Agricultural Economics Department


Date of this Version



Cornhusker Economics, October 27, 1999,


Copyright 1999 University of Nebraska.


A survey was conducted involving 12 monitor dairy farms in Nebraska. The size of the farms ranged from 160 to 625 cows, and all of the farms had dairy as the primary enterprise. The farmers were asked to complete input forms that were sent to them. The data was then analyzed using a spreadsheet program developed at the University of Missouri. Income and expenses involved only in the dairy enterprise were considered. Values for some expense items that were common to both the dairy and crop enterprises were split proportionately based on the percentage use on the dairy. This number was provided by the farmer. The cost incurred in raising the heifers on the farm was deducted from the expenses to compute the cost of producing milk.