Pasture-Based versus Conventional Milk Production: Where Is the Profit?. (November 2014)

• Record Type: Journal Article
• Authors: Gillespie, Jeffrey; Nehring, Richard
• Is Part Of: Journal of agricultural and applied economics. Volume 46:Number 4(2014)
• Page Start: 543
• Page End: 558
• Publication Date: 2014-11
• Subjects: farm management, -- matching samples, -- pasture-based dairy; Q10, -- Q12; Agriculture -- economics; Agriculture -- Economic aspects -- Periodicals; Agriculture -- Economic aspects -- Southern States -- Periodicals; Agriculture -- Economic aspects -- United States -- Periodicals; Agriculture -- Aspect économique -- Périodiques; Agriculture -- Aspect économique -- États-Unis -- Périodiques; Agrarökonomik; Agrarmarkt; USA; Welt; Agriculture -- Economic aspects; United States; Periodicals; 338.10975
• DOI: 10.1017/S1074070800029096
• Languages: English
• ISSNs: 1074-0708

Abstract

Abstract : Costs and returns of pasture-based dairy production are compared with those of conventional production using matching samples. Both whole-farm and dairy enterprise-level estimates are made using the U.S. Department of Agriculture's Agricultural Resource Management Survey data. Conventional farms are matched to pasture-based farms on the basis of operation scale, scope, region, and farmer demographics and adoption of technology. Results show for pasture-based production lower net farm income on per-cow, per-hundredweight milk produced, and total bases. On an enterprise basis, results show for pasture-based production, higher net return over operating cost and lower net return over total cost per hundredweight milk produced.