Feeding and cropping management practices are critical to the profitably of a dairy business. For harvest years 2016 and 2017, 25 farms were sampled for corn silage and their total mixed ration. These farms monitored monthly income over feed cost (IOFC) and completed an annual financial analysis. The objective was to work with producers and their advisors to examine the whole farm system. Decisions made in one area can have a significant impact in other management areas. Project farms were categorized by their net return over labor and management (profit) and compared for differences in corn silage quality, precision feeding, and IOFC. High net return groups averaged greater milk production, average components, and average gross milk price when compared to medium and low groups. The high group had lower feed costs regardless if based on home raised costs or standardized market costs. There was little difference in average corn silage quality and precision feeding results between net return groups. Medium net return farms had the lowest average milk production by group, but had the highest milk components, which improved their overall milk price. Monthly IOFC was an adequate barometer of profitability when compared to annual financial performance. Producers can do an excellent job managing feed costs and production, but if hired labor or loan payments are excessive, those farms are challenged with little opportunity for improvement.
|Conference||2019 National Farm Business Management Conference|
|Presentation Type||20-Minute Presentation|