Cows eating at bunk.
September 16, 2016

Profitability Returns to Three of Four Dairy Budgets [VIDEO]

 |  By: Jim Dickrell

Thanks to a jump in milk prices, three out of four of his August dairy budgets in the Western Cornbelt were in the black, says Robert Tigner, a University of Nebraska Extension dairy educator.

This is a turn-around from July, when only the highest producing freestall herds were showing a positive return. Milk prices in the Central Federal Milk Marketing Order were $16.65/cwt in August, up 85¢/cwt from July. The prices would have been up even more had it not been for a -82¢ Producer Price Differential in August.

Tigner calculates whole-herd budgets for both 20,000 and 24,000 lb. herd averages in tie stall and freestall operations. In August, only tie stall herds with production at 20,000 lb./cow were still seeing negative numbers over all costs. These herds were losing 51¢/cwt.

Freestall herds producing 24,000 lb./cow were seeing net returns of $2.27/cwt and those producing 20,000 lb./cow were seeing net returns of 83¢/cwt. Tie stall herds with 24,000 lb./cow milk production were netting $1.09/cwt.

The budgets were also helped by declining feed prices. “Gross feed cost declined by about $161/cow/year, most of that from the decline in hay prices,” he says.


Dairy Budgets in the Black

Want more video news? Watch it on MyFarmTV.
This block is broken or missing. You may be missing content or you might need to enable the original module.