COSTS OF PRODUCTION AND RETURNS FOR								2
		THREE DIFFERENT SIZED DAIRY HERDS 1
		COWS AND REPLACEMENTS
								Herd Size2
	ITEM			PRICE PER		Milking Cows		100	600	2,400
				UNIT		Milking + Dry Cows		122	732	2928
		*Revenues, costs, and returns are for entire operation
		Pounds of Milk Sold Per Cow					21,000	lbs.
RECEIPTS 3
	Milk Sales			$11.00	/ cwt			$281,820	$1,690,920	$6,763,680
	Bull Calf			80	/ head			4,392	26,352	105,408
	Heifer			0	/head			0	0	0
	Cull Cow			35	/cwt			19,727	118,364	473,458
TOTAL RECEIPTS								$305,939	$1,835,636	$7,342,546
VARIABLE COSTS
	Feed 4
		Hay Equiv.						77,592	465,552	1,862,208
		Corn Silage						16,592	99,552	398,208
		Corn						32,208	193,248	772,992
		Soybean Meal 48%						26,230	157,380	629,520
		Minerals, Vitamins, etc…						15,494	92,964	371,856
		BiCarb						976	5,856	23,424
		Limestone						610	3,660	14,640
		Mag.Ox.						366	2,196	8,784
		Salt TM						2,074	12,444	49,776
		DiCal Phos						3,538	21,228	84,912
		Selenium 90						6,954	41,724	166,896
		Vitamins A,D,E						976	5,856	23,424
		Feed Additives						0	0	0
		Milk Replacer						1,586	9,516	38,064
	TOTAL FEED COSTS							169,702	1,018,212	4,072,848
	Other Variable Costs
		Veterinary & Medicine						9,760	58,560	234,240
		Breeding, Milk Testing & Reg.						4,880	29,280	117,120
		Utilities						8,052	48,312	193,248
		Bedding						3,904	23,424	93,696
		Misc. & Supplies						12,932	77,592	310,368
		Marketing & Hauling Costs		0.50	/cwt			12,810	76,860	307,440
		Posilac® (bST) 5		5.80	/dose			11,322	67,930	271,718
		Hired Labor (hours) 6		13	28	21		15,860	204,960	614,880
		Int. on Oper. Capital		9	%			9,925	59,549	238,196
	TOTAL OTHER VARIABLE COSTS							89,444	646,467	2,380,906
TOTAL VARIABLE COSTS								259,146	1,664,679	6,453,754
FIXED COSTS
	Operator/Family Labor  (hrs) 6			41	3	1		50,020	21,960	29,280
	Interest & Insurance on Cow and Calf							2,310	13,862	55,448
	Buildings and Facilities 7			363,986	1,441,919	5,393,675		53,506	211,962	792,870
	Equipment 8			80,000	220,000	450,000		14,080	38,720	79,200
	Management Charge			5%	of total receipts			15,297	91,782	367,127
TOTAL FIXED COSTS								135,213	378,286	1,323,926
TOTAL COSTS								394,360	2,042,965	7,777,680
RETURN ABOVE VARIABLE COSTS								46,793	170,958	888,791
RETURN ABOVE TOTAL COSTS								-88,420	-207,328	-435,134
Receipts / Cow								2,508	2,508	2,508
Variable Costs / Cow								2,124	2,274	2,204
Fixed Costs / Cow								1,108	517	452
Total Costs / Cow								3,232	2,791	2,656
Return Above Variable Costs / Cow								384	234	304
Return Above Total Costs / Cow								-725	-283	-149
Variable Costs / cwt Milk								10.12	10.83	10.50
Fixed Costs / cwt Milk								5.28	2.46	2.15
Total Costs / cwt Milk								15.39	13.29	12.65
										3
1	All variable costs are based on the 2003 Ohio Dairy Enterprise Budgets.  For specific prices, quantities, and explanations refer to large breed - 50% Corn Silage/ 50% Hay budget.  This budget is intended to provide an example of how the size of operations can affect the costs and returns of a dairy enterprise.  It is only one of many possible scenarios and is not intended to provide the user with specific revenues, costs, or returns.  The 2003 Ohio Dairy Enterprise Budgets are better suited to provide actual revenues, costs, and returns per cow that can be expected from dairy enterprises in Ohio.
2	Herd size is the number of milking cows at any one time.  The 100, 600, and 2400 cow herds are made up of 122, 732, and 2928 milking cows and dry cows, respectively.
3	Refer to the 2003 Ohio Dairy Enterprise Budgets - "Large Breed, 50% Corn Silage-50% Hay Ration", for explanation of receipt calculations.
4	For specific quantities fed per cow, refer to the 2003 Ohio Dairy Enterprise Budgets - "Large Breed, 50% Corn Silage-50% Hay Ration".  Feed costs per cow are similar among the three herd sizes; however, with the larger herds, contracting and volume discounts could help to reduce feed costs.
5	Posilac® used @ 1 dose every two weeks for 32 weeks starting at 63rd day of lactation.
6	The number of labor hours per cow are multiplied by $10.00/hour to calculate labor costs.    One worker/operator is assumed to work 2500 hours/year.  Labor estimates are based on 1.67, 8, and 25.25 full time hired employees for the 100, 600, and 2400 cow herds respectively working 2500 hours per year.  Additionally, one full-time manager/operator was added for each scenario. 100 cow herd assumed to have 2 full time unpaid operator/family workers, thus the higher operator/family labor charge.  600 and 2400 cow herds assumed to have one unpaid operator and all other labor is hired. Labor requirements can vary greatly depending on facilities, management, and production of the herd.  Labor does not include crop production.
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	*Hired labor estimates adapted from "Dairy Enterprise - 100 Lactating Cows" Kansas State University Agricultural Experiment Station and Cooperative Extension Service.  MF-272.  1999.   "Dairy Enterprise - 600 Lactating Cows" Kansas State University Agricultural Experiment Station and Cooperative Extension Service.  MF-2441.  1999.   "Dairy Enterprise - 2400 Lactating Cows" Kansas State University Agricultural Experiment Station and Cooperative Extension Service.  MF-2442.  1999.