Economics

The Ride is Getting Wilder by the Minute: The Costs of Nutrients and Comparison of Feedstuffs Prices
Dr. Normand St-Pierre, Dairy Management Specialist,
Department of Animal Sciences, The Ohio StateUniversity

Currently, feed costs account for close to 60% of milk revenues on the average Ohio farm.  The Cow-Jones Index, a measure of profitability in the dairy sector, has been under the $8 profitability threshold for 3 months in a row.  Careful selection of feeds can help in these times of tight margins.

Milk Price Outlook
Dr. Cameron Thraen, State Specialist, Dairy Markets and Policy,
The Ohio State University Extension, Agricultural, Environmental, and Development Economics

Summary of projected production and price information issued by the USDA-Economic Research Service in its Livestock, Dairy, & Poultry Outlook report issued on September 19.

Cows and Credit: How Much Debt Can a Cow Carry?
Dianne Shoemaker, Extension Dairy Specialist,
Ohio State University Extension

Credit issues are making headlines, but on-going, responsible management of credit plays a key role in successful dairy businesses.  How much income do your cows have to generate to cover scheduled principal, interest, and capital lease payments each year?  What can we reasonably expect cows to do?  Measure 10: Scheduled debt payment, of the 15 Measures of Dairy Farm Competitiveness gives guidance about competitive levels and what to do if you are asking your cows to do too much.

Dairy Risk Management Programs in the Food, Conservation, and Energy Act 2008:
Milk Income Loss Contract Program and Livestock Gross Margin-Dairy
Insurance

Dr. Cameron Thraen, State Specialist, Dairy Markets and Policy,
The Ohio State University Extension, Agricultural, Environmental, and Development Economics

Learn the significant changes made by the Food, Conservation and Energy Act of 2008 Dairy Title to the 2002 Milk Income Loss Contract (MILC) program.  A summary of the new Livestock Gross Margin-Dairy insurance product is also provided.