Wisconsin dairy producers who modernized their operations between 1994 and
1998 had positive feelings about their expansion experiences, accompanied b
y increased production and improved profitability and quality of life. The
average herd in this survey experienced increased production during the 5-y
r period studied. Nearly all producers were satisfied with their expansion
experience. The negative effect on milk production normally associated with
expansion was minimal for most years and did not exist if all herds were s
ummarized together. Managing labor appeared to be the most daunting challen
ge facing producers following expansion.
Respondents who built all new facilities observed higher production, greate
r labor efficiency, and satisfaction with measures of profitability and qua
lity of life than respondents who modified facilities or added no new facil
ities. As herd size increased, milk production, labor efficiency, and satis
faction with herd performance, profitability, and quality of life increased
. Producers who built all new facilities spent less time on farm work, more
time managing;employees, and had less difficulty finding, training, superv
ising, and keeping farm employees than producers who modified facilities or
added new facilities to existing operations. Larger herds were associated
with an increased reliance on nonfamily labor. Managing labor appears to be
an easier task for managers of larger herds. The most difficult challenges
for producers who modernized their operations were with labor management,
financing, and loan procurement, construction and cost overruns, and feet a
nd leg health. Difficulties with expansion differed little between expansio
n types (same type, some new, or all new facilities) or herd sizes.