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Department of Dairy, Michigan State University, East Lansing
ABSTRACT
Dairy farming is a business. The profit derived from a dairy farm operation is the ultimate concern of the dairyman in his role as manager of that business. To achieve maximum profit, managers must identify and solve problems relating to breeding, feeding, herd health, farm organization, expenses, capital outlay, and labor.
The objective of this paper is to outline and discuss those factors that have a major effect upon profits from large dairy farms in the Mid- west. To accomplish this objective, it is necessary to first focus upon the characteristics of such farms.
Midwestern dairying is typified by the production of feed crops, forage, and grain by the same farm unit producing the milk. Dairying as practiced in the Midwest is basically a means of marketing the products of land and labor. Summary of 1966 farm account records on 266 Southern Michigan dairy farms (2) showed value of all crops produced equivalent to 44% of the income received from milk and cattle sales.
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