These figures indicate: 



1. The optimum ratio of cows to cropland is more sensitive to 

 changes in the prices of milk than to differences in milk 

 response of cows. 



2. The optimum ratio of cows to cropland is not very sensitive 

 to changes in the cow-cropjand ratios at high and medium 

 levels of milk price. It takes a large change in the relative 

 prices of cropland to cows to change the optimum ratio of 

 cows to cropland by 0.05. 



3. Lower milk prices and lower milk response make the opti- 

 mum ratio of cows to cropland more sensitive to changes in 

 the price ratios. 



4. Intensive farms, above 0.30 cows per acre, are optimal under 

 most probable cow and cropland prices when milk prices 

 are $5.00 per hundredweight or above. Extensive farms, be- 

 low 0.30 cows per acre, are optimal only at the $4.00 milk 

 price and when land is low priced relative to the price of 

 cows. 



.60 

 .55 

 .50 



Q.45 



z 

 < 



g.40 



u 



O .35 



I— 



CO 



O-30 



U 



O .25 



O 



\ 



< 



20 



.15 



.10 



\ 



\ 



t 



Optimum Ratios 

 at $6.00,. cwt. 



> 



\ 



/ 



Optimum Ratios 

 at $4.00/cwt. 



Optimum Ratios /' 

 at SS.OO'Cwt. 



_L 



_L 



_L 



-1.00 



-2.00 -3.00 -400 -5.00 



RATIO OF PRICE OF COWS TO PRICE OF CROPLAND 



(Corrected for Annual Taxes; See Text) 



-6.00 



-7.0C 



Figure 12. Optimum ratios of cows to cropland with medium quality cows; 

 hay sales at $27 per ton and three prices for milk. 



36 



