Start Seeing Dollar$

James Bailey of Bailey Consulting, Inc. has worked in dairy nutrition and management for 17 years in Dane County and southern Wisconsin. With AgSource and the Profit Opportunity Analyzer® (POA), he is helping producers reveal opportunities that exist on their operations.

The POA allows AgSource members to use their numbers. Interest rates, milk price, replacement costs, cull cow prices, and calf replacement costs all come from the operation on which the POA is produced for. "The dollar value is the most important part of this report. Producers know where the numbers are coming from because they are their inputs. Instead of just looking at a percent, this is putting a number in front of them and helping them to decide if it is worth it to make changes," remarks Bailey."Knowing the dollar value allows my clients to make improvements and know what the return on investment will be. This allows them to decide if the investments in labor, facilities, a breeding service, or other improvements are worth it in the long run."

Bailey's clients like the report because it gets to the point quickly by showing missed opportunities and gives them the information they need to improve. The benchmarking in the report gives the POA an advantage, because it is information that cannot be found anywhere else. "Most producers feel the 80th percentile is very attainable, because they are already there in another category. They also know it is attainable because other dairies have been able to achieve those performance levels," stated Bailey.

As a promoter of DHI testing, Bailey encourages AgSource members to take advantage of the POA. "The POA uses DHI data that is often buried in numbers. Much of this data never gets looked at because it can be difficult to sort through. This report puts data that producers have already paid for to good use, and utilizes information that has rarely been used in the past. When used on a semi-annual or annual basis, this report is a great value. The time it would take you to sort through all the data here is worth more than the $100 it costs for the report," commented Bailey.

The POA also allows managers to evaluate management decisions on the farm. In one instance, Bailey and his client did not agree with the numbers on the POA. Instead of dismissing the report, Bailey worked with the client to see if the management practice in question was really costing the operation profit, or if the decision was justified. After looking at the data, Bailey and his client were able to conclude that the management practice was working. "The POA allowed us to have that conversation and confirm that management practice was in the best interest of the operation, but without the POA we may not have evaluated that practice as thoroughly," noted Bailey. Using this report allows consultants and managers to have productive discussions on how to improve profitability on the operations.

To find out more about the POA and to order a copy for your operation visit www.AgSource.com or speak with your field technician.  All POAs are delivered by a trained individual who can help members interpret the report.