The Economics of Organic Versus Conventional Cow-calf Production

Costs, returns, and profitability of cow-calf farms that are organic or transitioning to organic are compared with those of cow-calf farms that are non-organic. A method of matching samples is used for the comparison. Results suggest higher cost of organic production due to higher unpaid labor, taxes and insurance, and overhead costs.Matching Samples, Profit, Costs, Farm Management, Production Economics,

At What Rate Do Farmers Substitute Manure For Commercial Fertilizers?

Water quality has implications for the health of our ecosystem and the welfare of our population. Agriculture is one of the major contributors of non-point source pollution that contaminates our nation's water supplies. Understanding how farmers substitute manure for commercial fertilizers allows us to better understand the level of nitrogen that enters the soil and can seep into our waterways. In this paper, we explore the factors that help determine farmers' substitution rates between the two types of fertilizers. Location, crop type, and time all could play important roles. We analyze USDA farm level survey data for both crop and livestock farms covering the years 1996 to 2002 to create substitution rate estimates used on corn, soybean, and wheat fields. While the substitution rates we found did not appear to change over the time frame examined, we did find that crop type and location significantly affected the rates that farmers use. Additionally, and perhaps most importantly, the substitution rates we did find did not conform to the "perfect substitution" between N coming from commercial sources and manure used in much of the literature. This means that previous studies could have underestimated the potential level of pollution of our water by our nations' farms.Farm Management,

Intensive versus Extensive Dairy Production Systems: Dairy States in the Eastern and Midwestern U.S. and Key Pasture Countries the E.U.: Determining the Competitive Edge

In recent years, significant structural and production system changes have been noted in the U.S. and European Union, as well as increased interest in pasture-based dairy systems. Technical efficiency, returns to scale, and farm characteristics are compared by size and production system in traditional U.S. dairy states and E.U. countries.U.S., EU Countries, Dairy Systems, Technical Efficiency, Returns To Scale, Size, Technology, Land Prices, Production Economics, Q12,

Economic Efficiency of U.S. Organic Versus Conventional Dairy Farms: Evidence from 2005 and 2010

We estimate an input distance function for U.S. dairy farming to examine the competitiveness of organic and non-organic dairy production by system and size. Across organic/non-organic systems and size classes, size is the major determinant of competitiveness based on various measures of productivity and returns to scale.Organic, Non-organic, Input Distance Function, Livestock Production/Industries, Production Economics,

Small U.S. Dairy Farms: Can They Compete?

The U.S. dairy industry is undergoing rapid structural change, evolving from a structure including many small farmers in the Upper Midwest and Northeast to one that includes very large farms in new production regions. Small farms are struggling to retain competitiveness via improved management and low-input systems. Using data from USDA’s Agricultural Resource Management Survey, we determine the extent of U.S. conventional and pasture-based milk production during 2003-2007, and estimate net returns, scale efficiency, and technical efficiency associated with the systems across different operation sizes. We compare the financial performance of small conventional and pasture-based producers with one another and with largescale producers. A stochastic production frontier is used to analyze performance over the period for conventional and pasture technologies identified using a binomial logit model. Large conventional farms generally outperformed smaller farms using most economic measures – technical efficiency, various profitability measures, and returns to scale.Pasture-based system, technical efficiency, returns to scale, dairy, Livestock Production/Industries, Productivity Analysis,

Pasture-Based Dairy Systems: Who Are the Producers and Are Their Operations More Profitable than Conventional Dairies?

U.S. dairy operations are sorted via a multinomial logit model into three production systems: pasture-based, semi-pasture-based, and conventional. Region, farm size, financial situation, and production intensity measures impact system choice. Analysis follows to determine the impact of production system on enterprise profitability. Region, farm size, and demographic variables impact profitability, as does system choice: semi-pasture-based operations were less profitable than conventional operations on an enterprise, per hundredweight of milk produced basis. Significant differences were not found in the profitability of pasture-based operations versus those using other systems.dairy farm size, grazing, pasture-based dairying, Livestock Production/Industries,

Forage Outsourcing in the Dairy Sector: The Extent of Use and Impact on Farm Profitability

The extent of forage purchasing behavior in milk production and its impact on profitability are analyzed using data from the 2000 and 2005 dairy versions of the Agricultural Resource Management Survey. Forage outsourcing is more common with hay than with silage and haylage, and is more prevalent in the western United States. Though silage and haylage outsourcing is found to impact profitability, the major profitability drivers appear to be farm size and efficiency. Evidence of significant forage contracting is found in the western United States.forage, input purchasing, outsourcing, contracting, milk production, Farm Management, Industrial Organization, Livestock Production/Industries,

Dairy Resource Management: A Comparison of Conventional and Pasture-Based Systems

Facing rapid and significant change in the sector, U.S. dairy production trends from 1993-2005 were tracked and performance measures (scale and technical efficiency and returns on assets) were estimated for conventional and pasture-based dairy farms using data from USDA's Agricultural Resource Management Survey. Comparisons of relative economic performance of dairy farms by size and type are made.dairy operations, pasture-based systems, technical efficiency, Livestock Production/Industries,

Integrated short and medium term underground mine production scheduling

The development of short- and medium-term mine production schedules in isolation from each other has meant that only a local optimum can be achieved when each scheduling phase is carried out. The globally optimal solution, however, can be achieved when integrating scheduling phases and accounting for the interaction between short-term and medium-term activities simultaneously. This paper addresses the task of integrating short- and medium term production plans by combining the short-term objective of minimizing deviation from targeted mill feed grade with the medium-term objective of maximizing net present value (NPV) into a single mathematical optimization model. A conceptual sublevel stoping operation comprising 30 stopes is used for trialling segregated and integrated scheduling approaches. Segregated medium- and short-term scheduling using separate models achieved an NPV of $42 654 456. The final scheduling approach involved integrating the two scheduling horizons using the newly-developed globally optimal integrated production scheduling model to achieve an NPV of$42 823 657 with smoother mill feed grade. The larger the stope data set, the larger the difference between the two scheduling approaches is likely to be. At the very least, an integrated approach ensures feasibility across the two scheduling horizons, which cannot always be assumed when using a segregated approach