JULY/AUGUST 2004


Calves Save the Farm

Article and photos by Rick Mooney


When health problems forced this family to give up dairying, replacement calves were the answer.

Four years ago, Norm Busse found himself smack dab in the middle of one of life’s agonizing crossroads. At age 65, he needed knee replacement surgery, the possible result of more than 30 years milking cows in a concrete floor stanchion barn near Barron, Wisconsin.

Busse realized the surgery likely meant the end of his dairying career. He, his wife Judy, and their daughter and business partner, Sherry Arnold, weren’t interested in making the huge capital investment that would have been required to convert their dairy to a parlor/freestall operation, even though it would have eliminated the bending and squatting that must be done when milking cows in a stall barn.

The Busse family, Judy, Norm, and their daughter, Sherry Arnold, had to quit milking cows but have remained close to dairy farming by raising replacement calves on contract.

A lifelong farmer, Busse wasn’t ready to give up on livestock agriculture altogether. “I had worked with animals my entire life,” he said. “It would have been hard for me to just walk away. Besides, it had taken me a long time to get this place going.”

So the family sold their 100-cow herd and milking equipment and began looking for alternatives that would enable them to continue making use of their facilities and land base.

The Calf Answer

Initially, they raised Holstein bull calves up to feeder weight, setting up shop with the purchase of 50 calves and hutches. “We figured it would be a good way to make use of all the feed we produce,” Busse said.

Little did they realize what they had started. One of their bull calf suppliers, a neighboring dairy in the process of expanding to 1,200 cows, asked if they would consider raising heifer calves on a contract basis.

They soon began hearing the same thing from other dairies that needed replacement calves but couldn’t provide the special care calves require. As a result, the Busses and their new partner, Micah Halverson, now work with six dairies, raising heifer calves from one day old to about five months. “It was all word of mouth,” said Sherry. “We’ve never done any advertising.”

Over 2,000 Calves a Year

Their calf operation today has a capacity for 520 hutch calves (one to 60 days old) and 400 older calves (two to five months old) which are housed in a 150 X 80-foot group pen barn built three years ago. They have also continued buying and raising Holstein bull calves which are kept to feeder steer weight. Last year a total of 2,140 calves were moved through their facility.

More than 500 calf hutches now cover the landscape of the Busse farm in Wisconsin.

“Steep” is the word Busse uses to describe the learning curve for the transition from dairying to custom-calf rearing. “It takes some getting used to. The calves have to be fed whether it’s 20 degrees below zero or pouring buckets of rain. The winter is bad, but the rain is the worst.”

On the flip side, the new calf enterprise lends itself to a daily work schedule that most people would find more desirable than the schedule kept by dairy producers. Calves in hutches are fed twice a day, 4 A.M. and 2 P.M. When the farm is filled to capacity with calves, two people can complete the feeding chores in about three hours per feeding.

Calves in the group pen barn are fed a total mixed ration once a day. Other necessary chores include washing and moving hutches, treating sick calves, and checking in the new ones. The family picks up calves at dairies located nearby, while animals coming from a greater distance are delivered to the farm.

Reasonable Hours

“We still work a lot of hours,” Sherry said, “but we’re finished at five o’clock every afternoon. With the dairy, we wouldn’t go into the barn to start the evening milking until after seven.”

Dealing with customers has also required some adjustments on the family’s part. “When you’re a dairy farmer, you’re kind of independent,” Sherry said. “But in this kind of business, you’re accountable to everybody.”

The family enters into a written contract with each customer. Along with financial terms, on a per-head, per-day basis, the contract spells out each party’s responsibilities for animal health. The customer agrees to deliver calves from vaccinated cows, calves that have received at least one gallon of colostrums within 24 hours of birth. The customer also must apply identification tags before delivering calves. Each customer dairy is then assigned a different color.

Low Loss Rate

For their part, the Busses agree to provide milk replacer, feed, dehorning, and vaccinations. But the key to success in the custom calf business, they emphasize, is holding death losses to a minimum. Their calf death loss last year was two percent, which they say compares to a five to seven percent rate in some large dairy operations.

“One customer told us he was losing about 10 percent of his calves when he was raising them himself,” Sherry said. “So at our rate of two percent, he figures he’s saving quite a bit of money.”

“You have to have a good eye for spotting a sick calf,” said Norm, “and Sherry is one of the best. When she sees a sick calf, she gets on it right away and starts treating it.”

Sherry Arnold feeds a newly arrived calf, with the help of her niece, Sara Gonske.

Fat and Jackets

Always on the lookout for new management practices that will enable them to do a better job for their customers, they have started using a fat additive with the milk replacer fed to the youngest calves during the winter months. They also put wool “jackets” on calves in hutches, the extra cost split 50:50 with the customer.

“Both of those things are worthwhile from a health standpoint,” explained Sherry. “The young calves don’t have enough fat to maintain their body heat in cold weather.”

As calves move out of the hutches into group pen housing at 60 days of age, the Busses take additional steps to reduce potential disease risks. Each hutch is cleaned with a power washer, then dried outside in the sun for a day or two. Clean hutches are then moved to a different site before new calves are placed in them. “We don’t want to put hutches right back on the same ground they’ve just come off,” explained Norm. “We like to let the fresh air and sunlight bake any diseases or bugs out of the soil. They’re the best disinfectants you can get.”

With calves coming onto the farm from other farms, biosecurity is an ongoing concern. Newborn calf protocols to be followed by the dairies supplying calves have been worked out by a consulting veterinarian. “It gets everybody working on the same page,” Norm said.

Initial Investment

Calves on the Busse farm are clean and healthy, with an exceptional survival rate. They are fed twice a day, a task that requires two people working three hours each time.

He also advised that anyone considering launching a calf business push the pencil carefully when figuring initial investment costs. Getting started requires the purchase of individual hutches, mixing equipment for milk replacer, a four-wheel-drive tractor that can negotiate muddy travel lanes between rows of hutches, and several golf carts for hauling milk replacer, water, feed, and veterinarian supplies to the calves.

“It’s pretty capital intensive,” Norm said. He estimates the initial cost of the group pen at over $200,000. “Like any other business, startup costs are likely to be more than you anticipate.”

He advised that expectations be kept on the modest side. “The margins are pretty small,” he said. “We’re not going to get rich, but we are making a living doing something we enjoy. Not everybody gets to say that.”


Home | Products | Parts & Service | Dealers | Used Equipment

New Holland E-Store | 2007 Shows | News Releases | Publications | Contact Us | CNH Capital