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Pasture-Based Dairy Systems: Who Are the Producers and Are Their Operations More Profitable than Conventional Dairies?

Author

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  • Gillespie, Jeffrey M.
  • Nehring, Richard F.
  • Hallahan, Charles B.
  • Sandretto, Carmen L.

Abstract

U.S. dairy operations are sorted via a multinomial logit model into three production systems - pasture-based, semi-pasture-based, and conventional. Region, farm size, financial situation, and production intensity measures impact system choice. Analysis follows to determine the impact of production system on enterprise profitability. Region, farm size, and demographic variables impact profitability, as does system choice - semi-pasture-based operations were less profitable than conventional operations on an enterprise, per hundredweight of milk produced basis. Significant differences were not found in the profitability of pasture-based operations versus those using other systems.

Suggested Citation

  • Gillespie, Jeffrey M. & Nehring, Richard F. & Hallahan, Charles B. & Sandretto, Carmen L., 2009. "Pasture-Based Dairy Systems: Who Are the Producers and Are Their Operations More Profitable than Conventional Dairies?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(3), pages 1-16, December.
    • Handle: RePEc:ags:jlaare:57630
    DOI: 10.22004/ag.econ.57630
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    Cited by:

    1. Wolf, Christopher A. & Tonsor, Glynn T. & Olynk, Nicole J., 2011. "Understanding U.S. Consumer Demand for Milk Production Attributes," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 36(2), pages 1-17.
    2. Jonathan Walsh & Robert Parsons & Qingbin Wang & David Conner, 2020. "What Makes an Organic Dairy Farm Profitable in the United States? Evidence from 10 Years of Farm Level Data in Vermont," Agriculture, MDPI, vol. 10(1), pages 1-13, January.
    3. Gillespie, Jeffrey & Nyaupane, Narayan & McMillin, Kenneth & Harrison, Wes, 2014. "The Impact of Marketing Channels Used by U.S. Meat Goat Producers on Farm Profitability," 2014 Annual Meeting, February 1-4, 2014, Dallas, Texas 162499, Southern Agricultural Economics Association.
    4. Gillespie, Jeffrey & Nehring, Richard, 2014. "Pasture-Based versus Conventional Milk Production: Where Is the Profit?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 46(4), pages 543-558, November.
    5. Aimee N. Hafla & Jennifer W. MacAdam & Kathy J. Soder, 2013. "Sustainability of US Organic Beef and Dairy Production Systems: Soil, Plant and Cattle Interactions," Sustainability, MDPI, vol. 5(7), pages 1-26, July.
    6. Andréa Castelo Branco Brasileiro-Assing & Jini Kades & Paulo Antônio de Almeida Sinisgalli & Joshua Farley & Abdon Schmitt-Filho, 2022. "Performance Analysis of Dairy Farms Transitioning to Environmentally Friendly Grazing Practices: The Case Study of Santa Catarina, Brazil," Land, MDPI, vol. 11(2), pages 1-18, February.
    7. Nehring, Richard & Gillespie, Jeffrey & Katchova, Ani L. & Hallahan, Charlie & Harris, J. Michael & Erickson, Ken, 2015. "What’s Driving U.S. Broiler Farm Profitability?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 18(A), pages 1-20, July.
    8. Nehring, Richard & Sauer, Johannes & Gillespie, Jeffrey & Hallahan, Charlie, 2016. "United States and European Union Dairy Farms: Where Is the Competitive Edge?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(B), pages 1-22, August.
    9. Nehring, Richard & Gillespie, Jeffrey M., 2020. "The Economics and Productivity of U.S. Cow-Calf Production," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304363, Agricultural and Applied Economics Association.
    10. Qushim, Berdikul & Gillespie, Jeffrey, 2016. "Women Farm Operators in the U.S. Meat Goat Production: Who is More Productive?," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230004, Southern Agricultural Economics Association.

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    Keywords

    Livestock Production/Industries;

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