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Costs of producing milk rose 53 percent in 1975-84 to $13.57 per hundredweight (cwt). Cash (out-of-pocket) costs rose 56 percent to $10.64 per cwt. Cash receipts, measuring gross production value, peaked in 1981 at $14.94 per cwt compared with $9.23 in 1975. Production costs in the Pacific region were more than $1 per cwt lower than costs in other regions every year during 1975-84. Appalachia and the Corn Belt had the highest costs. In 1983, the Economic Research Service (ERS) revised its cost-of-production estimating procedures and cost-and-return budget formats to incorporate new concepts and methodologies. This report describes those revisions and re-estimates milk production costs for 1975-80 using the new methods and formats to provide comparable estimates for 1975-84.


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