$5.00 milk prices. The balance of replacements required are pur- 

 chased and the excess of heifer calves are sold at birth. 



The third alternative, that of raising only as many replacements 

 as are required by the herd and neither buying nor seUing replace- 

 ments is used in a few solutions at high intensity ratios. These solu- 

 tions are on the high milk response functions at the $4.00 milk price 

 and the low milk response function at the $5.00 milk price. 



At all ratios of 0.30 cows per acre of cropland and below, replace- 

 ments are raised and sold. In all solutions except those with the low 

 milk response function at the $4.00 milk price, replacements are 

 raised only after the maximum number of cows for that situation are 

 kept (alternative 4). In the solutions for the low milk response at the 

 $4.00 milk price the maximum number of heifer calves are raised 

 as replacements and the balance above the replacement requirements 

 are sold. Only enough cows to fully utilize the stall space are kept 

 under this alternative. 



Summary of Optimum Organizations 



It is important to note the relative importance of the influence of 

 milk response, milk price, intensity ratio, and hay sales in deter- 

 mining farm organization. The ratio of cows to cropland appears to 

 influence the organization most strongly, especially when hay sales 

 is not a feasible alternative. The cow cropland ratio exerts a strong 

 effect on the cropping pattern and the replacement program. As more 

 cows are kept on a fixed acreage, the intensity of use of resources 

 increase markedly. 



The milk response function and the milk price are of about the 

 same magnitude in influencing organization. Both exert their primary 

 influence on the level of grain feeding. Each has some influence on 

 the replacement program. Higher milk response functions and higher 

 milk prices favor more intensive production of milk. 



Listed in descending order of their influence on the overall 

 organization, these factors are: 



(1) The ratio of cows to cropland 



(2) The presence or absence of the alternative of selling hay 



(3) The slope of the milk response function 



(4) The milk price 



(5) The level of the milk response function 



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