SOUTHERN DAIRY HUB February 2019 FIELD DAY - 20th February 2019 - Southern ...

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SOUTHERN DAIRY HUB February 2019 FIELD DAY - 20th February 2019 - Southern ...
SOUTHERN DAIRY HUB
February 2019 FIELD DAY

     20th February 2019

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SOUTHERN DAIRY HUB February 2019 FIELD DAY - 20th February 2019 - Southern ...
Contents

Visitor Health and Safety Requirements .............................................................................................................................. 3
Biosecurity Requirements for Southern Dairy Hub (SDH) Farm Visits ................................................................................. 4
Mission and Strategic Direction of the Southern Dairy Hub ................................................................................................ 5
Southern Dairy Hub Farm Systems Proposal 2018-2021 ..................................................................................................... 7
Farm Systems Map ............................................................................................................................................................. 10
Environmental Update ....................................................................................................................................................... 11
Dietary N intake and effect on blood, urine, faecal and milk nitrogen ............................................................................. 14
Winter 2018 effect of crop type on N indicators in mixed aged cows and rising 1-year old replacements...................... 17
Soil Mineral N as in indicator of fertiliser N requirements for crops ................................................................................. 20
Farm Systems Summary Season to date ............................................................................................................................ 22
Winter crop feeding plan ................................................................................................................................................... 23
Good practice crop feeding and management for improved environmental and animal care outcomes ........................ 25
Southern Demonstration and Research Farm Ltd - Financials - First Quarter ending 31st August, 2018 ......................... 27
Hub Weekly Farm Update: 14/2/2019 ............................................................................................................................... 31

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SOUTHERN DAIRY HUB February 2019 FIELD DAY - 20th February 2019 - Southern ...
Visitor Health and Safety Requirements

                      Entry onto property by permission and
                                appointment only.
         Contact either:
         Business Manager Guy Michaels 027 564 5595 or
         Farm Manager Charlie McGregor 027 207 6012
         All visitors required to sign in and out accepting farm rules
         A farm map will be provided showing any general hazards on the
         farm; the manager will instruct you of any new hazards

General Rules
  • Communication – sign in and out

   •   Children on farm – must be under constant adult supervision and only with express
       permission of manager

   •   Reporting – Please notify manager immediately any accidents or near miss
       events/hazards

   •   Drive to the conditions – Max speed of 30km/hr

   •   Farm bikes – trained operators only, helmet with strap done up at all times, never operate
       if under 16 years’ old

   •   Vehicles – no one to operate farm vehicles without manager’s permission

   •   Water ponds/troughs – Keep a close eye on children around water sources – do not drink
       from farm taps, troughs, water ways

   •   In emergency – Please report back to farm manager at Assembly point in front of cowshed

   •   Fire extinguishers – found in farm houses, dairy shed, vehicles, and woolshed

   •   No smoking in cowshed, buildings, or vehicles

   •   Firearms – only with approval of farm manager, must hold current licence

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SOUTHERN DAIRY HUB February 2019 FIELD DAY - 20th February 2019 - Southern ...
Biosecurity Requirements for Southern Dairy Hub (SDH) Farm
Visits

All visitors must comply with the Biosecurity Requirements when visiting the SDH
    • All footwear must be disinfected with materials supplied, upon arrival at and departure
         from the SDH farm site. Protective footwear may be borrowed from the SDH upon
         request, and must be cleaned thoroughly before its return. People wearing inappropriate
         (or no) footwear will not be allowed onto the SDH premises.

   •   All visitors are expected to wear clean protective clothing, including wet weather gear if
       necessary when on the farm(s).

   •   No farm visits will be allowed, under any circumstances, from anyone within five days of
       their arrival in New Zealand from Central or South America, any part of Asia or any part of
       Africa. Further restrictions may be applied at any time, dependent upon international
       disease status.

   •   On farm, visiting vehicles must be parked in designated visitor parking areas. Approved
       vehicles may only access the farm after washing the undercarriage. This may be repeated
       prior to departure but this is up to the operator concerned.

   •   SDH retains the right at any time to refuse access to any person or persons deemed not
       to be complying with these requirements.

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SOUTHERN DAIRY HUB February 2019 FIELD DAY - 20th February 2019 - Southern ...
Mission and Strategic Direction of the Southern Dairy Hub
Farmers in the Southland region took the initiative to establish the Southern Dairy Development
Trust (SDDT) and its fully owned registered trading company, the Southland Demonstration
Farm (SDF) in 2007.

The Charitable Trust Deed outlines that the purpose of the trust is for “the promotion of dairy
farming in Southland and West Otago, and to assist, support and encourage existing dairy
farmers and those interested in joining the dairy industry for general educational purposes”.

Following the expiry of the lease on the Southland Demonstration Farm at Wallacetown in 2016
SDDT and SDF approached DairyNZ and AgResearch seeking agreement to establish a
dedicated Southern Dairy Hub (SDH) to facilitate dairying research and extension in the region.
The anticipated benefits are predominantly associated with the ability for farmers, researchers
and the industry body DairyNZ to work together to create new solutions for the Southland/Otago
and New Zealand Dairy industries.

AgResearch, DairyNZ and SDDT have recognised the current scale and growth potential for
dairying in Southland. However, there are significant local issues faced by farmers dealing with
wet soils, cold winters, and unique environmental issues. The region will require new levels of
research and development activity and resourcing to provide solutions that reflect the area’s
unique climate and soil conditions. Failing to find solutions to address environmental concerns
within the context of long-term sustainable farm systems will impact on the ability of the dairy
industry to grow in the region.

SDH Vision:
   •   To be an internationally recognised, innovative and leading centre of excellence for
       dairy farming, comparative research, and extension

SDH Mission:
   •   Providing economic, social, and environmentally sustainable solutions for the southern
       South Island dairy farmers and community

SDH Fundamental aims:
   •   To improve the performance and protect the viability of existing dairy farms in the
       southern South Island.
   •   To help develop and test new options for dairying in the southern South Island. To
       support the responsible and sustainable growth of dairying in the southern South Island.
   •   To promote the Dairy Industry Strategy.

SDH has leased the farm to the Operating Company (SDRF) for dairy farming and the conduct
of research related to dairy farming.
The Research Advisory Committee and SDH, together with representatives from the Southern
dairy community are currently collating the issues facing farmers in the region, prioritising these
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SOUTHERN DAIRY HUB February 2019 FIELD DAY - 20th February 2019 - Southern ...
and finalising the research questions that will be addressed with the farm systems comparisons
commencing June 2018. Once established these systems will run for a minimum of 3 years.

Southern Dairy Hub Research Advisory Committee (RAC)
Who is the research advisory committee?
   ➢ Dean Alexander – Dairy Farmer (Central Southland) – SDDT/dairy industry
   ➢ Adam McCall – Dairy Farmer (West Otago) – SDDT/dairy industry
   ➢ Bruce Thorrold (Chair) – Strategy and Investment Leader DairyNZ
   ➢ Dawn Dalley – Senior Scientist Feed & Farm Systems DairyNZ
   ➢ Robyn Dynes – Science Impact Leader Farm Systems & Environment AgResearch
   ➢ Ross Monaghan – Senior Scientist AgResearch
   ➢ Mark Robinson – Head of Fonterra Farmsource – Southland & Otago

Research undertaken on the farm will focus on systems based comparative research and trials that
align with the dairy industry strategy as promulgated by DairyNZ (this will set the priority for
research on farm but research outside of this may also be conducted). All parties have the
common goal of ensuring that research is conducted on the farm to support the growth and
development of the Southern dairy industry.

The role of the RAC is to:

   a) Review all proposed research to be conducted on the farm, and provide recommendations
      to the SDRF board on research trials and activities that can be undertaken on the farm.

   b) Actively plan research for the farm, working with SDH to construct a research programme
      which meets an appropriate standard of science quality, is achievable within the available
      resources and delivers to the goals of the SDH;

   c) Take an active role in linking research opportunities for the farm;

   d) Consider the needs of the southern South Island dairy industry;

   e) Understand and recognise the relationship between providers and the funders of research
      and development;

   f)   Inform the SDRF Board of the risks to the farm, SDRF and SDH arising from actual or
        proposed research including reputational risks; and risks associated with third parties
        seeking to have the Company or SDH endorse or support their use of the results or
        outcomes of scientific research conducted on the farm;

   g) Consider commercial imperatives as part of its decision-making;

Submissions for research ideas and priority issues can be sent to the SDH business manager Guy
Michaels - guy.michaels@southerndairyhub.co.nz

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SOUTHERN DAIRY HUB February 2019 FIELD DAY - 20th February 2019 - Southern ...
Southern Dairy Hub Farm Systems Proposal 2018-2021
 Background
 The Research Advisory Committee (RAC) has held a series of meetings and workshops to discuss
 farm systems options for implementation from 1 June 2018 for the next 3 lactation seasons. A
 brainstorming session was used to identify issues facing dairy farmers in Southland and Otago.
 These issues were collated into 13 themes from which the top 3 were identified.
 The top 4 issues were:

        1. Fodder beet
        2. Nutrient loss reduction
        3. Wintering

 There is a desire to understand crop vs off-paddock wintering and the impact of infrastructure
 on whole system performance, profitability and achieving environmental regulation. Realistically,
 however, it will be a 2-3 year timeline before this could be considered on the SDH farm due to the
 current lack of infrastructure and the tight budget situation.

 The proposed systems have been designed to better understand crop-based wintering in relation
 to consequences for environmental impact and profit with the view that the best crop system would
 be used as the base farm in the next phase of farm systems comparisons (2021 onwards), that
 might include off paddock infrastructure.

 Several mitigations to reduce the environmental impact were considered in the pre- experimental
 modelling and farmlet design that is described below.

 The RAC opted to only consider system changes where there is high confidence in reducing the
 environmental impact. There were two emerging mitigations – namely plantain and catch crops -
 that have not been considered in the farm systems designs. An additional option within the fodder
 beet systems to reduce the environmental impact is lifting the fodder beet in autumn.

 In developing the systems, consideration was given to the following factors:
    1. Currently SDH is a first year conversion with 80% new pastures and some areas that need
       drainage, ripping etc to improve performance i.e. pastures are still developing
    2. Some leniency in N fertiliser in Year 1 (within defined boundaries) for all systems
    3. The staph aureus infection in the herd may require more aggressive culling in the next
       couple of years to avoid ongoing issues
    4. Young herd with potential for increasing milk production
    5. Production must be sufficient for the farm to have credibility with southern farmers
    6. Assumed good management practice implementation on all farmlets with respect to grazing
       management, reproductive management, calf rearing, fertiliser use etc.
    7. Feed to be purchased for mature cattle rather than stock sent out to grazing and
       concentrate preferred to silage because of quality and consistency of the product

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SOUTHERN DAIRY HUB February 2019 FIELD DAY - 20th February 2019 - Southern ...
As the farm develops the expectation is that performance will improve in all systems – Targets
below:

Table 1: Targets set year by year
                                2018-19                2019-20               2020-21
MS/cow                            450                  465                   480
MS/ha                             1350                 1395                  1440
N fertiliser on base              Up to 250            200                   180
farm (kg N/ha)
Total supplement to               7-800                7-800                 7-800
milkers (kg/cow)

The Process
The Standard kale system was set up as the base model in Farmax Dairy. The results of this were
used to generate the key input parameters for the Standard fodder beet system.
Further management changes were considered (reduced N fertiliser, less supplementary feed,
reduced stocking rate, dry off date) for each to generate the parameters of the two reduced impact
systems.

During the modelling process we identified several physical aspects of the farm and a constraint of
OVERSEER that could impede model results being achieved. These are:
   1. The pasture growth of the farm (we may have been optimistic on the time to reach potential
      yield given the early stage of farm conversion).
   2. Choice of in-shed supplement and amount that can be consumed during milking
   3. The uncertainties associated with N leaching estimates for autumn-grazed fodder beet
      crops.

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SOUTHERN DAIRY HUB February 2019 FIELD DAY - 20th February 2019 - Southern ...
System Performance and Input Parameters

Table 2: System performance and input parameters
                                                                   Crop Type
                           Kale (wintering) + grain as lactation       Fodder beet (wintering) + fodder
                                        supplement                      beet as lactation supplement
           Standard         ≥1300 kg MS/ha (milking platform)        ≥1300 kg MS/ha (milking platform)
           Environmental    ≥ 250 days in milk                       ≥ 250 days in milk
           Impact System    Up to 250 kg N/ha for 2018-19            Up to 250 kg N/ha for 2018-19
                            Up to 700 kg/cow lactation               Up to 700 kg/cow lactation
                            supplement (home grown first, use         supplement (home grown first, use
                            driven off pasture deficit)               driven off pasture deficit)
                            23% replacement rate                       23 % replacement rate
 N Input

                                                  th
                            No N applied after 10 April or if soil     No N applied after 10th April or if
                            temperature
Farm Systems Map

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Environmental Update
1. Measurement of N leaching losses from autumn- and winter-grazed crops
  Autumn- and winter-grazed fodder beet (FB) crops are key to the FB farmlets at the Southern Dairy
  Hub. Kale is included in the 2 remaining farmlets, although only as a winter feed supply. To increase
  knowledge of the actual environmental impacts of these grazed forage crops, N leaching losses were
  being measured in selected treatments during 2018 to provide:

  •   Quantitative N leaching data for the crops, soils and climate of SDH.
  •   N leaching comparisons between:
         o autumn-grazed v lifted FB
         o winter-grazed v lifted FB
         o winter-grazed kale
         o selected pastures on the milking platform.
  Preliminary results to date summarising yields and imposed grazing pressures are shown in Table
  3.
  Soil mineral N levels and amounts of N leached to date are shown in Figure 1. Due to a relatively
  dry winter, drainage totals were initially less than normal; however, a wet November increased
  drainage to near typical (May-Dec = 407 mm; July-Sept = 380 mm). Concentrations of N in Leachate
  for the autumn grazed fodder beet have peaked and are now declining while those for the winter
  grazed fodder beet and kale are yet to peak (as at January 31st). This indicates that there is still
  winter deposited urine in the soil profile available to be leached.

  Table 3: Crop yields, N contents and stock grazing pressures for the autumn- and winter-
  grazed fodder beet and winter-grazed kale crop treatments.
                                               May                 July            July grazed
                                               grazed              grazed                Kale
                                                 FB                  FB
        Crop yield (t/ha)                      24.4               20.4                15.7
        Crop N (kg/ha)                         288                199                 286
        N lost per cow wintered (kg                               2.1                  2.4
           N/cow)

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120                                                                   100

                     100
                                                                                           80

                                                                                                 Soil Min N (kg/ha)
N leached (kg/ha)

                      80
                                                                                           60

                      60

                                                                                           40
                      40

                                                                                           20
                      20

                       0                                                                   0
                                Grazed    Lifted   Grazed     Lifted     Kale   Pasture
                                 May harvested      July harvested
                                 fodder beet         fodder beet
                    Figure 1. N leaching (bars) and soil mineral N contents () in crop and pasture treatments.
                    Leaching results to date; bar depicts the LSD value comparing the amount of N leached from
                    the grazed fodder beet treatments only.

Summary
   • There was little difference in N leaching between lifted and grazed fodder beet treatments.
   • N losses from autumn-harvested fodder beet treatments were relatively large, and higher than
     the winter-harvested fodder beet.
   • Urine N deposited on winter-grazed fodder crops can take until the following winter to fully
     leach down the profile – measurements to therefore continue during 2019.
   • The dry summer of 2017/2018 may have increased N mineralisation over the late summer-
     autumn period and potentially N leaching losses across all treatments.
   • There was a slight reduction in N leached with winter-grazed fodder beet over winter grazed
     Kale.
   • Measured N losses from the pasture sites are similar to modelled.

Future plans
  The trial will be repeated in 2019 with 4 treatments: May-grazed fodder beet; May-lifted fodder beet;
  July-grazed fodder beet; July-grazed kale.

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Figures below show AgResearch installing 348 ceramic cups in their measurement plots for winter
2019. LIFB Paddock 52 has 48 plots of winter crop planted within the trial area to allow
measurements of N leaching to be determined from fodder beet and kale treatments on the same
soil type:

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Dietary N intake and effect on blood, urine, faecal and milk nitrogen
Purpose
  To estimate farm system differences in N intake and partitioning throughout the year

Approach
  One week per month all paddocks grazed by each herd are plated pre- and post-grazing to
  estimate per cow pasture intake. At the same time a pre-graze pasture sample is collected from
  each paddock for quality analysis and any supplements being fed at the time are also analysed.
  Coinciding with this monitoring activity, four times per year samples of blood, urine, faeces and
  milk are collected from 20 monitor cows in each herd during or immediately after each milking on
  one day. The first of these samplings occurred mid-January and the next is scheduled for March.
  A similar monitoring process is adopted during winter when the cows are grazing winter crops.

Results
  We are still waiting on the results of the blood, urine, milk and faeces for the January samples so at
  this stage can only report on the pasture quality results since August 2018.

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26

                     24

                     22

                     20
    DM%

                     18

                     16

                     14

                     12

                     10
                          Aug 18   Sep 18        Oct 18        Nov 18      Dec 18   Jan 19

                                    LI FB      LI Kale       Std FB     Std Kale

Figure 2: Monthly pasture dry matter % for the 4 farm systems

                     24

                     22

                     20
   Crude protein %

                     18

                     16

                     14

                     12

                     10
                          Aug 18   Sep 18       Oct 18        Nov 18      Dec 18    Jan 19

                                   LI FB       LI Kale       Std FB     Std Kale

Figure 3: Monthly pasture crude protein % for the 4 farm systems

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13.0

                    12.5

                    12.0
      ME MJ/kg DM

                    11.5

                    11.0

                    10.5

                    10.0
                           Aug 18   Sep 18        Oct 18        Nov 18      Dec 18   Jan 19

                                    LI FB       LI Kale       Std FB     Std Kale

  Figure 4: Monthly pasture metabolizable energy (ME) for the 4 farm systems

Preliminary findings

   • No consistent differences or trends measure in pasture quality between the farm systems
   • In general average crude protein levels are low, despite high clover content in many pastures
   • High quality pasture was on offer through spring but since November there has been a wide
     range in the results between paddocks
   • High variability in pasture nutritive value within and between months is most likely driven by:
       o     Cultivar effects
       o     New grass vs old pasture
       o     Previous grazing management
       o     Soil type and landscape features
       o     Effluent vs non effluent areas
   • Spring 2018 sown pastures are currently higher in crude protein and ME and lower in dry
     matter than older pastures
   • A larger dataset is required to investigate the impact of farm system management, cultivar and
     other factors on pasture quality.

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Winter 2018 effect of crop type on N indicators in mixed aged cows
  and rising 1-year old replacements
Purpose
  To investigate the effect of crop type on nitrogen intake and blood nitrogen parameters

Approach
  Monthly during the winter the dry matter yield of each crop paddock was determined and samples
  of crop and supplement were collected for quality analysis. Cows were transitioned onto their diets
  according to recommended industry good management practice.
  Cows were offered the following amounts of crop and supplement (kg DM/cow/day)
 Table 4: Winter feed allocation, estimated crop utilisation and DMI for each treatment

                Kale     Fodder beet     Baleage        PKE        Estimated      Estimated DMI
                                                                       crop            kg/day
                                                                    utilisation
  Kale cows      8.5                        3.0          2.7          82%              12.7

    Fodder                   10.9           3.0           -           91%              12.9
   beet cows
   Kale R1’s     4.8                        3.3           -           77%              7.0

    Fodder                   5.0            3.3         -           70%               6.8
   beet R1’s
  In mid-July blood samples were collected from 20 monitor cows in each farmlet for mineral, urea
  and glucose determination. Blood samples were collected from a subset of R1’s for the same
  analysis.

Results
  Table 5: Average crop and supplement quality parameters

                        DM%        Crude Protein       ME        P           Ca       Mg
   Baleage              35.2       14.7                9.9       0.34        0.61     0.20
   Kale                 12.7       16.7                12.2      0.28        1.18     0.16
   Fodder beet leaf     11.3       24.5                11.2      0.33        0.72     0.48
   Fodder beet root     15.1       11.4                14.4      0.13        0.15     0.15
   PKE                  89.7       16.5                11.3      0.58        0.38     0.27
      • The kale crops averaged 12.3 T DM/ha with a range of 10.5 to 13.4 T DM/ha
      • The fodder beet crops averaged 20.7 T DM/ha with a range of 17.8 to 24.6 T DM/ha
      • Fodder beet crops averaged 79% root and 21% leaf from June to August.
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Table 6: Estimated crude protein, phosphorus (P), calcium (Ca) and magnesium (Mg) intake
of the mixed age cows and rising 1yr-old heifers during winter 2018

                     Estimated    Estimated MEI     Estimated Diet     Estimated      Estimated
                       crude         (diet ME             P%           diet Ca%       diet Mg%
                      protein      MJ/kg DM)         (requirement    (requirement   (requirement
                       intake                         0.3-0.35%)       0.6-0.8%)    0.22-0.28%)
                      kg/cow
                    (diet CP%)
  Kale cows             2.05            145                 0.36         0.88           0.19
                       (16.2)          (11.4)
  Fodder beet           1.85            165                 0.21         0.35           0.21
  cows                 (14.3)          (12.8)
  Kale R1’s             1.10             74                 0.31         0.91           0.18
                       (15.7)          (10.2)
  Fodder beet           0.79             73                 0.25         0.43           0.20
  R1’s                 (11.6)          (10.7)

    • The FB diet for the R1’s was deficient in crude protein for good growth and we observed a
      lower growth rate in this group of animals over the winter period (Figure 1)
    • The kale diet for the cows had more surplus crude protein than the fodder beet diet
    • Fodder beet diets were deficient in P and Ca for both classes of livestock
    • All diets were below the recommended dietary range for Mg content.

Figure 1: Growth rate of R1’s wintered on fodder beet or kale during winter 2018

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Figure 2: Blood metabolites pre and mid-winter for R1’s wintered on fodder beet or kale

Figure 3: Blood metabolites pre and mid-winter for cows wintered on fodder beet or kale
Trends in blood minerals were similar for mixed age cows and R1’s
    • Blood phosphorus and urea decreased on both kale and fodder beet diets but the decline
       was greater for cows wintered on fodder beet and for P the decline was larger in the R1’s
       on fodder beet. The cows received P supplementation on the baleage but none was
       provided to the R1’s
    • There were small differences in blood Ca and Mg which reflected differences in mineral
       intake
    • Blood glucose concentration was significantly higher in animals fed fodder beet
    • AST levels were lower mid-winter than prior to crop feeding

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Soil Mineral N as in indicator of fertiliser N requirements for crops
Purpose
  To investigate the range in soil mineral N content in winter crop paddocks at SDH and utilise this
  information to inform fertiliser N requirements.

Background
  Soil mineral N content provides an indication of the mineralised N pool in the soil that is available
  for plant growth. Ryegrass/white clover pastures accumulate a large amount of N in the soil
  through biological N fixation by clover and through the return of dung and urine N during the
  grazing process. This N becomes available for plant growth during the cultivation phase of crop
  establishment and therefore should be taken into consideration when determining the fertiliser N
  requirements of the crop, especially for kale.
  The appropriate fertiliser N rate will depend on soil N supply and potential crop yield, and will differ
  from site to site. However, under excess N supply, kale may accumulate large amounts of N
  beyond those required to reach maximum yield. This may have negative impacts on animal
  production, and can increase N losses when kale crops are grazed.
  Recent research conducted by Plant and Food research has demonstrated no yield benefits from
  applying more than 100 kg N/ha to fodder beet crops and there was no relationship with soil
  mineral N concentration. Higher rates of N fertiliser did increase the N content of the bulb but did
  not increase yield.

Approach
  Wintering cropping at SDH occurs within the milking platform areas of each farm system. To
  minimise the proportion of the farm out for crop in spring each year we have adopted a 2-year crop
  rotation so that each year half there is an even split of first and second year crop paddocks.
  Soil samples for mineral N analysis were collected from all the 2019 crop paddocks in October and
  this information was used to determine the fertiliser N requirements for each crop paddock.

Results

     •    Up to a 4-fold range in soil mineral N content was observed between paddocks (Table 7)
     •    1st year kale paddocks, with the exception of 103, received a single side dressing of 50 kg
          N/ha in early February
     •    2nd year kale paddocks will receive 2 side dressings of 69 kg N/ha – one in early February
          and the other mid-March
     •    All fodder beet paddocks received a single side dressing of 55 kg N/ha in early February.
     •    Mineral N content lower in lifted FB paddocks compared with those that were grazed

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Table 7. 2019 Crop paddock soil mineral N values and planned side dressings of N fertiliser

                                                                    kg N/ha     kg N/ha
                                                                     1st side   2nd side
  2019                   2018                      Pdk    Mineral   dressing    dressing
  crop    Pdk history    crop      Comments        No       N         (Jan)     (March)
 Fodder
           ex pasture                              52      159         55
  beet
 Fodder
           ex pasture                              48      124         55
  beet
 Fodder
           ex pasture                              50      157         55
  beet
 Fodder                 fodder     grazed by
            ex crop                                 6       80         55
  beet                   beet         R1's
 Fodder                 fodder     grazed by
            ex crop                                22       90         55
  beet                   beet        cows
 Fodder
            ex crop      kale     3rd year crop    98       49         55
  beet
 Fodder                 fodder    most of crop
            ex crop                                35       45         55
  beet                   beet        lifted
  Kale     ex pasture                              47      156         50
  Kale     ex pasture                              57      149         50
  Kale     ex pasture                              65      180         50
  Kale     ex pasture                              103     97          69         69
                        fodder    most of crop
  Kale      ex crop                                 9       37         69         69
                         beet        lifted
                        fodder    most of crop
  Kale      ex crop                                 8       36         69         69
                         beet        lifted
                        fodder     grazed by
  Kale      ex crop                                 7       79         69         69
                         beet        cows
                        fodder     grazed by
  Kale      ex crop                                 5       84         69         69
                         beet        cows

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Farm Systems Summary Season to date
  Mating programme

      •   Synchrony programme with R2’s from the 1st November – 3 days AI followed by bulls until
          20th December
              o 8% not in calf
      •   Planned start of mating 8th November for mixed age cows
      •   6 weeks of AI until the 20 December
      •   Bulls run with all herds from 21st December till 10th January
      •   1 week of AI with short gestation semen from 10th to 17th January
      •   First scan on the 25th January
  Table 8. Season to date summary of key metrics for the farm systems

                                        Std Kale      LI Kale     Std FB         LI FB
Intended stocking rate (effective         3.1            2.6         3.1          2.6
area)
Actual stocking rate (effective area)     3.0            2.7         2.9          2.7
Actual stocking rate (total area)         2.6            2.3         2.5          2.2

Production
Milk solids (kg/cow; 5 Feb)              322             326        314           322
Milk solids (kg/ha; 5 Feb)               1007            889        898           851

Supplements
Supplements fed (kg/cow)                  166            157         97           115
Supplements made (kg/cow; 5 Feb)          169            148        212           242

Nitrogen inputs
N fertiliser (kg/ha)                      140            51         123            53

Reproduction
Cows in herd at PSM (8 Nov)               194            173        190           164
Cows scanned                              189            170        188           158

3 week submission rate (%)                 91            95          91            88

Confirmed in calf (number; 25th Jan)      144            136        150           114
6 week ICR (% of cows at scanning)         76             80         80           72
6 week ICR (% of cows at PSM)              74             79         79           70

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Winter crop feeding plan
Timeline for the next 2 months

   •   Start yield assessments on all crop paddocks in mid-March
   •   Complete autumn and winter feed budgets including:
          o Finalising order of crop paddock grazing to streamline establishment of new grass
               and crops next spring
          o Identifying any potential deficits in the budget due to poorer crop yields
          o Identifying paddocks/areas within fodder beet paddocks for lifting for autumn and
               spring feeding
          o Identifying 1st year crop paddocks for 2020
                   ▪ Soil test in the autumn
                   ▪ Manage grazing to set them up as springer paddocks for spring 2019
   •   Finalise paddock feeding plan including bale placements

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Good practice crop feeding and management for improved
   environmental and animal care outcomes
1. Winter crop establishment – things you can still do
   a. Paddock access
           i. If a paddock is renowned for getting particularly muddy therefore difficult to walk
              through, fence off an access strip along the length of the paddock to allow staff to
              easily access gateways and break fences.

    b. Selecting grazing direction
            i. Aim to graze towards CSA’s or water bodies to protect them from overland flow. If this
               is not possible leave a buffer strip to minimise any overland flow (see above for buffer
               sizes).
           ii. Graze from top of slope to bottom if possible to reduce overland flow by maintaining
               soil structure and allowing water to soak into the soil

    c. Set out baleage
            i. Place bales away from waterways and critical source areas
           ii. To reduce the need to drive heavy equipment on wet soils, place bales strategically
               throughout the paddock prior to winter, and use ring feeders when feeding the baleage

2. Strategic grazing management of the crop
    a. Transitioning
           i. Ensure that cows are transitioned onto crop effectively. This requires that all cows
               have access to the crop, that enough time is allowed so that the microbes in the rumen
               can adapt to the new crop, and that enough supplement is offered during this transition
               time to meet cow intake requirements.

    b. Cow feeding
          i. Ensure that stock has access to enough feed to maintain or if required increase body
             condition score

    c. Cow condition
          i. Cows in good body condition are better able to withstand cold as the fat layer beneath
             the skin acts as an insulating layer. Cow condition must be planned for prior to winter.

    d. Cow lying time
           i. Ensure cows get a minimum of eight hours lying time per day.
          ii. Correct lying times reduce the risk of lameness and stress, which leads to better
              animal welfare and body condition score.
         iii. On a winter break fed paddock this means cows need access to enough dry area to lie
              down and meet their lying time requirements.

    e. Cold Stress
           i. In cold and wet weather allow for decreased utilisation of crop and increased cow
              demand for energy. A combination of strong wind, rain, and snow is the trigger to
              provide shelter and/or increase feed allowance.

    f.   Utilisation and back fencing
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i. Reduce trampling wastage by moving the fence once or twice a day rather than
             offering a few days feed at a time
         ii. Offer long feeding faces rather than blocks. All cows should be able to access fresh feed
             at the same time
        iii. Back fence to reduce excessive movement of animals and damage to soils

g. Managing CSA’s
      i. Fence off CSAs and leave ungrazed or graze quickly in dry conditions and the end of
         the paddock grazing.

h. Water access and movable troughs
       i. Ensure animals always have access to water troughs
      ii. Place portable water troughs at the front of the feeding face

i.   Catch crops
         i. Where possible investigate options to use catch crops, such as oats, triticale and rye
            corn to minimise soil/nutrient losses during fallow periods.

j.   Calving cows on crop
         i. Cows should not calve on the crop paddock. Ensure that cows are drafted off the crop
            paddock at least two weeks prior to their expected calving date.
        ii. Ensure that cows calve on a suitable surface and have enough area and that their pre-
            calving mineral requirements are met.

Southern Wintering 2020 events coming your way in March/April
• Whether we like it or not, the spotlight is on farming and our fellow NZ’ers and global customers
  are only a mouse click away.

• It is the responsibility of all of us to demonstrate to the world that we care for our animals and
  the environment.

• Wintering is an important part of our industry and we all need to be aware of our obligations and
  ensure we are adopting good management practices when wintering cows on crop or pasture.

Dates and venues for the events will be advertised soon so please encourage everyone
involved with wintering cows in the south to get along. Sessions will be split so there will
be something for everyone including: decision makers, graziers, farm staff, technical
advisors etc.

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Southern Demonstration and Research Farm Ltd - Financials - Second Quarter ending 30th
                                                    November, 2018
                                                2018/19      2018/19 Actual      2018/19 Budget      Variance    % Variance
Year ending May 31                                                                                                            Notes
                                                Budget            YTD                 YTD
                                                                                                    (Act—budg)
                                                                                                                              Production has been reforecast from
                                                                                                                              310,000kgMS to 287,000kgMS to 31st
Milk production (kgMS)                          310,000         114,440              130,200         -15,760
                                                                                                                              May, 2019. However Budget YTD is
                                                                                                                   -12%       based on original 310,000kgMS
                                      260ha     1192 /ha        440 /ha              501/ha            -61         -12%
Peak Cow Nos and Prod.                            740             716                 740              -24          -3%
Staff                                              5               5                   5                0           0%
                                                                                                                               In line with Fonterra's payout re-
                                                                                                                              forecast down to $6.15 per kgMS SDRF
                                                                                                                              has updated the original and YTD
Income               Milksolid Payout $/kgMS     $6.10           $6.06                $6.10             0
                                                                                                                              budget to reflect this, less the discount
                                                                                                                              for farms on a share up over time
                                                                                                                    0%        contract ($6.15 - .5c =$6.10 kgMS)
                             Dividend /share   $0.00/share    $0.00/share          $0.00/share          0
                                                                                                                              Actual YTD Milk Income is $6.06 per
                                                                                                                              kgMS (this reflects the accrued income
                                                                                                                              for 2017/18 being higher then actuals
                                                                                                                              from June - November 2018. Can also
                                                                                                                              be affected by fat and protein %
                                                                                                                              differences and timing of supply in
                           Milksolid Revenue   $1,891,000      $693,759             $794,220         -100,461
                                                                                                                              capacity adjustment months
                                                                                                                              Budget YTD was 130,200 kgMS @
                                                                                                                              $6.10 YTD, Actual YTD was 114,440
                                                                                                                              kgMS which equates to $6.06 per
                                                                                                                              kgMS - This amount is full Accrued
                                                                                                                   -13%       amount to date

                                                                            Proudly supported by:
Dividend/Rebates/Other          $0        $17,753               $0            4394

                             Surplus dairy stock    $107,014     $80,886             $59014         21,872           Timing of 17/18 stock sold due to
                                                                                                               37%   available culling space
DairyNZ Levy                                         -$11,160    -$4,120             -$4,687         567      -12%    Impact of actual lower production
                                                                                                                      Breeding bulls purchased after a
Stock Purchases                                      13,600       13,600                0           13,600
                                                                                                                     change in policy from original AB only
Gross Farm Revenue                                  $2,000,454   $801,879           $848,547        -46,668
                                                                                                              -5%
Expenses
Cow
                                  Animal Health                                                     -1,344
Costs                                                $74,352     $41,110             $39,776                  -3%
                                                                                                                      Lower due to less AI / use of bulls at
                             Breeding Expenses                                                      2,939
                                                     $61,752     $38,362             $41,301                  7%     end of mating
                                                                                                                     $7,000 Forecast Saving, rearing
                                  Replacements                                                       -302
                                                     $13,330      $6,652             $6,350                   -5%    completed no further costs required
                                                                                                                     Cropping costs YTD and Baleage made
                                                                                                                     at run off more cultivation costs for
                                 Winter grazing                                                     -3,196
                                                                                                                     2nd yr. crops / more baleage / baleage
                                                     $77,400     $62,996             $59,800                  -5%    earlier than budgeted
                                                                                                                     Baleage to be made at the Run Off and
Feed              Feed/Concentrates Purchased                                                       22,628
                                                    $169,000     $58,122             $80,750                  28%    moved to dairy platform
                                                                                                                      Urea use planned as per decision
                                       Nitrogen                                                     22,573           rules, last round of N delayed till end
                                                     $71,600     $22,727             $45,300                   50%   of ryegrass seeding period in January
                    Fertiliser, Lime & Spreading     $73,500     $46,712             $33,700        -13,012   -39%
                                 Pasture Renewal     $20,600      $1,377             $20,600         19,223    93%   Work completed, timing of invoices
                                          Freight    $4,992       $298               $2,496          2,198    88%
                                                                                                                     Rubbish bin hire and empty fees,
                                  Farm Working                                                      -4,846           baleage wrap to recycling centre over
                                                     $17,395     $16,083             $11,237                  -43%   winter period, consumables tea,

                                                                            Proudly supported by:
coffee etc. Protective equipment and
                                                                                                                  health and Safety

                                                                                                                  High labour costs this season with
                                                                                                                  temporary staff to cover replacement
                                                                                                                  permanent positions as well as
                                                                                                                  support the intensive periods and staff
Staff            Employment (net of housing)                                                     -55,327
                                                                                                                  living off farm, travel and
                                                                                                                  accommodation allowances. Forecast
                                                                                                                  for season end is going to be higher
                                                 $275,873     $205,610           $150,283                  -37%   than originally budgeted
                                                                                                                  Costs above budget due to higher
                                                                                                                  electricity than budgeted - Longer
Land                Electricity Farm & Run Off                                                   -6,867
                                                                                                                  shed running hours due to new
                                                  $40,004     $17,135             $10,268                  -67%   farmlet systems
                              Administration      $40,301     $25,282             $23,392        -1,890     -8%
                           Rates & Insurance      $39,254      $5,537              $9,313        3,776      14%
                                                                                                                   Repairs to calf shed at start of the
                      Repairs & Maintenance                                                      -11,310          season, R&M Fencing and yards,
                                                  $49,856     $27,846             $16,536                  -68%   spreading effluent.
                                                                                                                   Timing of shed Chemical and teat
                               Shed Expenses                                                     -12,353
                                                  $25,658     $26,406             $14,053                  -88%   spray purchased
                                                                                                                  Higher fuel costs YTD both Diesel and
                            Vehicle Expenses                                                     -12,635          Petrol, and lease costs of Silage wagon
                                                  $50,956     $30,683             $18,048                  -70%   (not budgeted)
                                Weed & Pest        $1,600       $343              $1,000          657      66%
Farm Working Expenses                            $1,107,423   $633,283           $584,203        -49,080   -8%
FWE/kgMS YTD                                       $3.57       $5.53               $4.48          -1.05    -23%
Depreciation                                      $30,000     $20,437             $15,000        -5,437    -36%
                                                                                                                  Higher FWE than budgeted, mainly in
Total Operating Expenses                         $1,137,423   $653,720           $599,203        -54,517          due to labour, this has been
                                                                                                           -9%    underestimated due to the set up and

                                                                         Proudly supported by:
operational management of the
                                                                                           farmlets, temporary staff has been
                                                                                           required to support the permanent
                                                                                           team with day to day running of the
                                                                                           farmlets.
Dairy Operating Profit     $863,031   $148,159           $249,344        -101,185   -41%
DOP/ha                      $3,319      $569               $959            -389     -41%
                                                                                           We remove expenses related to
                                                                                           research and demonstration into non-
                                                                                           operational to reflect normal farm
Operating Surplus          $893,031   $168,596            264,344        95,748            expenses only. For example, the costs
                                                                                           for extra herd testing required by
                                                                                           research. We show the cost of 4 herd
                                                                                    -36%   tests only under farm.
Operating Surplus per ha    $4,396     $648               $1,017          -368      -36%

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Hub Weekly Farm Update: 14/2/2019

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Table 1: Farmlet feed wedges and general information

*If you are struggling to few the tables and wedges please visit www.southerndairyhub.co.nz to download the pdf

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General Farm Information

                                Table 2: Key Numbers 14th Feb 2018
                                          Kale                       Fodder beet
    Soil Temp (oC)                                         16
    Rainfall (mm)                                         14.2
    Milker Intake Target                                  16.5
    (kg DM/cow)

    Av. Kg MS/cow/day                  1.45                               1.48
    Average milk fat (%)               4.96                               5.05
    Average milk prot (%)              4.07                               4.12
    Average SCC (cells/ml)             166                                164

    Animal Summary           Std Kale            LI Kale         Std FB           LI FB
                               Pink               Blue           Green           Yellow
    Milkers - TAD                   179                 160       166              147
    Milkers - OAD                     9                  7         19               9
    Other/Penos                       1                  4         3                2

Key Decisions: this week
•   Feed wedges are in better alignment with the target line this week after taking out some
    additional paddocks at the top of the wedge for conservation. Potentially 1x Std FB
    paddock to be conserved this week.
•   The x1 Std Kale farmlet paddock that was being prepared for resowing was drilled on
    Tuesday evening. Sowing rates were 20 kg/ha Platform AR37, 3 kg/ha Legacy large white
    clover and 2 kg/ha Quartz medium white clover. All seed was superstrike treated.
•   We are seeking additional advice on the fodder beet crops after we noticed the
    appearance of leaf yellowing and damage in several 1st year crop paddocks this week.
    These crops were looking much better than the 2nd year crop paddocks until the last week.
    Given the challenging start for some paddocks we are looking at options to maximise the
    chances of good yields. We are discussing whether a fungicide application would be
    beneficial for fodder beet paddocks that will be carried through for spring feeding.
•   The next round of N fertiliser across the whole farm will commence the last week of March
    to help extend the rotation length out to around 35 days.

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Figure 1: Leaf damage emerging in a first-year fodder beet paddock

General Notes:
•   The round length will continue to be held around 30 days for the next 2 weeks and
    paddocks dropped for conservation as required if covers exceed the herd target pre-graze
    mass.
•   25 kg N/ha will start being applied to all paddocks during the last week of February with
    the plan to move the LI farmlets out to a 35-day rotation
•   24-hour grazing has continued, and cows are being put back into paddocks to clean up if
    residuals are not achieved. We are in the process of developing pasture mass trigger
    points for each farmlet for the farm team to use in decision making around whether there is
    sufficient feed to return herds to paddocks (especially for night feeds where they can’t
    easily be monitored) or whether they need to be moved on.
•   Some post-graze topping has been implemented this week. In the last 2 weeks the amount
    of mowing (topping or conservation) has varied across the farmlets as outlined in Table 3
    below.

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Table 4: Area mown in the last 2 weeks
                            Std Kale          LI Kale          Std FB     LI FB
     Area Conserved            8.7              14.5            14.5      11.6
     Area Topped                -               8.7             2.9        5.8

     Total area mown           8.7              23.2            17.4      17.4

     Total % farm mown         14               37              26         28

•   With mown paddocks often being 2-3 days slower returning to pre-graze covers and the %
    of the farm mown in the last 2 weeks, there will be no topping on the LI farmlets this week.
•   Weed control continues to be a major focus for the farm team – just when we think we are
    on top of one weed another one pops up suggesting we have a well-stocked weed
    seedbed on the farm!!
•   The farm are currently implementing Max-T to increase milking efficiency
    https://www.dairynz.co.nz/milking/rotary/maxt-rotary/ and are working on protocols for
    successful implementation. With lighter conditioned OAD cows in each herd it is important
    that these are considered when the platform speed is being set.

Animal Health
•   The x6 calves that were on the platform receiving preferential treatment have been
    returned to the support block.
•   One calf mob was weighed yesterday, and the rest are being done today so those results
    will be reported next week. Calves in the action group in MINDA weights continue to
    receive 2 kg calf meal/day.
•   X2 mastitis cases were detected this week
•   X1 animal has been dried off after damaging muscles when she slipped in the yard.

People Management and Visitors
•   A Farmtune session with Lynsey Stratford is scheduled for next week
    https://www.dairynz.co.nz/business/farmtune/ . This programme looks to identify
    inefficiencies and waste in the systems and processes on the farm and develop practices
    to address these.
•   The farmer reference group met and discussed setting up for autumn and winter including
    rotation lengths, body condition score targets and average pasture cover targets for dry off
    and spring.
•   Nicole and Caitlin hosted dairy farmers on a UDV tour of NZ

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Figure 2: The dairy farmers from Victoria Australia discussing why the water in the trough was a
                                                cloudy colour

•   Guy hosted students from the USA as part of a group called 'Meeker Citizens of the World
    Ambassadors 2019’.

    Research on-farm
•   All calves have been weighed this week as part of the cumulative effects project.

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