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

Published online by Cambridge University Press:  15 September 2016

Jeffrey Gillespie ,
Richard Nehring ,
Carmen Sandretto  and
Charles Hallahan
Jeffrey Gillespie
Affiliation:
Department of Agricultural Economics and Agribusiness at Louisiana State University Agricultural Center in Baton Rouge, Louisiana
Richard Nehring
Affiliation:
Economic Research Service, U.S. Department of Agriculture, in Washington, D.C.
Carmen Sandretto
Affiliation:
Economic Research Service, U.S. Department of Agriculture, in Washington, D.C.
Charles Hallahan
Affiliation:
Economic Research Service, U.S. Department of Agriculture, in Washington, D.C.
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Abstract

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.

Keywords

forageinput purchasingoutsourcingcontractingmilk production
Type
Contributed Papers
Information
Agricultural and Resource Economics Review , Volume 39 , Issue 3 , October 2010 , pp. 399 - 414
Copyright
Copyright © 2010 Northeastern Agricultural and Resource Economics Association 

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