Factors Influencing Resilient Dairies: A Product of Herd Management or Farm Finances?

Abstract

The goal of this research is to understand the unique characteristics of resilient dairies that allow them to recover from poor economic conditions and achieve sustained profitability despite volatile milk prices. Minnesota dairies provided whole-farm finances and cow production data for 2012 to 2018. Robust weighting mechanisms determined the sensitivity needed to allocate farm financials to all cows for simultaneous analysis of both datasets. Resilient farms are consistent profit performers, falling into the 75th percentile for the majority of production years. The relationship between farm traits and resiliency is evaluated for each farm's human resources, animal health measures, farm structure, and financial indicator characteristics. Results focus on the practices that resilient farms have implemented to maintain the long-term viability despite declining farm income, providing tangible recommendations for dairy farms to help increase farm resilience. Dairy resiliency is a joint product of both herd management and farm financial practices.