Dairy Farm Business Summary and Analysis Program Preliminary Progress Report 1

The first DFBS preliminary progress report
for the same 30 farms for 2020 and 2021 has been released

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As farm businesses across New York analyze their financial performance by utilizing the Dairy Farm Business Summary and Analysis Program that is supported by Cornell University, Cornell Cooperative Extension, and PRO-DAIRY, the changes that occurred from 2020 to 2021 can be reviewed. An important purpose of management is to compare how your farm changed from one year to the next, how this compares to your business goals, and how this compares to the industry. Understanding what changes occurred and determining why they changed can help in preparation for making business improvements in 2022.

Some highlights from the first preliminary progress report

• Pounds of milk sold increased 5 percent, driven by a 3 percent increase in milk sold per cow and a 2 percent increase in the average number of cows.
• Hay dry matter tons per acre increased 30 percent, and corn silage tons per acre increased 4 percent. The increase in crop tons produced may attribute to the 130 percent increase in crop revenue per cwt.
• Labor efficiency increased with cows per worker and milk sold per worker increasing 3.6 percent and 6.6 percent respectively.
• Hired labor costs per worker increased 7.5 percent. However, hired labor expense per cwt only increased 1 percent thanks to the increase in milk production.
• Total farm operating costs per cwt increased 5 percent.
• Net milk price increased 6 percent from $19.87 to $20.11.
• Government receipts decreased 92 percent, this reduction is mostly due to the one-time CFAP payments received from the government in 2020 in response to the pandemic.
• Net farm income per cow without appreciation decreased 35 percent to $588 per cow.
• Farm net worth increased 6 percent.