Economic Impacts of Alternative Sized Dairy Farms in South Dakota

Larry Janssen (), Gary Taylor (), Erik Gerlach and Alvaro Garcia
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Larry Janssen: Department of Economics, South Dakota State University
Gary Taylor: Department of Economics, South Dakota State University
Erik Gerlach: Department of Economics, South Dakota State University
Alvaro Garcia: Department of Economics, South Dakota State University

No 60001, Staff Papers from South Dakota State University, Department of Economics

Abstract: South Dakota dairy industry has shifted toward large operations to offset declining numbers of dairy cows and milk production stemming from rapid exodus of smaller (<100-cow) dairy farms. This study examines the regional and state level economic impacts of expansion by large and medium size modern dairies. Whole-farm budgets were constructed from producer panel and secondary data. Based on IMPLAN results, the 1000-head dairy generally had higher output, employment and value added multipliers resulting from increased feed and wholesale purchases. The 150-head dairy, which raised its own feed and replacement heifers, had higher amounts of value added.

Keywords: Dariy Farms; Farm Size; farm technology (search for similar items in EconPapers)
JEL-codes: Q12 Q13 Q16 (search for similar items in EconPapers)
Date: 2006-06
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Persistent link: http://EconPapers.repec.org/RePEc:sda:staffp:060001

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