Ill general, for all size groups of farms, the greatest advantage in net 

 farm income gained by shifting from raising to buying all replacements 

 would be obtained with a combination of high prices of cull cows, high 

 prices of milk, low prices of replacements, and a high level of milk pro- 

 duction per cow (Tables 30 to 35). With prices of milk at $6 per hundred- 

 weight; cull cows $20 per hundredweight; replacements S150 per cow; 

 and production at 10,000 pounds of milk per cow, additional net incomes 

 would vary from $1,085 on the 11- to 17-cow dairy farms to $3,755 on the 

 46- to 52-cow farms. The greatest loss in terms of change in income result- 

 ing from a shift from raising to buying replacements would occur with 

 prices as follows: milk at $3 per hundredweight; cull cows at $10 per 

 hundredweight; and replacements at $350 per animal; and with production 

 of milk at 7,000 pounds per cow. Under these conditions for the 11- to 17- 

 cow size group, the loss incurred by a shift from raising to buying re- 

 placements is $605; for the group of farms with 46- to 52 cows, the loss 

 is $2,090 per year. 



With this series of tables for various farm size groups (Tables 30 

 through 35), estimates can be made of the probable change in farm income 

 that is associated with a series of prices received and prices paid for 

 several important items. For example, assume that the farm falls into the 

 size group of 25 to 31 cows, for which the estimates of net farm income 

 are given in Table 32. If the price of milk is $5 per hundredweight, the 

 price of cull cows is $10 per hundredweight, and production of milk per 

 cow is 10,000 pounds per year, a dairyman can estimate the range in changes 

 in income that might be expected at several levels of prices for replacements. 

 That is, if he could buy replacement cows for as little as $150 per head, 

 shifting from raising to buying his replacements would result in an increase 

 in net farm income of about $1,600 a year. With constant prices of milk 

 and cull cows and a constant production per cow, shifting from raising 

 to buying replacements would result in higher net farm incomes until the 

 dairyman pays between $300 and $350 per head of replacements. If he 

 pays as much as $350 per head, he will have a net loss of $185 per year. 

 However, at $300, he would have a net gain of $270 per year. Therefore, 

 the break-even price per replacement is between $300 and $350 when the 

 price of milk is $5 per hundredweight; cull cows, $10 per hundredweight; 

 and when production of milk is 10,000 pounds per cow. 



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