By Blake Jackson
According to a new report from Cornell Pro-Dairy, the average dairy farm in New York state now has 1,233 cows and produces 27,222 pounds of milk per cow annually. This is a significant increase from 1993, when the average dairy farm had 130 cows and produced 18,858 pounds of milk per cow.
The report also found that the capital investment per cow has increased from $6,462 in 1993 to $13,182 in 2022. This includes all facilities, machinery, equipment, and more to run a dairy farm. The debt per cow has also increased, from $2,254 in 1993 to $4,045 in 2022.
Despite the increase in debt, the average dairy farm net worth has also increased significantly, from $553,370 in 1993 to $12.2 million in 2022. This is due in part to the increase in milk prices, which have risen by 37% over the past year.
The report also found that the rate of return on all capital without appreciation was equal to 11.6% in 2022. This is a healthy return on investment, but it is important to note that the dairy industry is a cyclical industry, and profits can vary greatly from year to year.
Overall, the report shows that New York dairy farms have become more efficient and productive over the past 30 years. However, the industry is still facing a number of challenges, including high input costs and labor shortages.
Photo Credit: gettyimages-digitalvision
Categories: New York, Equipment & Machinery, Livestock, Dairy Cattle