Grassroots

The Voice of New York Farm Bureau

September 2007

By the Numbers

July milk production up
ALBANY — New York dairy herds produced 1.03 billion pounds of milk during July according to the USDA’s National Agricultural Statistics Service (NASS) New York Field office. Milk cows declined from the previous year while milk per cow increased from the previous year resulting in a slight increase in milk production compared to July 2006. The number of milk cows averaged 626 thousand head, down 10 thousand head from July of the previous year.

Milk per cow averaged 1,645 pounds, up 40 pounds from the July 2006 rate.

Dairy farmers in the Empire State received an average of $22.10 per hundred-weight of milk sold during July, up $1.80 from June and $9.80 above July a year ago.

Milk production in the 23 major states during July totaled 14.5 billion pounds, up 3.9 percent from July 2006. June revised production at 14.2 billion pounds, was up 1.2 percent from June 2006. The June revision represented an increase of 6.0 million pounds from last month’s preliminary production estimate.

Milk production costs, returns studied
The 2005 Agricultural Resource Management Survey collected detailed information about the production practices and costs on dairy farms in 24 states, which represent more than 90 percent of national milk production.

As part of the survey, a subsample of organic dairy operations were selected allowing for estimates of milk costs and returns for 2005 by state and size of operation for all milk producers and for conventional and organic dairies.

New York dairy farmer’s gross value of production averaged $17.57 per hundred weight of milk in 2005. Total operating cost was $12.58 per hundred weight of milk. Allocated overhead, which includes labor taxes, insurance and other opportunity costs, total $10.02 making total economic costs of producing 100 pounds of milk $22.60 in 2005.

New York dairy farms averaged 119 head of dairy cows per farm. Slightly over 5 percent of the state’s farms had a milking frequency of more than two times per day and 0.4 percent of the milk was sold as organic.

Conventional milk production costs and returns per hundredweight of milk sold yielded a value of production of $17.52 compared to organic milk production of $26.87, a difference of $9.35. The operating costs associated with producing a hundredweight of milk are significantly higher for organic dairies at $16.64 compared to the $12.56 of conventional dairies. Total economic cost of producing organic milk in the state of New York was $15.46 above the total economic cost of producing conventional milk.
-NASS

Net farm income up
Net farm income in New York increased 21 percent in 2005 to $1.11 billion. Livestock output value increased slightly to $2.31 billion and while crop output value decreased slightly to $1.29 billion.

Purchased inputs decreased 7 percent to $1.75 billion while direct government payments increased 74 percent.

Decreases in purchased inputs for feed, seed, pesticides, electricity, repair and maintenance, machine hire and custom work, marketing, storage and transportation expenses and miscellaneous expenses more than offset increase in costs for livestock and poultry purchases, fertilizer and lime, petroleum and oils, and contract labor.

Of other agricultural costs, property taxes were up 20 percent. Interest costs increased 16 percent.
— NASS

Fruit acreage down
New York’s fruit tree and grapes totaled 81,662 acres during 2006. This is 3 percent less than the total fruit acres recorded from the 2001 survey. Apricots, nectarines, and plums are also included in the total acreage for the first time in 2006.

Apples, peaches, pears, tart cherries and sweet cherries all showed decreases in acreage since 2001, while grapes posted an increase. Tart cherries showed the greatest decline with acreage down 35 percent and trees down 34 percent. Apple acreage decreased 5 percent while the total number of trees increased 25 percent. The increasing trees reflect the continued trend of higher density planting methods. Grape acreage increased 2 percent.

These results are from New York’s 2006 Fruit Tree and Vineyard survey which was last conducted 5 years ago in 2001. The survey was a cooperative effort supported by the New York State Department of Agriculture and Markets and fruit industry specialists.
-NASS

Crop forecasts down
Crop production prospects in 2007 for New York are mostly lower compared with a year earlier. Forecasts for soybeans, oats, dry beans, wheat, and hay are down and corn production is expected to be higher. All forecasts in this release are based on conditions as of Aug. 1 and assume normal growing conditions throughout the remainder of the season. New York grain corn production is forecast at 66.4 million bushels, up 7 percent from last year. Area for harvest is expected to total 540 thousand acres, 13 percent above a year ago. Yield is forecast at 123 bushels per acre, down 6 bushels from 2006. The crop was developing well due to warm temperatures and adequate moisture.

Nationally, grain corn production is forecast at 13.0 billion bushels, up 24 percent from last year and 17 percent above 2005. Based on conditions as of Aug. 1, yields are expected to average 152.8 bushels per acre, up 3.7 bushels from last year. If realized, this will be the second highest yield on record, behind the 160.4 bushel yield in 2004.

However, production will be the largest on record as growers intend to harvest the most corn acres for grain since 1933.

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