BUSINESS SUMMARY NEW YORK STATE 2002 Reportar como inadecuado

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Business and financial records for 2002 from 219 New York dairy farm businesses are summarizedand analyzed. This analysis demonstrates the use of cash accounting with accrual adjustments to measurefarm profitability, financial performance, and costs of producing milk. Traditional methods of analyzingdairy farm businesses are combined with evaluation techniques that show the relationship between goodmanagement performance and financial success.The farms in the project averaged 297 cows per farm and 22,312 pounds of milk sold per cow,which represent above average size and management level for New York dairy farms. Net farm incomeexcluding appreciation, which is the return to the operator's labor, management, capital, and other unpaidfamily labor, averaged $38,185 per farm. The rate of return to all capital invested in the farm businessincluding appreciation averaged 2.9 percent.Differences in profitability between farms continue to widen. Average net farm income excludingappreciation of the top 10 percent of farms was $311,300, while the lowest 10 percent was a negative$173,275. Rates of return on equity with appreciation ranged from 64 percent to negative 37 percent for thehighest 10 percent and the lowest 10 percent of farms, respectively.In 2002, farms supplementing the herd with bovine somatotropin (bST) attained higher rates of milkproduction per cow, had larger herds and were more profitable than farms not supplementing with bST forall measures other than labor and management income per operator. Farms adopting rotational grazinggenerally produced less milk per cow than non-grazing farms but had somewhat lower costs of productionand higher profitability. Large freestall farms averaged the highest milk output per cow and per worker, thelowest total cost of production and investment per cow, and the greatest returns to labor, management andcapital. Farms milking three times a day (3X) were larger, produced more milk per cow and had higher netincomes than herds milking two times per day (2X). Operating costs per hundredweight of milk were $0.22per hundredweight higher for 3X than 2X milking herds, while output per cow was 3,768 pounds higher.One should not conclude that adoption of these technologies alone were responsible for differences inperformance.


Subject(s): Livestock Production/Industries

Issue Date: 2003-11

Publication Type: Working or Discussion Paper

PURL Identifier:

Total Pages: 99

JEL Codes: Q12; Q14

Series Statement: Research Bulletin


Record appears in: Cornell University > Department of Applied Economics and Management > Research Bulletins

Autor: Knoblauch, Wayne A. ; Putnam, Linda D. ; Karszes, Jason


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