A webinar will be hosted by I-29 Moo University at 12 noon on Friday, May 17 to review the Dairy Revenue Protection program and the Dairy Margin Coverage program. Presenters will included Marin Bozic, Assistant Professor in Dairy Foods Marketing Economics, University of Minnesota plus Josh Newton and Cassandra Monger, Compeer.
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.
The September 2017 milk production budgets for Iowa and Nebraska compiled by UNL Extension Educator Robert Tigner showed very little change in the budgeted breakeven price for Sept 2017 compared to August. All of the following comparisons will be utilizing the 20,000 pound freestall budget. Total income declined by $0.104 per hundredweight but feed cost declined too, 8.55 cents per hundredweight. Total variable costs were down at 8.7 cents per hundredweight. Return to management declined by 1 cent per hundredweight to $1.81.
Even though the PPD and butterfat prices were lower month over month, BF and protein test rose which offset the loss of component prices.
His detailed report can be found by clicking here:
Tigner will give the the milk outlook at the Siouxland Dairy Lenders Seminar in Rock Rapids on November 2.
The April 2017 milk production budgets for Iowa and Nebraska deteriorated compared to March according to the monthly budget study from Nebraska Extension Educator Robert Tigner. Total gross income was down by just under $1 per cwt because of a drop in the PPD, butterfat price, protein price and quality premium. For the 20,000 pound milk budget, total feed costs were down slightly, 0.15 per cwt, because of the drop in hay prices for new crop alfalfa. Total returns to management were down $0.90 per cwt but still positive at $0.67 per cwt. for the 20,000 pound budget.
His detailed report can be found by clicking her: Copy of April-dairy budget.
In his March Dairy Budget report UNL Educator Robert Tigner notes returns to management for milk produced in the Central milk market order declined 42 cents/cwt in March 2017 but were still positive at $1.57/cwt. The largest decline was in income with a drop of protein income. As you may know the protein price dropped during March, -1.31555/cwt of 20,000 pound cows, but the PPD increased by $0.48/cwt. Feed costs were slightly lower but less than 1 cents/cwt. The Central Order March butterfat price was virtually the same as Februarys, down less than 1 cents per pound.
His detailed report can found by clicking Copy of March-dairy budget