North Dakota State University -- NDSU Agriculture Communication
7 Morrill Hall, Fargo ND, 58105-5655, Tel: 701-231-7881, Fax: 701-231-7044
agcomm@ndsuext.nodak.edu

September 11, 2003

 

What Is A Dairy Farm’s Value to the Community?

By J.W. Schroeder, Dairy Specialist
NDSU Extension Service

The value of agriculture to North Dakota’s economy is huge. When agriculture does well, so do the multitude of other industries that support or depend on agriculture. None is more significant than the value of animal agriculture.

From cows to crops, the demise of the farm and ranch has sent shock waves throughout rural North Dakota. When communities lose their farm families, they too lose in the long run. Just drive down Main Street in rural North Dakota. When plywood conceals what plate glass used to display, the sign of the times for rural America is bleak.

Recent discussion has been about what the dairy industry has been, not where it is going. The North Dakota Dairy Task Force, however, has looked into the future of its industry and developed a vision of what it can be. To get people interested in investing in dairying, it is important for them to understand what it means to the local economy.

The following facts, reported by the Virginia Extension Service, highlight the importance of dairy to that state’s economy. While the numbers will vary, the impact remains. Permit me to share their observations . . .

  • Every $1 a farm grosses is worth $5 to $7 to the local community. Profit or payment, every dollar you get paid in your milk check spins through the local economy between five and seven times.
  • The average dairy cow adds $9,000 to $15,000 dollars of economic stimulus to the local economy each year. In other words, a small 50 cow dairy is worth nearly a half million dollars to local businesses.
  • It takes $31,000 per month to run the average Virginia dairy farm. This amounts to about $225 per cow per month. This figure does not include debt payments. Feed and labor account for two-thirds of this figure.
  • Given the fact that it takes $31,000 per month to operate the average dairy and that money circulates five to seven times through a community, every time a dairy farm is lost, it costs the local community $2,011,088.
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    Source: J.W. Schroeder, (701) 231-7663, jschroed@ndsuext.nodak.edu
    Editor: Tom Jirik, (701) 231-9629, tjirik@ndsuext.nodak.edu