@article{Knoblauch:122107,
      recid = {122107},
      author = {Knoblauch, Wayne A. and Putnam, Linda D. and Karszes,  Jason},
      title = {BUSINESS SUMMARY NEW YORK STATE 2003},
      address = {2004-12},
      number = {640-2016-42728},
      series = {Research Bulletin},
      pages = {99},
      year = {2004},
      abstract = {Business and financial records for 2003 from 201 New York  dairy farm businesses are summarized
and analyzed. This  analysis demonstrates the use of cash accounting with  accrual adjustments to measure
farm profitability,  financial performance, and costs of producing milk.  Traditional methods of analyzing
dairy farm businesses are  combined with evaluation techniques that show the  relationship between good
management performance and  financial success.
The farms in the project averaged 314  cows per farm and 22,302 pounds of milk sold per cow,
which  represent above average size and management level for New  York dairy farms. Net farm income
excluding appreciation,  which is the return to the operator's labor, management,  capital, and other unpaid
family labor, averaged $37,978  per farm. The rate of return to all capital invested in the  farm business
including appreciation averaged 3.3  percent.
Differences in profitability between farms  continue to widen. Average net farm income  excluding
appreciation of the top 10 percent of farms was  $250,155, while the lowest 10 percent was a  negative
$145,107. Rates of return on equity with  appreciation ranged from 36 percent to negative 25 percent  for the
highest 10 percent and the lowest 10 percent of  farms, respectively.
Large freestall farms averaged the  highest milk output per cow and per worker, the lowest  total cost
of production and investment per cow, and the  greatest returns to labor, management and capital.  Farms
milking three times a day (3X) were larger, produced  more milk per cow and had higher net incomes than
herds  milking two times per day (2X). Operating costs per  hundredweight of milk were $0.82 per
hundredweight higher  for 3X than 2X milking herds, while output per cow was  4,484 pounds higher. In
2003, farms supplementing the herd  with bovine somatotropin (bST) attained higher rates of  milk production
per cow, had larger herds and were more  profitable than farms not supplementing with bST for all  measures
other than labor and management income per  operator. Farms adopting rotational grazing  generally
produced less milk per cow than non-grazing farms  but had lower costs of production and higher
profitability.  One should not conclude that adoption of these technologies  alone were responsible for
differences in performance.},
      url = {http://ageconsearch.umn.edu/record/122107},
      doi = {https://doi.org/10.22004/ag.econ.122107},
}