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Characteristics and Production Costs of U.S. Dairy Operations

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  • Short, Sara D.

Abstract

Total costs of producing milk in 2000 ranged from an average of $11.58 per hundredweight (cwt) of milk sold in the Fruitful Rim-West region to $18.23 per cwt in the Eastern Uplands. Milk producers in the West had a significant cost advantage over producers in other regions in 2000 because their operations were much larger. Operations with 500 or more milk cows had significantly lower total operating and ownership costs, indicative of the economies of size experienced by larger operations. Also, differences in animal performance, feed efficiency, and labor efficiency were critical in determining whether producers were in the low- or high-cost group for producing milk. These findings were based on the 2000 Agricultural Resource Management Survey (ARMS), the most recent national survey of milk producers.

Suggested Citation

  • Short, Sara D., "undated". "Characteristics and Production Costs of U.S. Dairy Operations," Statistical Bulletin 262279, United States Department of Agriculture, Economic Research Service.
    • Handle: RePEc:ags:uerssb:262279
    DOI: 10.22004/ag.econ.262279
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    Cited by:

    1. Gillespie, Jeffrey & Njuki, Eric & Terán, Angel, 2024. "Structure, Costs, and Technology Used on U.S. Dairy Farms," Economic Research Report 344571, United States Department of Agriculture, Economic Research Service.
    2. David A. Hennessy, 2007. "Economic Aspects of Agricultural and Food Biosecurity in the United States," Center for Agricultural and Rural Development (CARD) Publications 07-wp444, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    3. David A. Hennessy, 2006. "Economies of Feedlot Scale, Biosecurity, Investment, and Endemic Livestock Disease," Center for Agricultural and Rural Development (CARD) Publications 06-wp433, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    4. Syed H. Jafri & K. M. Mehedi Adnan & Stefan Baimbill Johnson & Anzalin Ali Talukder & Mark Yu & Edward Osei, 2024. "Challenges and Solutions for Small Dairy Farms in the U.S.: A Review," Agriculture, MDPI, vol. 14(12), pages 1-25, December.
    5. Mkhabela, Thulasizwe S. & Mndeme, S.H., . "The cost of producing milk in the KwaZulu-Natal Midlands of South Africa: a cost-curve approach," Agrekon, Agricultural Economics Association of South Africa (AEASA), vol. 49(01), pages 1-21.
    6. Freeman, Tyler & Schoney, Richard & Nolan, James, 2013. "Man vs. manure: Examining the effects of residential demand on dairy farming in rural America," Agricultural Systems, Elsevier, vol. 115(C), pages 129-136.
    7. Tauer, Loren W. & Mishra, Ashok K., 2006. "Can the small dairy farm remain competitive in US agriculture?," Food Policy, Elsevier, vol. 31(5), pages 458-468, October.

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