After losing $1.99 per hundredweight in 2017, New Mexico dairy farms lost another $1.18 per hundredweight in 2018, according to farm financial data gathered by Frazer Certified Public Accountants and Consultants. On a per head basis, New Mexico farmers lost $239 per head.
New Mexico’s neighbor, Arizona, faired better, but it also lost money.
On a per hundredweight (cwt.) basis, Arizona lost 39 cents. That equated to $96 for every milk cow.
For these two states, this marks the third straight year of net dairy farm losses.
Overall, Frazer Certified Public Accountants and Consultants handles records for 400,000 head of dairy cows that collectively produce 8.6 billion pounds of milk. That’s nearly 4 percent of the U.S. milk supply.
Here is a snapshot of the financial data:
California financial data:
San Joaquin Valley, California:
In 2017, dairy farms earned $57 per cow or 25 cents per cwt.
In 2016, dairy farms lost $257 per cow or $1.18 per cwt.
In 2015, dairy farms lost $208 per cow or 97 cents per cwt.
Kern County, California:
In 2017, dairy farms earned $220 per cow or $1.07 per cwt.
In 2016, dairy farms lost $230 per cow or $1.05 per cwt.
In 2015, dairy farms lost $145 per cow or 65 cents per cwt.
Southern California:
In 2017, dairy farms earned $52 per cow or 23 cents per cwt.
In 2016, dairy farms lost $40 per cow or 17 cents per cwt.
In 2015, dairy farms lost $7 per cow or 4 cents per cwt.
Other Western states’ financial data:
New Mexico:
In 2017, dairy farms lost $239 per cow or $1.18 per cwt.
In 2016, dairy farms lost $358 per cow or $1.99 per cwt.
In 2015, dairy farms lost $325 per cow or $1.94 per cwt.
Arizona:
In 2017, dairy farms lost $96 per cow or 39 cents per cwt.
In 2016, dairy farms lost $201 per cow or 89 cents per cwt.
In 2015, dairy farms lost $27 per cow or 14 cents per cwt.
Idaho:
In 2017, dairy farms earned $197 per cow or 85 cents per cwt.
In 2016, dairy farms lost $78 per cow or 37 cents per cwt.
In 2015, dairy farms gained $238 per cow or 98 cents per cwt.
Pacific Northwest (Oregon and Washington):
In 2017, dairy farms earned $322 per cow or $1.39 per cwt.
In 2016, dairy farms lost $40 per cow or 14 cents per cwt.
In 2015, dairy farms lost $30 per cow or 16 cents per cwt.
Texas Panhandle:
In 2017, dairy farms earned $288 per cow or $1.48 per cwt.
In 2016, dairy farms lost $23 per cow or 12 cents per cwt.
In 2015, dairy farms gained $68 per cow or 31 cents per cwt.
For the complete Frazer LLP report, click here.
To read previous financial reports from this series, go to:
It was a stressful year for Western dairies
Finances among the toughest in California
If milk prices drop, margins could evaporate
