Dairy Farms Weigh Pros and Cons of Growing Own Grains

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Dairy farms in New York and similar regions have long had an interest in producing a portion of their own grains, but a careful, farm-specific evaluation is needed to assess the true fit and benefits. While home-grown grains can help control feed costs and inventory, provide a buffer against growing season variability, and benefit from economies of scale, the primary goal must be environmentally and economically efficient milk production. A recent analysis of Cornell Dairy Farm Business Summary data suggests that farms with 'flex acres' for some grain production, but not heavily invested in the grain business, tend to achieve the highest financial performance.

Why it matters

Dairy farms are constantly seeking strategies to effectively manage their highest input cost - feed. Home-grown grains can be one approach, but it must be evaluated in the context of optimizing forage inventory and quality, as well as the agronomic and environmental impacts on the overall farm operation.

The details

The analysis of Cornell Dairy Farm Business Summary data grouped farms into four quartiles based on tillable non-forage (grain) acres per cow. The lowest quartile had around 1.5 acres per cow, all in forage. The second quartile also had around 1.5 acres per cow, with a small amount in non-forage grain production. The third quartile averaged just under 2.0 acres per cow, with some additional non-forage acres. The highest quartile averaged over 2.5 acres per cow, with almost 1.0 acre in non-forage production. The two middle groups achieved the highest rate of return, while the lowest and highest quartiles had lower average rates of return.

• The Cornell Dairy Farm Business Summary (DFBS) data analyzed trends from 2018 to 2023.
• A recent analysis of DFBS data evaluated the same group of 124 farms from 2021 to 2024.