FSA Operating Loan Helps Illinois Dairy Save Time and Money

The Johnsons have saved on labor cost and increased their daily milk production by purchasing two milking machines, which has allowed them to spend more time with their family. Pictured from left to right: Kurt, Kaleb and Kyle Johnson.

By Mary Kirby, Illinois FSA Communications Coordinator

While most of the country is still sleeping at 4 a.m. every morning, the Johnson brothers, Kyle and Kurt, of Villa Rosa Farm in Bond County, Illinois, are up and milking their herd of 90 Jersey cows.

The Johnsons are dedicated to their family dairy, but they felt the daily milking process had consumed their lives. Kyle and Kurt’s grandfather Bill Schrage, who started the family dairy in 1957, encouraged the two to look into automatic milking machines. They spent hours researching and visiting Wisconsin dairy farms to see the robotic milking machines at work. 

The brothers instantly saw the advantages of acquiring the new system, in which by using they would cut their work hours in half, save on labor cost and increase their daily average milk production. Some of the cows get milked five to seven times a day, with an average of three times a day, per cow.

When exploring financing options, they visited their local USDA Farm Service Agency (FSA) office and spoke to Brian Lewey, the senior loan officer at the Montgomery County office in Hillsboro, Illinois. Lewey worked with Kyle and Kurt to finance the milking machine through an FSA Operating Loan for beginning farmers.

FSA offers support to new farmers through its beginning farmer direct and guaranteed loan programs. Producers who have not operated a farm or ranch for more than 10 years are eligible to apply for these programs.

Eligible beginning farmers and ranchers may apply for farm ownership loans, farm operating loans and microloans. Ownership loans provide access to land and capital, while operating loans help finance the cost of farm operations. Microloans provide beginning farmers and ranchers a source of financial assistance during the start-up years.

The Johnson brothers used the funds from their loan to purchase and install two automatic milking machines. While each one has many functions, the milking machines each have a computer screen that monitors the milk temperature, color, and conductivity. If for some reason the milk is determined to be unsafe, it is dumped and doesn’t get sent to the bulk tank.

Villa Rosa Farm has hosted numerous visitors from throughout the area who want to see the robotic milking machines in action.  At one time, two to three visitors would stop to visit each day.

“It has made our lives much easier,” said Kurt. “Now Kyle can spend more time with his family, Kristy and their son Kaleb, and I can spend more time with my family as well.”

For more information about FSA loan programs, contact your local FSA office or visit www.fsa.usda.gov. To find your local FSA office, visit http://offices.usda.gov.

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