Low costs drive production to large dairy farms

Dairy farming is undergoing striking changes. In the 1970s, a large dairy farm had a herd of 100 milk cows. Typically, the family operating the farm provided most of the labor and grew most of the herd's feed on the farm. While thousands of such farms remain in operation, their numbers, as well...

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Bibliographic Details
Published in:Amber waves 2007-01, Vol.5 (4), p.30-35
Main Authors: McDonald, J.M, McBride, W.J, O'Donoghue, E.J
Format: Article
Language:English
Subjects:
Agricultural production
Agriculture
Costs
Dairy cattle
dairy farming
Dairy farms
Dairy products
Environmental policy
Farmers
large farms
Milk
Milk production
Opportunity costs
Prices
Production costs
Profits
Salvage value
small farms
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Summary:Dairy farming is undergoing striking changes. In the 1970s, a large dairy farm had a herd of 100 milk cows. Typically, the family operating the farm provided most of the labor and grew most of the herd's feed on the farm. While thousands of such farms remain in operation, their numbers, as well as their production methods, are in sharp decline. During the 1970s, a different type of dairy farm began appearing in Western States such as California. These operations were much larger, often with herds of 1,000-2,000 milk cows. Since the returns to small dairy enterprises do not cover all of their costs, many more small enterprises are leaving dairy farming than are entering. While structural change has led to improved efficiency and lower milk prices, it also concentrates milk cows and their manure onto a smaller land base.
ISSN:1545-875X
1545-8741
1545-875X