to our valued clients and other friends in the dairy … our valued clients and other friends in the...

To Our Valued Clients and Other Friends in the Dairy Industry

The following pages contain the Frazer, LLPs Dairy Farm Operating Trends for the year ended December 31, 2014.

The data is compiled from dairy operations in Southern California, the San Joaquin Valley, Kern County, Arizona, Idaho, New Mexico, the Texas Panhandle, and the Pacific Northwest, which consists of Washington and Oregon operating collectively, with a combined milk production of over 8 billion pounds and more than 361,000 head of maturecows for the year ended December 31, 2014.

This report includes a comparison of the results in the regions listed above for the year ended December 31, 2014 both on a per hundredweight of milk basis and on a per head basis. Also included are selected financial ratios and other information for the year.

This publication is designed as a reference tool and a management aid for dairy farm managers and advisors. Frazer, LLP believes the information to be reliable, but is not responsible for errors in reported source information.

Our publication continues to be recognized as the top industry source for relevant dairy statistics. This report is provided to and widely utilized by dairy farmers, lending institutions, universities, colleges and other agribusiness industries.

We appreciate all of your past and present support and thank you for your continued reliance on Frazer, LLP. If you have any comments or questions, please contact our Agribusiness partners, Ralph Lizardo, Tim Gulling or Sharon A. Davis at our Brea office at (714) 990-1040 and David Bekedam, Mike Edwards or Bob Matlick at our Visalia office at (559) 732-4135.

For more information regarding our firm, our Agribusiness department and our publication, please visit our website at www.frazerllp.com.

Sincerely,

FRAZER, LLP Certified Public Accountants and Consultants

May 2015

DAIRY FARM OPERATING TRENDS

TABLE OF CONTENTS

December 31, 2014

PAGE

2014 Year in Review 1

Comparison by Area on a Per Head Basis .. 3

Comparison by Area on a Per Hundredweight of Milk Basis . 5

Comparison by Area - Ratios .. 7

Southern California . 9

San Joaquin Valley . 17

Kern County... 25

Arizona .... 33

Idaho ....41

New Mexico .... 49

Panhandle 57

Pacific Northwest.. 65

Explanation of Income and Cost Factors .. 71

Our Firm and the Dairy Industry ... 72

1_

2014

IN R

EV

IEW

Co

mp

arat

ive

Net

Inco

me

By

Reg

ion

:

Net

inco

me

Sou

ther

nS

an J

oaqu

inK

ern

New

Pac

ific

per

head

:C

alifo

rnia

Val

ley

Cou

nty

Ariz

ona

Idah

oM

exic

oP

anha

ndle

Nor

thw

est

2014

1,20

2$

1,16

6$

1,11

5$

1,

261

$

1,37

7$

74

5$

1,

250

$

1,

000

$

2013

104

$

35$

10

0$

207

$

33

0$

33$

90

$

202

$

C

hang

e1,

098

$

1,

131

$

1,

015

$

1,05

4$

1,

047

$

712

$

1,16

0$

798

$

Co

mp

arat

ive

Fee

d C

ost

By

Reg

ion

:

Fee

d co

stS

outh

ern

San

Joa

quin

Ker

nN

ewP

acifi

cpe

r he

ad:

Cal

iforn

iaV

alle

yC

ount

yA

rizon

aId

aho

Mex

ico

Pan

hand

leN

orth

wes

t20

142,

633

$

2,

692

$

2,

568

$

2,35

0$

2,

584

$

2,17

3$

2,31

3$

2,47

6$

20

132,

638

$

2,

737

$

2,

664

$

2,52

7$

2,

520

$

2,39

1$

2,62

0$

2,55

5$

C

hang

e(5

)$

(45)

$

(96)

$

(177

)$

64$

(2

18)

$

(3

07)

$

(7

9)$

Co

mp

arat

ive

Pro

du

ctio

n B

y R

egio

n:

Lbs.

per

milk

Sou

ther

nS

an J

oaqu

inK

ern

New

Pac

ific

cow

per

day

:C

alifo

rnia

Val

ley

Cou

nty

Ariz

ona

Idah

oM

exic

oP

anha

ndle

Nor

thw

est

2014

73.1

76

.1

72.5

71

.6

76.4

65

.9

68.9

70

.4

2013

71.7

75

.0

70.5

68

.0

72.9

67

.8

66.3

69

.8

Cha

nge

1.4

1.1

2.0

3.

6

3.5

(1

.9)

2.

6

0.

6

Her

d T

urn

ove

r R

ate

By

Reg

ion

:

Her

d tu

rnov

er r

ate

Sou

ther

nS

an J

oaqu

inK

ern

New

Pac

ific

by r

egio

n:C

alifo

rnia

Val

ley

Cou

nty

Ariz

ona

Idah

oM

exic

oP

anha

ndle

Nor

thw

est

2014

34.6

%45

.2%

40.3

%34

.0%

39.4

%35

.5%

37.9

%36

.9%

2013

38.7

%45

.3%

38.1

%38

.0%

44.8

%41

.1%

41.0

%32

.9%

Cha

nge

-4.1

%-0

.1%

2.2%

-4.0

%-5

.4%

-5.6

%-3

.1%

4.0%

Ave

rag

e C

ost

of

Rep

lace

men

t P

er H

ead

By

Reg

ion

:

Ave

rage

cos

t of

repl

acem

ent p

erS

outh

ern

San

Joa

quin

Ker

nN

ewP

acifi

che

ad b

y re

gion

:C

alifo

rnia

Val

ley

Cou

nty

Ariz

ona

Idah

oM

exic

oP

anha

ndle

Nor

thw

est

2014

1,71

4$

1,90

6$

1,67

2$

1,

920

$

1,77

0$

1,

937

$

2,

549

$

1,

967

$

2013

1,36

7$

1,25

2$

1,25

1$

1,

493

$

1,36

7$

1,

335

$

1,

442

$

1,

322

$

2_

Cha

nge

347

$

654

$

421

$

427

$

403

$

602

$

1,10

7$

645

$

The

cost

sof

repl

acem

ent

purc

hase

s,w

hich

bega

nto

skyr

ocke

tdur

ing

2014

due

tost

rong

milk

,bee

fan

dca

lfpr

ices

are

cont

inui

ng to

rem

ain

solid

as

wel

l as

bull

and

heife

r ca

lf pr

ices

. H

eife

r re

plac

emen

ts o

f all

ages

hav

e al

so d

ram

atic

ally

ris

en

inpr

ice

that

have

notb

een

seen

inre

cent

hist

ory.

Aga

inw

hat

the

milk

-fe

edco

stra

tio,

stre

ngth

ofdo

llar

pric

es,

etc.

,doe

sgo

ing

forw

ard

will

affe

ct r

epla

cem

ent c

osts

in th

is n

atio

n an

d ab

road

.

The

entir

ena

tion

sm

ilkpr

oduc

tion

was

up2.

4%in

2014

com

pare

dto

2013

,an

dm

ost

ofou

rre

gion

sin

the

Wes

tw

ere

updu

ring

the

year

.T

his

isa

larg

ein

crea

seye

arov

erye

ar,

asth

e20

13in

crea

sein

prod

uctio

nov

er20

12w

ason

ly0.

3%.

Thi

s tr

end

will

not

hel

p m

ilk p

ricin

g in

the

futu

re u

nles

s de

man

d st

reng

then

s fu

rthe

r.

Her

dtu

rnov

erra

tes

wer

ege

nera

llyup

inm

ost

regi

ons

durin

g20

14.

Bee

fpr

ices

cont

inue

dto

stay

stro

ngan

dre

mai

nst

rong

durin

gth

efir

stha

lfof

2015

,as

good

dem

and

for

beef

cont

inue

sbo

thhe

rean

dab

road

.T

hem

ilk-

feed

cost

ratio

,cu

rren

tbe

efpr

ices

and

indi

vidu

alpr

oduc

erfin

anci

alco

nditi

ons

will

dict

ate

futu

recu

lling

leve

lsas

we

mov

eth

roug

hth

ere

mai

nder

of 2

015.

Itw

asa

reco

rdye

arfo

rm

ilkpr

ices

in20

14w

ithpr

ices

peak

ing

inth

ela

tesu

mm

er,a

lthou

ghby

Nov

embe

rpr

ices

star

ted

todr

opbr

ingi

ngpr

oduc

ers

clos

erto

brea

keve

nle

vels

byth

een

dof

the

year

.W

hile

man

ym

ajor

inpu

tco

sts

rem

aine

dst

eady

orcl

imbe

d,su

chas

labo

rco

sts,

feed

rem

aine

dre

lativ

ely

stea

dyth

roug

hout

muc

hof

2014

,th

isal

sohe

lped

impr

ove

mar

gins

durin

gth

eye

ar.

Thi

sm

ajor

cost

tren

dis

stab

ilizi

ngdu

ring

2015

whi

chis

help

ing

cush

ion

the

botto

mlin

esso

mew

hat

asm

ilkpr

ices

have

plum

met

edas

muc

has

40-4

5%du

ring

the

first

half

of20

15w

hen

com

pare

dto

the

high

sof

2014

. D

omes

tic a

nd in

tern

atio

nal d

eman

d al

ong

with

sup

ply

issu

es w

ill d

icta

te w

hat p

rodu

cers

will

see

in m

ilk p

rices

for

the

seco

ndha

lfof

2015

.E

xpor

tsof

our

dairy

prod

ucts

wer

est

rong

allt

hrou

ghou

t20

14an

dth

efo

reca

sts

rem

ain

solid

for

the

rem

aind

er o

f 201

5 fo

r ex

port

mar

kets

. T

his

will

con

tinue

to b

e w

elco

me

new

s fo

r ou

r na

tions

pro

duce

rs.

Fee

dco

sts

gene

rally

decl

ined

durin

g20

14in

mos

treg

ions

whi

chhe

lped

the

reco

rdye

arin

prod

ucer

mar

gins

.A

lthou

gh

cert

ain

prot

eins

and

min

eral

sdi

dris

edu

ring

2014

,co

rn,

soyb

eans

and

whe

atdr

oppe

ddr

amat

ical

lyin

pric

edu

ring

2014

,

whi

chw

asw

elco

me

new

sfo

rpr

oduc

ers.

The

entir

eW

est

cont

inue

sto

suffe

rth

eef

fect

sof

the

drou

ght

whi

chis

inm

ultip

le

year

sno

w,

and

all

regi

ons

have

wat

ersh

orta

geis

sues

rega

rdle

ssof

whe

reth

eyar

e.In

tern

atio

nal

dem

and

and

the

stre

ngth

enin

gof

the

U.S

.do

llar

also

cont

inue

sto

pres

sure

feed

pric

esfo

rpr

oduc

ers

and

now

itis

also

putti

ngpr

essu

reon

milk

expo

rts

asw

ell.

The

seco

ndha

lfof

2015

appe

ars

asco

rn,

soyb

eans

and

whe

aton

the

CM

Ew

illbe

sim

ilar

inpr

ice

as

itw

asat

the

end

of20

14,

but

mos

tot

her

high

perf

orm

ance

feed

sre

mai

nex

pens

ive

orar

ego

ing

upfu

rthe

r,an

dif

milk

pric

es d

rop

even

furt

her

from

wha

t the

y ar

e at

the

date

of t

hese

rep

orts

, net

pro

fit m

argi

ns w

ill q

uick

ly e

vapo

rate

.

1_

2014

IN R

EV

IEW

Co

mp

arat

ive

Net

Inco

me

By

Reg

ion

:

Net

inco

me

Sou

ther

nS

an J

oaqu

inK

ern

New

Pac

ific

per

head

:C

alifo

rnia

Val

ley

Cou

nty

Ariz

ona

Idah

oM

exic

oP

anha

ndle

Nor

thw

est

2014

1,20

2$

1,16

6$

1,11

5$

1,

261

$

1,37

7$

74

5$

1,

250

$

1,

000

$

2013

104

$

35$

10

0$

207

$

33

0$

33$

90

$

202

$

C

hang

e1,

098

$

1,

131

$

1,

015

$

1,05

4$

1,

047

$

712

$

1,16

0$

798

$

Co

mp

arat

ive

Fee

d C

ost

By

Reg

ion

:

Fee

d co

stS

outh

ern

San

Joa

quin

Ker

nN

ewP

acifi

cpe

r he

ad:

Cal

iforn

iaV

alle

yC

ount

yA

rizon

aId

aho

Mex

ico

Pan

hand

leN

orth

wes

t20

142,

633

$

2,

692

$

2,

568

$

2,35

0$

2,

584

$

2,17

3$

2,31

3$

2,47

6$

20

132,

638

$

2,

737

$

2,

664

$

2,52

7$

2,

520

$

2,39

1$

2,62

0$

2,55

5$

C

hang

e(5

)$

(45)

$

(96)

$

(177

)$

64$

(2

18)

$

(3

07)

$

(7

9)$

Co

mp

arat

ive

Pro

du

ctio

n B

y R

egio

n:

Lbs.

per

milk

Sou

ther

nS

an J

oaqu

inK

ern

New

Pac

ific

cow

per

day

:C

alifo

rnia

Val

ley

Cou

nty

Ariz

ona

Idah

oM

exic

oP

anha

ndle

Nor

thw

est

2014

73.1

76

.1

72.5

71

.6

76.4

65

.9

68.9

70

.4

2013

71.7

75

.0

70.5

68

.0

72.9

67

.8

66.3

69

.8

Cha

nge

1.4

1.1

2.0

3.

6

3.5

(1

.9)

2.

6

0.

6

Her

d T

urn

ove

r R

ate

By

Reg

ion

:

Her

d tu

rnov

er r

ate

Sou

ther

nS

an J

oaqu

inK

ern

New

Pac

ific

by r

egio

n:C

alifo

rnia

Val

ley

Cou

nty

Ariz

ona

Idah

oM

exic

oP

anha

ndle

Nor

thw

est

2014

34.6

%45

.2%

40.3

%34

.0%

39.4

%35

.5%

37.9

%36

.9%

2013

38.7

%45

.3%

38.1

%38

.0%

44.8

%41

.1%

41.0

%32

.9%

Cha

nge

-4.1

%-0

.1%

2.2%

-4.0

%-5

.4%

-5.6

%-3

.1%

4.0%

Ave

rag

e C

ost

of

Rep

lace

men

t P

er H

ead

By

Reg

ion

:

Ave

rage

cos

t of

repl

acem

ent p

erS

outh

ern

San

Joa

quin

Ker

nN

ewP

acifi

che

ad b

y re

gion

:C

alifo

rnia

Val

ley

Cou

nty

Ariz

ona

Idah

oM

exic

oP

anha

ndle

Nor

thw

est

2014

1,71

4$

1,90

6$

1,67

2$

1,

920

$

1,77

0$

1,

937

$

2,

549

$

1,

967

$

2013

1,36

7$

1,25

2$

1,25

1$

1,

493

$

1,36

7$

1,

335

$

1,

442

$

1,

322

$

2_

Cha

nge

347

$

654

$

421

$

427

$

403

$

602

$

1,10

7$

645

$

The

cost

sof

repl

acem

ent

purc

hase

s,w

hich

bega

nto

skyr

ocke

tdur

ing

2014

due

tost

rong

milk

,bee

fan

dca

lfpr

ices

are

cont

inui

ng to

rem

ain

solid

as

wel

l as

bull

and

heife

r ca

lf pr

ices

. H

eife

r re

plac

emen

ts o

f all

ages

hav

e al

so d

ram

atic

ally

ris

en

inpr

ice

that

have

notb

een

seen

inre

cent

hist

ory.

Aga

inw

hat

the

milk

-fe

edco

stra

tio,

stre

ngth

ofdo

llar

pric

es,

etc.

,doe

sgo

ing

forw

ard

will

affe

ct r

epla

cem

ent c

osts

in th

is n

atio

n an

d ab

road

.

The

entir

ena

tion

sm

ilkpr

oduc

tion

was

up2.

4%in

2014

com

pare

dto

2013

,an

dm

ost

ofou

rre

gion

sin

the

Wes

tw

ere

updu

ring

the

year

.T

his

isa

larg

ein

crea

seye

arov

erye

ar,

asth

e20

13in

crea

sein

prod

uctio

nov

er20

12w

ason

ly0.

3%.

Thi

s tr

end

will

not

hel

p m

ilk p

ricin

g in

the

futu

re u

nles

s de

man

d st

reng

then

s fu

rthe

r.

Her

dtu

rnov

erra

tes

wer

ege

nera

llyup

inm

ost

regi

ons

durin

g20

14.

Bee

fpr

ices

cont

inue

dto

stay

stro

ngan

dre

mai

nst

rong

durin

gth

efir

stha

lfof

2015

,as

good

dem

and

for

beef

cont

inue

sbo

thhe

rean

dab

road

.T

hem

ilk-

feed

cost

ratio

,cu

rren

tbe

efpr

ices

and

indi

vidu

alpr

oduc

erfin

anci

alco

nditi

ons

will

dict

ate

futu

recu

lling

leve

lsas

we

mov

eth

roug

hth

ere

mai

nder

of 2

015.

Itw

asa

reco

rdye

arfo

rm

ilkpr

ices

in20

14w

ithpr

ices

peak

ing

inth

ela

tesu

mm

er,a

lthou

ghby

Nov

embe

rpr

ices

star

ted

todr

opbr

ingi

ngpr

oduc

ers

clos

erto

brea

keve

nle

vels

byth

een

dof

the

year

.W

hile

man

ym

ajor

inpu

tco

sts

rem

aine

dst

eady

orcl

imbe

d,su

chas

labo

rco

sts,

feed

rem

aine

dre

lativ

ely

stea

dyth

roug

hout

muc

hof

2014

,th

isal

sohe

lped

impr

ove

mar

gins

durin

gth

eye

ar.

Thi

sm

ajor

cost

tren

dis

stab

ilizi

ngdu

ring

2015

whi

chis

help

ing

cush

ion

the

botto

mlin

esso

mew

hat

asm

ilkpr

ices

have

plum

met

edas

muc

has

40-4

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.

CONDENSED STATEMENT OF DAIRY FARM INCOME AND COSTS

COMPARISON BY AREAFOR THE YEAR ENDED DECEMBER 31, 2014(BASED ON AVERAGE AMOUNTS PER HEAD)

Southern San Joaquin KernCalifornia Valley County

Income:Milk sales $ 5,237 $ 5,208 $ 4,903Calves and other 211 151 102

Total income $ 5,448 $ 5,359 $ 5,005

Cost of operations:Feed:

Grain $ 1,653 $ 1,914 $ 1,608Hay and other 980 778 960

Total feed $ 2,633 $ 2,692 $ 2,568

Labor, (including fringe costs) $ 432 $ 337 $ 279

Herd replacement costs $ 213 $ 152 $ 169

Other costs:Milk hauling $ 91 $ 81 $ 78State and association charges 43 46 40Veterinary, breeding, testing, etc. 145 99 66Supplies 64 112 119Repairs and maintenance 194 118 118Utilities 72 85 104Occupancy costs 103 135 91Depreciation - equipment 27 65 59Interest 94 96 73Miscellaneous 135 175 126

Total other costs $ 968 $ 1,012 $ 874

Total cost of operations $ 4,246 $ 4,193 $ 3,890

Net income $ 1,202 $ 1,166 $ 1,115

3 See accompanying explanation of income and cost factors.

YourNew Pacific December 31, 2014

Arizona Idaho Mexico Panhandle Northwest Amounts

$ 5,113 $ 5,563 $ 4,259 $ 5,115 $ 5,133 $263 156 186 97 92

$ 5,376 $ 5,719 $ 4,445 $ 5,212 $ 5,225 $

$ 1,544 $ 1,706 $ 1,458 $ 1,544 $ 1,490 $806 878 715 769 987

$ 2,350 $ 2,584 $ 2,173 $ 2,313 $ 2,477 $

$ 451 $ 434 $ 329 $ 354 $ 406 $

$ 151 $ 164 $ 104 $ 144 $ 159 $

$ 92 $ 75 $ 182 $ 177 $ 157 $97 51 67 66 6656 111 109 90 141

162 217 85 135 137155 192 132 120 137

81 56 70 52 4460 97 73 148 18266 80 57 66 74

138 82 84 76 78256 198 236 219 168

$ 1,163 $ 1,159 $ 1,095 $ 1,149 $ 1,184 $

$ 4,115 $ 4,341 $ 3,701 $ 3,960 $ 4,226 $

$ 1,261 $ 1,378 $ 744 $ 1,252 $ 999 $

4


COMPARISON BY AREAFOR THE YEAR ENDED DECEMBER 31, 2014

(BASED ON AVERAGE AMOUNTSPER HUNDREDWEIGHT OF MILK)


Income:Milk sales $ 22.79 $ 22.29 $ 22.46 Calves and other 0.93 0.63 0.45

Total income $ 23.72 $ 22.92 $ 22.91


Grain $ 7.19 $ 8.21 $ 7.37 Hay and other 4.26 3.33 4.40

Total feed $ 11.45 $ 11.54 $ 11.77

Labor, (including fringe costs) $ 1.87 $ 1.45 $ 1.28

Herd replacement costs $ 0.93 $ 0.65 $ 0.77

Other costs:Milk hauling $ 0.40 $ 0.35 $ 0.36 State and association charges 0.19 0.20 0.19 Veterinary, breeding, testing, etc. 0.63 0.42 0.30 Supplies 0.28 0.48 0.54 Repairs and maintenance 0.85 0.50 0.54 Utilities 0.32 0.36 0.48 Occupancy costs 0.45 0.58 0.42 Depreciation - equipment 0.11 0.28 0.27 Interest 0.41 0.41 0.34 Miscellaneous 0.59 0.72 0.56

Total other costs $ 4.23 $ 4.30 $ 4.00

Total cost of operations $ 18.48 $ 17.94 $ 17.82

Net income $ 5.24 $ 4.98 $ 5.09



Arizona Idaho Mexico Panhandle Northwest Amounts

$ 23.35 $ 22.55 $ 23.46 $ 23.85 $ 23.19 $1.20 0.62 1.03 0.46 0.43

$ 24.55 $ 23.17 $ 24.49 $ 24.31 $ 23.62 $

$ 7.05 $ 6.91 $ 8.04 $ 7.20 $ 6.73 $3.69 3.57 3.94 3.59 4.45

$ 10.74 $ 10.48 $ 11.98 $ 10.79 $ 11.18 $

$ 2.06 $ 1.75 $ 1.81 $ 1.65 $ 1.83 $

$ 0.69 $ 0.66 $ 0.57 $ 0.67 $ 0.72 $

$ 0.42 $ 0.30 $ 1.00 $ 0.82 $ 0.71 $0.45 0.21 0.37 0.31 0.30 0.25 0.45 0.60 0.42 0.64 0.74 0.88 0.47 0.62 0.62 0.71 0.78 0.72 0.56 0.62 0.37 0.23 0.39 0.24 0.20 0.27 0.39 0.40 0.68 0.82 0.30 0.32 0.31 0.31 0.34 0.63 0.33 0.46 0.37 0.35 1.16 0.80 1.31 1.04 0.76

$ 5.30 $ 4.69 $ 6.03 $ 5.37 $ 5.36 $

$ 18.79 $ 17.58 $ 20.39 $ 18.48 $ 19.09 $

$ 5.76 $ 5.59 $ 4.10 $ 5.83 $ 4.53 $

6

SUMMARY OF FINANCIAL STATISTICS

COMPARISON BY AREAFOR THE YEAR ENDED DECEMBER 31, 2014


1. Current Ratio 0.49 : 1 1.82 : 1 1.68 : 1

2. Herd Line Debt Per Cow 884$ 763$ 649$

3. Total Debt Per Cow 2,920$ 2,682$ 2,929$

4. Debt to Equity Ratio 1.40 : 1 1.11 : 1 0.84 : 1

5. Return on Total Assets 20.2% 15.7% 12.2%

6. Income per milking cow per month 114.66$ 128.26$ 149.10$

1 The current ratio represents current assets divided by1.

2.

3.

4.

5.

6.

7

The current ratio represents current assets divided bycurrent liabilities.

Total debt per cow equals the total current liabilities andlong-term debt divided by the average total herd size.Heifers are included on a mature equivalent basis.

Debt to equity ratio represents total debt divided by totalequity.

The return on total assets represents the net incomedivided by the total assets, stated at cost.

Income per milking cow per month represents each region'saccrual based financial results divided by the number ofmilking cows, divided by twelve.

Herd line debt per cow equals the total debt secured by theherd divided by the average total herd size. Heifers areincluded on a mature equivalent basis.


Arizona Idaho Mexico Panhandle Northwest Results

0.98 : 1 1.04 : 1 1.13 : 1 1.35 : 1 1.42 : 1

838$ 581$ 521$ 747$ 619$ $

3,072$ 2,546$ 2,009$ 2,667$ 2,087$ $

1.36 : 1 0.8 : 1 0.8 : 1 1.06 : 1 0.81 : 1

16.7% 16.7% 11.6% 16.6% 15.1%

124.79$ 138.34$ 99.60$ 129.99$ 110.56$ $

8


FOR THE YEARS ENDEDDECEMBER 31, 2014, 2013, AND 2012

SOUTHERN CALIFORNIA(BASED ON AVERAGE AMOUNTS)

PER HEAD


Total income $ 5,448 $ 4,288 $ 3,765



Total feed $ 2,633 $ 2,638 $ 2,627




Total other costs $ 968 $ 874 $ 797


Net income (loss) $ 1,202 $ 104 $ (341)


2014 2013 2012

PER CWT. OF MILKYOUR 2014RESULTS

PER CWT.OF MILK

$ 22.79 $ 18.90 $ 16.91 $ $0.93 0.27 0.26

$ 23.72 $ 19.17 $ 17.17 $ $

$ 7.19 $ 8.07 $ 8.144.26 3.73 3.85

$ 11.45 $ 11.80 $ 11.99 $ $

$ 1.87 $ 1.71 $ 1.67 $ $

$ 0.93 $ 1.30 $ 1.44 $ $

$ 0.40 $ 0.41 $ 0.41 $ $0.19 0.20 0.150.63 0.47 0.440.28 0.32 0.340.85 0.67 0.650.32 0.30 0.260.45 0.45 0.520.11 0.12 0.120.41 0.42 0.270.59 0.54 0.49

$ 4.23 $ 3.90 $ 3.65 $ $

$ 18.48 $ 18.71 $ 18.75 $ $

$ 5.24 $ 0.46 $ (1.58) $ $

10

2014 2013 2012 PER HEAD


December 31, December 31, December 31,2014 2013 2012

1. Current Ratio 0.49 : 1 0.32 : 1 0.42 : 1

2. Herd Line Debt Per Cow $ 884 $ 1,048 $ 800

3. Total Debt Per Cow $ 2,920 $ 2,648 $ 1,994


5. Return on Total Assets 20.2% 2.3% -8.9%

6. Income (loss) per milking cow per month $ 114.66 $ 9.54 $ (31.10)

1. The current ratio represents current assets divided by current liabilities.

2. Herd line debt per cow equals the total debt secured by the herd divided by the average total herd size. Heifers are included on a mature equivalent basis.

3. Total debt per cow equals the total current liabilities and long-term debt divided by the average total herd size. Heifers are included on a mature equivalent basis.

4. Debt to equity represents the total debt divided by the total equity.

5. The return on total assets represents the net income divided by the total assets, stated at cost.

6. Income per milking cow per month represents each region's accrual based financial results divided by the number of milking cows, divided by twelve.

11

SOUTHERN CALIFORNIASUMMARY OF DAIRY FARM STATISTICAL ANALYSIS


SOUTHERN CALIFORNIA(BASED ON AVERAGE AMOUNTS)

2014 2013 2012

PRODUCTION AND PRICEINFORMATION:

Annual pounds of milk, per cow(including dry cows) 22,976 22,367 21,927

Daily pounds of milk, per milking cow 73.1 71.7 71.3

Butterfat test 3.46 % 3.50 % 3.47 %

Solids-non-fat test 8.83 % 8.86 % 8.83 %

Blend price per hundredweight 22.79$ 18.90$ 16.91$

Milk receipts, per milking cow 5,448$ 4,288$ 3,766$

HERD INFORMATION:

Herd size - total 2,336 1,899 1,944

Percent of dry cows 13.8 % 14.5 % 15.7 %

Herd turnover rate 34.6 % 38.7 % 39.6 %

Composition of herd:Purchased cows 61 % 51 % 43 %Self-raised cows 39 % 49 % 57 %

Cost of purchased cows 1,714$ 1,367$ 1,501$

Beef price received 1,194$ 862$ 817$

FEED INFORMATION:

Cost of feed as a percent of milkincome:

Grain 31.5 % 42.7 % 48.1 %Hay and other 18.7 % 19.7 % 22.8 %

Totals 50.2 % 62.4 % 70.9 %

12

INCOME AND COST OF OPERATIONS .

December 31, December 31, December 31, 2014 2013 2012

Income:Milk Sales $ 22.79 $ 18.90 $ 16.91Calves and other 0.93 0.27 0.26

Total income $ 23.72 $ 19.17 $ 17.17

Total cost of operations:Feed $ 11.45 $ 11.80 $ 11.99Labor 1.87 1.71 1.67Herd replacement costs 0.93 1.30 1.44Other costs 4.23 3.90 3.65

Total costs of operations $ 18.48 $ 18.71 $ 18.75

Net income (loss) $ 5.24 $ 0.46 $ (1.58)

Cost of operations as a percentage of income 77.91% 97.60% 109.20%

Feed costs as a percentageof milk sales 50.24% 62.43% 70.90%

Net income (loss) per milkingcow per month $ 114.66 $ 9.54 $ (31.10)

Cumulative net lossper cwt. from 2008 to 2014 $ (1.09)

13

SOUTHERN CALIFORNIA

(BASED ON PER HUNDREDWEIGHT OF MILK BASIS)

December 31, December 31, December 31, December 31, 2011 2010 2009 2008

$ 18.85 $ 15.68 $ 12.42 $ 17.220.44 0.23 0.46 0.28

$ 19.29 $ 15.91 $ 12.88 $ 17.50

$ 11.64 $ 7.66 $ 8.74 $ 10.691.72 1.78 1.86 1.901.54 1.78 1.65 1.604.39 4.33 4.56 4.95

$ 19.29 $ 15.55 $ 16.81 $ 19.14

$ 0.00 $ 0.36 $ (3.93) $ (1.64)

100.00% 97.74% 130.51% 109.37%

61.75% 48.85% 70.37% 62.08%

$ 0.24 $ 9.87 $ (74.43) $ (34.34)

14

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LONG TERM TREND - COST OF PURCHASED COWS, BEEF PRICE, AND HERD SIZE

SOUTHERN CALIFORNIA

Purchased Cows

Beef price (in dollars)

Herd size (number of head)

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

FEED COST vs. MILK INCOMESOUTHERN CALIFORNIA

MILK INCOME

FEED (as percent of milk income)



SAN JOAQUIN VALLEY(BASED ON AVERAGE AMOUNTS)

PER HEAD


Total income $ 5,359 $ 4,323 $ 3,700



Total feed $ 2,692 $ 2,737 $ 2,503




Total other costs $ 1,012 $ 966 $ 918


Net income (loss) $ 1,166 $ 35 $ (287)


2014 2013 2012

YOUR 2014PER CWT. OF MILK RESULTS

PER CWT.OF MILK

$ 22.29 $ 18.86 $ 16.66 $ $0.63 0.31 0.34

$ 22.92 $ 19.17 $ 17.00 $ $

$ 8.21 $ 8.87 $ 8.39 $ $3.33 3.26 3.11

$ 11.54 $ 12.13 $ 11.50 $ $

$ 1.45 $ 1.41 $ 1.43 $ $

$ 0.65 $ 1.16 $ 1.15 $ $

$ 0.35 $ 0.34 $ 0.33 $ $0.20 0.19 0.20 0.42 0.44 0.43 0.48 0.49 0.46 0.50 0.39 0.37 0.36 0.31 0.26 0.58 0.56 0.50 0.28 0.28 0.32 0.41 0.48 0.58 0.72 0.64 0.63

$ 4.30 $ 4.12 $ 4.08 $ $

$ 17.94 $ 18.82 $ 18.16 $ $

$ 4.98 $ 0.35 $ (1.16) $ $

18

2014 2013 2012 PER HEAD



1. Current Ratio 1.82 : 1 1.02 : 1 0.88 : 1












19

SAN JOAQUIN VALLEYSUMMARY OF DAIRY FARM STATISTICAL ANALYSIS


SAN JOAQUIN VALLEY(BASED ON AVERAGE AMOUNTS)

2014 2013 2012




Butterfat test 3.60 % 3.70 % 3.66 %




HERD INFORMATION:

Herd size - total 3,771 3,493 3,587






FEED INFORMATION:



Totals 51.7 % 64.3 % 69.1 %

20

INCOME AND COST OF OPERATIONS



Total income $ 22.92 $ 19.17 $ 17.00



Net income (loss) $ 4.98 $ 0.35 $ (1.16)




Cumulative net incomeper cwt. from 2008 to 2014 $ 1.33

21

SAN JOAQUIN VALLEY


December 31, December 31, December 31, December 31,2011 2010 2009 2008

$ 18.68 $ 14.94 $ 11.71 $ 16.840.32 0.10 0.23 0.14

$ 19.00 $ 15.04 $ 11.94 $ 16.98

$ 10.37 $ 7.46 $ 8.81 $ 9.381.45 1.40 1.48 1.541.18 1.13 1.30 1.194.39 4.42 4.78 5.52

$ 17.39 $ 14.41 $ 16.37 $ 17.63

$ 1.61 $ 0.63 $ (4.43) $ (0.65)

91.53% 95.81% 137.10% 103.83%

55.51% 49.93% 75.23% 55.70%

$ 59.07 $ 20.60 $ (91.89) $ (1.40)

22

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1991

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1993

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2007

2008

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219

213

207

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227

247

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260

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250

259

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262

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SAN JOAQUIN VALLEY

Purchased Cows



0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

2006

2008

2010

2012

2014

FEED COST vs. MILK INCOMESAN JOAQUIN VALLEY

MILK INCOME




KERN COUNTY(BASED ON AVERAGE AMOUNTS)

PER HEAD


Total income $ 5,005 $ 4,116 $ 3,636


Grain $ 1,608 $ 1,663 $ 1,647Hay and other 960 1,001 920

Total feed $ 2,568 $ 2,664 $ 2,567




Total other costs $ 874 $ 822 $ 834


Net income (loss) $ 1,115 $ 100 $ (283)

See accompanying explanation of income and cost factors.25

2014 2013 2012

PER CWT. OF MILKYOUR 2014RESULTS

PER CWT.OF MILK

$ 22.46 $ 19.13 $ 16.97 $ $0.45 0.23 0.25

$ 22.91 $ 19.36 $ 17.22 $ $

$ 7.37 $ 7.82 $ 7.80 $ $4.40 4.70 4.35

$ 11.77 $ 12.52 $ 12.15 $ $

$ 1.28 $ 1.29 $ 1.25 $ $

$ 0.77 $ 1.20 $ 1.20 $ $

$ 0.36 $ 0.36 $ 0.35 $ $0.19 0.19 0.19 0.30 0.27 0.30 0.54 0.49 0.44 0.54 0.51 0.45 0.48 0.38 0.36 0.42 0.42 0.52 0.27 0.28 0.31 0.34 0.40 0.45 0.56 0.55 0.55

$ 4.00 $ 3.85 $ 3.92 $ $

$ 17.82 $ 18.86 $ 18.52 $ $

$ 5.09 $ 0.50 $ (1.30) $ $

26

2014 2013 2012 PER HEAD



1. Current Ratio 1.68 : 1 1.29 : 1 1.15 : 1

2. Herd Line Debt Per Cow $ 649 $ 841 $ 1,005











27

KERN COUNTYSUMMARY OF DAIRY FARM STATISTICAL ANALYSIS


KERN COUNTY(BASED ON AVERAGE AMOUNTS)

2014 2013 2012




Butterfat test 3.64 % 3.73 % 3.57 %




HERD INFORMATION:

Herd size - total 3,502 3,413 3,355






FEED INFORMATION:



Totals 52.4 % 65.5 % 71.6 %

28




Total income $ 22.91 $ 19.36 $ 17.22



Net income (loss) $ 5.09 $ 0.50 $ (1.30)





29

KERN COUNTY



$ 19.02 $ 15.31 $ 12.27 $ 17.370.19 0.15 0.10 0.14

$ 19.21 $ 15.46 $ 12.37 $ 17.51

$ 9.78 $ 7.75 $ 9.45 $ 10.501.31 1.31 1.38 1.361.24 1.24 1.42 1.253.86 3.97 4.32 4.60

$ 16.19 $ 14.27 $ 16.57 $ 17.71

$ 3.02 $ 1.19 $ (4.20) $ (0.20)

84.28% 92.30% 133.95% 101.14%

51.42% 50.62% 77.02% 60.45%

$ 82.44 $ 20.47 $ (88.01) $ (1.22)

30

2,50

0

3,00

0

3,50

0

4,00

0

4,50

0

5,00

0

LON

G-T

ERM

TR

END

-O

N A

"PE

R H

EAD

" B

ASIS

KER

N C

OU

NTY

INC

OM

E AN

D O

PER

ATIN

G C

OST

S20

07 -

2014

2007

2008

2009

2010

2011

2012

2013

2014

TOTA

L IN

CO

ME

3,74

4 3,

524

2,45

0 3,

199

4,00

4 3,

636

4,11

6 5,

005

FEE

D1,

564

2,11

4 1,

870

1,60

2 2,

040

2,56

7 2,

664

2,56

8 LA

BO

R26

3 27

6 27

2 27

3 27

2 26

5 27

6 27

9 H

ER

D R

EP

LAC

EM

EN

T23

6 25

1 28

1 25

6 25

9 25

3 25

4 16

9 IN

TER

ES

T A

ND

OTH

ER

855

928

854

826

806

834

822

874

0

500

1,00

0

1,50

0

2,00

0

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2007 2008 2009 2010 2011 2012 2013 2014


KERN COUNTY

Cost of purchased cows (in dollars)



0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

2007 2008 2009 2010 2011 2012 2013 2014

FEED COST vs. MILK INCOMEKERN COUNTY

MILK INCOME




ARIZONA (BASED ON AVERAGE AMOUNTS)

PER HEAD


Total income $ 5,376 $ 4,431 $ 4,068



Total feed $ 2,350 $ 2,527 $ 2,490



Other costs:Milk hauling $ 92 $ 97 $ 93 State and association charges 97 55 55 Veterinary, breeding, testing, etc. 56 52 55 Supplies 162 140 140 Repairs and maintenance 155 121 117 Utilities 81 84 83 Occupancy costs 60 97 95 Depreciation - equipment 66 61 50 Interest 138 148 124 Miscellaneous 256 213 189

Total other costs $ 1,163 $ 1,068 $ 1,001


Net income (loss) $ 1,261 $ 207 $ (55)

See accompanying explanation of income and cost factors.33

2014 2013 2012

PER CWT. OF MILK

$ 23.35 $ 20.10 $ 18.48 $ $1.20 0.35 0.32

$ 24.55 $ 20.45 $ 18.80 $ $

$ 7.05 $ 8.05 $ 8.01 $ $3.69 3.63 3.48

$ 10.74 $ 11.68 $ 11.49 $ $

$ 2.06 $ 1.89 $ 1.89 $ $

$ 0.69 $ 1.02 $ 1.02 $ $

$ 0.42 $ 0.45 $ 0.43 $ $0.45 0.26 0.260.25 0.24 0.260.74 0.65 0.650.71 0.56 0.540.37 0.39 0.380.27 0.45 0.440.30 0.28 0.230.63 0.69 0.571.16 0.99 0.88

$ 5.30 $ 4.96 $ 4.64 $ $

$ 18.79 $ 19.55 $ 19.04 $ $

$ 5.76 $ 0.90 $ (0.24) $ $

34

YOUR 2014RESULTS

2014 2013 2012 PER CWT.PER HEAD OF MILK

SUMMARY OF DAIRY FARM STATISTICAL ANALYSIS


ARIZONA(BASED ON AVERAGE AMOUNTS)

2014 2013 2012

PRODUCTION AND PRICE INFORMATION:



Butterfat test 3.33 % 3.37 % 3.40 %



HERD INFORMATION:

Herd size - total 3,909 3,980 4,059






FEED INFORMATION:



Totals 46.0 % 58.1 % 62.1 %

36



1. Current Ratio 0.98 : 1 0.56 : 1 0.46 : 1












35

ARIZONA


$ 20.74 $ 16.47 $ 12.58 $ 18.110.28 0.11 0.25 0.30

$ 21.02 $ 16.58 $ 12.83 $ 18.41

$ 10.61 $ 7.49 $ 8.46 $ 9.071.67 1.58 1.60 1.591.29 1.49 1.95 1.725.39 4.88 4.88 5.64

$ 18.96 $ 15.44 $ 16.89 $ 18.02

$ 2.06 $ 1.14 $ (4.06) $ 0.39

90.20% 93.12% 131.64% 97.88%

51.16% 45.48% 67.25% 50.08%

$ 42.84 $ 28.71 $ (84.26) $ 5.99

38




Total income $ 24.55 $ 20.45 $ 18.80



Net income (loss) $ 5.76 $ 0.90 $ (0.24)





37

ARIZONA


3,00

0

4,00

0

5,00

0

6,00

0

LON

G-T

ERM

TR

END

-O

N A

"PE

R H

EAD

" B

ASIS

ARIZ

ON

A IN

CO

ME

AND

OPE

RAT

ING

CO

STS

1992

-20

14

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

TOTA

L IN

CO

ME

2,60

22,

542

2,62

62,

602

3,00

32,

660

2,89

22,

840

2,53

62,

813

2,49

12,

543

3,30

73,

127

2,72

64,

197

3,76

52,

621

3,53

24,

307

4,06

84,

431

5,37

6FE

ED

1,05

51,

140

1,22

11,

226

1,37

31,

337

1,23

41,

208

1,19

71,

091

1,16

51,

190

1,26

21,

292

1,28

41,

622

1,85

31,

728

1,59

42,

180

2,49

02,

527

2,35

0LA

BO

R26

2 23

3 23

6 22

5 22

4 22

9 23

7 23

2 26

3 24

9 24

7 26

0 27

1 27

8 28

2 31

8 32

2 32

3 33

4 34

3 41

1 40

8 45

1 H

ER

D R

EP

LAC

EM

EN

T16

7 18

1 22

3 21

9 24

0 22

5 22

8 23

9 24

9 23

8 33

0 33

8 32

5 32

5 29

1 36

8 35

1 39

9 31

6 26

5 22

1 22

1 15

1 IN

TER

ES

T A

ND

OTH

ER

756

763

763

825

781

776

768

798

798

853

809

851

875

978

1,13

61,

195

1,15

399

2 1,

036

1,09

81,

001

1,06

81,

163

0

1,00

0

2,00

0 0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500


ARIZONA




0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

FEED COST vs. MILK INCOMEARIZONA

MILK INCOME




IDAHO(BASED ON AVERAGE AMOUNTS)

PER HEAD


Total income $ 5,719 $ 4,567 $ 4,069



Total feed $ 2,584 $ 2,520 $ 2,261






Net income $ 1,378 $ 330 $ 201

41 See accompanying explanations of income and cost factors.

2014 2013 2012


PER CWT.PER HEAD OF MILK

$ 22.55 $ 19.05 $ 18.07 $ $0.62 0.40 0.43

$ 23.17 $ 19.45 $ 18.50 $ $

$ 6.91 $ 7.06 $ 7.15 $ $3.57 3.67 3.14

$ 10.48 $ 10.73 $ 10.29 $ $

$ 1.75 $ 1.63 $ 1.64 $ $

$ 0.66 $ 1.10 $ 1.00 $ $

$ 0.30 $ 0.30 $ 0.32 $ $0.21 0.20 0.210.45 0.40 0.340.88 0.78 0.970.78 0.79 0.620.23 0.21 0.220.39 0.41 0.360.32 0.34 0.370.33 0.39 0.450.80 0.77 0.81

$ 4.69 $ 4.59 $ 4.67 $ $

$ 17.58 $ 18.05 $ 17.60 $ $

$ 5.59 $ 1.40 $ 0.90 $ $

42

2014 2013 2012



1. Current Ratio 1.04 : 1 1.01 : 1 0.68 : 1

2. Herd Line Debt Per Cow $ 581 $ 603 $ 586



5. Return on Total Assets 16.7% 4.8% 3.2%

6. Income per milking cowper month $ 138.34 $ 40.28 $ 32.95







43

IDAHOSUMMARY OF DAIRY FARM STATISTICAL ANALYSIS


IDAHO(BASED ON AVERAGE AMOUNTS)

2014 2013 2012


Annual pounds of milk, per cow (including dry cows) 24,667 23,462 21,992


Butterfat test 3.65 % 3.72 % 3.65 %



HERD INFORMATION:

Herd size - total 4,369 3,929 4,050






FEED INFORMATION:

Cost of feed as a percent of milk income:


Totals 46.4 % 56.4 % 57.0 %

44




Total income $ 23.17 $ 19.45 $ 18.50



Net income (loss) $ 5.59 $ 1.40 $ 0.90



Net income (loss) per milkingcow per month $ 138.34 $ 40.28 $ 32.95


45

IDAHO



$ 18.88 $ 15.15 $ 12.27 $ 18.150.20 0.16 0.25 0.18

$ 19.08 $ 15.31 $ 12.52 $ 18.33

$ 9.78 $ 7.66 $ 9.14 $ 9.091.63 1.62 1.65 1.651.02 1.12 1.32 1.164.77 4.49 4.70 4.85

$ 17.20 $ 14.89 $ 16.81 $ 16.75

$ 1.88 $ 0.42 $ (4.29) $ 1.58

90.15% 97.26% 134.27% 91.38%

51.80% 50.56% 74.49% 50.08%

$ 56.87 $ 18.16 $ (81.62) $ 42.46

46

4,00

0

5,00

0

6,00

0

7,00

0

LON

G-T

ERM

TR

END

-O

N A

"PE

R H

EAD

" B

ASIS

IDAH

OIN

CO

ME

AND

OPE

RAT

ING

CO

STS

1992

-20

14

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

TOTA

L IN

CO

ME

2,36

32,

350

2,49

72,

478

2,84

52,

747

3,33

83,

073

2,87

13,

099

2,55

12,

635

3,38

53,

358

2,85

04,

126

4,08

82,

721

3,34

44,

229

4,06

94,

567

5,71

8FE

ED

930

1,01

61,

102

1,09

71,

294

1,35

41,

299

1,32

91,

159

1,17

11,

259

1,15

91,

329

1,39

61,

393

1,66

32,

030

1,98

91,

671

2,16

72,

261

2,52

02,

584

LAB

OR

239

200

237

228

233

259

268

293

303

297

270

281

309

332

328

349

366

359

352

361

360

382

434

HE

RD

RE

PLA

CE

ME

NT

199

209

242

198

211

245

261

273

250

244

303

285

298

268

312

294

259

287

243

226

220

258

164

INTE

RE

ST

AN

D O

THE

R69

3 68

2 70

0 72

3 71

8 81

1 84

4 82

8 87

6 84

4 82

5 77

6 88

9 90

4 94

0 1,

007

1,08

21,

019

988

1,06

71,

027

1,07

71,

159

0

1,00

0

2,00

0

3,00

0

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014


IDAHO




0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

FEED COST vs. MILK INCOMEIDAHO

MILK INCOME




NEW MEXICO(BASED ON AVERAGE AMOUNTS)

PER HEAD


Total income $ 4,445 $ 3,924 $ 3,640



Total feed $ 2,173 $ 2,391 $ 2,437






Net income (loss) $ 744 $ 33 $ (294)


2014 2013 2012

PER CWT. OF MILKPER CWT.

PER HEAD OF MILK

$ 23.46 $ 19.53 $ 18.31 $ $1.03 0.43 0.39

$ 24.49 $ 19.96 $ 18.70 $ $

$ 8.04 $ 8.51 $ 8.86 $ $3.94 3.65 3.68

$ 11.98 $ 12.16 $ 12.54 $ $

$ 1.81 $ 1.62 $ 1.70 $ $

$ 0.57 $ 0.82 $ 0.82 $ $

$ 1.00 $ 0.91 $ 0.87 $ $0.37 0.37 0.360.60 0.49 0.520.47 0.45 0.510.72 0.53 0.520.39 0.34 0.330.40 0.36 0.430.31 0.29 0.290.46 0.47 0.491.31 0.99 0.88

$ 6.03 $ 5.20 $ 5.20 $ $

$ 20.39 $ 19.80 $ 20.26 $ $

$ 4.10 $ 0.16 $ (1.56) $ $

50

YOUR 2014RESULTS

2014 2013 2012



1. Current Ratio 1.13 : 1 1.12 : 1 0.61 : 1












51

NEW MEXICOSUMMARY OF DAIRY FARM STATISTICAL ANALYSIS


NEW MEXICO(BASED ON AVERAGE AMOUNTS)

2014 2013 2012




Butterfat test 3.53 % 3.52 % 3.55 %



HERD INFORMATION:

Herd size - total 3,453 5,186 3,716






FEED INFORMATION:

Cost of feed as a percent of milk income:


Totals 51.1 % 62.3 % 68.5 %

52




Total income $ 24.49 $ 19.96 $ 18.70



Net income (loss) $ 4.10 $ 0.16 $ (1.56)





53

NEW MEXICO



$ 19.89 $ 17.02 $ 12.83 $ 17.920.29 0.18 0.25 0.29

$ 20.18 $ 17.20 $ 13.08 $ 18.21

$ 10.62 $ 8.23 $ 8.68 $ 9.221.62 1.60 1.56 1.581.12 1.28 1.35 1.205.03 5.22 4.53 5.11

$ 18.39 $ 16.33 $ 16.12 $ 17.11

$ 1.79 $ 0.87 $ (3.04) $ 1.10

91.13% 94.94% 123.24% 93.96%

53.39% 48.35% 67.65% 51.45%

$ 49.14 $ 27.80 $ (55.60) $ 41.90

54

2,50

0

3,00

0

3,50

0

4,00

0

4,50

0

5,00

0

LON

G-T

ERM

TR

END

-O

N A

"PE

R H

EAD

" B

ASIS

NEW

MEX

ICO

INC

OM

E AN

D O

PER

ATIN

G C

OST

S19

92 -

2014

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

TOTA

L IN

CO

ME

2,30

42,

369

2,37

72,

210

2,55

22,

405

2,84

92,

781

2,39

32,

756

2,36

12,

285

2,88

82,

800

2,48

03,

688

3,58

32,

497

3,26

14,

008

3,64

03,

924

4,44

5FE

ED

940

1,02

51,

064

1,07

11,

226

1,25

31,

205

1,17

61,

008

1,00

61,

051

1,10

21,

202

1,23

91,

234

1,45

11,

812

1,65

61,

555

2,10

62,

437

2,39

12,

173

LAB

OR

214

215

211

196

211

225

217

239

222

248

260

271

284

298

301

314

310

298

302

319

328

318

329

HE

RD

RE

PLA

CE

ME

NT

217

195

242

195

231

219

257

278

270

273

275

285

260

214

232

229

236

258

243

222

159

162

104

INTE

RE

ST

AN

D O

THE

R69

1 67

5 71

2 62

2 59

0 60

6 73

3 70

8 71

5 73

0 67

2 63

9 70

6 83

5 85

6 1,

005

1,01

187

0 99

9 99

7 1,

010

1,02

01,

094

0

500

1,00

0

1,50

0

2,00

0 0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

LONG TERM TREND - COST OF PURCHASED COWS, BEEF PRICE, AND HERD SIZENEW MEXICO




0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1994 1996 1998 2000 2002 2004 2006 2008 2010 2012 2014

FEED COST vs. MILK INCOMENEW MEXICO

MILK INCOME



FOR THE YEARS ENDEDDECEMBER 31, 2014, 2013 AND 2012

PANHANDLE(BASED ON AVERAGE AMOUNTS)

PER HEAD


Total income $ 5,212 $ 4,300 $ 4,043



Total feed $ 2,313 $ 2,620 $ 2,507




Total other costs $ 1,149 $ 1,019 $ 977


Net income (loss) $ 1,252 $ 90 $ (12)


2014 2013 2012


PER CWT.OF MILK

$ 23.85 $ 20.65 $ 19.05 $ $0.46 0.44 0.49

$ 24.31 $ 21.09 $ 19.54 $ $

$ 7.20 $ 8.66 $ 8.36 $ $3.59 4.20 3.76

$ 10.79 $ 12.86 $ 12.12 $ $

$ 1.65 $ 1.65 $ 1.65 $ $

$ 0.67 $ 1.16 $ 1.11 $ $

$ 0.82 $ 0.71 $ 0.65 $ $0.31 0.30 0.30 0.42 0.45 0.44 0.62 0.56 0.65 0.56 0.51 0.42 0.24 0.25 0.21 0.68 0.64 0.64 0.31 0.31 0.28 0.37 0.43 0.40 1.04 0.85 0.76

$ 5.37 $ 5.01 $ 4.75 $ $

$ 18.48 $ 20.68 $ 19.63 $ $

$ 5.83 $ 0.41 $ (0.09) $ $

58

2014 2013 2012 PER HEAD



1. Current Ratio 1.35 : 1 0.77 : 1 0.68 : 1












59

PANHANDLESUMMARY OF DAIRY FARM STATISTICAL ANALYSIS


PANHANDLE(BASED ON AVERAGE AMOUNTS)

2014 2013 2012




Butterfat test 3.76 % 3.82 % 3.73 %



HERD INFORMATION:

Herd size - total 2,936 2,930 3,181



Composi

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