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Changes in Production, Cash Flow, and Income with Dairy Herd Expansion¹

Dairy Sciences and Agricultural Economics Departments, Michigan State University, East Lansing 48824

T. L. Stoll

Stoll Farms, Inc., Marshville, OH

ABSTRACT

Forty-seven dairy farms were studied for effects of expansion on cash flow, management income, and various measures of herd performance. Data were from Telfarm records and personal interviews. Farms were divided into two kinds: 18 herds which expanded by 40 cows or more over 2 yr, and 29 herds which expanded 40 cows or more in 4 yr. Average milk production per cow per year decreased 415 kg following expansion. The 4th yr after expansion, milk per cow per year exceeded pre-expansion production by 109 kg. Following expansion, dairymen experienced increased difficulties with animal health, heat detection, manure handling, labor management, and several other operational problems. Problems of cash flow were experienced to some degree by 68% of the expanded farms and were serious on 34% of the farms. They persisted for an average of 2 yr. Rapidly expanded farms experienced a greater decrease in milk production and more cash-flow and operational problems than did gradually expanded farms.

¹ Michigan Agricultural Experiment Station Journal Article No. 8353.

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