I want to determine my cost of production
Understanding your cost of production is essential for day-to-day decision making on the dairy farm. To simplify the process of determining this important calculation, the Center for Dairy Excellence has partnered with MSC Business Services, a division of Pennsylvania Farm Bureau.
MSC Business Services has developed two simple tools that producers can use to determine their dairy cash flow cost of production. These tools use Federal schedule F to estimate the milk price needed to cash flow a business and can be accessed below.
Dairy Cash Flow Cost of Production Spreadsheet (Excel Document)
** This version automatically calculates your COP based on the information you enter.**
Dairy Cash Flow Cost of Production Longhand Version (PDF)
** This is a form you can complete to manually calculate your cost of production.**
For more information about either of these tools, please contact the Center for Dairy Excellence at 717-346-0849 or info@centerfordairyexcellence.org.
Additional Resources from Penn State Dairy Alliance
Cost of production, milk margins and income over feed cost may seem like foreign terms. But knowing what yours are for your dairy is essential to managing your cash flow and business budget. Penn State Dairy Alliance offers several resources to help dairy producers calculate their cost of production and budget cash flow for their businesses in greater detail. To access those worksheets, click on the links below.
Cost of Production Worksheet (Hilty Version)
Cash Flow Planning and Income over Feed Cost Worksheets
Business Budgeting Worksheet