The 2004 Northeast Dairy Farm Summary Available

The complete 2004 Northeast Dairy Farm Summary is now available. Here are some highlights:

• Dairy farm profitability reached an all-time high during 2004 due in large part to record high milk prices.  Net Earnings per cow increased to $508, up from $41 in 2003. 
• Farm milk price increased $3.85 per cwt. to $16.95, a new record high.  
• Net cost of production increased $1.41 per cwt., due primarily to higher feed costs, repair expenses, and labor.
• Borrowed funds dropped to 75% of capital purchases as farmers chose to pay cash.
• Percent net worth increased to 70% and liquidity improved.
• The earnings gap between the Top 25% and Bottom 25% profit groups widened to $915 per cow.
• Among dairy farm businesses that are the most profitable, several different business strategies work well. 
• Larger dairy operations have certain advantages but 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 2004 Northeast Dairy Farm Summary is available at Yankee Farm Credit offices or contact us at info@YankeeACA.com.

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