I recently had the opportunity to visit Arizona Dairy, a large 3,000-cow herd. The dairy claimed it had lost $1,050,000 in the production year 2003. Since then I have been analyzing dairies in the Detroit Lakes and New York Mills area. The top two farms, as rated by return per cow, came from herds that are 60 cows or less. One herd had a net return of $1,146 per cow and the other had a net return of $1,005 per cow. If bigger is better, how can these numbers be true? I’m from the old school of agriculture that says a dairy animal needs individual attention. I also believe that an economical farm unit can be a small family business. A two-family operation is preferable so one of the families can take a vacation once in a while. Small farms, high returns The two farms with the high return per cow had a few things in common. One is that there is little or no debt. Another is that they both raise good quality feed and do not buy very much. Their ration is mostly roughage, toward that 70 percent level. The cattle are not on cement all the time. They have access to sod pasture or a clean lot for exercise daily. They both milk only twice per day. They do not have more than a 17,000-pound herd average. Their cows stay in the herd longer than the average one and a half years. They have significantly lower than average veterinary bills. When I work with them on their farm I enjoy a good glass of fresh raw cow’s milk. I firmly believe there is no better food than milk from a healthy cow. If I get to vote this year I’ll vote for the small, efficient dairy farmer. Small farms are still possible, whether it’s dairy, livestock or grain. Proper management is the key to a farm’s success, not the size of the operation. For more information on farm business management, please contact a farm business management instructor at (800) 959-6282.
