March Production Budgets Show Feed Cost Edging Up

The March 2018 milk production budgets for Iowa and Nebraska compiled by UNL Extension Educator Robert Tigner shows the 20,000 pound March 2018 budget has a negative $1.70 per cwt, 8 cents per cwt worse than February. When calculating net revenue after all variable costs are paid, there is only $0.595 per cwt to pay fixed costs and management. Unfortunately the fixed costs are $1.55 per cwt in the 20,000 pound budget. Feed costs rose by $0.415 per cwt but income was higher by only $0.105 per hundredweight. Corn was 10 cents per bushel higher, soybean meal $24 per ton higher and cottonseed $6.25 per ton higher. On the income side, total income rose due to increased protein and butterfat prices as well as a rise in pounds of butterfat. A slight decline in protein pounds and a big move to a negative PPD, -$0.30, softened the improved component prices effects.

One more comment on this dairy budget series. It is intended to be a sort of index of returns for milk production for the I-29 corridor and much of Iowa. Fixed costs have not been updated since August 2009.

The free stall budget is available Copy of March-dairy budget 2018

The tie stall budget is available Copy of March-dairy budget tie stalls 2018.

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