| This research examines the managerial, production, and financial effects that dairy farm expansion had on twenty Michigan and Wisconsin managers and their dairy operations. These farms conducted at least one expansion during 1988--1998 that was characterized by a twenty percent or more herd size increase that also required improvements in or additions to facilities, equipment and human resources. The research was conducted to provide dairy farm managers with current information from which to base dairy farm expansion decisions.; Average herd size increased by 92 percent to 569 cows. Most of the managers were deemed to have above average herd management ability. They expanded primarily to improve profitability. The expansions were not accompanied by an initial decrease in productivity, reproduction, or herd health measures, but biosecurity problems were evident on most dairies. Labor productivity improved on most dairies, but most managers still desired human resource management training and skills to further improve productivity. Most managers faced public relations problems before, during, and after expansion. Outsourcing enterprise activities was common among the dairies, as was the internalization of initial milk marketing, milk hauling and veterinary care. On average, net farm income increased, and the total economic costs of production decreased. |
