Mrs. Dianne Shoemaker, Field Specialist, Dairy Production Economics, The Ohio State University Extension
2015 was not a kind year for many Ohio farms. Class III milk price averaged $15.80/cwt with the Federal Order 33 Producer Price Differential adding another $0.40/cwt, resulting in an average statistical uniform price of $16.13/cwt for the year. This is the minimum price that all Grade A shippers should have received for milk at test. 2014 was a much different year with an average statistical uniform price of $22.34/cwt. This dramatic drop in milk price resulted in net return per cow dropping from $1,266/cow in 2014 to $36.42/cow in 2015. For the first time in 5 years, the average net return for the high 20% of herds (sorted on net return per cow) dropped below $1,000 to $905/cow, down from a 5-year high of $1,976/cow in 2014.
There were 40 dairy enterprises included in the 2015 summary. The summary includes 37 conventionally managed herds and 3 organic herds, with 3 conventional herds utilizing robotic milkers. These farms chose to invest their time to analyze the business performance of their farms, dairy, and crop enterprises.
Table 1. Average of selected performance indicators of Ohio dairy farms participating
in the Ohio Farm Business Analysis and Benchmarking Program, 2011 through 2015.1
1Home grown feeds were valued at cost of production.
*Including other revenue adjustments (less the value of cull cows or heifers, bull calves, and breeding stock sold per cwt).
**Does not include a labor and management charge.
Table 2. Selected performance indicators of Ohio dairy farms participating in the Ohio Farm Business Analysis and Benchmarking Program, 2011 through 2015. Averages are shown for the high 20% farms sorted by net return per cow.1
1Home grown feeds were valued at cost of production.
*Including other revenue adjustments (less the value of cull cows or heifers, bull calves, and breeding stock sold per cwt).
**Does not include a labor and management charge
2016 has continued to be a challenge for Ohio dairy farms with the Statistical Uniform Price averaging only $14.82/cwt through October. Benchmark reports that are included in the Dairy Summary are a useful tool that can help farmers identify areas of concern and opportunity as they work to survive this extended period of depressed milk prices.
The complete 2015 Ohio Farm Business Summary and benchmark reports for dairy, crop, and whole farm business analysis will be posted soon on the Ohio Farm Business Analysis & Benchmarking Program Website at http://farmprofitability.osu.edu.