Performance of WNY Dairy Farm Businesses in 2012 - Progress of the Farm Business
John Hanchar, Farm Business Management Specialist
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.
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 Extension’s 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 – for contact information please see information at the front of this newsletter.
For other preliminary results see the team’s website under AgFocus.
Upcoming Events
Pasture Walk at C&H Farms of WNY, LLC
August 26, 2025
Akron, NY
C&H Farms is new to grazing beef cows. Come out to view, discuss, and learn what is working and what needs some adjusting.
Dairy Bovine Reproduction and Artificial Insemination Training Course en Espanol
October 14 - October 15, 2025
Join us for a two-day workshop with hands-on training that will be offered in Spanish in cooperation with Javier Cheang, Genex. Space is limited, register today!
Inaugural New York State Agritourism Conference
November 10 - November 11, 2025
Saratoga Springs, NY
SAVE THE DATE! Inaugural NEW YORK STATE AGRITOURISM CONFERENCE presented by Cornell Cooperative Extension Agritourism Program Work Team
Announcements
We're Hiring: Area Dairy Management Specialist
To apply:Please apply via Academic Jobs Online (https://academicjobsonline.org/ajo/jobs/30185).
Qualified candidates should submit a short cover letter, curriculum vitae, and contact information for three references.
Applications must be submitted by July 31, 2025.
For more information, please contact Peter Landre at ptl2@cornell.edu. Additional information about the Northwest New York Dairy, Livestock and Field Crops Team can be found at https://nwnyteam.cce.cornell.edu/.
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