Which Dairy State Was The Most Profitable In 2017?
In their annual milk cost of production report, USDA outlined which states were the most profitable in 2017. Spoiler alert: Georgia won.
According to USDA, Georgia had a $9.22 per cwt margin. The state’s gross value of products sold came in at $25.95 per cwt and their cost of production was $16.73 per cwt.
(To arrive at this cost of production number we used the total operating cost and costs of hired labor as defined by USDA. To see the total costs USDA accounts for in the report including opportunity cost of unpaid labor and capital recovery costs on machinery and equipment, you can view the full report here.)
Idaho, which was the most profitable in 2016, followed closely behind with a margin of $6.12 per cwt.
Of the 23 states included in the report, eight of them had negative margins for the year. Maine was the least profitable with gross sales totaling $23.13 per cwt and costs adding up to $27.61 per cwt, leading to a negative margin of $4.48 per cwt. Several major dairy states also reported negative margins including California, Michigan, New York and Pennsylvania.
Check the map below to see how profitable your state was.