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The Economic Impact of Milk Production on the Wisconsin Economy

The intent of this study is to introduce and report a new method for assessing the economic impact of milk production on the Wisconsin economy. Previous agricultural impact studies have used methods with inherent lags in the timing of the relevant data. In addition, previous studies treated dairy farms as a single entity and did not separate out milk production. Dairy farms are multi-product firms producing milk, cull cows for meat as well as crops. This study focuses on just milk production. By using current annual data from the Wisconsin Agricultural Statistics a more timely analysis is provided. In addition an annual moving average of production levels is used to minimize the role of yearly fluctuate.