@article{Knoblauch:122671,
      recid = {122671},
      author = {Knoblauch, Wayne A. and Putnam, Linda D. and Karszes,  Jason},
      title = {Business Summary New York State, 1999},
      address = {2000-10},
      number = {640-2016-42970},
      series = {RB 00-3},
      pages = {94},
      year = {2000},
      abstract = {Business and financial records for 1999 from 314 New York  dairy farm businesses are
summarized and analyzed. This  analysis demonstrates the use of cash accounting with  accrual adjustments
to measure farm profitability, cash  flow, financial performance, and costs of producing milk.  Traditional
methods of analyzing dairy farm businesses are  combined with improved evaluation techniques to show
the  relationship between good management performance and  financial success.
The farms in the project averaged 224  cows per farm and 21,439 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 $122,210  per farm. The rate of return including appreciation to all  capital invested
in the farm business averaged 9.7  percent.
Differences in profitability between farms  continue to widen. The top 10 percent of farms
average net  farm income excluding appreciation was $578,366, while the  lowest 10 percent was a negative
$10,114. Rates of return  on equity with appreciation ranged from 36 percent to  negative 31 percent from
the highest 10 percent to the  lowest 10 percent of farms.
Farms adopting bovine  somatotropin (bST) experienced greater increases in milk  production, had
larger herds and were more profitable than  farms not adopting bST. Farms adopting rotational  grazing
generally produced less milk per cow than  non-grazing farms, but had somewhat lower costs of  production
and higher profitability. However, one should  not conclude that adoption of these technologies alone  were
responsible for differences in performance.
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 were more  profitable
than herds milking two times per day (2X).  Operating cost per cwt. of milk was $0.03/cwt. higher for  3X
than 2X milking herds, while output per cow was 4,159  pounds higher.},
      url = {http://ageconsearch.umn.edu/record/122671},
      doi = {https://doi.org/10.22004/ag.econ.122671},
}