Dairy Revenue Varies Widely By State

(Dairy Herd Management) –  Dairy revenue can vary as much as two fold across states, based on both milk prices and milk production per cow, according to analysis by the American Farm Bureau Federation (AFBF).

The average milk production per cow per day in the United States now stands at 62 lb. But the variation is huge, notes John Newton, AFBF Director of Market Intelligence. “In Alabama, the average milking cow produced 36 lb of milk per day [in 2016] while the average milking cow in Colorado produced 71 lb,” he notes.

Milk prices can also vary widely, with Florida typically posting the highest prices and California, New Mexico and Michigan often posting among the lowest. Prices range widely due to federal and state pricing policies.

While the average revenue per cow in 2016 was $3,712, Arkansas saw the lowest revenue at $2,186. Colorado’s revenue was almost double that at $4,339 per cow. New York was the other state that posted revenue per cow above $4,000, at $4,049. Florida came in at $3,989.

AFBF is proposing new Dairy-Revenue Protection insurance to serve as a buffer to price drops.