Typical New England Dairy Farm 1998
- Compact Producer Payment Impact on Net Farm Earnings
	Per Cow		Farm
Avg. Herd Size	91		91
Lbs. Sold	16,431		1,495,221
Price of Milk (w/ producer payment)		$16.22
Milk Income	$2,665		$242,525
Plus Cattle Income	$102		$9,256
Plus Crop Income	$73		$6,681
Plus Other Income	$205		$18,652
Value of Farm Production	$3,045		$277,114
Adj. Cash Operating Expenses	$2,345		$213,423
Depreciation	$267		$24,270
Adj. Farm Operating Expenses	$2,612		$237,694
Net Farm Earnings (w/ producer payment)	$433		$39,421
Plus Net Nonfarm Income	$111		$10,115
Minus Family Living and Taxes	$314		$28,616
Net Earnings (w/ producer payment)	$230		$20,920
Per Cwt.		$1.40
Impact of Producer Payment
Net Farm Earnings With Producer Payment	$433		$39,421
Compact Producer Payment	$41	$0.25	$3,738
Net Farm Earnings With Producer Payment	$392		$35,683
Net Earnings With Producer Payment	$230		$20,920
Net Earnings Without Producer Payment	$189		$17,182
Source: Special analysis developed for Northeast Farm Credit Association by James
Putnam II, First Pioneer Farm Credit. Data combined from US Census of Agriculture,
1998, NASS/USDA; Milk Production, Disposition and Income Summary, 1998,
NASS/USDA; and the Northeast Dairy Farm Summary, 1998, Northeast Farm Credit
Associations.