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Pasture-Based versus Conventional Milk Production: Where Is the Profit?

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  • Gillespie, Jeffrey
  • Nehring, Richard

Abstract

Costs and returns of pasture-based dairy production are compared with those of conventional production using matching samples. Both whole-farm and dairy enterprise-level estimates are made using the U.S. Department of Agriculture's Agricultural Resource Management Survey data. Conventional farms are matched to pasture-based farms on the basis of operation scale, scope, region, and farmer demographics and adoption of technology. Results show for pasture-based production lower net farm income on per-cow, per-hundredweight milk produced, and total bases. On an enterprise basis, results show for pasture-based production, higher net return over operating cost and lower net return over total cost per hundredweight milk produced.

Suggested Citation

  • Gillespie, Jeffrey & Nehring, Richard, 2014. "Pasture-Based versus Conventional Milk Production: Where Is the Profit?," Journal of Agricultural and Applied Economics, Cambridge University Press, vol. 46(4), pages 543-558, November.
    • Handle: RePEc:cup:jagaec:v:46:y:2014:i:04:p:543-558_02
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    1. Jeffrey Gillespie & Richard Nehring, 2013. "Comparing economic performance of organic and conventional U.S. beef farms using matching samples," Australian Journal of Agricultural and Resource Economics, Australian Agricultural and Resource Economics Society, vol. 57(2), pages 178-192, April.
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    6. Gillespie, Jeffrey M. & Nehring, Richard F. & Hallahan, Charles B. & Sandretto, Carmen L., 2009. "Pasture-Based Dairy Systems: Who Are the Producers and Are Their Operations More Profitable than Conventional Dairies?," Journal of Agricultural and Resource Economics, Western Agricultural Economics Association, vol. 34(3), pages 1-16, December.
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    8. Carlos D. Mayen & Joseph V. Balagtas & Corinne E. Alexander, 2010. "Technology Adoption and Technical Efficiency: Organic and Conventional Dairy Farms in the United States," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 92(1), pages 181-195.
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    1. repec:ags:aaea22:335490 is not listed on IDEAS
    2. 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.
    3. Qushim, Berdikul & Gillespie, Jeffrey, 2016. "Women Farm Operators in the U.S. Meat Goat Production: Who is More Productive?," 2016 Annual Meeting, February 6-9, 2016, San Antonio, Texas 230004, Southern Agricultural Economics Association.
    4. Allison, John & Burdine, Kenneth H. & Dillon, Carl & Smith, S. Ray & Butler, David M. & Bates, Gary E. & Pighetti, Gina M., 2021. "Optimal forage and supplement balance for organic dairy farms in the Southeastern United States," Agricultural Systems, Elsevier, vol. 189(C).
    5. Nehring, Richard & Gillespie, Jeffrey M., 2020. "The Economics and Productivity of U.S. Cow-Calf Production," 2020 Annual Meeting, July 26-28, Kansas City, Missouri 304363, Agricultural and Applied Economics Association.
    6. Nehring, Richard & Gillespie, Jeffrey & Erickson, Kenneth & Harris, J. Michael & Heutte, Silke & Sauer, Johannes, 2018. "Small U.S. Dairy Farms: Can They Compete? A Revisit," 2018 Annual Meeting, February 2-6, 2018, Jacksonville, Florida 266535, Southern Agricultural Economics Association.
    7. Nehring, Richard & Sauer, Johannes & Gillespie, Jeffrey & Hallahan, Charlie, 2016. "United States and European Union Dairy Farms: Where Is the Competitive Edge?," International Food and Agribusiness Management Review, International Food and Agribusiness Management Association, vol. 19(B), pages 1-22, August.

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    More about this item

    JEL classification:

    • Q10 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - General
    • Q12 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture - - - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets

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