Dairy

Increasing Dairy Base with Millionaire Model Dairy Farms

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Abstract

Those in the dairy industry need to recognize and promote dairy’s importance to the rest of the economy as each cow generates approximately $13,000 in economic activity in the form of jobs, goods and services created by a cow, along with paying taxes on the profits generated. Few recognize the ability of young producers especially to profit strongly with dairy as a career. For example, families in NE Iowa in 2000 and 2002 garnered approximately $100,000 net return to labor after an equity charge milking 100-140 cows with low/mediocre milk prices. In 2004, with much higher milk prices, the five model farms averaged $153,314 net return to labor with a decent quality of life as well, while one family, a seasonal dairy, achieved $244,141 net return to labor. Thus, it is quite possible to milk the dairy industry for high levels of profit.

Keywords: ASL R2098

How to Cite:

Tranel, L., (2006) “Increasing Dairy Base with Millionaire Model Dairy Farms”, Iowa State University Animal Industry Report 3(1). doi: https://doi.org/10.31274/ans_air-180814-672