Typical New England Dairy Farm 1997
Compact Producer Payment Impact on Net Farm Earnings
	Per Cow		Farm
Avg. Herd Size	88		88
Lbs. Sold	16,458		1,448,304
Price of Milk (w/ producer payment)		$14.60
Milk Income	$2,403		$211,452
Plus Cattle Income	$118		$10,384
Plus Crop Income	$57		$5,016
Plus Other Income	$124		$10,912
Value of Farm Production (w/ producer payment)	$2,702		$237,764
Adj. Cash Operating Expenses	$2,277		$200,376
Depreciation	$223		$19,624
Adj. Farm Operating Expenses	$2,500		$220,000
Net Farm Earnings (w/ producer payment)	$202		$17,764
Plus Net Nonfarm Income	$78		$6,864
Minus Family Living and Taxes	$286		$25,168
Net Earnings (w/ producer payment)	($6)		($540)
Per Cwt.		($0.04)
Impact of Producer Payment
Net Farm Earnings With Producer Payment	$202		$17,764
Compact Producer Payment	$77	$0.47	$6,807
Net Farm Earnings Without Producer Payment	$125		$10,957
Net Earnings (w/ producer payment)	($6)		($540)
Net Earnings Without Producer Payment	($83)		($7,347)
Source: Special analysis developed for Northeast Farm Credit Association by James
Putnam II, First Pioneer Farm Credit. Data combined from US Census of Agriculture,
1997, NASS/USDA; Milk Production, Disposition and Income Summary, 1997,
NASS/USDA; and the Northeast Dairy Farm Summary, 1997, Northeast Farm Credit
Associations.