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Abstract

The estimated rate of return to investment in new dairy operations is higher in the Southwestern United States than in Minnesota or Washington, assuming 1981 prices and construction and operating costs. This difference comes from lower investment required per cow, more milk produced per cow, and higher milk prices in the Southwest. The report compares the profitability of dairy farming in Minnesota, Arizona, New Mexico, and Washington. Results indicate that the Southwest likely will continue to increase its share of total U.S. milk production.

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