The Impact of Cash Flow Constraints on Response of Dairymen to Lower Milk Prices

Jay C. Andersen, Utah State University
Jay D. Atwood, Utah State University

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Many dairy farmers in Utah have invested in and incurred debt for dairy milking facilities which are significantly underutilized. Modeling these farms indicates that adding high-producing cows may provide the means to meet fixed cash flow requirements with their heavy indebtedness, even with declining milk prices.