The Empirical Impact of Bovine Somatotropin on New York Dairy Farms

¹ Department of Agricultural, Resource, and Managerial Economics, Cornell University, Ithaca, NY 14853-7801

Data from 259 farms that participated in the Cornell University Dairy Farm Business Summary Project were used to measure the impact of bovine somatotropin (bST) on milk production and profitability per cow. Linear regression was used to estimate the response to bST when other variables were held constant. Bovine somatotropin was a dummy variable for bST use or nonuse in the equations. For farms that used bST on 25% or more of the cow days in 1994, milk production increased by 510 kg per cow. Returns above purchased feed costs increased $153 per cow for farms that used bST. Milk receipts over operating costs increased $120 per cow for farms that used bST. The use of bST was estimated to increase net farm income by $27 per cow, but this estimated coefficient was not statistically different from 0. Differences in costs for labor or veterinary services per cow were not significantly different between farms that used bST and farms that did not use bST.

Key Words: bovine somatotropin • dairy farm economics • dairy management

Submitted on April 11, 1996
Accepted on October 17, 1996