Top 5 States for Total Beef Production

In 2015, over half of the milk produced in the U.Due south. came from five states: California, Wisconsin, Idaho, New York, and Pennsylvania. These states have deemed for over 50% of U.Southward. milk production annually for the last decade. Despite annual product rankings, how do these states compare betwixt themselves for almanac milk per cow, milk price, feed cost, and more importantly income over feed cost (IOFC)?

Income per Cow

To determine the highest almanac gross income per cow, ii factors have to exist considered: milk production per cow and gross milk toll. As Figure 1 depicts for 2015, 20% of the U.S. milk production came from California. However, California had the 2d highest milk product per cow and the everyman milk income per cow. Idaho had the highest product per cow, averaging over 66 lbs per cow per mean solar day statewide. Pennsylvania had the highest all-milk price at $xviii.46/cwt in 2015, and every yr for the past nine years. New York accomplished the elevation milk income per moo-cow in 2015--$11.34 per cow per day. New York likewise led the meridian dairy states in milk income per cow the final nine years.

Figure i. 2015 Top v dairy states ranked past milk production, milk cost, feed cost, and income over feed cost (IOFC).

Determining Feed Costs

Feed costs typically account for xl to 60% of the cost of milk production, simply vary greatly among individual operations. To determine the annual feed cost for these v states, three feed prices were analyzed: corn grain, alfalfa hay, and 48% soybean meal. Corn grain and alfalfa hay prices were available for each state from annual National Ag Statistic Service rankings (www.nass.usda.gov). For soybean meal, the marketplace summary (provided by USDA Agricultural Marketing Service) closest to the state was used to calculate annual toll per ton averages. Soybean repast prices for New York and Pennsylvania were provided by the monthly Feed Price List (Ishler, 2016). Finally, feed costs were estimated based on an every bit-fed ration outlined in "Tracking Milk Prices and Feed Costs" by Bailey & Ishler (2008) and adapted according to the average milk per milk cow for a country.

As depicted in Effigy 1 for 2015, Wisconsin ranked the highest for the cheapest feed cost ($2.74 per cow per day). Pennsylvania was second, at simply under $four.00 per cow per mean solar day, while the remaining 3 states all had feed costs in the $4.05 to $four.twenty range. Wisconsin had the lowest feed cost for these five states in eight of the final nine years. This tin exist attributed to their low corn grain and alfalfa hay prices.

Income over Feed Cost (IOFC)

Taking the departure between milk income per cow and feed price per moo-cow results in the IOFC. This is how much money is left per cow per day to cover all expenses other than feed (labor, supplies, facility maintenance, debt service, etc.). In 2015, Wisconsin led the top dairy states in IOFC ($viii.28). The next closest land was New York at $7.15. As seen in Figure 2, Pennsylvania was 2d to final for IOFC at $6.34. Over the final 9 years, Pennsylvania ranked first in IOFC only once and ranked 2d twice.

Effigy 2. Almanac income over feed toll (IOFC) for the top v dairy states.

It is interesting to note that in 2015 the states with the highest production, product per moo-cow, and fifty-fifty highest milk income per cow did not accept the highest IOFC. For example, despite being in the tiptop one or ii for milk per milk cow for the concluding nine years, California has averaged the lowest IOFC of any of the peak dairy states (Figure two). Too, Pennsylvania was second in feed costs simply adjacent to last in IOFC due to low production per cow.

Summary

Though in that location are other expenses contributing to the price of milk production, IOFC is a adept starting bespeak to assess how market and product fluctuations are impacting a dairy operation. Achieving practiced IOFC for an individual herd means maintaining the right residual of strong milk production and reasonable feed cost. Determining the breakeven cost of production allows the herd to then apply the IOFC information to make more informed management decisions. Individual herds should examine their ain IOFC and calculate it routinely to assistance assess how their operations are performing and reacting to market (milk and feed) volatility and continuous changes in production.

References

• Bailey, K. and 5. Ishler. " Tracking Milk Prices and Feed Costs ". Penn State Extension Publication #UA443. 9/3/2007.
• Gould, B. "National Feedstuffs: Soybean Meal, Loftier Protein". Summary of USDA AMS Grain Reports. 2016.
• Corn image.
• Cow image.
• Ishler, V. " Feed Price List". Last accessed 3/1/2016.
• Milk carton image.
• National Ag Statistics Service. "Milk Production, Disposition, and Income Annual Summary". Last Accessed three/1/2016.
• SAS Constitute Inc., SAS 9.1.3 Maps, Cary, NC: SAS Plant Inc., 2002-2004. Created 3/xvi/2016.

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Source: https://extension.psu.edu/top-5-dairy-states-vary-in-production-feed-cost-and-income-over-feed-cost

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