Dairy Budgets Return To Black

October 16, 2015 12:58 PM
Dairy Budgets Return To Black

Dairy budgets stopped bleeding red as a result of higher milk prices and lower feed costs, according to budgets prepared by Robert Tigner, a University of Nebraska Extension dairy educator.

“The improved income came from higher butterfat production and price even though the protein price declined,” he says. “Soybean meal price decline contributed the most to feed cost declines while corn price added a little as well.”

Note: Tigner’s budgets are based on feed pegged at market prices, and labor valued at $13/hour (wages plus benefits). Farms that grow their own feed will likely have different numbers.

Once again, the higher producing herds fared better. Herds producing 24,000 lb. of milk per cow had a return to labor and management of $4/cwt in September, and a return to management of $1.81/cwt. That latter number is up 50¢/cwt over August.

In herds averaging 20,000 lb./cow, the return to labor and management was $2.74/cwt, and the return to management alone was 12¢/cwt. But again, the return to management was 36¢ better than August.

The prices are based on a milk price of $17.56/cwt, with butter valued at $2.75/lb. and protein valued at $1.98/lb.  Corn was budgeted at $3.56/bu, soybean meal at $286/ton and dairy quality hay at $200/ton. Cull cows were valued at $81/cwt. 

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Spell Check

Brian Stooksbury
jefferson city, TN
10/17/2015 08:17 PM

  I disagree wholeheartedly with Mr. Tigner! Things would be fine if we could get ten more lbs of milk per cow and not feed anymore feed than we are now but that's just not possible! I think feed cost to dairy producers are severely underestimated. In my area feed has not varied a lot in the last six months. No matter what the cbot says it's a different price out in the countryside of America. Unless you on the starship enterprise with a money replicator then the red still flows on lots of Milk producers farms!


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