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Pasture-Based versus Conventional Milk Production: Where Is the Profit?

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  • Gillespie, Jeffrey
  • Nehring, Richard

Abstract

Costs and returns of pasture-based dairy production are compared with those of conventional production using matching samples. Both whole-farm and dairy enterprise-level estimates are made using the U.S. Department of Agriculture's Agricultural Resource Management Survey data. Conventional farms are matched to pasture-based farms on the basis of operation scale, scope, region, and farmer demographics and adoption of technology. Results show for pasture-based production lower net farm income on per-cow, per-hundredweight milk produced, and total bases. On an enterprise basis, results show for pasture-based production, higher net return over operating cost and lower net return over total cost per hundredweight milk produced.

Suggested Citation

  • 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.
    • Handle: RePEc:cup:jagaec:v:46:y:2014:i:04:p:543-558_02
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    References listed on IDEAS

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    Cited by:

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    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. 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.
    4. Allison, John & Burdine, Kenneth H. & Dillon, Carl & Smith, S. Ray & Butler, David M. & Bates, Gary E. & Pighetti, Gina M., 2021. "Optimal forage and supplement balance for organic dairy farms in the Southeastern United States," Agricultural Systems, Elsevier, vol. 189(C).
    5. 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.
    6. Nehring, Richard & Gillespie, Jeffrey & Erickson, Kenneth & Harris, J. Michael & Heutte, Silke & Sauer, Johannes, 2018. "Small U.S. Dairy Farms: Can They Compete? A Revisit," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266535, Southern Agricultural Economics Association.
    7. 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.

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    More about this item

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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