How Much Does A Dairy Farm Owner Make
Edward R. Forte
October 24, 2021
These entrepreneurs primarily feed and care for Holstein, Ayrshire, Jersey, Guernsey and other breeds of dairy cows on their farms.They also plant and grow the hay used for feeding, maintain the barns, operate refrigeration equipment and breed the animals.You can earn a college or university bachelor's degree in agronomy, dairy farm management or agriculture through a state-issued land-grant.Your earnings would be closer to the national average for dairy farm owners in North Carolina, at $52,000 annually.Larger farms tend to drive prices down because of the economies of scale they enjoy -- purchasing products in quantities for lower per-unit costs. .
How large dairies can be the most, and least profitable
It’s long been assumed that large dairies enjoy economies of scale that allow them to have lower costs, be both more competitive and more profitable than their smaller neighbors who milk fewer cows and farm fewer acres.But analysis of farm financial records of dairies which participate in the University of Minnesota’s (U of M) Center for Farm Financial Management show that’s not always true, says Jim Salfer, a U of M Extension dairy specialist.“They tend to be too big to be primarily family managed and too small to take real advantage of the scale of size.”.High profit farms sold about 1.85 million pounds of milk per worker.The highest profit farms average $4,416 of gross margin per cow, driven largely by high milk income and lower net replacement costs.Since large farms were in both categories, volume premiums weren’t the likely driver of these price difference.High profit farms tend to have higher forage quality and lower supplemental feed costs.“The intention here is to compete by economies of scale and volume in the face of tightening margins,” he says.Options include grazing, on-farm processing, organic or specialty markets such as selling genetics.This story originally appeared online on the Farm Journal's Milk webpage. .
Best advice to U.S. dairy farmers? 'Sell out as fast as you can'
Many of the half-dozen farmers NBC News interviewed in Kentucky pointed out that their dairy operations contribute to the local economy, from the farm equipment and feed they buy to the veterinary bills they pay.The closure of farms eliminates jobs in adjacent industries, such as manufacturing, and reduces the population of already struggling areas, said Stephenson, the dairy economist.Dean Foods announced last week that it would close another milk processing plant, in northern Minnesota, affecting about 50 employees and an unknown number of farmers.The company plans to work with 30 local farmers and supply milk to 500 stores in Indiana, Illinois, Ohio, Michigan and Kentucky.A recent Centers for Disease Control and Prevention report found that from 2005 to 2015, suicide rates grew by 30 percent in half of rural counties, a larger increase than in urban areas.Farmers Bob and Angie Klingenfus stand outside the calf barn at Harvest Home Dairy in Crestwood, Kentucky.In Kentucky, Klingenfus is largely able to hold himself together, until he thinks of the four employees who have lived on his land and worked for him for decades.Klingenfus tried to diversify by creating a side agri-tourism business and building a small cheese processing plant, but he doesn’t think he can break even without his Dean Foods contract.After selling their dairy cows, the Coombses are focusing on growing hay and thinking about raising cattle for beef. .
Wisconsin dairy farms rely on immigrant workers, undocumented
He hugged his wife, his parents and his children, then began the journey north to the United States, crossing through Laredo, Texas.It would be the third time since Tecpile's marriage to Veronica Montalvo that he left his country to work on a Wisconsin dairy farm.Tecpile and Montalvo want to finish a home they are building in Astacinga — get the bathroom and kitchen done, install a tile floor, paint the walls.That means for now, Megan will continue to know her father only through the nightly calls and by browsing photos on her mother's cellphone.Talk to workers in Wisconsin, and they express little doubt immigrants account for a larger portion of the dairy industry workforce today.With unemployment low, many farmers fill openings by passing word to Mexican laborers already on-site, and then accepting the new workers who show up without asking too many questions.The immigrants may have to work nights, milk hundreds of cows every shift, toil in the wind and snow.So despite the rancor that surrounds national immigration policy, the workers keep coming and the farms keep hiring.In dairy barns across Wisconsin, farmers and workers say there is a simple truth: Without the work of Latino immigrants — many, if not most, of them undocumented — the signature industry in America’s Dairyland would collapse.Scott Walker initiated an incentive program urging farmers to produce even more, in the belief that foreign markets could absorb the increase.This fall, U.S. Agriculture Secretary Sonny Perdue essentially told family dairy farmers in Wisconsin: Get big or get out.John Rosenow says half of his Buffalo County farm’s 18 employees — including Tecpile — are from Mexico.During his time at Elkhart Lake’s Drake Dairy, the farm has received two job applications from American-born candidates.The other didn’t really want the job; he just needed to claim he was actively searching for work to avoid losing food stamps.When Guerrero himself arrived in Wisconsin 22 years ago, he didn’t have any difficulties finding a dairy farm job.Guerrero, now a citizen and settled with his family in the U.S., started out as an undocumented immigrant, working as a milker, one of the toughest jobs on a dairy farm.Hans Breitenmoser started to hire immigrant workers at his Merrill dairy farm 15 to 20 years ago.By the time she took the job, Hernández already had earned a law degree in Mexico and had worked once before in the United States.Blanca Hernández, left center, and her sister Guadalupe, far right, worked on a farm in Wisconsin for several years before returning to their home in Texhuacán, Mexico.Blanca Hernández, left center, and her sister Guadalupe, far right, worked on a farm in Wisconsin for several years before returning to their home in Texhuacán, Mexico.Blanca Hernández, left center, and her sister Guadalupe, far right, worked on a farm in Wisconsin for several years before returning to their home in Texhuacán, Mexico.From 2012 through 2017, the U.S.
Occupational Safety and Health Administration increased inspections of dairy farms with more than 10 employees or a temporary labor camp.At least 51 Wisconsin dairy farms were found in violation of some safety regulations during this period, according to the OSHA data.A 2009 University of Wisconsin study found that immigrants tended to be relegated to routine, lower-paid tasks such as milkers or pushers, who clean manure in the barns and bring the cows to the milking parlors.In New York state, a 2014-15 survey of 88 immigrant dairy farmworkers, the vast majority working on farms with more than 500 cows, concluded that about half of the workers felt rushed on the job, and breaks could be as short as five minutes in a 12-hour workday.John Peck, executive director of the Madison-based advocacy group Family Farm Defenders, says he would like Wisconsin to be a leader in socially responsible milk production, which would take into account paying workers better wages and paying farmers better prices, instead of measuring only the quality of the product.Peck says consumers may fail to connect inexpensive milk at the store with inadequate pay for farmers, and with low-wage immigrant labor.He has good memories of one owner who made breakfast for workers and a farm that offered $12-an-hour and paid overtime, as required in Minnesota.But there also was a Wisconsin farm where he worked 11- and 12-hour split workdays without a single day off, even for Thanksgiving or Christmas, for four years.The toughest times for Salas were the winters when it was freezing outside and he had to move tires off tarps covering mounds of feed.Her lifelong partner, Gerardo Nájera, says she used to take on 12-hours shifts before he was deported in 2012 and she had to cut back to care for their two U.S.-born children.Her sister, Consuelo Rodríguez, says she would tell Antonia that working at a dairy farm was too hard, a man’s job.At 53, undocumented and living with her two younger children in a trailer that needed repairs, Antonia kept working at Clarks Mills Dairy Farm in Reedsville.Nájera says the plan was for their younger kids to finish school in the U.S. and for Rodríguez to return one day to Ciudad Juárez.Rodríguez walked up from the pit where workers attach milking machines to udders, and onto a concrete pad where the cows were lingering.OSHA fined the 800-cow farm, saying it didn’t ensure employees working with cows were protected from being struck, or provided with training to improve safety.Robert Goehring, co-owner of the farm, says Rodríguez had been working there since 2014 and he had personally trained her on how to move the animals.But the OSHA representative said Goehring needed to train employees on animal behavior, which, he says, he hadn’t heard about.Matthew Sauer, pastor at the Manitowoc Cooperative Ministry, said when he arrived in 2005, there were some Latino workers, but they weren’t very visible in the community.In Clark County, which ranks second in the USDA 2017 census, the historical society newsletter this month noted a recent quinceañera celebration.When President Donald Trump won the election after campaigning to crack down on illegal immigration, many Wisconsin dairy workers were nervous.Apolonio Sánchez says he planned to leave for Canada if Immigration and Customs Enforcement officials started to launch raids close by.Workers were nervous when Trump took office, but the farm owner told them to not pay attention, that the president was crazy.Breitenmoser, the farmer from Merrill, says that the rhetoric against immigrants hasn’t been good for a dairy industry that relies on workers not born in the U.S.He favors a process that would provide a path for undocumented immigrants to acquire legal status.A pedestrian walks past one of a number of businesses that cater to Mexican immigrants in Arcadia in western Wisconsin.Groups like the American Dairy Coalition and the National Milk Producers Federation have pushed to get dairy farms access to foreign agricultural guest workers through a visa program that is now limited to seasonal work, such as crop harvesting.Workers advocates groups pushed for a path to permanent residency and citizenship, which the National Milk Producers Federation also has supported.The bill would create a pilot program with visas allowing workers to move freely among agricultural employers.Explore the forces affecting a signature Wisconsin industry by navigating through common scenarios faced by dairy farmers.Crossing the border on the way north is now riskier and more expensive, he says, with the coyotes who guide and transport immigrants illegally asking for $8,000 or more to help smuggle them.For this story, reporter Maria Perez of the Journal Sentinel staff interviewed immigrants in Spanish, translated their words into English, then checked back with them to make sure the phrasing was correct.Before joining the Milwaukee Journal Sentinel, she covered minority affairs for the Naples Daily News.Before joining the Milwaukee Journal Sentinel, she covered minority affairs for the Naples Daily News.About this series This story is part of a yearlong effort by the Milwaukee Journal Sentinel and USA TODAY NETWORK-Wisconsin to examine the plight of the state's dairy industry.Chapter five: Robotic milking in Canada, struggling farmers in Mexico: How Wisconsin’s trading partners are weathering the dairy crisis. .
Salaries for Dairy Farmers
Farmers.Farmers and ranchers in the United States earned an average salary of $60,750, which equates to an hourly wage of $29.21, according to a 2011 report by the U.S. Bureau of Labor Statistics.Dairy Farms.Ordinarily, dairy farm income would fall when prices drop, but the federal government compensates dairy farmers when prices fall below a set minimum price.Some states offer additional subsidies to dairy farmers. .
Dumped Milk, Smashed Eggs, Plowed Vegetables: Food Waste of
And in South Florida, a region that supplies much of the Eastern half of the United States with produce, tractors are crisscrossing bean and cabbage fields, plowing perfectly ripe vegetables back into the soil.After weeks of concern about shortages in grocery stores and mad scrambles to find the last box of pasta or toilet paper roll, many of the nation’s largest farms are struggling with another ghastly effect of the pandemic. .
• Dairy farms operating income Canada 2019
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https://www.statista.com/statistics/468327/average-net-operating-income-of-dairy-farms-in-canada/.StatCan, Average net operating income of dairy farms in Canada from 2013 to 2019 (in 1,000 Canadian dollars)* Statista, https://www.statista.com/statistics/468327/average-net-operating-income-of-dairy-farms-in-canada/ (last visited October 24, 2021). .
How Much Do Dairy Farmers Make In A Year?
The amount of money that a dairy farmer makes will vary widely based on several factors.The industry average for a dairy farm owner in the United States is around $43,000 per year.You can easily have natural disasters or other mishaps that will put you back both in production and financially.As with all businesses, the income is what's left of money from your product after you've paid overhead and other associated costs.Expenses range from feed and transport to veterinary care and maintaining equipment while paying workers.Larger dairies with more cows produce more milk, bringing in a more considerable income.This discrepancy is because, in the 200-500 range, companies need to start mechanizing more and hiring more workers, which detracts from their profit.Delaware is leading in the list of states where dairy farmers earn the most income, around $50,000 a year, based on our research.Ohio comes at a close second and had been the number one paying state in previous years.As you can see, the highest dollar amount is made from class 1 base milk, and skim tends to provide less income.The average dairy cow can produce around 70 pounds of milk per day, which is about 8 gallons.By law, the dairy producers have to be paid the minimum amount set by FMMO.The average dairy cow will produce one calf each year and has a lactation (milk-producing) cycle of 305 days.How Do Dairy Farmers make income when Their Cows Stop producing milk?Once dairy cows are "retired" after several years (7, on average), there are different routes to take.The lucky ones are put out to pasture to live out the rest of their days, while some are rescued or go to smaller family farms.This is the most economically viable option, as many dairy cows can live over 20 years.Feeding and caring for cows for up to 13 years past their "prime" does not make financial sense.Unhealthy cattle food can make the cows sick and can even disrupt the production of milk.This cuts down on feeding price by doing several things: Eliminating the need for large pastures; cows can remain indoors, fed out of a bin Cutting down the need for fresh feed when supplemented with grain Bulk grain can be purchased at a much lower price By adjusting the feeding process, dairy farmers can add to their bottom line and increase their income.Growing and maintaining fields add to the dairy's workload, but some prefer to feed their cows from the farm itself.Grass At Family Farm Livestock, they break down the cost of annual feed.If the cattle are grazing in fields, the additional cost of grain should only be around $200-$300 annually per cow.The initial investment for dairy cows can be hundreds of thousands of dollars.The breed of cows that a farmer chooses for their dairy herd will determine the farm's output.Breed Cost to buy ($) Production/cycle each year (gallons) Breed Advantage Holstein 1,000-1,200 2,674 High producing Jersey 1,400-1,800 2,190 High quality fat and protein content Red & White Holstein 1,000-1,100 2,900 Good immune system, hardy breed Guernsey 900-3,000 1,580 High in Vitamin A, very nutrient-dense milk Brown Swiss 800-1,500 2,000 Great for most cheeses Ayrshire 2,800-3,200 3,000 Efficient producers, low feed/high volume Shorthorn 1,200-1,800 2,700 Used for milk or beef, can be both.Breeds like Guernsey, Brown Swiss or Ayrshire are more expensive to buy, but their milk produced has a denser nutritional value and can bring in more money per hundredweight.To charge more for their product, dairy farmers are transitioning to supplying premium, organic milk from grass-fed, free-range cows and are finding this to be more financially viable and sustainable, and more well-received by the general public.This higher quality milk can be sold for nearly double the price at the grocery store.Those seeking milk from dairies with stricter treatment standards and better living conditions for the herds will pay upwards of $6.50 per gallon.To be certified organic by the USDA, farmers must meet specific requirements that include the following:.Cows must graze, not be crammed into a small space with a milking machine for the majority of the day, with at least 30% of their diet naturally foraged.Their milk should have different levels of tested acidity due to the grass-fed enzymes and minerals present in grazed cattle.When farmers meet all of the requirements for USDA-certified organic milk, their profits will increase dramatically.The dairy industry has changed a lot in past years and appears to continue to do so.Dairy farmers, for now, are holding steady with an average profit of $43,000 annually, but these numbers may change drastically in coming years. .