2009 Dairy Budgets

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Conventional Dairy, Projected Budget for 2009
(150 cow herd, replacements raised)

                                                Production Level              
                                 18,000 lbs. milk sold   22,500 lbs. milk sold
                                  per cow    per cwt.     per cow    per cwt.
ESTIMATED INCOME/ COW
  Milk sales @ $17.75/cwt.       $3,195.00      $17.75   $3,993.75      $17.75
  Government payment                     0                       0
  Calf sales: 47.5% x $100/hd.       47.50         .26       47.50         .21
  Cull cow sales:
    1450 lbs. x 28% x $50/cwt.      203.00        1.13      203.00         .90
  ESTIMATED TOTAL INCOME/COW     $3,445.50      $19.14   $4,244.25      $18.86

ESTIMATED OPERATING COSTS/COW
  Feed                           $2,193.59      $12.19   $2,458.37      $10.93
  Labor            .                371.35        2.06      371.35        1.65
  Veterinary, drugs, and supplies   100.00         .56      110.00         .49
  Utilities and water                55.00         .31       55.00         .24
  Fuel, oil, and all vehicle expense 61.59         .34       61.59         .27
  Milk hauling and promotion        171.00         .95      213.75         .95
  Building and equipment repair     144.86         .80      144.86         .64
  Breeding/genetic charges:
    Semen, A.I. services, supplies   45.00         .25       45.00         .20
    Interest on breeding herd       153.00         .85      153.00         .68
    Insurance on breeding herd       18.00         .10       18.00         .08
  Professional fees
    (legal, accounting, etc.)        22.00         .12       22.00         .10
  Miscellaneous                      20.00         .11       25.00         .11
  Operating interest
    (1/2 of selected operating
    costs x 8.5%)                   128.83         .72      140.73         .63
      Total Operating Costs      $3,484.22      $19.36   $3,818.65      $16.97

ESTIMATED OWNERSHIPS COSTS/COW
  Depreciation on bldgs.
    and equipment                  $258.66      $ 1.44     $258.66      $ 1.15
  Interest on land, bldgs.,
    and equipment                   193.29        1.07      193.29         .86
  Insurance and taxes on land,
    bldgs., equip.                   64.60         .36       64.60         .29

    Total Ownership Costs          $516.55       $2.87     $516.55       $2.30

  ESTIMATED TOTAL COSTS/COW      $4,000.77      $22.23   $4,335.20      $19.27
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    Income over Operating Costs  - $ 38.72    - $  .22     $425.60      $ 1.89
    Income over Total Costs      - $555.27    - $ 3.08   - $ 90.95    - $  .40
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Prepared by Joe Horner, Ag. Economist, Dairy and Beef, and Melvin Brees, Ag.
Economist, FAPRI.
                                                             Prepared 10/29/08
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Rotational Grazing Dairy, Projected Budget for 2009
(150 cow herd, replacements raised)


                                                Production Level              
                                 11,000 lbs. milk sold   14,000 lbs. milk sold
                                  per cow    per cwt.     per cow    per cwt.
ESTIMATED INCOME/ COW
  Milk sales @ $17.75/cwt.       $1,952.50      $17.75   $2,485.00      $17.75
  Calf sales:
    bulls and surplus heifers       170.00        1.55      170.00        1.21
  Cull cow sales:
    1100 lbs. x 18%x $50/cwt.        99.00         .90       99.00         .71
  Government payments:                   0                       0            
  ESTIMATED TOTAL INCOME/COW     $2,221.50      $20.20   $2,754.00      $19.67

ESTIMATED OPERATING COSTS/COW
  Feed                           $1,053.48       $9.58   $1,205.60      $ 8.61
  Labor                             233.33        2.12      233.33        1.67
  Veterinary, drugs, and supplies    80.00         .73       90.00         .64
  Utilities and water                50.00         .45       50.00         .36
  Fuel, oil, and all
    vehicle expense                  50.63         .46       50.63         .36
  Milk hauling and promotion         82.50         .75      105.00         .75
  Building and equipment repair      92.13         .84       92.13         .66
  Breeding/genetic charges:
    Semen, A.I. services, supplies   39.00         .35       39.00         .28
    Interest on breeding herd       136.00        1.24      136.00         .97
    Insurance on breeding herd       16.00         .15       16.00         .11
  Professional fees
    (legal, accounting, etc.)         5.50         .05        5.50         .04
  Miscellaneous                      20.00         .18       25.00         .18
  Operating interest
    (1/2 of operating costs x 8.5%)  69.70         .63       76.81         .55
  Total Operating Costs          $1,928.27      $17.53   $2,125.00      $15.18

ESTIMATED OWNERSHIP COSTS/COW
  Depreciation on bldgs.
    and equipment                  $ 88.26      $  .80     $ 88.26      $  .63
  Interest on land, bldgs.,
    and equipment                   164.47        1.50      164.47        1.17
  Insurance and taxes on
    land, bldgs., equip.             26.85         .24       26.85         .19
    Total Ownership Costs          $279.58      $ 2.54     $279.58      $ 2.00

  ESTIMATED TOTAL COSTS/COW      $2,207.85      $20.07   $2,404.58      $17.18
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    Income over Operating Costs    $293.23      $ 2.67     $629.00      $ 4.49
    Income over Total Costs        $ 13.65      $  .12     $349.42      $ 2.50
______________________________________________________________________________

Prepared by Joe Horner, Economist, Dairy and Beef, and Melvin Brees,
Ag. Economist, FAPRI.
                                                             Prepared 10/28/08
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