Agricultural Profitability: Dairy Farms

Issue:
Development pressures on land values and environmental constraintsare making it increasingly difficult to produce milk economicallyin Maryland. Unless economical alternative methods of productionare implemented, many dairy farms will cease operation.

Actions:

MCE conducts the Maryland Dairy Farm Business Summary, whichhelps dairy farmers analyze their financial data to compareconfinement and intensive grazing dairy operations.
MCE conducts plot analysis and grazing trials on 58 perennialand annual grass varieties.

Impacts:

The average of years 1997-2001 shows the grazing operationsgenerated a $1.55 per cwt of milk sold, or a $171 per cow higherprofit than confinement operations. While the grazing operationsannually produced 3,464 lbs less milk per cow and averaged only 88cows per farm in comparison with 118 cows per farm on theconfinement operations, the grazing operations generated a $1,106higher profit per farm.
Thirty-four dairy farmers have converted their productionsystems to grass-based dairying. Of these, 12 have purchased theirfarm or are positioning themselves to buy a farm since convertingto grazing.

For more information, contact Robert Tjaden

Last updated: 03/10/2009