Success StoryDairy Producers Improve Profits with Energy Savings
Dairy Producers Improve Profits with Energy Savings
Author: Sam McNeill
Planning Unit: Biosystems & Agr Engineering
Major Program: Dairy
Outcome: Long-Term Outcome
Describe the Issue or Situation.
Production from 41,000 dairy cows in Kentucky produced 846 million pounds of milk in 2024 and generated $193.7 million ($4735 per cow), placing the industry as the third highest livestock enterprise that contributes to the state’s agricultural economy. Dairy production is highly dependent on a reliable energy source and requires electricity to run pumps and motors to milk cows, transport and cool milk, and provide lighting and ventilation for milk parlors and loafing barns. Records indicate that nearly half of milk production costs are used to pay energy bills.
Describe the Outreach or Educational Program Response (and Partners, if applicable).
In 2024, agricultural engineers at UK led projects to help 14 farmers (including 5 dairies) identify potential energy saving improvements for their operations. At the same time, the USDA Rural Development and Kentucky Agricultural Development Board have made cost-share funds available annually for agricultural and rural energy efficiency improvements. Both programs required an energy assessment as part of the cost-share application. Cooperative Extension Service engineers from the UK Biosystems and Agricultural Engineering Department were asked to provide technical assistance in the form of energy assessments for potential program applicants. Since 2008, UK agricultural engineers have provided energy assessments for projects on over 500 farms (including 45 dairies) that have applied for cost-share funds from one or both of these available programs. This project has been a collaborative effort with USDA Rural Development (KY Office), KY Governor’s Office of Agricultural Policy, and private, third-party grant writers.
Provide the Number and Description(s) of Participants/Target Audience.
These dairy farms were located in Adair, Casey, Graves, Warren, and Washington counties. Approximately 30% of the total project cost was supported by cost-share funds with growers contributing the remaining 70%. The average simple payback for all projects was 7 years before applying any cost-share assistance or tax credits.
Provide a Statement of Outcomes or Program Impact. Please note that the outcomes statement must use evaluation data to describe the change(s) that occurred in individuals, groups, families, businesses, or in the community because of the program/outreach.
The total amount of grant dollars applied for by these operations was $34,833 (~$7000 per farm) and energy assessments showed that the total annual value of energy savings was $4820 per year (~$1000 per farm).
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