September Dairy Budget

The September Iowa-Nebraska dairy budget improved slightly from August, just over 7 cents per hundredweight. Feed costs increased by $0.35 per hundredweight from an increase to corn, 1 cent per bushel and a $15 per ton for alfalfa hay. Even though milk component prices dropped in September compared to August, gross revenue increased because of the higher total protein pounds and a less negative PPD. PPD improved to be $0.75 less negative than August. Butterfat revenue declined as did income from cull cows while income from butterfat and other solids increased. The total increase in gross income was $0.43 per cwt. Looking at the returns to management for the September budget, only the 20,000 pound tiestall budget was negative, ($0.46) per cwt. Some tiestall barns remain in the Midwest but are limited to smaller sized dairy operations. Remember that returns to management are calculated after all costs, variable and fixed, are subtracted from revenues.

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