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A Bottom-Line Program Celebrates 10 Years

March 2005

If the first 10 years are an indication of what’s to come, REAP is in for a long, productive life. This past January, the program marked its 10-year anniversary with record-high herd enrollment – a number that has increased each and every year since REAP was introduced in early 1995. The celebratory mark for the end of 2004 is some 687 herds and more than 100,000 cows.

Such sustained growth has come because REAP has value and contributes to a healthy bottom line.

Satisfaction with the program often sparks comments from dairy producers like Calvin Graber, Parker, S.D., who has been with REAP from the beginning. “There is not a better thing going in farming today than REAP,” he summed. “It is the one thing that has helped us, above all, to become profitable milking Jersey cows.”

Graber, a former director of the American Jersey Cattle Association (AJCA), has proven that success can be attained with Jersey cattle, regardless of herd size. Using REAP, Graber developed a thriving merchandizing program, funded the expansion of other areas of the farm and built a comfortable life with his 25 Registered JerseyTM cows.

“REAP has all the tools we need to manage the herd and sell cattle,” Graber explained. “It helps us keep registrations and pedigrees current, keep up with the latest genetic information and build solid cow families. And the beauty of REAP is that everything is done automatically.”

The Concept Behind REAP

REAP, which is an acronym for Registration, Equity, Appraisal and Performance, combines the AJCA’s most-used services into a single package. The program first became available to Jersey breeders in January 1995.

“The idea for REAP came from Arizona dairy producer Alvin Moss, Mountain Shadow Dairy, who said that he found it a hassle to write a check every time he registered a group of calves, another check when he paid his Equity fees and still another when he appraised his cows,” explained Erick Metzger, AJCA Herd Services Manager. “He thought it would be nice to write a check once a month or once a year to cover everything.”

Early on, REAP was touted as the new “all-in-one fee program” that allowed dairy producers to enroll in core programs at a cost that was lower than enrolling in the programs separately. It was a convenient and economical way for dairy producers to participate in all the Jersey organizations’ programs. REAP fees included all registrations on animals under six months of age (Registration); participation in National All Jersey’s (NAJ) Equity program; routine type trait appraisals (Appraisal); and performance information on pedigrees (Performance). As well, REAP offered discounted registration rates on over-age animals, reduced genetic recovery fees and a free subscription to the Jersey Journal.

Cost was based on a herd fee plus per cow fee that was determined by herd size.

“Pricing was structured so that dairy producers who were using all the programs would pay less overall,” explained Metzger. “Dairy producers who were using three of the four core programs could add the fourth program for just a little bit more.”

REAP was a tremendous boost to the Equity program and the milk marketing efforts of NAJ. Metzger added, “Many dairy producers who initially enrolled on REAP were those who used the Association’s TPE (Type and Performance) and Registration programs. REAP allowed them to invest in Equity for not much more.”

Metzger continued, “The additional Equity funding that was generated through REAP played a significant role in NAJ’s ability to advocate that multiple component pricing be included in the Federal Milk Marketing Order reform in 2000.”

The concept for the program proved successful. By the end of the first month, more than 100 herds and 18,000 cows were enrolled on REAP. By year’s end, 172 herds and more than 32,000 cows were enrolled on REAP.

Proven Value

If repeat customers are a barometer of product value, REAP has proved itself to be a valuable product. Re-enrollment rates for the program run at an astonishing 90 percent each year. Of the 10 percent of herd owners who do not renew, half of these left the dairy industry or dispersed the herd during the previous year.

REAP continues to attract new customers as well. Last year, 114 herds enrolled on REAP for the first time.

Jersey breeders choose REAP because the package helps them better manage their herds and improve the bottom line. While the initial core offering remains, additional programs and services have been added to REAP over the past decade.

Three months after REAP was introduced, the herd mating program, a predecessor to JerseyMate, was added. Two months later, heifer management and heifer inventory reports were included.

Today, REAP also includes bull inventory reports and discounts for JerseyTags and registration credits for daughters of sires enrolled in AJCA’s young sire and Genetic Diversity programs.

Convenience, one of the key early benefits, is still important today. When Jersey breeders enroll on REAP, everything is automatic, designed to make life easy and keep the producer on schedule. Herd appraisals are scheduled every seven to 10 months and lactations are added to the database when completed. REAP herd owners get new lactation summaries, genetic reports and JerseyMate reports on a quarterly basis. They get their Jersey Journal once a month and the Green Book twice a year. Three Equity publications, including the Weekly Market Update, keep REAP customers abreast of milk market issues. Much of the information is available online 24/7.

“With REAP, we don’t have to worry about anything,” remarked Bonnie Kracht, who owns K&K Jerseys with her husband Allen, in Newton, Wis. “The Time Savers are a big benefit to us. Everything comes already filled out with birthdates and sires. All we need to do is name the calf and return the paperwork.”

The Krachts, who are in the midst of expanding the milking herd to 450 Registered Jerseys by December 2005, know that REAP will save them time and money. “We figured the cost of registrations and type appraisals were about equal to the cost of REAP,” added Kracht. “We were able to get the extra programs and services at a cost savings.”

For Kracht, two of the big extras that come with REAP are the Equity and JerseyMate programs. She said, “We have contributed to Equity from the beginning and believe it has helped us get more from the milk check over the long haul. JerseyMate helps us watch inbreeding and keep it at acceptable levels.”

For the Good of the Association

REAP has proven to be a bonus not only for Jersey breeders, but the AJCA as well. Metzger remarked, “REAP is a huge success because it has brought more breeders into using and benefiting from AJCA programs than any other program. It allowed them to try programs they’d not normally use.”

In the past 10 years, more than 1,100 different herds have been enrolled on REAP. Today, two of every three animals registered comes from a REAP herd. Although TPE and STEP are still available, nearly three times as many Jersey breeders are enrolled on REAP.

Another bonus of REAP has been the addition of new animals to the herdbook. Metzger estimates that number to be at least 100,000 from the REAP herds that used genetic recovery over the past 10 years. The option to enroll genetic recovery animals electronically for $5 each during the first year of enrollment has always been available to REAP herds.

“A great way to illustrate this influence is by looking at Hilmar’s fully-registered, 500-cow REAP herds,” explained Metzger. “When REAP was established 10 years ago, just three of the 12 herds were fully registered. Today, all are fully registered through genetic recovery, representing more than 20,000 cows.”

First-year REAP herds can also register over-age animals (over six months-of-age) for $15 each if submitted on paper application and $10 each if done electronically.

Because REAP encourages early registration, is convenient and has been streamlined, it has essentially eliminated the need for a moratorium program. “There has not been a single registration moratorium, which were never fair to those who kept their registrations current, since REAP was introduced,” said Metzger.

What’s New for REAP?

Beginning in January 2005, REAP herds will not be charged for bull transfers if they are submitted within 60 days of sale date.
Explained Metzger, “The goal is to help us track bulls that are going into an increasing number of non-Jersey herds.”

“REAP is a success because the value of the program exceeds its cost,” remarked Metzger. “For continued success, we’ll need to modify the program to meet changing producer needs and keep REAP priced so that we can provide service for less than similar services elsewhere.”

Additional Information

If you are interested in learning more about REAP, contact Erick Metzger at 614/861-3636, extension 339, or talk to your area representative. Want to determine how much you can save with REAP? Enter your herd numbers into the excel spreadsheet that has been developed online at http://www.usjersey.com/Programs/TpeReapCompare95.xls.