Production from 53,000 dairy cows generated over 1 billion pounds of milk and over $176 million ($3332 per cow) in 2018, placing the industry as the fourth highest livestock enterprise that contributes to Kentucky’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. 

In 2017-2018 Cooperative Extension Service engineers led projects to help 55 farmers (including 18 dairies) identify potential energy saving improvements for their operations. At the same time, USDA Rural Development and the Kentucky Agricultural Development Board have made cost-share funds available annually for agricultural and rural energy efficiency improvements. Both programs require 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. 

IMPACT – Dairy farmers used the energy assessments to apply for and receive cost-share funds to install energy efficiency improvements on their farms that will carry into the future. Most farms had two or more potential energy efficiency improvements. Adding milk pre-coolers and variable speed drives to milk handling equipment were two frequently applied improvements. Those items usually had a simple payback of less than 5 years. Several farms also had potential energy savings from changing compressors and/or adding heat recovery from refrigeration equipment or replacing old ventilation fans with more energy efficient units. 

Proposed projects for the 18 dairy farms in 2017 and 2018 required an estimated $234,730 in total investment. Approximately half of the total cost was supported by cost-share funds with growers contributing the remaining half. Energy assessments showed that the estimated annual value of energy savings was $26,760 per year or $1490 per farm. The average simple payback for all projects was 10 years before applying any cost-share assistance or tax credits.

 This project has been a collaborative effort with USDA Rural Development (KY Office), KY Governor’s Office of Agricultural Policy, and private grant writers.