Date of this Version



© 1996, The Board of Regents of the University of Nebraska on behalf of the University of Nebraska–Lincoln Extension. All rights reserved.


Dairy Economics in Nebraska

The dairy sector is undergoing major structural changes and economic adjustments. The industry is also becoming more market oriented as government price supports decline. Increased competitiveness has kept milk prices relatively stable, but increased grain and other input costs in 1995-96 have put increased pressure on profit margins which were already narrow.

This publication is a compilation of data related to the current economics of dairy farming. The objective is to provide data to help dairy farmers make adjustments in their operations, such as expanding their herds, and to provide basic data for operators setting up new operations. A second objective is to provide a comparison of the economic components of Nebraska dairy farming with other states to demontrates the competitive position of the Nebraska dairy industry.