Economic Impacts of Alternative Sized Dairy Farms in South Dakota

South Dakota dairy industry has shifted toward large operations to offset declining numbers of dairy cows and milk production stemming from rapid exodus of smaller (<100-cow) dairy farms. This study examines the regional and state level economic impacts of expansion by large and medium size modern dairies. Whole-farm budgets were constructed from producer panel and secondary data. Based on IMPLAN results, the 1000-head dairy generally had higher output, employment and value added multipliers resulting from increased feed and wholesale purchases. The 150-head dairy, which raised its own feed and replacement heifers, had higher amounts of value added.