Table of Contents 



Page 



I. The Problem and Approach 3 



Introduction 3 



Study Areas 4 



Organization 4 



II. The Framework and Assumption of the Study 6 



Forage Crops 6 



The Dairy Herd 6 



Resource Supplies and Restrictions 7 



Production and Price Data 9 



III. Optimum Organizations 12 



The Cropping Pattern 12 



Grain Feeding Levels 18 



The Replacement Program 18 



Summary of Optimum Organizations 20 



IV. Net Incomes 21 



Net Income Functions 21 



Net Income Isoquants 28 



V. Resource Valuation 31 



Marginal Value Products 31 



Break-Even Prices of Cropland and Cows 32 



The Optimum Ratio of Cows to Cropland 33 



Appraisal of Non-Optimal Milk Production Processes 37 



Break-Even Price Differentials Between Cows of 



Different Production Abilities 39 



Summary of Resource Valuation 40 



VI. Summary and Conclusions 41 



Appendix 



I. The Linear Programming Model 43 



II. Production and Price Data 52 



III. Optimum Organizations 55 



IV. Selected Marginal Value Products 74 



2 



