for carryintr cows. Many farms had cow stanchions that were idle or filled 

 with young" stock. All farms had some barn facilities that were designed 

 for use only by young stock. 



Flexibility and Limitations in the Use of Resources 

 for Either Cows or Young Stock 



The adjustments possible in substituting cows for replacements de- 

 pend largely on the flexibility of the resources on the farm. 



In general, good forage can be used to carry either cows or young 

 stock. Pasture is not so flexible in its utilization, but of the dairymen sur- 

 veyed, 70 percent indicated that they had some pastures that they could 

 use only for grazing young stock and in some instances dry cows. 



Both groups of farms had some barn facilities designed for use only 

 by young stock. Farmers who bought some replacements could house on 

 the average only 14 head of young stock in specialized facilities. Farmers 

 who raised all their own replacements had specialized facilities for housing 

 19 head of young stock. Both groups of farms had additional space avail- 

 able for cows; it was currently idle or was used to house replacements. 

 Although both groups of farms carried about 25 cows, space was avail- 

 able for carrying 35 cows on the average. 



An average of 18 animal units was cared for per farm worker on 

 both types of farms. Eighty-five percent of the farmers thought they could 

 expand their herds with their present labor supply. With sufficient forage 

 and barn space, they believed they could carry an average of 17 additional 

 cows per farm with their present labor force. 



Prices Paid and Received 



Two levels and relationships of prices paid and prices received were 

 selected for use in budgetary analyses. They represent two different price 

 patterns that dairymen have experienced in the recent past. The two sets 

 of prices differed enough to represent both the situation nearby and that 

 farther from the Boston market. 



Economic Analysis 



The purpose of the economic analysis was to combine the foregoing 

 physical production relationships and the price relationships into an analysis 

 of the costs and returns that would be experienced by a typical dairy farmer 

 with alternative combinations of cows and young stock. The dairy farm 

 used in this economic analysis was modeled after the sample farms visited. 



Short-Run Adjustments 



Four alternative short-run adjustments were tested. Alternative 1 

 would involve no basic changes in the farm organization other than a shift 

 in source of replacements. The change would be a shift from 25 cows and 

 raised replacements to 29 cows and purchased replacements. It would re- 

 quire no additional capital investment. About the same number of hours 

 per year were required to operate the crop and livestock enterprises. Some 

 additions to net farm income would be realized. Alternatives 2, 3, and 4 

 involved varying amounts of additional forage, labor, and capital invest- 

 ment. Larger additions to net farm income would be obtained from these 

 alternatives than from alternative 1. The additional income was greater 

 under price situation II, which represents prices received and those paid 



