A Profitability Analysis of Dairy Feeding Systems in the Northeast

Jonathan R. Winsten, Robert L. Parsons and Gregory D. Hanson

Agricultural and Resource Economics Review, 2000, vol. 29, issue 2, 220-228

Abstract: This study analyzes the use and profitability of three distinct feeding systems; confinement feeding, traditional grazing, and management-intensive grazing from a randomly selected sample of northeastern dairy farms. The confinement feeding farms were significantly larger and produced more milk per cow, while the farms using management-intensive grazing incurred the lowest production costs. Both confinement feeding and management-intensive grazing generated significantly higher rates of return to farm assets relative to farms using a mixed system. Multiple regression analysis confirms the critical importance of herd size, milk production per cow, debt level and veterinary expenses to farm profitability in all production systems.

Date: 2000
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Persistent link: https://EconPapers.repec.org/RePEc:cup:agrerw:v:29:y:2000:i:02:p:220-228_00

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