According to the most recent analysis from Zisk, a free software that includes data from producers on their milk contracts, feed prices, and predictors of dairy firm profitability, milk farmers in the United States anticipate a lucrative year in 2024. The study, which has been downloaded by nearly 4,000 farm owners, covers 4.2 million cows, or 45% of the US herd. An overall trend analysis based on data gathered from all farms provides insights into herd size, average basis, and milk output.
The 2024 estimates also suggest that farm size matters; bigger farms will produce more money per cow, but smaller farms, particularly those with less than 250 cows, would be unprofitable. The paper demonstrates how many dairies, particularly major ones, have secured profits by locking in their pricing.
Herd sizes in the United States continue to grow, and according to the Zisk research, farms with more than 5,000 cows will be the most profitable. Even farms with over 1,000 cows are much more lucrative than those with less. In contrast to Zisk’s prior yearly reports, this year’s statistics suggest that larger farms have lower expenses, better pricing, and economies of scale, and they anticipate to earn more per cow.
The Southeast is forecast to be the most prosperous area in the United States by 2024, with an average estimated profit of $857 per cow. Smaller farms (those with less than 250 cows) plan to continue to lose money, although the total profit per cow for the area is expected to remain comparable to last year.
The Midwest will be the second most lucrative overall, with a projected $701 per cow, although smaller herds will earn far less. Wisconsin herds (average size 833 cows) anticipate $1,000 per cow earnings, whereas South Dakota, with almost double the average herd size, predicts $672 per cow.
The Northeast is the least lucrative area for milk production in 2024, although Rhode Island is projected to have the greatest profit per cow in the US despite an average herd size of 35. Massachusetts, New Hampshire, New Jersey, and Kentucky are forecasting among of the lowest average earnings in the United States in 2024.
