Effects of stored feed cropping systems and farm size on the profitability of Maine organic dairy farm simulations.

United States organic dairy production has increased to meet the growing demand for organic milk. Despite higher prices received for milk, organic dairy farmers have come under increasing financial stress due to increases in concentrated feed prices over the past few years, which can make up one-third of variable costs. Market demand for milk has also leveled in the last year, resulting in some downward pressure on prices paid to dairy farmers. Organic dairy farmers in the Northeast United States have experimented with growing different forage and grain crops to maximize on-farm production of protein and energy to improve profitability. Three representative organic feed systems were simulated using the integrated farm system model for farms with 30, 120, and 220 milk cows. Increasing intensity of equipment use was represented by organic dairy farms growing only perennial sod (low) to those with corn-based forage systems, which purchase supplemental grain (medium) or which produce and feed soybeans (high). The relative profitability of these 3 organic feed systems was strongly dependent on dairy farm size. From results, we suggest smaller organic dairy farms can be more profitable with perennial sod-based rather than corn-based forage systems due to lower fixed costs from using only equipment associated with perennial forage harvest and storage. The largest farm size was more profitable using a corn-based system due to greater economies of scale for growing soybeans, corn grain, winter cereals, and corn silages. At an intermediate farm size of 120 cows, corn-based forage systems were more profitable if perennial sod was not harvested at optimum quality, corn was grown on better soils, or if milk yield was 10% higher. Delayed harvest decreased the protein and energy content of perennial sod crops, requiring more purchased grain to balance the ration and resulting in lower profits. Corn-based systems were less affected by lower perennial forage quality, as corn silage is part of the forage base. Growing on better soils increased corn yields more than perennial forage yields. Large corn-based organic dairy farms that produced and fed soybeans minimized off-farm grain purchases and were the most profitable among large farms. Although perennial sod-based systems purchased more grain, these organic systems were more profitable under timely forage harvest, decreased soil quality, and relatively lower purchased energy prices and higher protein supplement prices.

Maximizing profit on New England organic dairy farms: an economic comparison of 4 total mixed rations for organic Holsteins and Jerseys.

The objective of these experiments was to compare 4 total mixed rations fed to USDA-certified organic dairy cows in New England. Forty-eight Jersey cows from the University of New Hampshire (UNH) and 64 Holstein cows from the University of Maine (UMaine) were assigned to a 2 × 2 factorial arrangement of treatments testing the main effects of corn silage versus grass silage as the forage base and commodity concentrates versus a complete pelleted concentrate mixture. Treatment diets were fed as a total mixed ration for 8 wk during the winter and spring months of 2007, 2008, and 2009. Milk yield, component, and quality data were recorded and used to calculate the value of the milk produced for each cow. The dry matter intake (DMI) was recorded and used to calculate the average cost per cow per day of each diet. Income over feed costs were calculated for each diet using milk value and feed cost data. Feed cost and income over feed cost data were resampled using bootstrap methodology to examine potential patterns. Milk yield, milk fat and true protein concentrations, and SCC were similar among treatments. Cows at UNH fed corn silage tended to have higher DMI and lower milk urea nitrogen than did cows fed grass silage, whereas cows fed pellets had higher DMI than cows fed commodities. Cows at UNH fed commodities tended to have higher body condition scores than those fed pellets. Cows at UMaine fed commodities tended to have higher DMI than did cows fed pellets, and cows fed corn silage had lower milk urea nitrogen than did cows fed grass silage. Body weights and body condition scores were not different for cows at UMaine. Feed costs were significantly higher for corn silage diets and diets at UNH containing pellets, but not at UMaine. The calculated value of the milk and income over feed costs did not differ among treatments at either university. Bootstrap replications indicated that the corn silage with commodities diet generally had the highest feed cost at both UNH and UMaine, whereas grass silage diets containing commodities generally had the lowest cost. In contrast, the grass silage with commodities diets had the highest income over feed cost in the majority of the replications at both UNH and UMaine replications, whereas the corn silage with commodities diets had the lowest rank. Similar results were observed when forage prices were increased or decreased by 5, 10, and 25% above or below the actual feed price. Feeding a grass silage-based diet supplemented with commodity concentrates may have an economic advantage for dairy producers in New England operating under an organic system of production.