A linear programming model was developed to reflect the alter- 

 natives open to specialized dairy farms. Multiple solutions were 

 obtained for discrete levels of cropland and cow numbers for each of 

 three milk response functions at three milk prices. One series of 

 solutions was run assuming an opportunity to sell hay and a second 

 series was run without the opportunity to sell hay. 



These solutions reflect opportunities associated with differences 

 in resource and price combinations on farms in the study areas. This 

 approach provides more usable results than the alternative of deter- 

 mining typical farm situations for analysis. Most farms in the study 

 area will resemble one of the programmed farm situations in amount 

 of resources, milk response, and milk price. This approach has the 

 added advantage that it compares various combinations of resources 

 to determine the better resource combinations and evaluate farm 

 adjustment alternatives. 



This analysis represents "should be" situations rather than 

 "would be" actions. In other words, it is concerned with what a 

 farmer "ought to do" if his objective is maximizing the return to 

 his fixed factors; and his resources, prices, and, constraints are as 

 stated in the linear programming model. 



Study Areas 



The study areas are comprised of parts of Maine, New Hampshire, 

 and Vermont.* These areas are relatively homogeneous in respect to 

 crop response and available alternatives both within and outside 

 dairy farming. The farms are generally on rolling hills of varied, 

 somewhat acid, soil associations; temperature and rainfall differences 

 within the study areas are minor. Dairy farms in these areas are 

 generally specialized in the production of fluid milk for sale both 

 locally and in the Boston market. 



Figure 1 shows the areas to which this study applies. Farms in 

 the river valleys (notably the Connecticut River Valley) have signi- 

 ficantly different yields than those assumed in this study. Thus, the 

 results apply to farms in the designated areas excluding farms in 

 the river valleys. 



Organization 



Section II presents a short description of the production and 

 price data and the alternatives considered in the linear programming 

 model. The results of analysis make up section III, IV, and V. Section 

 in presents optimum dairy farm organizations of resources at three 

 milk prices. Possible adjustments of resources for a specific farm can 

 be assessed by comparing its existing organization under the present 

 resource and price situation with the optimum organization presented 



* The study areas used in this analysis were designated for use in the North- 

 east Dairy Adjustment and Supply Response Study. 



