by John Hanchar and Joan Petzen
Summary
- Milk receipts per hundredweight (cwt.) rose 11.8 percent to $19.53 per cwt. when compared to 2018.
- In 2019, the operating cost of producing a cwt. of milk was $15.36, a decrease of 0.5 percent relative to 2018.
- As of June 23, 2020, results indicate that Northwest New York region (NWNY) dairy farms in Cornell University Cooperative Extension’s Dairy Farm Business Summary Program achieved greater levels of profit in 2019 compared to 2018 — for example, in 2019, the rate of return on all assets without appreciation as a percent averaged 5.0 percent compared to 0.3 percent in 2018.
Introduction
The results reported here represent averages for the following.
- 35 NWNY dairy farms cooperating in 2018, data accessed July 28, 2019
- 38 NWNY dairy farms cooperating in 2019, data accessed June 23, 2020
The averages reported for 2019 and 2018 are not averages for the group of farms that participated in Cornell University Cooperative Extension’s Dairy Farm Business Summary and Analysis Program (DFBS) in both 2019 and 2018. However, the averages below reflect a large number of farms participating in both 2019 and 2018, suggesting that the results reflect to a fairly large degree the same farms for the two comparison years.
Size of Business
- The average number of cows per farm for 2019 to date is 1,062 compared to 1,052 in 2018.
- Worker equivalents per farm averaged 20.2 and 20.5 for 2019 and 2018, respectively.
- Tillable acres per farm totaled 1,872 and 1,879 for 2019 and 2018, respectively.
Rates of Production
- Milk sold per cow averaged 25,975 in 2019 compared to 25,542 in 2018.
- Hay dry matter per acre was unchanged at 3.6 tons, while corn silage per acre fell slightly from 19.6 tons to 19.3 tons.
Income Generation
- Gross milk sales per cow increased from $4,463 in 2018 to $5,072 in 2019, an increase of 13.7 percent.
- Gross milk sales per hundredweight (cwt.) rose from $17.47 to $19.53.
Cost Control
- Dairy feed and crop expense per cwt. of milk fell about 4 percent, averaging $6.87 in 2019 and $7.15 in 2018.
- In 2019 the operating cost of producing a cwt. of milk was $15.36, a slight change of negative 0.5 percent relative to 2018.
Profitability
- Net farm income without appreciation per cwt. of milk averaged $2.44 in 2019 compared to $0.32 in 2018.
- Rate of return on equity capital as a percent without appreciation averaged 5.1 percent in 2019 compared to negative 1.7 percent in 2018.
- In 2019, the rate of return on all assets as a percent without appreciation was 5 percent compared to 0.3 percent in 2018.
Final Thoughts
Owners of dairy farm businesses cooperate in Cornell University Cooperative Extension’s DFBS Program for the purpose of identifying strengths and weaknesses by comparing their results to results of other cooperators. DFBS results also provide farmers with a base for budgeting activities. Budgeting is especially valuable during unfavorable economic conditions such as those currently faced by farm business owners. If you are interested in realizing the benefits of DFBS participation and, or budgeting then please contact John Hanchar or Joan Petzen.
