|
VOLUME XVII, NO. 11 |
TEXAS DAIRY REVIEW |
NOVEMBER 2008 |
 |
|||||||||||||||||
|
Outrageous electric bill? Wind power may have the answer New CWT bids must be in by Nov. 24 Now's the time: Put your dollars where it counts Amarillo Farm & Ranch Show to hold new Dairy Conference & Expo Protect your facility… Restore or replace leaky roofs
Pictures from the 18th Annual Texas Ag Expo, October 23 & 24
|
|||||||||||||||||
|
Outrageous electric bill? Wind power may have the answer |
|||||||||||||||||
|
By Sherry Webb In today’s world, food, fuel and utility costs are a few of the major items that have peaked in the last year. In the current economic crunch, people are beginning to “think out of the box” and have started looking for ways to cut their expenses. The upshot of this process is they are adopting a more common-sense approach and turning more seriously to alternative energy. To the uninformed public, wind may simply be considered as “that annoyance”---that blows your skirt up or makes your hair stand on end. Technically speaking, wind is air that moves across the Earth’s surface and usually becomes noticeable only when it begins to accumulate speed.
“Electricity bills have become outrageous and people simply cannot afford them. But, how would you like to not have an electricity bill for the rest of your life?” Hensley asks. “Wouldn’t that be great?” Wind energy is fast-becoming a new source of renewable and sustainable energy. Hensley’s mission in life is to provide wind energy for Texas households, farms, ranches, and businesses through the unique workings of wind or turbine generators. As a dedicated advocate of renewable and sustainable energy, Hensley is passionate about the benefits provided from this phenomenal resource that can be harvested to produce electricity to save people millions of dollars. “People don’t have to look very far to find this unique alternative energy resource,” Hensley said. He is geared and anxious to share his enthusiasm and knowledge of the benefits reaped from owning an individual wind energy micro power plant. “This unique sustainable resource provides a two-fold advantage that allows a person to reduce their home, ranch or dairy utility bill while increasing the overall value of their property.” As a resident of Hood County and as a former financial planner, Hensley is keenly aware of the operating expenses incurred by Erath County dairies. He feels he can provide dairies with the best possible solution to eliminate their outrageous utility bills. “If a dairy purchases one of our wind generators, once it’s paid for, he will never pay for another electricity bill for the rest of his life,” Hensley said. “In addition, if he wants to sell his dairy in the future, his power plant will be very attractive to a buyer. Not having an electric electricity bill is a great amenity.” Hensley is not alone in his thinking. The U.S. wind industry grew by 45 percent in 2007 with over half of that growth in Texas. Texas is the leading wind state In the US, accounting for nearly one-third of the nation’s total installed wind capacity. This is the equivalent of the electricity needed to power more than one million Texas homes. Texas holds the record for the largest wind farm called Horse Hollow Wind Energy Center, in Sweetwater. As with any new trend or product, some people are skeptical and want guaranteed assurances it will work for them. Others say the generators are noisy and ruin the landscape. But, Hensley is not bothered by the “nay-sayers” and said they are simply not being realistic and not understanding the importance of alternative energy, whether it is wind, solar, or water. “I tell them to go right ahead and keep renting their electricity and buying fuel from the Saudis, when we’ve got the capability right here in the US to produce our own energy and become independent of foreign oil.” Buying a wind generator includes how and where to get financing, insurance, maintenance, taxes and safety considerations. Hensley assures interested agriculture and dairy producers there is “no personal property tax” on wind or solar energy and loans and grants for sustainable energy are available from the USDA. “The grant window will start up again on April 15, 2009 and the loan widow will begin on June 15, 2009. The USDA packagers are looking for farmers right now to try and get them in the door for next year. The most recent energy bill increased up to $4000 for micro turbines, classified as a generator that produces less than 100 kilowatts.” Recognizing that each situation is unique and each individual’s needs are different, Hensley custom designs wind power plants. He goes on-site to assess what costs will be involved. The price is based on a calculated formula that includes past expenses incurred for electricity and the size of generator needed. He emphasized location of the generator is highly important since it must be installed at the best wind-producing site on any property. Because it is unlikely a wind generator will produce 100% electricity, it is connected to a utility grid. However, a bonus is derived when a generator produces more electricity than necessary and credits are given by the utility company. Turbine manufacturers provide financing but Hensley is seriously pushing for area banks to provide loans for the electricity. “For example, a dairy may be paying a $10,000 a month electricity or $120,000 a year. In 10 years, he will have paid $1.2 million for electricity. If he wants a wind generator, he gets it financed for that amount, and when it is paid off, he never has another electricity bill for the rest of his life. With the money he saves each month, he can buy more cattle, equipment or whatever he needs. Most all wind generators are paid back in less than 10 years,” he said. Hensley said he has discussed the profitability of wind energy and financing turbines with area lending institutions where the response has been good and encouraging. Banks agree the overall wind power concept makes sense if the savings a wind plant can generate can meet the monthly debt payment. But, they emphasize the loan applicants would have to show excellent credit and substantial collateral. Since the individual wind plant concept is new to the market, bankers are unsure of the loan package they could offer since no one has applied thus far. Hensley said a good working dairy with good cash flow would make for a likely candidate. Hensley’s expertise includes all forms of sustainable energy. He is a promoter of the “Go Green” movement that focuses on reducing the impact people have on the environment. “We’re going to have to get serious about this stuff if we’re going to make a difference for our children. Farmers are all about that. They are the original ‘Green Thumbs.’” Hensley appeared recently on American Lifestyles on the RFD channel and has produced a pilot program to air at a future date. He recently partnered with the Granbury Chamber of Commerce to initiate the Granbury Green Task Force that will create a model for the city to “go green.” “My method of madness is to start dairies and cities into getting familiar with sustainable and clean energy,” Hensley said. |
|||||||||||||||||
|
|
|||||||||||||||||
|
New CWT bids must be in by Nov. 24 |
|||||||||||||||||
|
At the end of October, Cooperatives Working Together (CWT) announced a new herd retirement program. All bids must be postmarked by Mon., Nov. 24, in order to be considered. As farm-level milk prices drop to their lowest level in 18 months, CWT officials said it was time the program offered its members another opportunity to retire their herds to trim overall national milk production, and strengthen prices going into 2009.
This is the second herd retirement round conducted this year with the first one initiated in June where approximately 25,000 cows were removed. Since CWT began operations in 2003, this will be the sixth herd retirement round. As in earlier this year, this round offers bidding producers the option of including all their bred heifers for a flat fee of $1,225 per animal. Producers must offer all of their bred heifers at that price. CWT is funded by dairy cooperatives and individual dairy farmers who contribute 10 cents per hundredweight assessment on their milk production through December 2008. The money raised by CWT’s investment is being apportioned between two supply management programs that strengthen and stabilize the national all milk price. All dairy producers submitting bids to sell their herds must be members of CWT as of Jan. 2008, either through their membership in a fully participating cooperative or as an independent member of CWT. Through the herd retirement program, if a farmer’s bid is accepted, CWT pays that farmer for the volume of milk produced by that herd in a 12-month period. Farmers submitting bids must provide their milk production records from Oct. 1, 2007, through Sept. 30, 2008. The farmer is responsible for selling the cows for slaughter, and he or she retains the proceeds from that transaction. As in the past, any producer who had his bid accepted in any of the previous herd retirements is not eligible to participate again. Also, those producers who have a financial interest in more than one dairy farming operation must include all their cows in their bid. A dairyman cannot place a bid for just one of his herds, if he has an interest in multiple operations. |
|||||||||||||||||
|
|
|||||||||||||||||
|
Now's the time: Put your dollars where it counts |
|||||||||||||||||
|
When to sell? When to buy? The question keeps mulling around in the minds of many individual investors whether in the stock market or the cattle market. But, people should be reminded that for “every door that shuts…another one opens.” Jason Beyer, manager of Erath County Dairy Sales (ECDS) in Stephenville, has a pretty pat answer for those who are questioning what to do regarding the cattle market. “The price of cattle is down and most likely will keep going down. But, now is a great time to buy. If you’ve got the cash or borrowing power, then start buying some cattle.” Beyer holds a weekly dairy auction and a monthly special sale that draws customers from throughout the US. He grew up on a dairy farm and has been involved with buying and selling cattle his entire life. Even though he’s an expert in his field, he said he is not a soothsayer and like everyone else, cannot predict what the cattle market will bring next week or the week after. But, his gut feeling is it will continue to fall until the banks loosen the reins on money. “This economic slump has affected everyone and every facet of the cattle industry. But, dairymen need to realize that now is a great opportunity to buy. There’s plenty of good cattle out there that are selling for a lower price than what they have been, “he said. Dairy cattle at the special sale on Oct. 29, brought $1800-2000 for springers. “These were selling for anywhere between $2100-2200 only a few short weeks ago. Last year, they were bringing $2200-2400,” Beyer said.
Across the board, all cattle sold for less at
the October sale. On an average, 500-600 lb. heifers brought $800-900;
400-500 lb. brought $700-800. The youngest cattle, 200-300 lbs, brought
$600-700. "Odds favor a recession and not a depression," he said, in a report distributed by the University of Illinois Extension. "Understanding the magnitude of the recession is becoming easier as the impacts of the past few weeks affect consumer spending, business investment decisions, and trade. "Markets often anticipate the worst, and if the worst does not occur, there is some recovery. That may well be the direction for the cattle markets as well. If so, this would enable cattle prices to recover several dollars per hundred, but feed prices would be expected to rise as well," he said. Hurt reviewed the cattle market, which along with U.S. agriculture in general, is caught in the web of uncertainty created by the financial crisis of 2008. "The cattle industry is no exception, as both domestic and foreign demand for beef is related to consumer incomes," he said. "Where the U.S. and world economies go is expected to plot the direction for cattle prices. As a consequence, beef supply fundamentals seem less important to prices, at least for now." Hurt said recent financial losses for the cattle industry specifically affected feedlots that did not have finished cattle forward-sold and those who had purchased high-priced calves and high-priced feed this past summer. He said this recession may be similar to the 1974 and 1975 recession and 1981 and 1982 when Gross Domestic Product (GDP) dropped near 3 percent. |
|||||||||||||||||
|
|
|||||||||||||||||
|
Amarillo Farm & Ranch Show to hold new Dairy Conference & Expo |
|||||||||||||||||
|
The 2008 Amarillo Farm & Ranch Show will include a new Dairy Producers Conference and Expo held on Thurs., Dec. 4, in conjunction with the 2008 show. The Dairy Producers Conference & Expo will be held in the Grand Plaza room at the Amarillo Civic Center, December 2-4, from 9:00 am to 5:00 p.m. The Amarillo Farm & Ranch Show will include over 500 companies displaying the latest agricultural products and services for area farmers and ranchers and dairymen. With Texas quickly becoming one of the premier states for dairy production and operations, the Dairy Producers Conference & Expo seeks to support this growing market in Texas and in the surrounding four state region. This highly anticipated conference & expo will feature morning and afternoon seminars appealing to owner/operators, managers and herdsmen. Table top exhibit spaces will feature the latest innovations in dairy products and services. Seminars begin at 9:30 am with “Copper Sulfate Foot Baths” followed at 10:15 with “Dairy Consortium Updates.” The morning seminar will wrap up with “Survey of Labor Immigration Issues” at 10:45. The afternoon kicks off with “Management of Dairy Rations with High Feed Costs” at 1 p.m. At 1:45 be ready to attend “Confined Livestock Operations followed by Reproduction Management.” Conference proceeding handouts will be available in both English and Spanish, courtesy of AgriLife Extension. Attendees will have multiple opportunities throughout the day to visit with Dairy Day exhibitors. To register for the seminars, please call Katie Kaehler at 800.827.8007. For more information on attending or exhibiting at the 2008 event, visit www.Farmshows.com, or call 800.827.8007. |
|||||||||||||||||
|
|
|||||||||||||||||
|
Protect your facility… Restore or replace leaky roofs |
|||||||||||||||||
|
By Sherry Webb The uncertainly of the economy may muddle the future for the time being but investments must be protected at all costs. In the dairy industry, facilities are a major investment and a vital element of business operations and profits. Part of that investment is the roofs on these expensive facilities that must be protected. But, in many cases, this reality goes unnoticed or is overlooked until it becomes damaged or begins to leak. The longer the lack of attention, the greater the consequences that can result in property damage, business disruption, and potential safety hazards. All of this creates a critical situation expensive to mend or improve. Roof leaks cause severe problems for dairy barns that may affect the cows and their overall ability to perform well. But, a responsive and responsible roofing company can attend to your roofing problems in a quick, honest and reliable way. Vince Daddio, owner of Daddio Construction, is dedicated to providing the best two-fold solution for your roof, whether it is restoration or replacement. “Without good maintenance of your roofs, you can lose the total value of your buildings,” Daddio said. “You want to get it replaced or restored before more damage is done.” Daddio explained roof replacement requires placing a membrane between the purlin and roof sheets. “When rust is created between the purlin and roof sheets, screws become loose or break off. A strong wind can blow a roof off in a matter of seconds.” The other solution available is roof restoration accomplished through a roof coating system that provides cooling, energy savings, and a 10-year warranty. With years of expertise in construction and roofing, Daddio Construction can attest to doing the “best job by the best professionals in the business.” The company and his team has built a solid reputation as an “affordable solutions” business. “From initial inspection to job completion, we assure their customers of quality, value and satisfaction,” Daddio said. |
|||||||||||||||||
|
|
|||||||||||||||||
|
Pictures from the 18th Annual Texas Ag Expo, October 23 & 24 |
|||||||||||||||||
|
|||||||||||||||||
|
|
|||||||||||||||||
|
All internet content of this site
are Copyright © 2005-2008 TDR Publishing Co. All Rights Reserved. |
|||||||||||||||||
 |
But,
Ron Hensley, owner of Texas Energy Outfitters, possesses a much deeper
insight into wind than the average citizen and he is convinced of the
tremendous and incredible power this abundant and valuable resource can
provide.
