a fewmonths ago to pass the CentralAmerican Free TradeAgreement because it meantgains for U.S. agriculture. Now,he says, some in Congresswant to wipe out those poten-tial gains with one single bill.

“It doesn’t have to be thisway,” says Perez. “Congresscan - and must - enact a viableguest worker program.”

By Ron Johnson

Words

Workers


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Redefining the Milky Way

Annual BusinessConference

PROFESSIONAL DAIRY PRODUCERS OF WISCONSIN

MARCH 13 - 14 • 2007

ALLIANT ENERGY CENTER • MADISON, WI

Da

It’s time to launch into a new way

of thinking about our industry and

the products we produce.

This conference puts you at the

helm of mission control as you

redefine your business, and take

control of your destiny.

Your experience at the 2007

Annual Business Conference

is all about

“Redefining the Milky Way.”

Tagged Dairy’s Premier Event,

this conference was

developed by dairy

producers for dairy producers.

Day 1 – Tuesday – March 139:00 a.m. Hall of Ideas – Designed to blast the doors off the traditional mode of show-casing new technologies and products. Producers – this is the place to spot new ideas andproducts, capitalize on show specials, and converse with industry’s preferred suppliers.Innovation, profit tips, new ideas and solutions are all at your fingertips. The Hall of Ideas isopen for you to explore during the entire conference.

9:15 – 10:30 a.m. Preconference sessions (select one)A. Manure-handling systems - producer panel, moderated by Dennis FrameThis top-notch panel brings to your doorstep a variety of approaches and technologiesthat we know work in the Midwest’s diverse climate where weather swings and high-pro-ducing cows are reality. These producers represent the breadth of our industry, mentali-ty of pioneers and industry mavericks.

Producer panelists include: John Vrieze, one of Wisconsin’s largest dairy operators,talks about his digester, waste-treatment system and new technologies including clarifyingwaste-water streams. This industry innovator shares what he’s learned and talks aboutwhere he sees the next generation of nutrient management and technologies heading inthe industry.

Joe Bragger is from one of the Wisconsin Discovery Farms – a farm that shuttles tothe top of the chart when you talk about diverse and challenging topography! Bragger willshare what he’s learned from the on-farm research, as well as how he manages liquid stor-age and solid pack from his steer and heifer operations.

Since growing their family operation in the late 1990s, Gary and Rose Boyke haveaggressively pursued new technologies that would enhance their profitability.They traveledoverseas and across America researching methane digesters before investing in the latesttools. They share their experiences, suggestions and story.Sponsored by Delaval, Inc.

B. Carbon Credits – the future has arrived! Rapidly changing regulations andnew financial markets require you to explore new options in nutrient management.While carbon credits have been around for some time, agriculture has just launched intoa new frontier. Dr. Tej Gidda, who holds a doctorate degree in environmental engineer-ing from the University of Guelph, shares how and why entering this new galaxy may helpyou. The possibilities he uncovers include: 1) earning revenue each year, 2) improving theNPK ratio of liquid manure by substantially increasing the nitrogen content and decreas-ing the phosphorus content, 3) reducing land application costs, 4) simplifying manure han-dling, 5) providing you an opportunity to create renewable energy from biogas, and/or 6)entering a viable, valuable emerging carbon credit market.

Gidda has experience in gas modeling, feasibility studies, collection field design and uti-lization.Gidda is working on greenhouse gas credit projects under the United Nations andengaged in greenhouse gas emission reduction quantification for domestic projects. Inaddition, he is investigating alternative waste processing technologies including aerobictreatment of source-separated organics and anaerobic digestion.Sponsored by Stewart-Peterson Group

C. Do you know your insurance needs? Suzanne Lois from Mangold Insurancehelps you understand this important topic. One type and size of coverage does not fit allsituations. Lois’ presentation will cover a variety of issues, such as pollution liability insur-ance for manure spills, chemical spills and milk hauling spills, workers’ compensationincluding state requirements, why it is a good idea, who is covered and more.

D. Selecting the right job candidates...effectively and legally It's not alwayseasy to sort out job applicants.Who will turn out to be a good employee, or a great one?Who will be a dud? This presentation will address best practices in selecting and hiring ofnew employees, and focus on identifying the best candidates.You will also learn approach-es you can use to avoid unwanted legal problems. Chip Hunter, Larry (Chip) Hunter is aProcter and Gamble-Bascom associate professor of management and human resources atthe School of Business of the University of Wisconsin-Madison.

10:30 - 11:30 a.m. Fuel up for a conference that will move at the speed of light!Lunch will be served in the Hall of Ideas

MISSION SponsorsFarm Credit Wisconsin

Charleston|Orwig

Land O' Lakes Inc.

Morgan&Myers

CORPORATE Sponsors

Accelerated Genetics

Agri-View

Alto Dairy Cooperative

Animart

Arm & Hammer Animal Nutrition

Cooperative Resources International

DairyBusiness Communications

Dairyland Seed Co., Inc.

Focus on Energy

Pfizer Animal Health

Pioneer, A Du Pont Company

Twohig, Rietbrock & Schneider, S.C.

WE Energies

WestfaliaSurge, Inc.

Wisconsin Cheese Makers Association

Wisconsin Milk Marketing Board

Wisconsin Public Service

airy’sPremierEvent

4:00 - 6:15 p.m. Specialty sessions – Day 1Select the breakout sessions that interest you most – two,one-hour ses-sions or one, two-hour session, or spend the entire afternoon with ourindustry's preferred suppliers in the Hall of Ideas.

1) Cross Ventilation - new design for changing timesJohn Smith with Kansas State provides the skinny on new buildingdesigns and innovative solutions on the old issues of air movement,cooling and ventilation. (one-hour session)

2) Public hearings -- practice & prepare for effectivenessMany producers view a public hearing as more frightening than facinga band of Klingons without your phaser! Fear not! Star Fleet hasdesigned a battle plan to help you navigate through the meteor show-er of a public hearing. Charlie Arnot, CMA Consulting, shares howto plot your course to success and avoid falling victim to overlyingemotional opponents. This session is more valuable than a light saberin the battle for production permits. (two-hour session)

Sponsored by The Beef Checkoff Program

3) 3) Farm Bill '07: animal activism in America Bryan Scott, executive vice president regulatory affairs with AgAssociates, LLC, provides an update straight from the cockpit of pol-icy on issues like animal welfare, activist concerns, and consumerexpectations that drive farm policy.

We will explore the current agendas and tactics of animal welfareand consumer groups, and how they are influencing the thinking inWashington on both the regulatory and legislative fronts. In addition,we will explore the role producers will play in this debate both athome and outside of the farmgate. Hear how Washington’s forcesplan to manage agriculture’s issues. Will plans for reform, discussionon trade and conservation lighten your load or tighten your belt?(one-hour session) Sponsored by Wisconsin Farm Bureau

4) It’s not your father's corn silage: you will be all earsin this discussion with Dr. Mike Allen, Michigan State University,and Dr. Joe Lauer, University of Wisconsin-Madison. Selection indi-cators such as Milk per Acre or Milk per Ton cannot rank cornhybrids for silage accurately. A partial budget approach is a moreaccurate, albeit more complicated, way to choose corn hybrids forsilage. This presentation will discuss selecting hybrids using a partialbudget approach and demonstrate Corn Picker, a free spreadsheetdeveloped to assist in the process. (one-hour session)

5) Cow Centric: a new look at cow management In this session, Bruce Woodacre, Suffolk, UK, addresses decliningfertility and longevity trends in dairy cows worldwide, as milk yieldscontinue to rise. He proposes using a holistic approach to cow management and stresses that we should be looking at total cowperformance, rather than solely focusing on one component.

He recommends working with the cow to ensure profit targets.Woodacre asks us to imagine a dairy cow with high yields plus highmilk quality, longevity, feed efficiency, healthy milk, disease resistanceand fertility. He explains that achieving this is possible by adopting acow-centric approach to management. (one-hour session)

Sponsored by Alltech

6) Hall of Ideas - time with industry’s preferred suppliers...and delicious cheese sponsored by Wisconsin Cheese

Makers Association

Redefining the Milky Way11:30 a.m. Conference lift-off – Emcee and dairy enthusiast, Ron Fruit,WRCO Radio Broadcaster, leads us through the conference. He has walked in theshoes of a dairy producer, carried the messages of our industry and developed asuccessful broadcasting business.

Noon - 1:00 Defining our market niche -- Ben & Jerry’s shares their phi-losophy on “corporate and social responsibility.” Andrea Asch with Ben & Jerry’swill cover the company’s philosophies on ordinary issues – philosophies that soundextreme to some. From her views, we will glean a sneak preview from outside ofdairy’s perspective on issues like environmental practices, animal welfare and more.

Asch leads the environmental program for Ben & Jerry's Homemade Inc., theVermont-based ice cream manufacturer that is widely recognized for its sociallyand environmentally conscious business practices and its innovative ice cream fla-vors. During her presentation, she will question not only how we operate, but alsothe values on which we base our decisions. This presentation is about understand-ing what others believe and learning to shorten the gap between perception andreality. Asch’s presentation may challenge you as she shares Ben & Jerry’s approachto defining their market.

1:00 - 2:30 Redefining the Milky Way – Similar to the first men thatwalked the moon, these individuals were some of the first pioneers who dared togo where no others had ever traveled. Two dairy producers and an innovative dairyconsultant share their stories of search, discovery, success and failure as theyreached beyond the traditional bounds of the dairy universe to the unknown –pioneering a new way in the Milky Way.

George Crave,Waterloo,Wis., is president of Crave Brothers Farmstead CheeseLLC. George and his three brothers own Crave Brothers Dairy Farm where thefamily milks 600 cows. In 2001, Craves built a cheese factory across the field fromtheir dairy and produced their first cheese in 2002. George and his wife, Debbie,oversees plant management and cheese production.

John Fiscalini, Modesto,Calif., manages his family-owned farm of 530 acres and1,700 Holsteins. In 2000, the Fiscalinis built their cheese production facility andbegan manufacturing artisan farmstead cheese.

Dan Giacomini, Middletown, Calif., is an independent animal nutrition and man-agement consultant. He has worked with organic dairy producers since the firstdairy west of the Mississippi River converted to organic production more than 12years ago. Within the organic industry, he has consulted with dairy producers, feedmills, feed supplement manufacturers and marketers, veterinarians, milk processorsand organic certifiers. Giacomini currently serves on the National OrganicStandards Board, a federal advisory committee within the U.S. Dept of Agriculture.The panel is moderated by Jim Gage from the Wisconsin Dairy BusinessInnovation Center.

2:30 Special introductions -- leaders

3:00 - 4:00 Alltech’s Ice Cream break in the Hall of IdeasSponsored by Alltech

4:00 - 6:15 Breakout Session 1 and 2 – see the right column

6:30 Join us for dinner...if you dare! Be ready for a serving of non-stop corporate comedy and ‘nuclear-style’ entertainment!Over the past 20 years, Tim Bedore has spent thousands of hours entertainingaudiences, first on the radio and then as a comedian, headlining comedy clubsacross the country. One of the few young comics to have combined the disciplinesof stand-up comedy and broadcasting, Bedore knows the rigors of working withindemanding parameters. His broadcasting experience combined with a pleasantMidwestern demeanor gives Bedore the ability to entertain people with a widerange of tastes and sensibilities. Entertainment sponsored by Novartis

Animal Health; dinner co-sponsored by Rabo AgriFinance

8:30 - midnight Network until the moon rests! A cold beverage &time to relax -- in the Hall of Ideas. This is your time to mingle with industrypartners and fellow producers. Sponsored by Fort Dodge Animal Health

Milk - All you can drink Sponsored by Foremost Farms USA

and Swiss Valley Farms

Rede f in ing the Milky Way – Day 2 – March 147:00 - 8:00 a.m. Continental breakfast served in the Hall of IdeasAnother great time where industry and producers are together to share ideasand learn from one another. Sponsored by Animart

8:00-10:15 a.m. Specialty sessions – Day 2Select the breakout sessions that interest you most (select any two sessions) –or spend the entire morning with our industry's preferred suppliers in the Hall of Ideas.

1) Get updates on dairy compacts, the MILC program,federal orders, price support, and other issues surrounding theproducts we produce – Tom Cox and Brian Gould professors of agri-cultural and applied economics from UW-Madison. (one-hour session)

2) Immigration: where national policy is headed and itsimpact on you and the economy During this session, Austin Perez,director of congressional relations with the American Farm Bureau,will pro-vide insight into immigration reform and where the national policy is likelyto go and how it is going to impact U.S. agriculture. (one-hour session)

3) Extreme Makeover: freestall edition Step aboard and learnwhat's new in the world of stall and surface design that translates quickly tohigher production and happier cows. After studying cow behavior, produc-tion and profitability results, Dr. Nigel Cook from the University ofWisconsin has suggestions for some adjustments and design enhancementsthat could make big differences for those "crew members" who produce themilk and keep your business flying high. (one-hour session)

Sponsored by Merial/Igenity

4) Tracking the killer by utilizing on-farm studies to end cowlosses In the universe of cow handling and performance, this session is allabout catching the bad guy who robs you of profits and cows. Bill Stone,DVM, senior Extension associate with PRO-DAIRY Cornell University,shares information that you can apply immediately to your operation.(one-hour session) Sponsored by Diamond V Mills

5) Know the rules A lot has changed in 12 months.This session is toupdate you on the final Wisconsin rules surrounding ATCP50 (nutrient man-agement) and NR243 (CAFO rules). Everyone will be regulated by at leastone of these rules. Get the facts here from Dennis Frame-DiscoveryFarms; Tom Bauman - DNR; and Dave Jelinski - DATCP.(one-hour session)

6) Hall of Ideas --- time with industry’s preferred suppliers... ...and cheese sponsored by Wisconsin Cheese Makers Association

City State Zip

10:15 - 10:45 Dairyland Seed Break Gather for hot coffee,milk, an assortment of great midmorning treats & some steamy conver-sations. Sponsored by Dairyland Seed Co., Inc.

10:45 - 11:45 Renewable energy: opportunities and chal-lenges for dairy Samantha Slater from Washington, D.C., sharesher national, regional and state perspective on more than just ethanol.This session’s goal is to stimulate your thought processes about thefuture as you gain a glimpse of the new frontiers possible. Since energyis a lot like food production, there is a role for agriculture. How willchanging dynamics impact land use discussions, nutrient management,social issues, our economies and what does this mean to you? Will youcapture the opportunities or weather the challenges?

11:45 – 12:45 PDPW and PDPW Education Foundationannual business meetings – Hear an update on both organizations,as well as meet your new leaders and review financial information.

12:45 - 1:45 Lunch served in the Hall of IdeasCo-sponsored by M &I Marshall & Ilsley Bank and ARM & HAM-

MER Animal Nutrition

1:45 - 2:45 Consumers – The Final Frontier Boldly go whereno producer has gone before – the mindset of today's consumer.Explore the galaxy of social responsibility and learn why today's con-sumer may not understand or appreciate your coordinates. CharlieArnot, CMA Consulting from Kansas City, MO, will offer coordinates fora destination where consumers and producers live in harmony on thesame planet. Buckle up and come along for the journey!

3:00 Captain James Lovell, astronaut from Apollo 13,shares his riveting message of “Apollo 13: a successful failure” Two hun-dred thousand miles from Earth, locked in a tiny computerized craft,Captain James Lovell and his Apollo 13 crew faced almost certain deathwhen their oxygen system failed. In his dynamic keynote, Lovell takes youto the moon and shares with you the tension-filled cockpit of the Apollo13 mission.

As he shares his experiences in space, he connects with you, yourfamily situations and everyday challenges. Lovell shares his courageousjourney as he relates the skills his team mastered to turn a failed systeminto a successful mission. His message is more than a story about spacetravel as he makes a very real connection with what you need to succeedin today's dairy world. This keynote literally takes you to a new altitude of thought and provides insight that is “out of this world!”Sponsored by WestfaliaSurge, Inc.

Name____________________________________________________________________________________________________________________

Business/Dairy Name______________________________________________________________________________________________________

Telephone Number (______)_____________________________ Email Address ________________________________________________________

Names of others attending with you _________________________________________________________________________________________

Your mailing address _______________________________________________________________________________________________________

* 3 ways to REGISTER -- online at www.pdpw.org; call Julie at

800-947-7379 or send your check to: Professional Dairy Producers

of WI, P.O. Box 2, Fox Lake, WI 53933

PDPW has blocks of rooms at a special conference rate at:

* Clarion Suites, 608-284-1234 ($100/110)

* Sheraton Hotel, 608-251-2300 ($84/91)

* Country Inn & Suites, 608-221-0055 ($76/86)

* Holiday Inn Express, 608-255-7400 ($75)

Be sure to mention PDPW!!

Redefining the Milky Way PDPW Business Conference, March 13-14, 2007. Registrations due March 5.

Credit Card Info: VISA or MASTER CARD (circle one) Card #_______________________________________________ Expires _____________

Card’s security code (3 digit on back of card) _______________ Conference Rates Per Person (two days)

Member $175 X # attending = ________

Non-members $250 X # attending = ________

Single Day Rates Per Person March 13 OR March

14

Member $100 X # attending = ________

Non-members $175 X # attending = ________

*Students $ 75 X # attending = ________ _______________

(Name of School)

Total Due _________* Applies to full-time students from high school and secondary schools only

** $20 charge for registrations received after March 5 or walk-ins

http://www.pdpw.org;

Your field is our first priority, as it has been since our company was founded more than 95 years ago.Discover the value of research. Visit www.dairylandseed.com or call us at 800-236-0163.

Dairyland Seed • Where research gets results

Contact your local Dairyland representative:

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BARRON

Gene Hoard

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BROWN

Frank’s Feed Mill

920-837-7442

Mazna Farms

920-863-5179

BUFFALO

Klein’s Feed & Seed

715-926-3531

Tony Pyka

715-985-3859

Schmitt Bros.

608-687-8245

BURNETT

Burnett Dairy Coop

715-689-2467

CLARK

Melvin Dux

715-743-3824

Randy Kitzhaber

715-267-7488

DOOR

Mike Henschel

920-743-1906

KEWAUNEE

Robert Baudhuin

920-837-7572

Rolling Hill Dairy

920-845-5080

MANITOWOC

Gerald Borgwardt

920-758-2493

Maribel Grain

920-776-2120

Poplar Farm Sales

920-758-2961

Erwin Waack

920-772-4229

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Bronsteatter & Sons

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715-789-2192

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Alan Leidel

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Ray Dusel

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“Investing is a struggle,”said Bruce Jones, UW-Madisonag economist. “It must bedone with a sound objectiveand without emotion.”

Jones’ presentation was acollaboration of a talk set upby Randy Fortenbery and hisown thoughts.

There are five keys to suc-cessful investing, Jones stated.They are:

• Clearly identify yourobjectives

• Identify your planninghorizon

• Clearly and objectivelyassess the likelihood or fail-ure/probability of success

• Be able to survive invest-ment failure

• Understand the taximplications of your invest-ment strategy

Identifying objectivesWhen identifying your

objectives, go on record withyourself as to what is accept-able as a minimum return oninvestment in order to makemoney on every investment.Take some steady reliablereturns and make some high-risk investments “looking for ahome run but be willing tofail,” he said.

Other objectives couldinclude finding investmentsthat utilize farm production,such as taking a crop to feedlivestock. Or, find investmentswith expected returns that areinversely related to your farmreturns. You may be willing togive the returns to the commu-nity by investing in local busi-nesses.

Putting together a soundinvestment plan involves fol-lowing an investment pyramid.Preserve your capital with asolid base made up of savingsand checking accounts, lifeinsurance and retirement pro-grams. Move up on the pyra-mid by taking on bonds andannuities, then mutual fundsand blue chip stocks. Higher

up on the pyramid are realestate for investment, specula-tive stocks and commoditypools.

“Don’t go up that pyramiduntil you have sound invest-ment,” he said.

Planning horizonGive yourself investment

direction by identifying yourplanning horizon. Considerhow you want to retire, willyou need money to send yourchildren to college, or is it sim-ply for next year’s vacation.According to Jones, “The keything here is asking ‘howmuch time do you have?’”

Likelihood of failureBefore investing, it is very

important to clearly and objec-tively assess the likelihood offailure. The more exciting aninvestment opportunityseems, the more difficult it isto consider the downside.

“A prudent investor willalways consider not just thereturn, but the risk you musttake to get the return,” he said.

Evaluating the businessplan of a new venture is verycritical. Consider the follow-ing:

• Have they clearly identi-fied those elements that couldlead to failure?

• Have they clearly identi-fied their competition, includ-ing the elements that make itlikely they can compete?

• Is there a clearly definedexit strategy (for both you andthe company)?

• Can the company makeit without your investment?

You’re also going to need afinancial projection. Be pre-pared to seek outside assis-tance for this if necessary.

Has someone else investedand had success? Is the com-pany producing a commodityor a unique product? Does thecompany possess protected

See Investing, on Page 31

Leave EmotionsOut of Investing


Did you ever notice thingsseem to occur in groups ofthree?

First came the DairyInvestment Tax Credit (DITC)signed into law by Gov. JimDoyle in March of 2004. In taxyear 2004, DITC’s first year,nearly 7,000 claimants filedfor a total of $13.1 million intax credits. The second year(2005), almost $12 million intax credits were claimed.

Next, the DITC was fol-lowed by a similar credit forthe livestock industry – aLivestock Investment TaxCredit. It was approved alongwith the budget passed duringthe last legislative session.

Now, in his 2007-09Biennial Budget, Doyle is pro-posing a similar credit fordairy processing plants. Thisis the third time the governorwants to use investment taxcredits to help a segment ofWisconsin agriculture.

It’s no secret that dairyprocessing plants have beenstruggling to remain competi-tive with those in other partsof the country. Doyle’s pro-posal is intended to helpthose plants compete by pro-viding an incentive for themto update their facilities.

Probably not too manypeople will want to wadethrough all pages of the gov-ernor’s almost 1,800-pagebudget document – but forthose who are interested,details of the dairy plant cred-it can be found on pages900–902.

Budgets usually includedefinitions of terms that areused and this is true of whatis officially called the “DairyManufacturing FacilityInvestment Credit” or(DMFIC).

Not only is “dairy manu-facturing” defined as “pro-cessing milk into dairy prod-

ucts or processing dairy prod-ucts for sale commercially,”the document also defines themeaning of “modernization orexpansion.”

Carefully spelling outexactly what “modernizationor expansion” covers isimportant because it ensureseveryone has the same under-standing of what is meant.

Here’s what the governor’sbudget says is meant by“modernization or expan-sion:”

• Constructing, improvingor acquiring buildings or facil-ities, or acquiring equipment,for dairy manufacturing (ifused exclusively for dairymanufacturing and if acquiredand placed in service in thisstate during taxable yearsthat begin after Dec. 31, 2006and before Jan. 1, 2015):

• A. Building construc-tion, including storage andwarehouse facilities.

• B. Building additions.• C. Upgrades to utilities,

including water, electric, heatand waste facilities.

• D. Milk intake and stor-age equipment.

• E. Processing and manu-facturing equipment, includ-ing pipes, motors, pumps,valves, pasteurizers, homoge-nizers, vats, evaporators, dry-ers, concentrators andchurns.

• F. Packaging and han-dling equipment, includingsealing, bagging, boxing,labeling, conveying and prod-uct movement equipment.

• G. Warehouse equip-ment, including storage racks.

• H. Waste treatment andwaste management equip-ment, including tanks, blow-ers, separators, dryers,digesters and equipment thatuses waste to produce energy,fuel or industrial products.

• I. Computer softwareand hardware used for man-aging the claimant’s dairymanufacturing operation,including software and hard-

ware related to logistics,inventory management andproduction plant controls.

This equipment must beused for the purpose of dairymanufacturing 95 percent ofthe time.

The maximum amount ofinvestment tax credit aclaimant (and that includes apartnership, limited liabilitycompany or tax-option corpo-ration) may claim is $200,000.

DITC success

Success of the DITC can-not be denied. Bipartisan sup-port for the plan began withthe Wisconsin Federation ofCooperatives (WFC) andMike Krutza, WFC directorand CEO of FCS FinancialServices of Wausau. Creditalso goes to legislators, espe-cially the chairs of the agri-culture committees – StateRep. Al Ott (R-ForestJunction) and State SenatorDale Schultz (R-RichlandCenter). It extends to themajority of lawmakers in bothhouses who voted for themeasure and to Gov. Doylewho signed AB 283 into lawas 2003 Wisconsin Act 35.

When the Department ofRevenue (DOR) initially pro-jected the effect of DITC, itwas estimated there would be$5.7 million in claims.

What actually happened inthe first year of DITC, wasthat nearly 7,000 filers madeclaims for $13.1 million.

Dr. Bruce Jones, UW ageconomist, warned that theDITC should not be construed“as a give-away” because thestate was collecting $13.1 mil-lion less in tax revenue.

“Every $1 earned at thefarm level generates $1.50 intaxable income in surround-ing communities. In the longrun,” Jones explained,“Wisconsin should getincreased tax revenues tomore than offset the cost of

See Credit, on Page 34

Dairy Plants Would Benefit From New Tax Credit Proposal


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Most people don’t put asmuch time and considerationinto evaluating their insur-ance policy as they should.

“People usually don’tthink about their regularinsurance policy until they’vehad a loss,” said Suzanne Loisfrom Mangold Insurance inBurlington, who will be pre-senting at the PDPW AnnualBusiness Conference, heldMarch 13-14.

“Normally, many peopledon’t make a habit of chang-ing until they have a claim,”she said.

It is important to knowhow to cover your propertyright. What coverage maywork for one person, may notnecessarily work for another.One type and size of coveragedoes not fit every situation.

There are three maintypes of insurance, whichinclude essential insurance,important insurance and

optional insurance. Essential insurance pro-

tects you against a loss thatcould result in bankruptcy.

Important insurance pro-tects you against a loss thatwould force you to borrowmoney or resort to otherforms of credit to cover theloss. A majority of the time,this covers property orincome loss.

Optimal insurance is whenyou can actually cover theloss yourself, but you decideto pass some of the risk ontosomeone else, like your insur-ance company.

“You have to think about ifyou want to spend the moneywith optimal insurance,” saidLois.

New world, new needsPollution liability cover-

age is one of the biggestissues facing the industrytoday. Many farm policies do

not cover these problemssuch as manure or chemicalspills.

Sudden and accidental,which is usually included intofarm policies, will cover acci-dents, like if you back into afuel tank and then it explodes,said Lois.

However, an accidentsuch as a manure spill, whichcontaminates well water, isnot included.

“It doesn’t matter if youmilk 100 or 2,000 cows,” shesaid. “It’s about, how do youpick and choose what cover-age you need for your farm.”

“Insurance is not a cookiecutter situation,” she added.

“Every operation is differ-ent, farmers have to deter-mine how much risk theywant to take on themselvesand how much they want topass on,” she said.

“The idea is to get thesefarmers to sit down with anagent and use this as a riskmanagement tool,” said Lois.

The largest portion of afarmer’s risk is covered bytheir farm policy.

One of the biggest prob-lems today, is that farmers arenot taking the time to sitdown and go through theirpolicies with their insuranceagent.

“Many people quickly gothrough the policy, and then itstays the same for the nextfive years,” said Lois.

Since many people don’ttake the time to sit down andre-evaluate their policy fromyear to year, it doesn’t stayupdated. This can be a greatproblem, especially when itcomes to policies about build-ings. Inflation factor is signifi-cant with buildings and canchange greatly from one yearto the next.

“Building costs have goneup 75 percent in just the lasttwo years,” she said.

Lois meets with herclients once a year. She saidshe thoroughly overviewspolicies, including buildinginflation factor.

“People need to utilizetheir agent as a tool,” she said.

“A lot of agents don’t havethe farming background,” sheadded.

“It’s just like anything elseon the farm, like a feedingprogram,” she said.

You wouldn’t want justanyone figuring out the rationfor your cows, especially ifthey didn’t know anythingabout them, she said.

“Your policy should be tai-lored around your operation,not what everyone else isdoing,” said Lois.

Another problem that shenotices is that people have nobusiness income loss or extraexpense coverage.

“With 99 percent of mydairy farms, I have that ontheir policy,” she said.

Anytime there is a fire, ora situation where farmershave to move their cows,there is an automatic drop inproduction. Problems like thiscan occur often and farmersshould make sure that situa-tions such as this are coveredin their policy.

There are many importantaspects of farm policies,which many people areunaware of. The first step infixing this problem is to makesure you work with an agentthat understands your opera-tion.

“I would pick an agentthat understands farming,”Lois said.

“You should try to pick anagency that has more thanone insurance company thatcan write for them,” sheadded.

It is important for anagent to understand youroperation, so they know whatkind of coverage you need.

“You need to know whatinsurance you have to haveand what is important to youroperation,” said Lois.

“It’s all about risk,” shesaid. “You need to learn tomanage your risk throughinsurance.”

By Kelsi Hendrickson

Managing Risk Through Insurance


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9 2 0 . 3 4 6 . 2 2 1 5 | w w w . a l t o d a i r y . c o m

Continued from Page 8Foundation, according toRupnow. Other active cam-paigns include solicitinggrants and a silent auction,which takes place at theProfessional Dairy Producersof Wisconsin AnnualBusiness Conference inMarch. The Board also isworking on other campaigns.

“The goal is to provideopportunities to give,whether individually, througha sponsorship, an item for thesilent auction, a corporatedonation, an honorarium or abequest. Our role is to pro-vide the means for people todirect their funds to help anindustry they believe in,” saysRupnow, “and build an infra-structure that allows us to begood stewards of the dollars.”

Part of good stewardshipis building for longevity,according to Rupnow. TheFoundation’s policy that 25percent of cash contributionsbe held in reserve for anendowment fund is meant toact as a security blanket for

program funding. One of the challenges the

organization faces is identity.The PDPW EducationFoundation shares part of itsname with its parent organi-zation, Professional DairyProducers of Wisconsin. Thetwo organizations are similar,but not identical. TheFoundation’s 501(c)(3) taxstatus makes additionalresources available for whichthe parent organization does-n’t qualify. The confusion isn’tstifling the FoundationBoard, according to Rupnow,who says that most organiza-tions generally go through aperiod of identity crisis dur-ing development. “We areembracing the challenge,”she says.

The PDPW Foundationset its annual I Believe cam-paign into motion in lateDecember. If you would liketo donate to the PDPWEducation Foundation or givean honorarium or memorialcontribution, visit the PDPWwebsite at www.pdpw.org.

Investing

Foundation

Continued from Page 28patents, etc.? Is successdependent on public policy?All of these questions need tobe thought out to clearlyassess the likelihood of fail-ure or success.

Jones shared mean aver-age rates of returns from1960 to 2005. T-Bills returned5.8 percent, Wisconsin farm-ing 8.4 percent and stocks11.7 percent. Through stan-dard analyzed risk, Wisconsinfarms were at moderatevolatility and stocks had highvolatility.

“Don’t make an invest-ment solely on return,” saidJones. “Make it on relation-ships across investments.”

Surviving failureUnderstanding your abili-

ty to absorb risk is vital toinvesting. There are two dif-ferent types of risk tolerance.

First is financial. Are you

in a financial position toabsorb the outcome or arisky investment withoutrisking your primary businessand/or family needs? Can youtake the loss in the form ofthe loss? If you don’t have theequity or liquidity, you mayhave to let the investment go,he said.

Then, do you have theemotional tolerance toabsorb the realization of arisky event?

Make sure this investmentisn’t so closely related toother investments that itsfailure will impact the per-formance of other invest-ments.

Tax implicationsYou may need to seek

expert advice regarding thetax implications of yourinvestment strategy.

“You can’t be an expert ineverything,” Jones said.

“You’re going to need somehelp.”

The same identical invest-ment by two different individ-uals will have different taximplications for those indi-vidual.

“Even if you seek profes-sional tax advice,” Jones cau-tioned, “understand your taxsituation and why the recom-mendations made makesense for your situation.”

For example, looking atfarm land sales and Section1031 tax treatment, if you sellland but do not wish to paycapital gains tax, you maychose to reinvest that moneyto postpone taxes. At 15 per-cent capital gains you mightbe willing to pay a premiumor 5 to 10 percent to avoidthe tax, but not 25 to 30 per-cent.

“The way you avoid mak-ing a bad decision is to con-sult with a tax agent,” he said.

Successful investmentDon’t make an investment

on a hunch or because yourneighbor made a recommen-dation. Keep your emotionschecked at the door by notmaking emotional invest-ments, for example: this busi-ness will save the environ-ment or revitalize the town.

Demand documentationfor all claims. Understandhow and when you can liqui-date your investment. “It’salways easy to get in, butalways know how to get out,”he said. “The first thing youshould negotiate is the exit.”

It never hurts to have anexpert look over the businessplan, technology or financialprojection; they know thequestions that need to beasked. “If you can’t affordgood professional guidance,then the investment is notright for you.”

By Karen Topel


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Continued from Page 20always create far more valuethe second time,” he said. “Ifthey build an airline to a $500million market value the firsttime, they may well buildtwice that the second timethrough, hitting a billion dol-lars in market value or more. Itis because they simply learn tomake better decisions.”

Learning to make betterdecisions can come from mak-ing your own mistakes orlearning from the stories ofothers. Useem uses stories, aswell as expeditions to battle-fields and mountaintops, toteach leadership and decisionmaking to MBA students andexecutives. He teaches inmany Wharton ExecutiveEducation programs, includingthe Advanced ManagementProgram, ExecutiveDevelopment Program,Essentials of Management,and The Leadership Journey.

While Useem’s past teach-

ing and research, including hisbook The Leadership Moment,have focused on leadership, herealized that leadership isinextricably bound to decisionmaking. “I’m increasingly con-vinced that we can’t talk aboutsuccessful leadership fullywithout talking about howleaders make decisions,” hesaid. “Similarly, you can’t talkabout governance withouttalking about how directorsmake decisions. The learningis incomplete if we don’tdevote time in a leadership orgovernance program dis-cussing decision making.”

PDPW has teamed upwith The Wharton School todeliver new resources andeducational pieces to itsmembership and the dairyindustry.

Reprinted with permission

from Wharton@Work.

© 2006 The Wharton School,

University of Pennsylvania

Professional DairyProducers of Wisconsin(PDPW) is proud to workwith the Wisconsin DairyProducts Association(WDPA) and thanks theorganization for their supportof the PDPW EducationFoundation.

Funds raised at the 2006World Dairy ExpoChampionship Dairy ProductContest and Auction weredonated to several organiza-tions, including a $2,000donation to the PDPWEducation Foundation “IBelieve” campaign.

“We’re thankful that theWisconsin Dairy ProductsAssociation recognizes thevalue of the PDPW EducationFoundation,” said ShellyMayer, PDPW executivedirector. “This contribution tothe Foundation shows thatprocessors also believe in the

future of the dairy industryand value a good workingpartnership with their suppli-ers.”

This generous contribu-tion was applied to the “IBelieve” initiative, whichfocuses on continuity andstrengthening the future ofthe dairy industry. Since kick-ing off the “I Believe” pro-gram nearly two years ago,the program has continued togrow Foundation awarenessamongst the industry andsupport from generousdonors.

To learn more or to sup-port the future of the dairyindustry through the PDPWEducation Foundation, con-tact Julie Gabris at the PDPWOffice at 800-947-7379. Taxdeductible gifts can be sentto PDPW EducationFoundation at P.O. Box 2,Fox Lake, WI 53933.

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Continued from Page 29the DITC.”

David Ward, WFC’s dairy

director, who is also a farmer

and a former state lawmaker,

said it is important to remem-

ber that before a dairy produc-

er gets that tax credit he first

has to make that investment in

his operation’s

expansion/improvement. “That

means the producer has done

business with an equipment

dealer, a laborer has had to

come and install the improve-

ment – and that improvement

has probably increased the

value of that producer’s prop-

erty.

“So, while it is true the

amount of money coming into

the state’s coffers may be less

initially, once the investment

has been made the tax credit

continues to expand and gen-

erates increased taxable rev-

enue both on the local level

and for the state,” Ward said.

“I’ve always believed agri-

culture doesn’t get enough

credit for the economic devel-

opment it spurs in local com-

munities through salaries to

employees and goods and

services purchased at hard-

ware stores, veterinary clinics,

feed mills and other business-

es,” Ward emphasized.

Dairy manufacturing credit

WFC President and CEO

Bill Oemichen called the tax

credit “a step in the right direc-

tion for Wisconsin’s coopera-

tive dairy processors. The

dairy industry is one of the

leading economic corner-

stones of Wisconsin and it’s in

everyone’s best interest that

we look at the industry’s long-

term profit potential through

immediate dairy plant modern-

ization.”

Oemichen also noted that

85 percent of Wisconsin’s milk

is shipped through dairy coop-

eratives.

Laurie Fischer, DBA execu-

tive director, quoted directly

from the governor’s budget

address as she addressed the

issue of competition in the

dairy processing industry.

“Governor Doyle said

‘California thinks it can get the

edge on us in cheese produc-

tion…but we have news for

them. Using significant new

tax credits, we’ll upgrade,

modernize and expand our

cheese production facilities so

they remain the best in the

world. With all due respect to

our friends in California, the

happiest cows come from

Wisconsin, because we’re still

number one’,” Fischer said.

“Wisconsin cheese produc-

tion is the heart of our state’s

economic, cultural and histori-

cal fabric and we need to do

everything we can to make

sure it remains that way,” she

added.

What’s next?

This dairy facility invest-

ment tax credit proposal is in

its initial stages. While it’s true

it is part of the governor’s

budget, that budget must first

go through deliberations and

recommendations of the Joint

Finance Committee, a number

of legislative hearings, both

houses of the legislature and

perhaps even a conference

committee before Doyle can

sign it into law.

According to statutes, the

new budget begins on July 1.

But if the budget hasn’t been

passed, the old budget provi-

sions continue. Sometimes a

new budget isn’t ready for

signing until late fall.

By Joan Sanstadt

Credit


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World-renowned hoofexpert, Dr. Jan Shearer willshare his expertise at thePDPW Foot Health Seminarsto be held April 10 and 11 atthe Fox Valley TechnicalCollege in Appleton. Alongwith his duties as a profes-sor and dairy Extension vet-erinarian at the University ofFlorida College of VeterinaryMedicine, Shearer travelsthroughout the globe shar-ing his research and experi-ence.

Shearer’s research focus-es on the effects of heatstress on production andhealth, mastitis, drug andchemical residues in milk,neonatal immunity andlameness in dairy cattle. Atthe PDPW Foot HealthSeminars, Shearer will share

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Joining Shearer will befour Wisconsin hoof trim-mers who will lead demon-stration labs - a full after-noon of hands-on learninglabs. One of these experthoof trimmers is JerryBowman, a 40-year veteranfarrier with 20 years experi-ence as a professional hooftrimmer.

The seminars will con-clude with a producer andveterinarian panel that willhighlight proper trimmingschedules and record keep-ing. For more information orto register for any PDPWevent, visit www.pdpw.orgor call 800-947-7379.

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Farming is a lot like white-water rafting, said Dr. DonaldJonovic, an advisor to busi-ness and farm owners since1973, last week at PDPW’sFinancial and BusinessTransition Symposium inMadison.

Once you get through oneset of rapids another is waitingaround the bend. Plus, whenwe become successful, therapids get so much bigger.

There are six key survivalstrategies to tackle the rapidson a family farm. They are:

• Understand who we are• Decide why we’re here• Combat anarchy• Crack the hermetic seal• Prevent procrastination• Avoid the semi-retire-

ment scam

Understand who we areJonovic suggests drawing

out a reporting chart. Startwith the owners on top, thenwho reports to them and so

on. Put where everyone in thebusiness belongs.

“What’s drawn and what Isee is different,” he said ofwhat he is shown by hisclients.

Usually the truth is there’san owner on top with a longline of authority leading to thehelp scattered equally below.

Then, just below theowner, enters the bookkeeper,“who’s purpose is not to keepthe books,” he said. “The pur-pose of the bookkeeper is tohide the books.”

A board of directors isformed with the owner aschairman; his wife, who is typ-ically the bookkeeper; and anattorney, who is there to writeup the minutes of the meet-ings that are never held,explained Jonovic. Eventuallythe second generation is wel-comed to the board to “shutthem up for six months.”

He gave an example of afamily farming together with

three married sons and onemarried daughter. The son-in-law will never be regarded ashigher or equal to any of thesons and the daughters-in-lawwill ultimately become secondin command through whisper-ing thoughts into the sons’ears.

“These are the things weall know exist, but we don’t doanything about,” he said.“Everybody has some varia-tion of this.”

Decide why we’re hereQuoting Henry Ford, he

said, “If two people in a busi-ness agree on everything, oneof them is superfluous.”

Disagreement is inevitable,he said, but must it mean anar-chy?

How do we handle dis-agreement on the farm? Wedon’t, he said. “It’s amazingwhat can be handled in a sin-gle grunt.”

What is our real purpose?

Why are we in dairying andfarming together as partners?Producers invest capital, time,effort, ideas, reputation andheart. In return, they get netincome, growth in land valueand more assets, cash, power,career and opportunity forfuture generations and loyalemployees.

What classifies as a goodreturn on a farm? Ten percentis a good number, but aninvestment banker would lookfor 25 to 30 percent, Jonovicsaid. The true number lies inthe minds of the investors.

If you’re going to worktogether in a business, youneed to understand the bal-ance sheet. The balance sheetcombines equity (what weown) and liabilities (what oth-ers own) to equal assets (whatwe have to generate cashflow). Leverage is the differ-ence between liabilities and

See Transition, on Page 41

Survival Strategies For Family Farm Transitions


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Continued from Page 37equity, and used to measurerisk.

Cash flow can be used tobuy assets, pay off debt toreduce liabilities, or reward-ing retiring shareholders withequity. It is generated by effec-tive use of assets by manage-ment.

One tool to manage cashflow is to set up a plan orbudget. With the future souncertain, some argue whyspend time doing it wheneverything changes.According to Jonovic, a budg-et doesn’t predict, it setswhere we need to be andkeeps us on track. It can setup the steps to generate cashflow to make a successfulbusiness.

Combat anarchy

How you look at a busi-ness can be very different.The manager looks for securi-ty, income and career.Growth, risk and return areinterests of investors andentrepreneurs want capital,management and strategy.“They all look at the businessat the same time with differ-ent perspectives and don’teven know it,” Jonovic said.

Issues such as compensa-tion, business direction andinfluence can cause overlapwithin the interested parties.You can regain perspective byhaving meetings. Annual orsemi-annual family meetingsand quarterly board meetingswill drive the managementteam to do better. The man-agement team should meetweekly or monthly to discusstactics, operations and budg-ets. Board members shouldcover structure and capital,leadership and pay systems,and owner value and strategy.Families should reviewgrowth expectations, risk andreturn levels and family val-ues.

Crack the hermetic seal

When you first start a

business you begin with verylittle and tend to keep infor-mation secret to hide how badyou might be doing. As timepasses, your assets grow andyou continue to hide informa-tion – this time it’s how goodthings are.

Most producers have themindset that they do not runtheir business to make a prof-it, they are run to breakevenhigher and higher every year.“You can’t keep putting offtaxes forever,” Jonovic said.“You just fool the tax peopleand yourselves.”

The more complicatedthings get…the more difficultit is to manage and an outsidesource may be needed. “If weare going to move ourselvesforward, we’re going to haveto lay out the financials so theoutsider can see,” he said.

What’s wrong with advi-sors? They don’t understandfarming, they don’t take risks,they don’t forget their ownagendas, and they cost money,he noted as to why they maynot be trusted.

“One of the best ideas I’mgoing to give you,” he said, isto bring your key advisors –accountant, attorney andsomeone who “knows” –together for regular meetings.

If you’re not pleased withthe current advisors you have,Jonovic recommends askingother producers to find outwho they work with.

Don’t include your lenderin this group, he said. Thereare some things they shouldnot know until you’re pre-pared to tell them.

The advantages to an advi-sory group are controlledcost, mutual education, men-toring of managers, delegationand management of conflictof interest. However, it needsto be done efficiently to makeit work. Hold regular meet-ings, scheduled in advance,and held whether or noteveryone can make it. Appointsomeone as chairman whocan make things happen.

Provide agendas, minutes andaction items, and set annualobjectives and evaluate themat the end of the year.

Prevent procrastination

How many should onebusiness support? What is itwe are building for our heirs?Does being an heir simply givethem the right to be in chargeone day? If so, what will yourbusiness need to look like tosupport your family’s popula-tion four generations fromnow.

Jonovic provided manyoptions for the future of abusiness.

• Build the business forfuture generations

• Position for strategicsale

• Form holding companyand diversify into new busi-nesses

• Spin off growth sub-sidiaries

• Divide strategicallyamong shareholders

• Recapitalize into pre-ferred/common

• Restructure into operat-ing and fixed-asset entities

• Develop internal marketfor shares

• Create vehicle for safeand efficient shareholder“puts”

• Allow non-family man-agers to own

“How many of us reallyconsider all options? We areblinded by just passing downthe farm,” he said.

“To constrain our visionabout the future will constrainour heirs.”

As you transition, you’llwant to keep some for yourretirement and give someaway, while keeping taxes inperspective. In a transitionyou need to protect owner

See Planning, on Page 44

Transition


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Continued from Page 41value, manage disaster, meetthe owner’s needs, and treatheirs fairly. With on-farm andoff-farm heirs this can be achallenge to not set-up a life-long fight. Be sure to run thescenarios out into the future,he said.

Semi-retirement scam

Some people believe suc-cession is dependant uponthe disappearance of theolder generation. “I don’tthink that’s possible,” hesaid. They need to stayaround, allowing the youngergeneration to make mistakes,but help them through. Tostructure well for transition,you need to do it everyday.

Taking action

“We are dealing in farmstoday that are much morecomplex…than in prior gen-erations,” Jonovic said.

In order to survive andgrow you need to organizefor decision, define andrenew “vision”, manage“ownership” strategically,and compensate strategically.

Organize for decision

Holding meetings, asnoted, is instrumental in thedecision making process.When planning for the familymeeting, you need to under-stand why they would wantto come and what would theywant to know. “This has tohappen,” he stressed. “Allowners need to come to anagreement.”

This meeting includes allfamily and/or non-familyshareholders and theirspouses and possibly chil-dren. If any owner doesn’twant anything to do with it,he suggested you get that inwriting.

These people are not

interested in what happens inthe freestall barn, he said,just what’s happening withtheir investment. They do nothave input at the board ormanagement levels.

If it’s a large group, spendtime preparing with youradvisors and put together ashow for the stakeholders. Atthe meeting you’ll want to setgoals and objectives for thefuture. Structure the meetingso it is based on fact. Preparefinancial records for every-one.

Board meetings shouldinclude senior managers andadvisors.

When adding family intothe business, it must becleared by all partners,Jonovic said. The decisionshould be based on perform-ance, hard work, ability togrow and pay should bebased accordingly. Familymembers must work theirway in to the operation. Inthe business world, peopleonly work if there’s a posi-tion for them. Dairymen needto put competence ahead ofownership. If you can’tafford the luxury of havingan extra person you’ll haveto change the culture on yourfarm.

Jonovic recommended tolay out an employee planearly before children take aninterest and situations arise.

Define and renew ‘vision’

To create your vision, hesuggested publishing anexample investment strategyfor key managers, sharehold-ers and advisors.

His example is as follows,filling in the quotations asthey relate to your strategy:

The owners of “XYZFarms” expect a “minimumannual return of what per-cent” on combined opera-tions, and believe that thebusiness should be able toprovide a “rolling, five yearaverage target return of whatpercent”. We expect to grow“owner equity by at least

what percent per year” main-taining an “average leverageof z/1”, and will “distributeearnings to owners as appro-priate” assuming achieve-ment of the above targets.

To set this, establish baseassumptions, run out the“organic” cash flow, considerthe “inevitables” and “like-lies”. Then see how you likethe results and figure outwhat you may need to do toget there.

Manage ownership

If our advisors know us,they will help us minimizetaxes as much as possiblewithin the transition plan, hesaid.

He also recommendedcreating your plan early withenough flexibility to changewith your business.

You can manage disasterthrough “board” oversight,owner agreements,capital/operating budgets,real compensations andresponsibility definition.

Through family limitedpartnerships, voting and non-voting stock, or a “holding”company structure you canplan to take care of the oldergeneration.

Use professionals to setup stock ownership and con-tractual arrangements suchas Articles of Incorporation,Code of Regulations, By-laws, Voting Trusts, CloseCorporation Agreements andBuy-Sell Agreements.

Developing a business

“When developing a busi-ness and moving forward,you tend to forget about thenext generation,” he said.

Agriculture is the onlyindustry where you learn thebusiness at the knee of theexpert, yet no responsibilityis passed down.

“You need to develop newleaders to develop your busi-ness; so old leaders can dowhat they please,” Jonovicsaid.

By Karen Topel

Planning


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Continued from Page 4during the Apollo 13 mission.

Lovell entered the NASAspace program in 1962 withextensive experience as anaval aviator and test pilot. Hecarried out several commandpositions in the GeminiMission Program, includingflights on Gemini 7 and Gemini12, before becoming an inte-gral part of the ApolloMissions.

Showing true courageLovell and his crew of Apollo 8were the first people to leavethe gravitational force of Earthon the maiden voyage to themoon.

Apollo 13 was Lovell’sfourth and final flight. As com-mander, he and his crew, FredHaise and Jack Swigert, modi-fied their lunar module into alifeboat when their oxygen sys-tem failed. One of the mostfamous NASA missions, Apollo13 was deemed “a successfulfailure” as the astronauts neverlanded on the moon, but made

it back to Earth safely. His four flights made Lovell

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Lovell retired from theNavy and the space program in1973 when he went to workwith the Bay-Houston TowingCompany in Houston, Texas.He became president of FiskTelephone Systems in 1977 andlater worked for Centel. Heretired in 1991.

Lovell co-authored a bookwith Jeffrey Kluger on theApollo 13 mission entitled,“Lost Moon: The PerilousVoyage of Apollo 13.” Thisbook served as the basis forthe movie Apollo 13 in whichLovell played a role as the USSIwo Jima’s captain. Today he ispresident of LovellCommunications, a businessdevoted to disseminating infor-mation about the U.S. spaceprogram.

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