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Profits, costs, and the changing structure of dairy farming

Permanent URL:
http://handle.nal.usda.gov/10113/19385
File:
Download [PDF File]
Abstract:
U.S. dairy production is consolidating into fewer but larger farms. This report uses data from several USDA surveys to detail that consolidation and to analyze the financial drivers of consolidation. Specifically, larger farms realize lower production costs. Although small dairy farms realize higher revenue per hundredweight of milk sold, the cost advantages of larger size allow large farms to be profitable, on average, even while most small farms are unable to earn enough to replace their capital. Further survey evidence, as well as the financial data, suggest that consolidation is likely to continue.
Author(s):
MacDonald, James M. (James Michael) , United States Dept. of Agriculture. Economic Research Service.
Subject(s):
Dairy farming , United States , Farms, Size of , Economic aspects , Milk trade , Costs , dairy farming , milk industry
Format:
iv, 35 p. : col. ill.; 28 cm.
Note:
Cover title.
Language:
English
Publisher:
U.S. Dept. of Agriculture, Economic Research Service
Year:
2007
Rights:
Works produced by employees of the U.S. Government as part of their official duties are not copyrighted within the U.S. The content of this document is not copyrighted.