Whether you are actively dairying, transitioning the farm or just starting out, there are major decisions to be made, and each comes at a price. Luckily, a new set of resources from Iowa State University’s Extension and Outreach Dairy Team can help estimate the income and expenses associated with conventional, organic and pasture-based dairy operations.
This thorough collection of dairy budgets includes examples specific to different breeds, herd milk production levels and rations. Each accounts for income like predicted milk and cattle sales, along with costs such as feed, facilities and labor. All of these factors and more are broken down into detailed line items to paint a realistic financial picture of dairying under the various scenarios.
ISU Dairy Specialist Larry Tranel tells Progressive Dairyman how the budgets were created and how dairy producers across the country can apply this valuable information to their own situations.
Q. How were the budgets compiled?
A. TRANEL: The initial dairy budget was created about 10 years ago. Then, we decided to create specific budgets for various types of operations. Budgets were compiled over the past several years as we considered both conventional and grazing herds with the assistance of former Iowa State University Extension and Outreach Farm Management Specialist Kristen Schulte. Then, in 2014, we received a grant from the Leopold Center at Iowa State University to compile the organic budgets.
Q. How does the variety of budget options reflect the needs and interests of dairy producers of different sizes, scales and styles?
A. TRANEL: It reflects the many ways producers can produce milk with a variety of herd sizes, milk production levels, production schemes and allows producers to fine-tune the budgets to their specific operation.
Q. In what ways do you hope this information will be used?
A. TRANEL: It is hoped this information will be used to help determine which system might be right for beginning producers and those transitioning from one system to another or simply expanding within a system.
Q. Though this information is specific to Iowa dairies, how will producers in other states find it useful?
A. TRANEL: I don’t think it is specific to just Iowa dairies because as I travel, especially on the organic side of things, many of these operations are pretty similar around the country. Anyone can use the budgets and cater to their specific region of the country as well by changing the inputs. PD
The ISU dairy budgets are available as free, downloadable PDFs at the ISU Extension and Outreach website.
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Peggy Coffeen
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- Progressive Dairyman
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