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Abstract
Despite the ongoing trend of higher intensities in dairy farming, some farmers select
rather low-input systems. We identify such system in an agricultural bookkeeping
dataset and assess economic effects of this system selection under volatile prices
situations using cluster analysis and direct covariates matching. We find one lowinput
cluster with low levels of input use and three clusters with rather higher input
levels. Those clusters differ in site conditions, farm size and milk production. After
applying the matching methodology, the results indicate that choosing a low-input
system does not affect farm income but reduces the work load and borrowed capital
even under volatile markets.