Analysis of the management decision to purchase feedstuffs on Michigan dairy farm

Dairy Producers in the Upper Midwest, on average, face higher per hundred-weight production costs than producers in other regions of the United States. The production system often used in the Pacific region is to rely on purchased feedstuffs for the herd. This frees the dairy from investment in land and equipment, focusing the assets more squarely on milk production.;Some dairy producers in Michigan are utilizing this system on their dairy farms. This research studied a sample of these operations to learn more about the benefits and drawbacks, and ultimately considered the feasibility of greater reliance on this system of milk production for dairying in the Upper Midwest.;The case study method was used, so that much information, including that mot originally questioned, could be collected. Questioning revolved around four hypotheses concerning risk management, limited investment, labor availability, and waste management.;The management decision to purchase all forages on Michigan dairy farms, thus focusing management on dairy production was found to be a viable alternative for producers in the Upper Midwest. Managers are able to handle risks involved, better employ their investment, and work around other factors that may limit the profitability of their dairy operation.