Increasing Dairy Base with Millionaire Model Dairy Farms

Abstract

<p>Those in the dairy industry need to recognize and promote dairy’s importance to the rest of the economy as each cow generates approximately $13,000 in economic activity in the form of jobs, goods and services created by a cow, along with paying taxes on the profits generated. Few recognize the ability of young producers especially to profit strongly with dairy as a career. For example, families in NE Iowa in 2000 and 2002 garnered approximately $100,000 net return to labor after an equity charge milking 100-140 cows with low/mediocre milk prices. In 2004, with much higher milk prices, the five model farms averaged $153,314 net return to labor with a decent quality of life as well, while one family, a seasonal dairy, achieved $244,141 net return to labor. Thus, it is quite possible to milk the dairy industry for high levels of profit.</p>