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Research Bulletin (Iowa Agriculture and Home Economics Experiment Station)

Abstract

Prices of dairy products, particularly those for butter, turned downward in 1952. Costs of producing these products have remained relatively high and are increasing for many farms. Consequently, net returns on midwestern dairy farms have declined. Farmers on dairy and dairy-hog farms are concerned about changes in farming which can be made to meet the unfavorable price-cost relationships.

Major shifts from one enterprise to another often are difficult. They may mean additional expenditures, particularly if the farm is well adapted to a single enterprise. Minor changes and shifts between different enterprises, however, may call for only small new investments, if any. In addition, an individual farm operator often can better his income position by making adjustments which reduce the unit cost of production - changes which will enable him to produce more product with the same resources, if not the same amount of product with fewer resources.

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