WISCONSIN DAIRY DATA
Fact sheet series from the Center for Dairy Profitability
2006-03
August 2006
Benchmarks – Dairy Cost of Production, 2003-2005
Below are final benchmarks for the 2005 financial year and final benchmark data for the years 20032005. In the 2005 financial year we have 617 farm financial records; there are 685 records from 2004
and 707 records from 2003.
The 2005 Cost of Production report is on a per CWT EQ basis. Feed cost decreased by $0.43 CWT EQ
from 2004. Total Basic Cost decreased by $0.53 per CWT EQ.
Item
Average all Milk Price
Feed Purchased
Repair Cost
Vet & Medicine
TOTAL Basic Cost
2005
$15.13
$2.95
$0.69
$0.43
$9.10
2004
$16.10
$3.38
$0.73
$0.45
$9.63
2003
$12.50
$2.49
$0.58
$0.38
$7.74
Interest paid has remained fairly constant with labor cost and depreciation increasing.
Item
Interest Paid
Total Labor Cost
Total Depreciation
TOTAL Cost
2005
$0.66
$2.60
$1.53
$14.61
2004
$0.68
$2.71
$1.53
$15.25
2003
$0.65
$2.41
$1.18
$12.81
The report shows a total expense of $14.61 to produce $15.14 worth of income (US Average All Milk
Price). This equates to a “total income – total expense” of $0.52 CWT EQ. This is the second year
since 1999 that this gauge of dairy farm finances has been positive. This is $0.33 per CWT EQ lower
than in 2004 ($0.85) but it is still $0.83 per CWT EQ higher than the in 2003 (-$0.31).
Item
Total Income-Total Expense
Net Farm Income
2005
0.52
$2.53
2004
$0.85
$2.91
2003
-$0.31
$1.58
The Center for Dairy Profitability is a unit of the University of Wisconsin-Extension.
Mail: 1675 Observatory Drive, Rm. 277 Animal Sciences, UW-Madison, Madison, Wisconsin 53706
Phone: 608.263.5665 Fax: 608.262.9017 Website: http://cdp.wisc.edu
Cost of Production
Report Basis: per Hundredweight Equivalent
2005
Economic
Income
Total Income
Expenses
15.13
2005
Economic
2004
Economic
16.10
2004
Economic
2003
Economic
12.50
2003
Economic
Basic Cost
Cost of Items for Resale
Breeding Fees
Car and Truck Expenses
Chemicals
Conservation Expenses
Custom Heifer Raising Expenses
Custom Hire (Machine Work)
Feed Purchase
Fertilizer and Lime
Freight and Trucking
Gasoline, Fuel, and Oil
Farm Insurance
Rent/Lease Equipment
Rent/Lease Other
Repairs and Maintenance
Building and Fence Repairs
Machinery Repairs
Seeds and Plants Purchased
Storage and Warehousing
Supplies Purchased
Taxes - Other
Taxes - Payroll
Utilities
Veterinary Fees and Medicine
Other Farm Expenses
Marketing & Hedging
Other Crop Expenses
Other Livestock Expenses
- Change in Prepaid Expenses
Change in Accounts Payable
Selling Expense of Capital Items
Depreciation on Purchased Breeding Livestock
Total Basic Cost
0.01
0.17
0.06
0.19
0.00
0.05
0.43
2.95
0.33
0.15
0.43
0.18
0.07
0.49
0.07
0.18
0.44
0.34
0.00
0.41
0.14
0.00
0.30
0.43
0.13
0.14
0.09
0.63
(0.07)
(0.01)
0.00
0.37
9.10
0.01
0.18
0.06
0.21
0.00
0.09
0.44
3.38
0.33
0.15
0.34
0.19
0.09
0.51
0.09
0.19
0.45
0.31
0.00
0.41
0.15
0.01
0.30
0.47
0.16
0.18
0.09
0.64
(0.14)
(0.04)
0.00
0.38
9.63
0.00
0.15
0.05
0.17
0.00
0.04
0.38
2.49
0.27
0.13
0.26
0.17
0.07
0.47
0.07
0.13
0.38
0.26
0.00
0.36
0.14
0.00
0.27
0.39
0.12
0.14
0.08
0.55
(0.02)
(0.01)
0.00
0.21
7.73
Interest Cost
Mortgage Interest
Other Interest
Total Interest Cost
0.31
0.35
0.66
0.28
0.40
0.68
0.30
0.35
0.65
Employee Benefits - Dependents
Employee Benefits - Non-Dependents
Labor Hired - Dependents
Labor Hired - Non-Dependents
Pension and Profit-Sharing Plans - Non-Dependents
Pension and Profit-Sharing Plans - Dependents
Value of Unpaid Labor & Management
Total Labor Cost
0.14
0.22
0.24
1.10
0.00
0.00
0.90
2.60
0.14
0.24
0.22
1.19
0.00
0.00
0.93
2.71
0.12
0.20
0.17
1.04
0.00
0.00
0.89
2.41
Depreciation & Equity Cost
Machinery, Equipment, Building Depreciation
Interest on Equity Capital
Total Depreciation & Equity Cost
1.16
1.09
2.26
1.15
1.07
2.22
1.05
0.97
2.02
Total Expenses
14.61
15.25
12.81
Total Income - Total Expenses
0.52
0.85
(0.31)
Net Farm Income from Operations (NFIFO) Summary
Total Allocated Costs
Net Farm Income From Operations (NFIFO)
Gain (Loss) on Sale of All Farm Capital Assets
12.62
2.51
0.02
13.24
2.86
0.06
10.95
1.55
0.03
Net Farm Income (NFI)
2.53
2.91
1.58
Labor Cost