ItemComparing New York dairy farm characteristics, costs, and performance across four quartiles of profitability in 2022MacKenzie, Mary Kate; Karszes, Jason (PRO-DAIRY, 2023-10)In 2022, the milk price paid to farms reached a 30-year high, according to data from New York dairy farms participating in the Dairy Farm Business Summary and Analysis Program (DFBS). These data also show that 2022 was the third most proftable year in the past thirty, after 2014 and 2007. The average rate of return on all assets without appreciation for the same 130 New York dairy farms rose from 4.2 percent in 2021 to 11.6 percent in 2022. Despite this increase in average earnings, variation across individual farms was high, and not all farms were proftable in 2022. DFBS data from 2022 provides insight into key measures of productivity, effciency, and fnancial performance for New York dairy farms during a year of strong earnings. ItemThe price of my accounting system just went up! What should I do?MacKenzie, Mary Kate (PRO-DAIRY, 2023-04)Farm managers need sound financial records to prepare income tax returns, obtain financing from lenders, analyze new investments, and make business decisions with confidence. A strong financial accounting system is foundational to the success of any farm. Every accounting system has its costs and benefits, and a farm manager must analyze both to select the best option for their business. ItemComparison of Selected Measures and Costs by Quartiles of ProfitabilityKarszes, Jason (PRO-DAIRY, 2022-11)For farms that participated in the Dairy Farm Business Summary and Analysis Program in 2021, earnings were most affected by traditional factors and less impacted by government programs in response to the pandemic in 2020. The average rate of return on capital without appreciation for all farms decreased from 6.8 percent in 202 to 4.2 percent in 2021.1 While the average decreased, variation continued to be wide in earnings. With 138 farms participating for 2021, the data was sorted by quartile of earnings, as measured by rate of return on all capital without appreciation. The following tables contain selected measures and costs associated with the four quartiles of farms and can be used to identify differences across the earning quartiles. The lowest quartile of farms averaged -1.4 percent rate of return on all capital without appreciation, with the second quartile averaging 2.4 percent, the third quartile earning 4.8 percent, and the highest quartile of farms earning 6.8 percent. ItemDairy Profit Monitor Trends July 2020 through June 2022Augello, Lauren; Karszes, Jason (PRO-DAIRY, 2022-09)With the unpredictable cycles in the dairy industry and fluctuations in prices, it is important to continually monitor the performance of your dairy business. The selected graphs depicted show the average trends and ranges measured in the Dairy Profit Monitor from July 2021 through June 2022 for 41 farms primarily in New York State. The graphs also show the averages for these same farms from July 2020 through June 2021 as a comparison. ItemManaging your earnings in 2022: Can we impact 2023 and beyond?Karszes, Jason; Wolf, Chris (PRO-DAIRY, 2022-07)So far, 2022 is shaping up as a year where cash and profits may rebound within the dairy industry to levels that have not been seen for a few years. While inflation and supply chain issues are driving costs up on dairy farms, milk prices are strong and appear to have generated stronger cash positions through the first third of the year. With the strong cash positions, questions are starting to be asked about potential strategies to maximize the opportunity associated with the stronger positions this year. How long will the milk price stay strong enough to offset rising input costs? Will a smaller national heifer inventory and milk processing limitations slow the growth of milk production? Will supply chain issues continue to impact both farm production and processing capacity? With the uncertainty towards what earnings might be over the course of the year and into the next, there is the potential for earnings to decrease or turn negative. ItemProgress of The Dairy Farm Report: Selected Financial and Production Factors - Dairy Farm Business Summary and Analysis New York State, 2021Karszes, Jason; Augello, Lauren (2022-06-29)The objective of the Dairy Farm Business Summary & Analysis Program (DFBS) is to help farm managers improve the financial management of their dairy farm through appropriate use of historical farm data and the application of modern farm business analysis techniques. This information can also be used to track changes within the business, establish goals that will enable the business to better meet its objectives, compare the performance of the farm to other dairy producers, and establish a basis for financial projection and planned changes within the business. This is the final Progress of the Dairy Farm Report for the 2021 business year. The Progress of the Dairy Farm Report provides averages of selected financial and production measures from 132 New York State Dairy Farms (pages 2-4) that participated in the program for both 2020 and 2021 that had submitted records by June 6th, 2022. The report is also broken down into four herd size categories to provide additional comparison reports by herd size. The business charts report data for all farms that participated in 2021. ItemSix Year Trend Analysis 2020 New York State Dairy Farms Selected Financial and Production FactorsKarszes, Jason; Augello, Lauren (Charles H. Dyson School of Applied Economics and Management, 2022-01)Trend analysis is an important use of benchmarking within a dairy businesses. While current year performance is important, understanding trends within the business and the industry may provide additional insight into strengths and areas of opportunity. To provide benchmark trends of various financial and performance factors over time, data was utilized from 122 farms that have participated in the Dairy Farm Business Summary and Analysis Project (DFBS) in New York State for six years, from 2015 through 2020. This information is reported on an average basis, the top 25 percent of farms as determined by average return on assets without appreciation over the six years, and the remaining 75 percent of farms. For selected factors, the trends and changes between the top 25 percent of farms and the remaining 75 percent are highlighted.