Dairy Farm Management Adjustments to Biofuels-Induced Changes in Agricultural Markets

Abstract

A mathematical programming model of a representative New York dairy farm is developed to identify optimal management adjustments to increased availability of corn distillers dried grains with solubles (DDGS). While at current prices DDGS feeding is limited to dry cows and young stock, as prices decrease, DDGS in lactating cow rations increase from 7.4% to 20% on a dry matter basis. While expected changes in net farm returns are modest, more important is the consideration of changes in nutrient management practices necessary to deal with increasing levels of nitrogen and phosphorus in the animal waste.