Generating revenue organically

DEERBROOK, Wis. — With a lifetime of organic farming principles, it was an easy decision for the Keller family to make the commitment to organic dairy farming over 20 years ago.

Jim and Sharon Keller, along with their sons, Ben and Daniel, and daughter, Emily, operate Keller Organic Dairy Farm near Deerbrook, where they milk 120 cows and crop 1,100 acres of loamy and silt-loam ground. The farm has been in the Keller family since 1917, when Jim’s grandparents purchased it.

“I basically farmed organically anyhow; I didn’t like using chemicals or anything,” Jim said. “There was a little more money in organic milk and they were looking for it, so it just made sense.”

The Kellers began with certified organic crop production in 2002 and certified their 35-cow herd a year later when an organic milk market opened up for them.

“There are a lot of advantages to organic production,” Ben said. “We are able to get a pretty consistent pay price in the organic milk market with Organic Valley without the volatile swings you see happen with conventional markets.”

The Kellers joined the Organic Valley cooperative in 2008 and began expanding to their current size when they built a new parlor in 2012. This was followed by a freestall barn a couple years later.

The herd consists primarily of crossbreds, particularly Fleckvieh crosses, with a few older Holsteins remaining. The herd is bull-bred. They sell springers, depending on their own replacement needs. The family started using Fleckvieh bulls a few years ago.

“We were hoping to get more meat and better calves, along with more longevity and fewer health issues,” Ben said. “We were looking for more efficient, hardy cows. You can’t beat the Fleckviehs for disposition, either.”

The Kellers calve their herd year-round, taking advantage of the additional premium placed on fall and winter milk to create a more consistent revenue stream. Emily oversees the cows and this year began experimenting with the practice of letting cows raise their calves for several weeks.

In addition to grazing, the cows are fed a total mixed ration. The Kellers have around 100 acres dedicated to pasture, which they rotationally graze during the growing season.

“We rotate pastures daily, with a 21–25-day rotation on average, depending on rainfall,” Ben said. “If we’re getting a lot of rain, we can be down to a 15-day rotation — last year, pasture was the only thing that grew, we couldn’t keep up.”

The balance of the Keller’s land is used to raise hay, corn and soybeans for the herd, as well as a diversified cash cropping enterprise: growing certified organic specialty forages and crops, including raising triticale for seed companies. They also market organic corn and soybeans, food-grade oats and food-grade clear hilum soybeans which are exported to Asia if they meet quality standards.

“We have a lot of stuff in our rotation,” Ben said. “You have to figure out how to generate as much revenue per acre as possible to continue to stay viable.”

Jim agreed.

“If someone wants to buy it, we’ll grow it,” he said. “We try to do different things, things not everyone is doing.”

This year the Kellers plan to add a new crop to the rotation, growing a grain called Kernza, which is a perennial alternative to traditional wheat crops.

“Kernza has been a buzzword at organic conferences for some time; it’s at the point now that I could find a market for it,” Ben said. “We’ll plant it with a grain drill in mid-August. It’s a perennial, so the next year and the years after it will produce seed (and be) ready to harvest in late July and early August, similar to wheat. We can take the straw off for bedding, too.”

A downfall of organic production comes in the form of weed control, Jim said.

Ben agreed.

“Everything takes a lot more labor,” he said. “There’s more money spent on equipment to control weeds.”

Those needs often mean labor is a concern for the family.

“We shouldn’t have to work seven days a week just to survive,” Ben said. “You should be able to go on a vacation once in a while, to be able to afford to hire someone so you can take some time off. We’re fortunate to have enough family members involved with the farm that we can leave once in a while, but a lot of people don’t have that option.”

The Kellers are concerned for the future of the dairy industry, particularly for small family farms like their own.

“It’s getting harder to compete with the larger guys, and it’s not necessarily small guys versus big guys,” Ben said. “Everyone keeps saying they want to keep the farmers going, but nobody is willing to pay the extra it would take to make it viable.”