Robert Tigner
Agricultural Systems Economist, Educator
Even though the butterfat price and PPD dropped in February compared to January 2017, returns to milk production in all four dairy budgets remained positive for returns to management. Even though the budgeted breakeven price for all milk production budgets declined month to month, income declined more. The 20,000 pound freestall budget cost dropped just over $0.72 per cwt. and the 24,000 pound freestall budget dropped over $0.62 per cwt. Returns to management were 13 cents per cwt less for the 20K budget and 24 cents less for the 24K budget. The largest drop in milk income occurred in the butterfat price and PPD. For instance in the 20K budget income from BF dropped 58 cents per cwt. and PPD income declined 60 cents per cwt.