Milk production costs and returns per hundredweight sold, by size group, 2005 1/

Fewer than 50-99 100-199 200-499 500-999 1,000 cows All

Item 50 cows cows cows cows cows or more Sizes
dollars per cwt sold
Gross value of production:
Milk sold 15.52 15.58 15.33 15.69 15.14 14.76 15.23
Cattle 1.90 1.52 1.38 1.10 0.98 1.33 1.30
Other income 2/ 0.60 0.55 0.52 0.50 0.48 0.47 0.50
Total, gross value of production 18.02 17.65 17.23 17.29 16.60 16.56 17.03

Operating costs:
Feed--
Purchased feed 3.64 3.76 4.12 5.02 5.65 6.00 5.03
Homegrown harvested feed 5.06 5.09 4.07 3.02 2.58 1.47 3.02
Grazed feed 0.42 0.16 0.11 0.10 0.03 0.01 0.09
Total, feed costs 9.12 9.01 8.30 8.14 8.26 7.48 8.14
Other--
Veterinary and medicine 0.72 0.90 0.81 0.89 0.82 0.65 0.78
Bedding and litter 0.27 0.41 0.27 0.25 0.17 0.09 0.22
Marketing 0.24 0.27 0.24 0.28 0.24 0.27 0.26
Custom services 0.38 0.49 0.37 0.47 0.46 0.35 0.41
Fuel, lube, and electricity 0.77 0.83 0.60 0.55 0.49 0.40 0.55
Repairs 0.71 0.87 0.74 0.57 0.48 0.36 0.56
Other operating costs 4/ 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Interest on operating capital 0.21 0.22 0.19 0.19 0.18 0.16 0.18
Total, operating cost 12.42 13.00 11.52 11.34 11.10 9.76 11.10

Allocated overhead:
Hired labor 0.51 0.81 1.34 1.84 1.80 1.62 1.47
Opportunity cost of unpaid labor 10.66 6.11 3.13 1.34 0.54 0.17 2.30
Capital recovery of machinery and equipment 4/ 5.27 4.58 3.89 2.55 2.03 1.66 2.83
Opportunity cost of land (rental rate) 0.09 0.05 0.04 0.02 0.01 0.01 0.03
Taxes and insurance 0.38 0.33 0.24 0.22 0.18 0.13 0.21
General farm overhead 0.96 0.73 0.67 0.64 0.44 0.27 0.52
Total, allocated overhead 17.87 12.61 9.31 6.61 5.00 3.86 7.36

Total costs listed 30.29 25.61 20.83 17.95 16.10 13.62 18.46

Value of production less total costs listed -12.27 -7.96 -3.60 -0.66 0.50 2.94 -1.43
Value of production less operating costs 5.60 4.65 5.71 5.95 5.50 6.80 5.93

Supporting information:
Milk cows (head per farm) 35 69 133 295 666 2,086 155
Output per cow (pounds) 14,976 17,075 18,185 19,455 20,707 20,191 18,951
Milking frequency more than twice per day (percent of f 0.2 3.58 6.25 23.25 44.24 43.24 7.02
Milk cows injected with bST (head per farm) 0 5 16 56 140 412 24
Organic milk sold (percent of sales) 1.85 1.29 0.42 0.54 0.38 0.26 0.59

1/ Developed from the 2005 Agricultural Resource Management Survey of dairy operations.
2/ Income from renting or leasing dairy stock to other operations; renting space to other dairy operations; co-op patronage dividends
associated with the dairy; assessment rebates, refunds, and other dairy-related resources; and the fertilizer value of manure production.
3/ Costs for third party organic certification
4/ Machinery and equipment, housing, manure handling, feed storage structures, and the dairy breeding herd.
Notes: Coefficients of variation (CVs) were checked for the category totals: gross value of production, and feed, operating, allocated overhead, and total costs.
All CVs were less than 25 percent.
Milk production costs and returns per hundredweight sold, by size group, 2006 1/
Fewer than 50-99 100-199 200-499
Item 50 cows cows cows cows
dollars per cwt sold
Gross value of production:
Milk sold 13.31 13.36 13.19 13.46
Cattle 1.74 1.39 1.26 0.99
Other income 2/ 0.64 0.59 0.55 0.53
Total, gross value of production 15.69 15.34 15.00 14.98

Operating costs:
Feed--
Purchased feed 4.00 4.07 4.35 5.26
Homegrown harvested feed 4.43 4.75 3.83 2.98
Grazed feed 0.42 0.16 0.12 0.10
Total, feed costs 8.85 8.98 8.30 8.34
Other--
Veterinary and medicine 0.75 0.94 0.85 0.94
Bedding and litter 0.28 0.43 0.29 0.26
Marketing 0.25 0.28 0.25 0.29
Custom services 0.40 0.51 0.39 0.49
Fuel, lube, and electricity 0.86 0.91 0.66 0.61
Repairs 0.75 0.92 0.78 0.60
Other operating costs 4/ 0.00 0.00 0.00 0.00
Interest on operating capital 0.29 0.31 0.27 0.27
Total, operating cost 12.43 13.28 11.79 11.80

Allocated overhead:
Hired labor 0.54 0.85 1.42 1.94
Opportunity cost of unpaid labor 10.86 6.26 3.20 1.39
Capital recovery of machinery and equipment 4/ 5.57 4.84 4.13 2.71
Opportunity cost of land (rental rate) 0.09 0.05 0.04 0.02
Taxes and insurance 0.40 0.35 0.25 0.23
General farm overhead 1.00 0.76 0.69 0.66
Total, allocated overhead 18.46 13.11 9.73 6.95

Total costs listed 30.89 26.39 21.52 18.75

Value of production less total costs listed -15.20 -11.05 -6.52 -3.77
Value of production less operating costs 3.26 2.06 3.21 3.18

Supporting information:
Milk cows (head per farm) 35 69 133 295
 Output per cow (pounds) 14,998 17,083 18,231 19,503
Milking frequency more than twice per day (percent of 0.21 3.63 6.33 23.39
Milk cows injected with bST (head per farm) 0 5 17 57
Organic milk sold (percent of sales) 1.85 1.29 0.42 0.54

1/ Developed by updating data from the 2005 Agricultural Resource Management Survey of dairy operations using 2006 prices
2/ Income from renting or leasing dairy stock to other operations; renting space to other dairy operations; co-op patronage divid
associated with the dairy; assessment rebates, refunds, and other dairy-related resources; and the fertilizer value of manure pr
3/ Costs for third party organic certification
4/ Machinery and equipment, housing, manure handling, feed storage structures, and the dairy breeding herd.
 500-999 1,000 cows All
cows or more Sizes
ars per cwt sold

12.89 12.49 12.99

0.89 1.19 1.18
0.51 0.50 0.53
14.29 14.18 14.70

5.99 6.21 5.32

2.44 1.35 2.81
0.03 0.01 0.09
8.46 7.57 8.22

0.87 0.69 0.82

0.18 0.10 0.22
0.25 0.28 0.27
0.49 0.37 0.43
0.54 0.44 0.61
0.50 0.38 0.59
0.00 0.00 0.00
0.27 0.23 0.27
11.56 10.06 11.43

1.89 1.68 1.55

0.54 0.17 2.29
2.16 1.76 2.97
0.01 0.01 0.03
0.19 0.13 0.22
0.46 0.28 0.54
5.25 4.03 7.60

16.81 14.09 19.03

-2.52 0.09 -4.33

2.73 4.12 3.27

667 2,076 159

 20,787 20,214 19,029
45.9 44.32 7.34
147 421 25
0.38 0.26 0.59

airy operations using 2006 prices and milk production.

operations; co-op patronage dividends
d the fertilizer value of manure production.

y breeding herd.
Milk production costs and returns per hundredweight sold, by size group, 2007 1/
Fewer than 50-99 100-199 200-499
Item 50 cows cows cows cows
dollars per cwt sold
Gross value of production:
Milk sold 19.39 19.50 19.27 19.81
Cattle 1.76 1.42 1.28 1.02
Other income 2/ 0.80 0.74 0.68 0.66
Total, gross value of production 21.95 21.66 21.23 21.49

Operating costs:
Feed--
Purchased feed 4.62 4.71 5.13 6.12
Homegrown harvested feed 5.48 5.73 4.73 3.55
Grazed feed 0.46 0.18 0.13 0.11
Total, feed costs 10.56 10.62 9.99 9.78
Other--
Veterinary and medicine 0.78 0.98 0.88 0.98
Bedding and litter 0.29 0.46 0.30 0.27
Marketing 0.26 0.29 0.26 0.31
Custom services 0.42 0.53 0.40 0.51
Fuel, lube, and electricity 0.94 1.01 0.73 0.67
Repairs 0.78 0.95 0.81 0.62
Other operating costs 4/ 0.00 0.00 0.00 0.00
Interest on operating capital 0.31 0.33 0.30 0.29
Total, operating cost 14.34 15.17 13.67 13.43

Allocated overhead:
Hired labor 0.57 0.87 1.46 2.00
Opportunity cost of unpaid labor 11.10 6.41 3.29 1.43
Capital recovery of machinery and equipment 4/ 5.73 4.99 4.27 2.79
Opportunity cost of land (rental rate) 0.10 0.06 0.05 0.02
Taxes and insurance 0.41 0.36 0.26 0.24
General farm overhead 1.04 0.78 0.72 0.68
Total, allocated overhead 18.95 13.47 10.05 7.16

Total costs listed 33.29 28.64 23.72 20.59

Value of production less total costs listed -11.34 -6.98 -2.49 0.90
Value of production less operating costs 7.61 6.49 7.56 8.06

Supporting information:
Milk cows (head per farm) 35 69 133 295
 Output per cow (pounds) 15,027 17,100 18,267 19,552
Milking frequency more than twice per day (percent of 0.19 3.71 6.45 23.82
Milk cows injected with bST (head per farm) 0 5 17 58
Organic milk sold (percent of sales) 1.85 1.29 0.42 0.54

1/ Developed by updating data from the 2005 Agricultural Resource Management Survey of dairy operations using 2007 prices
2/ Income from renting or leasing dairy stock to other operations; renting space to other dairy operations; co-op patronage divid
associated with the dairy; assessment rebates, refunds, and other dairy-related resources; and the fertilizer value of manure pr
3/ Costs for third party organic certification
4/ Machinery and equipment, housing, manure handling, feed storage structures, and the dairy breeding herd.
 500-999 1,000 cows All
cows or more Sizes
ars per cwt sold

19.30 18.90 19.28

0.91 1.26 1.21
0.63 0.62 0.66
20.84 20.78 21.15

7.04 7.39 6.29

3.07 1.70 3.40
0.03 0.01 0.09
10.14 9.10 9.78

0.92 0.72 0.86

0.20 0.11 0.23
0.26 0.29 0.28
0.51 0.39 0.45
0.60 0.49 0.66
0.52 0.39 0.61
0.00 0.00 0.00
0.29 0.25 0.29
13.44 11.74 13.16

1.98 1.76 1.62

0.55 0.17 2.27
2.25 1.84 3.04
0.01 0.01 0.03
0.19 0.14 0.23
0.47 0.29 0.55
5.45 4.21 7.74

18.89 15.95 20.90

1.95 4.83 0.25

7.40 9.04 7.99

668 2,078 164

 20,854 20,225 19,107
46.93 44.66 7.69
150 427 27
0.38 0.26 0.59

airy operations using 2007 prices and milk production.

operations; co-op patronage dividends
d the fertilizer value of manure production.

y breeding herd.
Milk production costs and returns per hundredweight sold, by size group, 2008 1/
Fewer than 50-99 100-199 200-499
Item 50 cows cows cows cows
dollars per cwt sold
Gross value of production:
Milk sold 18.85 18.91 18.74 19.10
Cattle 1.87 1.52 1.35 1.07
Other income 2/ 1.42 1.32 1.23 1.18
Total, gross value of production 22.14 21.75 21.32 21.35

Operating costs:
Feed--
Purchased feed 5.78 5.88 6.37 7.85
Homegrown harvested feed 6.69 6.90 5.83 4.44
Grazed feed 0.43 0.17 0.12 0.11
Total, feed costs 12.90 12.95 12.32 12.40
Other--
Veterinary and medicine 0.79 0.99 0.89 0.99
Bedding and litter 0.29 0.46 0.31 0.27
Marketing 0.26 0.29 0.26 0.31
Custom services 0.42 0.53 0.41 0.51
Fuel, lube, and electricity 1.23 1.32 0.95 0.87
Repairs 0.84 1.03 0.87 0.67
Other operating costs 4/ 0.00 0.00 0.00 0.00
Interest on operating capital 0.15 0.16 0.14 0.14
Total, operating cost 16.88 17.73 16.15 16.16

Allocated overhead:
Hired labor 0.58 0.90 1.52 2.07
Opportunity cost of unpaid labor 11.36 6.55 3.35 1.48
Capital recovery of machinery and equipment 4/ 6.19 5.40 4.60 3.02
Opportunity cost of land (rental rate) 0.09 0.06 0.05 0.02
Taxes and insurance 0.41 0.36 0.26 0.24
General farm overhead 1.06 0.81 0.74 0.70
Total, allocated overhead 19.69 14.08 10.52 7.53

Total costs listed 36.57 31.81 26.67 23.69

Value of production less total costs listed -14.43 -10.06 -5.35 -2.34
Value of production less operating costs 5.26 4.02 5.17 5.19

Supporting information:
Milk cows (head per farm) 35 69 133 294
 Output per cow (pounds) 15,018 17,081 18,290 19,536
Milking frequency more than twice per day (percent of 0.19 3.7 6.47 23.64
Milk cows injected with bST (head per farm) 0 5 17 58
Organic milk sold (percent of sales) 1.85 1.29 0.42 0.54

1/ Developed by updating data from the 2005 Agricultural Resource Management Survey of dairy operations using 2008 prices
2/ Income from renting or leasing dairy stock to other operations; renting space to other dairy operations; co-op patronage divid
associated with the dairy; assessment rebates, refunds, and other dairy-related resources; and the fertilizer value of manure pr
3/ Costs for third party organic certification
4/ Machinery and equipment, housing, manure handling, feed storage structures, and the dairy breeding herd.
 500-999 1,000 cows All
cows or more Sizes
ars per cwt sold

18.44 17.88 18.48

0.94 1.29 1.26
1.13 1.12 1.19
20.51 20.29 20.93

9.47 10.02 8.31

3.78 2.13 4.14
0.03 0.01 0.09
13.28 12.16 12.54

0.93 0.73 0.86

0.20 0.11 0.23
0.26 0.29 0.28
0.51 0.39 0.45
0.79 0.64 0.86
0.57 0.42 0.65
0.00 0.00 0.00
0.15 0.13 0.14
16.69 14.87 16.01

2.06 1.85 1.69

0.56 0.18 2.27
2.43 1.99 3.25
0.01 0.01 0.03
0.19 0.14 0.23
0.48 0.30 0.56
5.73 4.47 8.03

22.42 19.34 24.04

-1.91 0.95 -3.11

3.82 5.42 4.92

670 2,078 168

 20,900 20,226 19,142
47.16 44.63 7.72
151 427 27
0.38 0.26 0.59

airy operations using 2008 prices and milk production.

operations; co-op patronage dividends
d the fertilizer value of manure production.

y breeding herd.
Milk production costs and returns per hundredweight sold, by size group, 2009 1/
Fewer than 50-99 100-199 200-499
Item 50 cows cows cows cows
dollars per cwt sold
Gross value of production:
Milk sold 12.93 13.04 12.98 13.33
Cattle 1.65 1.35 1.19 0.97
Other income 2/ 1.00 0.92 0.86 0.83
Total, gross value of production 15.58 15.31 15.03 15.13

Operating costs:
Feed--
Purchased feed 5.28 5.42 6.01 7.36
Homegrown harvested feed 5.53 5.61 4.74 3.58
Grazed feed 0.44 0.18 0.12 0.10
Total, feed costs 11.25 11.21 10.87 11.04
Other--
Veterinary and medicine 0.86 1.08 0.97 1.08
Bedding and litter 0.32 0.50 0.33 0.30
Marketing 0.29 0.32 0.28 0.33
Custom services 0.46 0.58 0.44 0.56
Fuel, lube, and electricity 0.82 0.87 0.63 0.58
Repairs 0.86 1.05 0.89 0.69
Other operating costs 4/ 0.00 0.00 0.00 0.00
Interest on operating capital 0.02 0.02 0.02 0.02
Total, operating cost 14.88 15.63 14.43 14.60

Allocated overhead:
Hired labor 0.58 0.90 1.54 2.10
Opportunity cost of unpaid labor 11.53 6.65 3.40 1.51
Capital recovery of machinery and equipment 4/ 6.35 5.53 4.72 3.10
Opportunity cost of land (rental rate) 0.09 0.06 0.05 0.02
Taxes and insurance 0.45 0.40 0.28 0.27
General farm overhead 1.08 0.82 0.75 0.72
Total, allocated overhead 20.08 14.36 10.74 7.72

Total costs listed 34.96 29.99 25.17 22.32

Value of production less total costs listed -19.38 -14.68 -10.14 -7.19
Value of production less operating costs 0.70 -0.32 0.60 0.53

Supporting information:
Milk cows (head per farm) 35 69 133 293
 Output per cow (pounds) 15,023 17,083 18,296 19,530
Milking frequency more than twice per day (percent of 0.19 3.7 6.49 23.6
Milk cows injected with bST (head per farm) 0 5 17 58
Organic milk sold (percent of sales) 1.85 1.29 0.42 0.54

1/ Developed by updating data from the 2005 Agricultural Resource Management Survey of dairy operations using 2009 prices
2/ Income from renting or leasing dairy stock to other operations; renting space to other dairy operations; co-op patronage divid
associated with the dairy; assessment rebates, refunds, and other dairy-related resources; and the fertilizer value of manure pr
3/ Costs for third party organic certification
4/ Machinery and equipment, housing, manure handling, feed storage structures, and the dairy breeding herd.
 500-999 1,000 cows All
cows or more Sizes
ars per cwt sold

12.73 12.44 12.81

0.86 1.19 1.14
0.79 0.78 0.83
14.38 14.41 14.78

8.34 8.91 7.54

2.93 1.57 3.27
0.03 0.01 0.09
11.30 10.49 10.90

1.01 0.79 0.94

0.22 0.12 0.25
0.28 0.32 0.31
0.56 0.43 0.49
0.52 0.42 0.57
0.58 0.44 0.66
0.00 0.00 0.00
0.02 0.02 0.02
14.49 13.03 14.14

2.07 1.87 1.71

0.58 0.19 2.28
2.50 2.04 3.31
0.01 0.01 0.03
0.21 0.15 0.24
0.49 0.30 0.57
5.86 4.56 8.14

20.35 17.59 22.28

-5.97 -3.18 -7.50

-0.11 1.38 0.64

671 2,078 170

 20,910 20,226 19,161
47.2 44.63 7.81
151 427 28
0.38 0.26 0.59

airy operations using 2009 prices and milk production.

operations; co-op patronage dividends
d the fertilizer value of manure production.

y breeding herd.