The Decision Tool for MPP-Dairy Mark Stephenson Director of Dairy Policy Analysis University of Wisconsin.

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Presentation transcript:

The Decision Tool for MPP-Dairy Mark Stephenson Director of Dairy Policy Analysis University of Wisconsin

Let’s Look Back in Time Cows, producing 23,000 lbs of milk per cow, or 4 million annual production history

Let’s Look Back in Time Cows, producing 23,000 lbs of milk per cow, or 4 million annual production history

Let’s Look Back in Time Cows, producing 23,000 lbs of milk per cow, or 4 million annual production history

Let’s Look Back in Time Cows, producing 23,000 lbs of milk per cow, or 4 million annual production history

Let’s Look Back in Time Cows, producing 23,000 lbs of milk per cow, or 4 million annual production history MILC paid this farm $44,800 that year.

Let’s Look Back in Time Cows, producing 23,000 lbs of milk per cow, or 4 million annual production history

Let’s Look Back in Time Cows, producing 23,000 lbs of milk per cow, or 4 million annual production history

Let’s Look Back in Time Cows, producing 23,000 lbs of milk per cow, or 4 million annual production history MILC paid this farm $29,000 that year.

Let’s Look Back in Time Cows, producing 23,000 lbs of milk per cow, or 4 million annual production history MILC paid this farm $10,300 that year.

If We Picked the Optimal Strategy YearOptimal StrategyOptimal Outcome 2005$4.00-$ $8.00$1, $4.00-$ $4.00-$ $8.00$106, $4.00-$ $4.00-$ $8.00$78, $8.00$35, $4.00-$100 Total$224,137 per cow$ per cwt$0.56

If We Picked Advanced Strategy YearAdvance StrategyAdvance Outcome 2005$4.00-$ $4.00-$ $6.00-$2, $6.00-$2, $8.00$106, $4.00-$ $8.00-$16, $6.50$48, $6.50$14, $4.00-$100 Total$148,880 per cow$85.07 per cwt$0.37

If We Picked Risk Strategy YearAdvance StrategyAdvance Outcome 2005 $6.50($3,340) 2006 $6.50($3,340) 2007 $6.50($3,340) 2008 $6.50($3,340) 2009 $6.50$75, $6.50($3,340) 2011 $6.50($3,340) 2012 $6.50$48, $6.50$14, $6.50($3,340) Total$115,128 per cow$65.79 per cwt$0.29

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