Relationship of management factors to differences in profitability among Virginia dairy farms

Seventy-seven randomly chosen herds were personally surveyed for management information. Dairymen were questioned for 1.5 hours about milking systems and practices, feeding, reproductive and genetic aspects of breeding, calf raising and finances. Seventeen non-DHI herds were included.

Objectives of the study were to assemble data that described farm management practices not found in DHI records and to relate these data to four measures of profitability.

Type of milking system accounted for production differences of 680 kg less milk for herds milking in flatbarns in contrast to parlors. Parlor type had no effect. Dry cow treatment reduced mastitis. A count of six recommended milking practices showed an annual increase of 246 kg milk. per cow per practice implemented.

Optimal ages of first calving were found for average production, net cash income per cow and profit per cow. These were 35,29 and 26 months, respectively.

Genetic indices failed to explain differences in production or profitability. Feeding programs accounted for the largest portion of expenses and were of great importance to profitability and production. Income over feed cost and feed cost as a percentage of total expense were most important, with major forage fed and degree of crop analysis having significant effects on profits.

Models using investment per cow, debt per cow, average interest rate and net income per cow were good predictors of profitability (R² = .29 to .52).

DHI herds were 383 kg superior to non-DHI herds in annual milk per cow, had 15 more cows and $81 more net cash income per cow, none significant. Higher production per cow led to more net cash income per cow except for medium-sized herds.