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  • Title: Effects of stored feed cropping systems and farm size on the profitability of Maine organic dairy farm simulations.
    Author: Hoshide AK, Halloran JM, Kersbergen RJ, Griffin TS, DeFauw SL, LaGasse BJ, Jain S.
    Journal: J Dairy Sci; 2011 Nov; 94(11):5710-23. PubMed ID: 22032396.
    Abstract:
    United States organic dairy production has increased to meet the growing demand for organic milk. Despite higher prices received for milk, organic dairy farmers have come under increasing financial stress due to increases in concentrated feed prices over the past few years, which can make up one-third of variable costs. Market demand for milk has also leveled in the last year, resulting in some downward pressure on prices paid to dairy farmers. Organic dairy farmers in the Northeast United States have experimented with growing different forage and grain crops to maximize on-farm production of protein and energy to improve profitability. Three representative organic feed systems were simulated using the integrated farm system model for farms with 30, 120, and 220 milk cows. Increasing intensity of equipment use was represented by organic dairy farms growing only perennial sod (low) to those with corn-based forage systems, which purchase supplemental grain (medium) or which produce and feed soybeans (high). The relative profitability of these 3 organic feed systems was strongly dependent on dairy farm size. From results, we suggest smaller organic dairy farms can be more profitable with perennial sod-based rather than corn-based forage systems due to lower fixed costs from using only equipment associated with perennial forage harvest and storage. The largest farm size was more profitable using a corn-based system due to greater economies of scale for growing soybeans, corn grain, winter cereals, and corn silages. At an intermediate farm size of 120 cows, corn-based forage systems were more profitable if perennial sod was not harvested at optimum quality, corn was grown on better soils, or if milk yield was 10% higher. Delayed harvest decreased the protein and energy content of perennial sod crops, requiring more purchased grain to balance the ration and resulting in lower profits. Corn-based systems were less affected by lower perennial forage quality, as corn silage is part of the forage base. Growing on better soils increased corn yields more than perennial forage yields. Large corn-based organic dairy farms that produced and fed soybeans minimized off-farm grain purchases and were the most profitable among large farms. Although perennial sod-based systems purchased more grain, these organic systems were more profitable under timely forage harvest, decreased soil quality, and relatively lower purchased energy prices and higher protein supplement prices.
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