The 2006 Northeast Dairy Farm Summary Available

The complete 2006 Northeast Dairy Farm Summary is now available. Here are some highlights:

• Net earnings fell to ($64) per cow in 2006, down from $339 per cow in 2005. 
• Farm milk price decreased $2.32 per cwt. to $13.81. 
• Net cost of production was $14.09 per cwt., down from $14.55 in 2005.
• Per cow production increased, but by less than 1%.
• Cash flow was insufficient to meet all financial commitments (e.g., operating expenses, debt repayment, family living, and income taxes).
• Borrowed funds increased to 102% of capital purchases.
• Percent net worth decreased to 70% and liquidity declined.
• The earnings gap between the Top 25% and Bottom 25% profit groups continues to be wide.
• Among dairy farm businesses that are the most profitable, several different business strategies work well. 
• Larger dairy operations have certain advantages, but size is no guarantee of financial success

The competitive standard for the Northeast dairy industry has been rising for many years. Change and progress are critical to remaining profitable in this challenging industry.

For more information
The 2006 Northeast Dairy Farm Summary is available at Farm Credit of Western New York’s offices in Batavia, Geneva, Hornell, and Mayville. Please contact us at info@farmcreditwny.com for more information.

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