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A Profitability Analysis of Dairy Feeding Systems in the Northeast

Author

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  • Winsten, Jonathan R.
  • Parsons, Robert L.
  • Hanson, Gregory D.

Abstract

This study analyzes the use and profitability of three distinct feeding systems; confinement feeding, traditional grazing, and management-intensive grazing from a randomly selected sample of northeastern dairy farms. The confinement feeding farms were significantly larger and produced more milk per cow, while the farms using management-intensive grazing incurred the lowest production costs. Both confinement feeding and management-intensive grazing generated significantly higher rates of return to farm assets relative to farms using a mixed system. Multiple regression analysis confirms the critical importance of herd size, milk production per cow, debt level and veterinary expenses to farm profitability in all production systems.

Suggested Citation

  • Winsten, Jonathan R. & Parsons, Robert L. & Hanson, Gregory D., 2000. "A Profitability Analysis of Dairy Feeding Systems in the Northeast," Agricultural and Resource Economics Review, Cambridge University Press, vol. 29(2), pages 220-228, October.
    • Handle: RePEc:cup:agrerw:v:29:y:2000:i:02:p:220-228_00
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    Cited by:

    1. 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.
    2. Wang, Qiuyan, 2001. "A Technical Efficiency Analysis Of Pennsylvania Dairy Farms," 2001 Annual meeting, August 5-8, Chicago, IL 20662, American Agricultural Economics Association (New Name 2008: Agricultural and Applied Economics Association).
    3. Schorr, A. & Lips, M., 2018. "Influence of milk yield on profitability a quantile regression analysis," 2018 Conference, July 28-August 2, 2018, Vancouver, British Columbia 277000, International Association of Agricultural Economists.
    4. Andréa Castelo Branco Brasileiro-Assing & Jini Kades & Paulo Antônio de Almeida Sinisgalli & Joshua Farley & Abdon Schmitt-Filho, 2022. "Performance Analysis of Dairy Farms Transitioning to Environmentally Friendly Grazing Practices: The Case Study of Santa Catarina, Brazil," Land, MDPI, vol. 11(2), pages 1-18, February.
    5. Cortez-Arriola, José & Rossing, Walter A.H. & Massiotti, Ricardo D. Améndola & Scholberg, Johannes M.S. & Groot, Jeroen C.J. & Tittonell, Pablo, 2015. "Leverages for on-farm innovation from farm typologies? An illustration for family-based dairy farms in north-west Michoacán, Mexico," Agricultural Systems, Elsevier, vol. 135(C), pages 66-76.

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