Technical Bulletin No. (TB-1859) 47 pp

July 1998

Determinants of Financial Performance of Commercial Dairy Farms

This report uses standard econometric methods to identify important factors in financial performance of dairy farm businesses. On a per-unit-of-returns basis, factors found most important in explaining the variation in net returns per hundredweight of milk sold were cow's productivity, and per-cow forage production and purchased feed costs.

Keywords: Financial performance, net farm income, technological adoption, Lorenz curve, Gini coefficient

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