Anatomy of a dairy exit and dispersal.  Community support softens sting.

More than a few families can relate to this story and others are examining the fork in the road to see which direction their family farm businesses should take. Farmers are aging, and discussions are being had around kitchen tables all across Rural America about the future, whether to expand and modernize, exit, diversify, or stay the course. Even as farm families persevere in these difficult times of steep losses and low commodity prices, some are making the tough decision to exit dairy production.

These decisions are rarely easy, particularly when cattle values are down and next generation career paths are uncertain — or evolving away from the farm. The future doesn’t always follow a plan even when there is a plan. It is a tough economic time to sell a herd, a life’s work, and to send the next generation of cattle and children off to new pursuits, pathways, careers, lives…

Bittersweet. Thankfulness shines through in this video where end makes way for beginning … Whether living it or leaving it, the steps forward are grounded in faith, and a whole lot of love.

Love never fails. 1 Corinthians 13:8

By Sherry Bunting, Farmshine, Nov. 4, 2016

HANNA, Ind. — “It’s not like a death, but in a way, it sort of felt like that, at first,” said LuAnn Troxel a few days after the herd dispersal of 215 lots plus calves and embryos at Troxel Dairy Farm on October 20. “The first cow started selling, and I was concentrating on that, and then I got busy, and before I knew it, the last cow was selling. But when I saw the big semi-truck back in for the largest load, that’s when it hit me as final. They are leaving.

She was quick to add that her “heart is so thankful for what we have and for all the people who came out to support us. The auctioneer was right, these cattle are the future, and our son Rudy did an incredible job with the genetics. Young dairy producers who purchased some of these cattle will have some valuable animals to work with, and that feels good.”

Sale day dawned rainy and cold, and the community came out in large numbers, with over 70 registered buyers. Many came for morale support and to enjoy the hot chili and baked goods provided by their church family with a free will offering raising $5000 for the Harvest Call Haiti Dairy Project.

Dr. Tom and LuAnn Troxel had made the decision to exit the dairy business a year ago. Certainly the cattle would have brought more  a year ago, than they did a month ago amid October’s downturn in what had appeared to be a recovering dairy market, burdened further by a rapid decline in the beef market that often softens dairy cattle market values.

The sale consisted of over 100 grade commercial cows and another 125 registered Holsteins of all ages, and about a dozen Jerseys. Son Rudy had developed the registered herd in his four years of full-time employment on the farm.

Registered cattle with genomic numbers ranged $1800 to $2200 with not many lower and a few higher. The average for the full sale — including unregistered grade cows and the younger heifers over three months old — was $1453.

The top sale was Lot 62 MS McCari Nomi 57900-ET. The fresh 2-year-old with a GTPI of +2525 sold for $5500 to Russell Springs, Kentucky through Max Dunseth of Holstein USA. Her Mogul daughter — a calf born July 24, 2016 and with a GTPI of +2600 — was the second-high seller of the day at $3800.

Dunseth purchased a load of cattle for various orders, and the largest volume buyer purchased 34 cows, both registered and grade, on order to Illinois. 

 

Other volume buyers supported the sale, including Andrew Steiner of Pine Tree Dairy. With Pine Tree genetics in the young registered herd — and several sale offerings descending from the Rudolph-Missy family — Steiner said he was looking for protein, and remarked on the quality of the cattle. He and his wife Julie took 14 head home to Marshallville, Ohio.

The balance of the cattle sold locally to the many in-state buyers. Several neighbors said they were there “to support the Troxels” and came with plans to buy one or two good cows from “some really good people.”

Young dairymen from nearby Indiana counties purchased for their young dairy herds. One from Elkhart called two days after the sale to say how well the nine cows he bought are working out for him and how “really nice” the animals are.

 

 

The Troxels’ niece, 10-year-old Anna Minnich, brought her checkbook and bid on several Jerseys. She had lost her Jersey cow Elegance at calving in September and ultimately purchased one of the Troxels’ Jersey cows named Utah as a replacement, along with two calves from the same family — Utopia and Unique. Anna plans to show them next year.

A local heifer grower purchased some registered heifers, and another buyer purchased two for himself and an additional registered heifer with great numbers to donate to the Mennonite Disaster Committee heifer sale, showing how people in this industry want to give back.

“We had quality animals, and they sold for what the market would bear,” said Dr. Tom, with a smile, when asked how he viewed the sale outcome. “I am glad they did not have to go to the livestock auction.”

Last fall, just eight buyers attended the small string sold ahead of this year’s complete dispersal. “One cow that we didn’t sell last year brought $400 less today,” LuAnn observed. “That gives you a true indication of the strain we are all under.”

But despite the strain, having more than 70 registered bidders, and such an attendance from the community, helped soften the sting. Dr. Tom is well known to the community as a large animal veterinarian who operated the dairy as the second generation on the farm, with LuAnn a prominent dairy advocate.

“To know people were here and that they cared about the cattle did insulate us a little,” LuAnn added. “We could not have gotten even these prices for this many cattle on just the market, alone.”

Many connections were made between articles, ads and social media that resulted in buyers no one expected. The buyer from Illinois taking 34 cows was one example. A college friend of her daughter-in-law — both having no farm background but marrying into farm families — saw the note about the sale on Facebook, and her husband bid online. In fact there were some cattle in the sale that lit up the online Cow Buyer computer and had ringmen and order buyers on their phones taking bids. Courtney Sales, LLC managed the sale.

“The decision was made and we kept with the plan to move forward and trust God to work out the details,” LuAnn added.

While farms have to have money to make things happen and get by, LuAnn expressed what many dairy farmers feel, that “while money is necessary, it is not the primary motivator or we would have exited the dairy business a long time ago,” she said. “Family is huge in this. Most of the time dairy farming is good for families, but these tough downturns do put a strain on families. We are blessed to have worked together and to have raised our family here on the farm.”

Having all four boys come home for the sale and hearing them talk, reinforced that sentiment.

Each of the sons took in the sale preparations and the emotions of the sale day differently, but the bottom line was in saying goodbye to a piece of who they have become. While the farm and veterinary practice go on, the cows are leaving and they were central to life on the farm.

“I have to believe that what we have done for 33 years has been beneficial to our boys, but also to the 30-plus high school kids we’ve employed here over those years,” LuAnn acknowledged.

Certainly true as they have all stayed in touch over the years and some came out to the sale.

“We tried to make our dairy something that people felt good about, where kids could learn how to take care of an animal and have it be something that they remember fondly, that they could work here and develop into responsible young adults with the confidence that comes with knowing and doing something that is bigger than yourself,” LuAnn related.

She will miss the girls that have most recently milked for them up until the sale. “They were laughing and talking about the different cow personalities and wondering how it will be for them at their new homes. All of this life around the animals just adds to the richness of the dairy experience and why this is such a compelling lifestyle.”

There are so many aspects to a family’s decision to exit the dairy business. First comes the realization of the next generation’s plans for their own families’ futures. Next comes the actual sale planning, which can be very time consuming, so much so, that the emotional weight of saying goodbye to the animals is not top-of-mind.

In addition to coming out to buy cattle and be supportive, some sale attendees indicated they are facing similar decisions and wanted to see how it all works. Others had read the articles and just wanted to be there. Still others knew they wanted to bring a few of the Troxel girls home to their farms.

As the Troxels adjust to life after cows, LuAnn notes that other producers, who have been through this process, have encouraged her to “hang on to find the blessing in this decision.”

At the moment, she still has 20 calves to feed, and there are six dry cows to calve. While they sold all of the registered animals of all ages, plus the grade milking cows, they kept the grade dry cows and unregistered young stock to sell later as fresh or springing heifers.

“It is strange to walk out and see just one or two cows,” LuAnn said with a hint of emotion. “But we have heard from some of the buyers. And that’s good. It’s good to know they appreciate our cattle.”

In fact, buyers repeatedly complimented the family on sale day about the quality of the cattle as they paid their auction bills and backed trailers in to load.

“They did look good,” said LuAnn, not in a prideful way so much as satisfaction for having raised good, productive, healthy animals that will work for their new owners the way they worked for the Troxels.

“There’s no time to dwell on it,” she said. “The boys were all home and they are leaving today. Then we help move Rudy and his family to Wisconsin for his new job with Genex-CRI.

“We knew all of these changes would be coming. It is just strange for it to be so quiet here. The challenge will be the transition from going a million miles an hour to having it just stop,” she explained. “First, we’ll take it easy, and then, we’ll get at it. Next week the vet calls will need to get caught up, and then we’ll need to figure out what our new normal is, and that will take a little time.”

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