Dairy Farm Business Summary Supports Financial Decision-Making

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Cornell Cooperative Extension

Impact: Agricultural Systems

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New York dairy farms face increasing pressure from volatile milk prices, rising labor, feed, and other input costs, and ongoing supply chain challenges. These factors limit profitability and make long-term planning difficult. Without accurate financial analysis, benchmarks and business analysis tools, farm owners and managers often lack the data needed to assess financial health, evaluate investment options, or plan for generational transfer. Strengthening financial literacy and management skills is essential to the long-term viability of the state’s $2.7 billion dairy industry.

Response

Cornell University’s Dairy Farm Business Summary (DFBS) project provides financial performance analysis, benchmarking, and educational support to help farm families make informed decisions. In 2023, 163 farms across 34 counties participated in the program, maintaining a 95 percent retention rate from the previous year. Farmers submitted detailed records on income, expenses, herd size, labor, and productivity. Extension educators and farm business consultants provided assistance in completing the summary, helped analyze the data and generated customized reports comparing individual performance to past performance, goals, statewide and historical benchmarks. The program also delivered small-group discussions, in-person consultations, and workshops. An analysis of organic dairy farms was also developed—the first since 2011—to address growing interest in that sector. DFBS staff received training to enhance delivery of services across regional extension networks.

Results

The program expanded by enrolling eight first-time farms, improving access to financial decision-making tools. Publications included a six-year trend analysis, performance comparisons by profitability quartiles, and an organic dairy benchmarking report. More than a dozen presentations communicated findings to farmers, industry professionals, and policymakers. Farmers used the information to identify areas for improvement, assess investment opportunities, and set realistic goals for profitability and sustainability. Extension educators reported increased confidence among farm participants in using financial data to guide business strategies.

Public Value

By supporting financial analysis and decision making extension education through delivering accurate, trusted financial benchmarks and fostering critical thinking around business performance, the DFBS program supports the resilience of New York’s dairy sector. Participating farms are better equipped to navigate market uncertainty, preserve intergenerational farm legacies, and contribute to the economic health of rural communities.

Dairy Farm Business Summary Supports Financial Decision-Making

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