2023 Northeast Dairy Farm Summary & 2024 Mid-Year Outlook

Farm Credit East's 2023 Northeast Dairy Farm Summary and 2024 Mid-Year Outlook contains data and analysis from the prior year and forward-looking discussion and analysis from Corey Geiger, Lead Economist for Dairy at Farm Credit East's funding bank, CoBank. New this year is the inclusion of 143 farms from Pennsylvania through a collaboration with Horizon Farm Credit, for a total of 283 dairy farms representing Northeast dairy included in the report.

Highlights of the 2023 Northeast Dairy Farm Summary & 2024 Mid-Year Outlook 

• Net earnings for our sample of 283 Northeast farms decreased to an average of 292 per cow in 2023,¹ from $945 per cow in 2022.
• Total costs increased, rising by 5% from 2022 to 2023. Total expenses per cwt. increased by $1.22 per cwt. to $28.03 in 2023.²
• Net cost of production³ (NCOP), however, decreased slightly to $22.64 per cwt., 0.23 lower than 2022.
• Some specific cost categories which changed in 2022 are:
  • Feed expense, a farm’s largest cost, decreased slightly from $1,992 per cow in 2022 to $1,982 per cow in 2023
  • Fuel expenses decreased by 30% per cow as fuel and oil prices fell substantially from the prior year. The milk hauling assessment, however, increased due to higher trucking costs.
• Productivity increased slightly. Per cow production in our sample herds was 0.9% greater than the prior year. Milk sold per worker decreased due to fewer cows per worker.
• Cash flow was insufficient, on average, to meet all financial commitments (e.g., operating expenses, debt repayment, family living and income taxes), resulting in an average cash margin (excluding government payments) per cwt. of -$0.40.⁴
• Percent net worth in our sample decreased to 68%. Both average assets and liabilities increased. Total debt-per-cow increased from $5,200 to $5,976.

2024 Mid-Year Outlook

Read this year's outlook article:

• Seismic Shifts are Taking Place Within Dairy by Corey A. Geiger, Lead Economist for Dairy, CoBank

¹On an accrual basis, after family living, not including nonfarm income.
²Including family living.
³Total farm expense, plus family living, less non-milk income. For more information, see page 9.
⁴See figure 10.