Net Incomes and Resource Valuations 



of Optimum Organizations 



for 



Dairy Farms in Northern New England 



by 



David H. Harrington and Richard A. Andrews'" 



I. The Problem and Approach 



Quantities of resources used, quality of cows, and the price of 

 milk greatly influence the organization, level of income, and value 

 of resources used on dairy farms. The proportion in which resources 

 are combined, as well as the total quantity of resources used, strongly 

 modifies the farm's business and income. Differences in quality of 

 cows has long been noted and in this analysis is represented by differ- 

 ent milk response to hay and grain feeding functions. 



The objective of this study is to assess the influence of quantities 

 of resources, quality of dairy cows, and price of milk on Northern 

 New England dairy farms. The specific objectives are: 



(1) To determine the optimum organizations for situations in- 

 volving different quantities of resources, milk responses of cows, 

 and milk prices. 



(2) To determine the potential levels of income for these re- 

 source combinations with three different milk prices. 



(3) To determine the value of additional amounts of major re- 

 sources to farms with differing quantities of resources, milk responses, 

 and milk prices. 



Agricultural Economist, Farm Production Economics Division, Economic 

 Research Service, U. S. Department of Agriculture stationed at Cornell 

 University, Ithaca, N. Y., and Associate Professor, Dept. of Res. Econ., Univ. 

 of N. H., Durham, N. H., respectively. 



