The Attitude, Passion, and Challenges of Dairy Farming in the United States

Dairy farming consists of raising mother animals and collecting the milk that they produce after giving birth. Though cows are the most commonly farmed animal within the dairy industry, there are other animals that are also raised for their milk. According to the Food and Agriculture Organization of the United Nations, cattle produce 81 percent of milk, buffalo produce 15 percent, goats 2 percent, sheep 1 percent, and camels 0.5 percent. Additionally, some apps offer features like financial planning and cost management tools, helping farmers to better understand their production costs and explore strategies for improving profitability.

Success in Agriculture: Attitude, Passion, and Growth in the Dairy Sector

1. Successful farmers have an attitude of gratitude

For most of us, our relationships with our families and friends are more important than financial success. Successful farmers are gracious and thankful for the consumers who buy their products, the agribusiness professionals who work with them, and their employees and family members who help them succeed.

2. Successful farmers have a passion for their work and a positive attitude toward the future

Even though they may not know what the future holds they understand that prices and costs are cyclical. They believe that farming can be a good business and with the right business strategy will allow them the lifestyle that they enjoy.

3. Did you know that 94% of U.S. dairy farms are family-owned and operated?

Ohio and West Virginia dairy farm families work on about 1,500 dairy farms to produce approximately 663 million gallons of milk a year. These families are passionate about caring for their cows, protecting their natural resources and ensuring the milk they provide is safe and nutritious.

4. Moreover, the U.S. dairy sector has been able to produce more milk with fewer cows

From 2000 to 2020, the amount of milk produced per cow in the United States grew at an annual rate of 1.53 percent. Dairy farms produced 18,197 pounds of milk per cow in 2000, increasing to 23,777 pounds in 2020. The productivity growth has not only freed up resources for other agricultural endeavors but also increased U.S. competitiveness in global markets.

As with any Business, the Dairy Industry is Shaped by

1. National and International Economic Factors

2. Over time, fluctuations in milk prices have become more dramatic. Fluctuations can be caused by changes in foreign demand for U.S. dairy products, changes to foreign dairy policies, and/or changes in U.S. incomes and population size.

3. Larger farms tend to use mechanized, factory-style processes to maximize profit. As a result, larger farms tend to earn larger net returns compared to smaller farms, making larger farms less vulnerable to unstable milk prices.

4. Among small dairy farms, low net returns are more common than not. For example, in 2016, 84% of farms with 10-49 cows and 76% of farms with 50-99 cows failed to earn enough revenue to cover cash expenses and the opportunity costs of their own labor.

5. American dairies provide a vital source of income to rural families. The overwhelming majority of dairy farms are family owned and operated, keeping earnings in rural areas and stimulating the rural economy. The average size of a dairy farm herd is around 250 cows, and farms with fewer than 200 cows account for 87 percent of all dairy farms.

6. But while America’s family dairy farmers continue to work hard to provide milk, jobs, and a sustainable future for their families, unmanaged milk inventories and unfair prices have made it impossible for most dairy operations to make a profit.

7. But while America’s family dairy farmers continue to work hard to provide milk, jobs, and a sustainable future for their families, unmanaged milk inventories and unfair prices have made it impossible for most dairy operations to make a profit.

Conclusion

In the dairy industry, cows are the most commonly farmed animal, but other animals like buffalo, goats, sheep, and camels are also raised for their milk. Despite the increased milk production, dairy farmers have struggled to make a profit due to the rising production costs and low milk prices. Successful dairy farmers have a positive attitude, a passion for their work, and are grateful for their relationships with their family, friends, and customers. The dairy industry is shaped by various economic factors, including fluctuations in milk prices, foreign demand, and farm size.