By Blake Jackson
The Dairy Farm Business Summary and Analysis Program (DFBS) for 2023 revealed a significant decline in net farm income for participating farms.
The primary factor driving this decline was a substantial drop in the net milk price received, which plummeted 18 percent from the record highs of 2022.
While increases in other revenue streams partially offset the milk income loss, the overall impact on farm profitability was substantial.
Despite the average decline, there was considerable variation in earnings among farms. The lowest quartile of farms experienced a negative rate of return, while the highest quartile achieved a positive rate of return.
This indicates that while many farms struggled, others demonstrated resilience and effective management strategies.
The DFBS data for 2023 provides valuable insights into key measures of productivity, efficiency, and financial performance for New York dairy farms.
By analyzing the data across different earning quartiles, farmers can identify areas for improvement and benchmark their operations against peers.
The DFBS program, with 139 participating farms, categorized farms into four groups based on their rate of return on all assets without appreciation.
The lowest quartile averaged a negative rate of return, while the highest quartile achieved a 7.4 percent rate of return. This highlights the significant variation in profitability within the industry.
Understanding these trends and identifying areas for improvement is crucial for dairy farmers to navigate the challenges of a volatile market and ensure long-term sustainability.
Photo Credit: gettyimages-vm
Categories: New York, Livestock, Dairy Cattle