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Performance of WNY Dairy Farm Businesses in 2012 - Progress of the Farm Business

John Hanchar, Farm Business Management
Northwest New York Dairy, Livestock & Field Crops

July 8, 2013

Summary
  • While milk sold per cow rose about 2.5 percent, gross milk sales per hundredweight (cwt.) fell $2.03 to $19.76 in 2012 when compared to 2011.
  • In 2012, the total cost of producing a cwt. of milk was $19.00, a decrease of 10 cents per cwt. relative to 2011.
  • Preliminary results compiled on April 4, 2013 suggest that the same 46 WNY farms achieved decreased levels of profitability in 2012 compared to 2011 -- for example, in 2012, the rate of return on all capital without appreciation averaged 6.4 percent compared to 11.2 percent in 2011.
IntroductionThe following preliminary results were compiled by Linda Putnam, Extension Support Specialist, The Charles H. Dyson School of Applied Economics and Management, Cornell University, on April 4, 2013 using data from Cornell University Cooperative Extension's DFBS Program. The results were reported to, and used by participants during the WNY Region's meeting for cooperators in April 2013. Participants used results to identify strengths and weaknesses of their businesses. The results reported below represent averages for the same 46 WNY Region farms cooperating in 2011 and 2012.
Profitability
  • Net farm income without appreciation per cwt. of milk averaged $2.97 in 2012, a decrease of about 38 percent compared to 2011.
  • Rate of return on equity capital without appreciation fell to 7.6 percent in 2012 from 14.8 in 2011.
  • In 2012, the rate of return on all capital without appreciation was 6.4 percent, a decrease of 43 percent relative to 2011.

Income Generation
  • Gross milk sales per cow decreased from $5,462 in 2011 to $5,074 in 2012, a decrease of 7.1 percent.
  • Gross milk sales per hundredweight (cwt.) fell from $21.79 to $19.76.

Rates of Production
  • Milk sold per cow rose from 25,060 pounds in 2011 to 25,681 pounds in 2012, a change of 2.5 percent.
  • Hay dry matter per acre averaged 3.2 tons, down 11 percent from 2011, while corn silage per acre increased from 16.6 to 17.5 tons.

Cost Control
  • Dairy feed and crop expense per cwt. of milk rose from $7.55 in 2011 to $8.24 in 2012, an increase of 9.1 percent.
  • In 2012, purchased input cost of producing a cwt. of milk was $16.79, a decrease of 1 percent relative to 2011.
  • Total cost of producing a cwt. of milk fell from $19.10 to $19.00.

Size of Business
  • The average number of cows per farm rose 4.6 percent.
  • Worker equivalents per farm rose about 7.5 percent to 16 in 2012, while cows per worker fell slightly from 48 to 47.
  • Total tillable acres increased 4.1 percent. 

Final Thoughts

Owners of dairy farm businesses cooperate in Cornell University Cooperative Extensionís DFBS Program for purposes of identifying strengths and weaknesses by comparing their results to results of other cooperators. Are you interested in realizing the benefits of DFBS participation? To learn more contact John Hanchar Ė for contact information please see information at the front of this newsletter.

For other preliminary results see the teamís website under AgFocus.




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Upcoming Events

2019 Corn Silage Pre-Harvest Workshop - Penn Yan

September 17, 2019
10:00am to Noon
Penn Yan, NY

Corn silage harvest is drawing near. The way corn silage is harvested and stored is a single event that affects your operation for the entire next year. Are you prepared to set your operation up for success? 
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Ontario County Fun on the Farm

September 21, 2019
11:00 am- 4:00 pm
Seneca Castle, NY

Fun on the Farm works to educate non-farm public and our neighbors about agriculture around them. It is fun and educational.

Fun on the Farm attracts thousands of people and gives us the opportunity to communicate to the community the benefits of the agricultural production in Ontario County, the state, and the nation.

The event is free! There are many agricultural products that are available to be sampled. It is the perfect place to try that product you have seen in the store but didn't want to commit to purchasing.

Food is available to purchase for lunch. It is provided by a local service group.
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Bovine Reproduction and AI Training Course

September 24 - September 25, 2019
9:30am - 3:30pm
Shortsville, NY

**CLASS IS FULL**

This two-day AI workshop will be held on September 24 and 25. 

Topics covered will include:

• Reproductive Physiology
• Synchronization Protocols
• Heat Detection
• Artificial Insemination
• Proper Thawing of Semen
• Loading A.I. guns
• Practice Breeding Cows

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Announcements

Preventing Sexual Harassment on Farms

If you're wondering how to get your farm business in compliance with NYS Sexual Harassment Regulations, you've come to the right place.  The 2018 New York State budget included new regulations addressing sexual harassment in the workplace that became effective on October 9, 2018 for all New York employers, including agricultural employers. All employers are required to have a sexual harassment prevention policy and to provide annual, interactive sexual harassment prevention training for all employees.  Check out the resources developed by Cornell Ag Workforce Development, including step-by-step instructions and farm-friendly training videos.


RMA Announces Additional One-time Changes to Prevented Planting Provisions

June 29, 2019

RMA Announces Additional One-time Changes to Prevented Planting Provisions
for 2019 Crop Year

In response to delayed and prevented planting resulting from above average rainfall and wetness, the USDA Risk Management Agency has made a one-time change to the 2019 crop year prevented planting rules that effectively allows silage corn, if planted as a cover crop following local agricultural expert guidelines, to be acceptable as a post-prevented planting cover crop. Under this one-time rule change, producers are allowed to produce this crop while retaining their prevented planting payment. This change couples with previously announced one-time changes to the prevented planting rules - including expanded acceptable uses for post-prevented planting cover crops and a change in the cover crop haying and grazing start date rule - serve to help those struggling to meet their forage needs due to the weather.

Read the full article from the New York Crop Insurance Education Program.

The USDA-RMA states that "For crop insurance purposes, a cover crop is a crop generally recognized by agricultural experts as agronomically sound for the area for erosion control or other purposes related to conservation or soil improvement." PRO-DAIRY specialists Joe Lawrence and Karl Czymmek and Dr. Quirine Ketterings, Professor and Director of Cornell Nutrient Management Spear Program have released a letter stating "Corn on Prevented Planting acres meets these objectives."


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