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Abstract

The impact of the Milk Income Loss Contract (MILC) and Section 179 expensing on internal rate of returns (IRR) for three dairy systems, a 120-cow grazing, a 120-cow conventional, and 600-cow concentrated was evaluated. With MILC, the grazing and conventional systems had higher IRRs. Without MILC, the 600- cow dairy had the highest IRR. Without Sec. 179, IRRs declined proportionally more for grazing and conventional systems.

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