IDEAS home Printed from
   My bibliography  Save this paper

Business Summary New York State 2009


  • Knoblauch, Wayne A.
  • Putnam, Linda D.
  • Karszes, Jason


Business and financial records for 2009 from 204 New York dairy farm businesses are summarized and analyzed. This analysis uses cash accounting with accrual adjustments to measure farm profitability, financial performance, and costs of producing milk. Traditional methods of analyzing dairy farm businesses are combined with evaluation techniques that show the relationship between good management performance and financial success. The farms in the project averaged 469 cows per farm and 24,208 pounds of milk sold per cow, which represent above average size and management level for New York dairy farms. Net farm income excluding appreciation, which is the return to the operator's labor, management, capital, and other unpaid family labor, averaged $-126,820 per farm. The rate of return to all capital invested in the farm business including appreciation averaged -3.5 percent. Differences in profitability between farms continue to widen. Average net farm income excluding appreciation of the top 10 percent of farms was $189,108, while the lowest 10 percent was $-861,956. Rates of return on equity with appreciation ranged from positive 4 percent to negative 46 percent for the highest decile and the lowest decile of farms, respectively. Large freestall farms averaged the highest milk output per cow and per worker, the lowest total cost of production and investment per cow. However, in 2009, they averaged the lowest returns to labor, management and capital. Farms milking three times a day (3X) were larger, produced more milk per cow but had lower net farm incomes in 2009 than herds milking two times per day (2X). Operating costs per hundredweight of milk were $0.08 per hundredweight lower for 3X than 2X milking herds, while output per cow was 5,222 pounds higher. Farms adopting intensive grazing generally produced less milk per cow than non-grazing farms but averaged higher labor and management incomes per operator. One should not conclude that adoption of these technologies alone were responsible for differences in performance.

Suggested Citation

  • Knoblauch, Wayne A. & Putnam, Linda D. & Karszes, Jason, 2010. "Business Summary New York State 2009," Research Bulletins 121571, Cornell University, Department of Applied Economics and Management.
  • Handle: RePEc:ags:cudarb:121571

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Kandel, William, 2008. "Profile of Hired Farmworkers, A 2008 Update," Economic Research Report 56461, United States Department of Agriculture, Economic Research Service.
    2. Bills, Nelson L. & Stanton, Bernard F., 2009. "Census of Agriculture Highlights, New York State, 2007," EB Series 55945, Cornell University, Department of Applied Economics and Management.
    3. Maloney, Thomas R. & Bills, Nelson L., 2008. "The New York State Agricultural Immigration and Human Resource Management Issues Study," Research Bulletins 121573, Cornell University, Department of Applied Economics and Management.
    4. Maloney, Thomas R. & Grusenmeyer, David C., 2005. "Survey of Hispanic Dairy Workers in New York State," Research Bulletins 122087, Cornell University, Department of Applied Economics and Management.
    Full references (including those not matched with items on IDEAS)

    More about this item



    JEL classification:

    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets
    • Q14 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Agricultural Finance


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:ags:cudarb:121571. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (AgEcon Search). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.