WISCONSIN DAIRY DATA
Fact sheet series from the Center for Dairy Profitability
2005-02final
October 2005
Final Benchmarks – Dairy Cost of Production, 2004.
Below are the final benchmarks for the 2004 financial year. Since July we have added 80 farms for a total of
660 farm financial records.
The 2004 Cost of Production report is on a per farm, per head and per CWT EQ basis. Feed costs were $878
per head and Vet & Medicine was $128. Total Basic Cost was $2,491 per head or $9.57 per CWT EQ.
Item
Total Income
Feed Purchased
Repair Cost
Vet & Medicine
TOTAL Basic Cost
Per Farm
$563,338
$117,990
$25,590
$16,091
$334,680
Per Head
$4,192
$878
$192
$128
$2,491
Per CWT EQ
$16.10
$3.37
$0.73
$0.46
$9.57
Interest paid was $173 and Total labor costs were $718 per cow. Total Costs were $3,958 per cow or $15.20
per CWT EQ.
Item
Interest Paid
Total Labor Cost
Total Depreciation
TOTAL Cost
Per Farm
$23,248
$95,115
$54,201
$531,800
Per Head
$174
$718
$396
$3958
Per CWT EQ
$0.66
$2.72
$1.52
$15.20
The report shows a total expense of $15.20 to produce $16.06 worth of income (US Average All Milk Price).
This equates to a total income – total expenses of $0.920per cwt eq. This is the first year since 1999 that this
number has been positive. The difference between “Total Income-Total Expense” and Net Farm Income is
the Interest on Equity Capital and the Value of Unpaid Labor and Management plus gain or loss on the sale
of farm Assets.
Item
Total Income-Total Expense
Net Farm Income
Per Farm
$31,538
$104,500
Per Head
$235
$778
Per CWT EQ
$0.92
$2.99
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: Whole Farm, per Head, per Hundredweight Equivalent
Income
Total Income
Expenses
2004
2004
2004
Economic
per Head
per CWT EQ
563,338.75
4,192.16
16.10
2004
2004
2004
Economic
per Head
per CWT EQ
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
117.45
6,374.15
2,131.65
7,184.79
6.68
3,154.03
15,607.10
117,989.82
11,891.59
5,107.44
11,953.42
6,567.41
3,337.45
17,663.41
3,048.78
6,333.03
16,209.16
11,164.33
69.99
14,402.15
5,389.64
200.23
10,626.70
16,090.66
5,701.26
6,332.83
3,227.54
21,777.09
(6,367.43)
(1,519.93)
0.00
12,907.84
0.87
47.43
15.86
53.47
0.05
23.47
116.14
878.04
88.49
38.01
88.95
48.87
24.84
131.44
22.69
47.13
120.62
83.08
0.52
107.18
40.11
1.49
79.08
119.74
42.43
47.13
24.02
162.06
(47.38)
(11.31)
0.00
96.06
0.00
0.18
0.06
0.21
0.00
0.09
0.45
3.37
0.34
0.15
0.34
0.19
0.10
0.50
0.09
0.18
0.46
0.32
0.00
0.41
0.15
0.01
0.30
0.46
0.16
0.18
0.09
0.62
(0.18)
(0.04)
0.00
0.37
334,680.26
2,490.57
9.57
Interest Cost
Other Interest
9,343.82
13,903.88
69.53
103.47
0.27
0.40
Total Interest Cost
23,247.70
173.00
0.66
Employee Benefits - Dependents
Value of Unpaid Labor & Management
4,978.17
8,122.20
8,159.60
41,232.39
25.64
0.00
32,597.32
37.05
60.44
60.72
306.84
0.19
0.00
242.58
0.14
0.23
0.23
1.18
0.00
0.00
0.93
Total Labor Cost
95,115.32
707.81
2.72
Machinery, Equipment, Building Depreciation
Interest on Equity Capital
40,293.16
38,463.88
299.85
286.23
1.15
1.10
Total Depreciation & Equity Cost
78,757.04
586.08
2.25
Total Expenses
531,800.32
3,957.46
15.20
Total Income - Total Expenses
31,538.43
234.70
0.90
Net Farm Income From Operations (NFIFO)
460,739.12
102,599.63
3,428.65
763.51
13.17
2.93
Gain (Loss) on Sale of All Farm Capital Assets
1,900.21
14.14
0.05
Net Farm Income (NFI)
104,499.83
777.65
2.99
Mortgage Interest
Labor Cost
Employee Benefits - Non-Dependents
Labor Hired - Dependents
Labor Hired - Non-Dependents
Pension and Profit-Sharing Plans - Non-Dependents
Pension and Profit-Sharing Plans - Dependents
Depreciation & Equity Cost
Net Farm Income from Operations (NFIFO) Summary
Total Allocated Costs