Penn State Profitability Assessment Dairy Tool
The Penn State Profitability Assessment Dairy Tool examines the whole farm operation in order to:
- Help identify priorities for change
- Begin a process to eliminate the most costly bottlenecks in a dairy operation
- Demonstrate ways to increase profitability
The tool can "show you the money," including where the areas of greatest loss and opportunity are for improving a dairy's bottom line. Using benchmark information, the tool pinpoints risk areas that are negatively impacting profitability.
How Advisers Can Use the Tool
All agribusiness representatives who advise dairy producers — including nutritionists, lenders, business management consultants, veterinarians — can use the Penn State Profitability Assessment Dairy Tool, in conjunction with their clients, to improve profitability.
How Producers Can Use the Tool
Producers can use the results of the new Penn State Profitability Assessment Dairy Tool to help identify the factors that are preventing them from achieving a better bottom line. Producers can view more testimonials from producers and consultants who have used the Penn State PA Dairy Tool.
"The tool was able to specifically identify a problem that we thought
was there, but could not necessarily identify ourselves. The
information was useful for working with our advisory team… because
of the volume of information, the tool provided a much more
comprehensive picture of the strengths and weaknesses of the operation
than could be caught in a monthly advisory team meeting. [The PA Dairy
Tool] is a good starting point to help a beginning or new partner
suggest management changes that may conflict with the management style
of the established partner."
- Tim Forry, Partner, Oregon Dairy Farm LLC, Lititz, Pennsylvania
Additional Drill-Down Tools
The Reproduction and Nutrition Drill-down Tools are available at the PA Dairy Tool website. Downloadable Excel or printable versions of the other drill-down tools are available here.
- Introductory video on how to use the Reproductive Drill-Down tool (6:38 min)
How to Use the PA Dairy Tool with Your Resource Team
The Pennsylvania Center for Dairy Excellence "strongly recommends" that farms enrolled in its Dairy Resource Team program have the PA Dairy Tool run twice on their farms — once to establish a baseline and again at the conclusion of the program to document changes that have been made.
How does my Dairy Resource Team get started using the PA Dairy Tool?
Complete and return the Producer Registration Form. It indicates you would like to implement the three-phase process, and it tells us whether or not you have identified a consultant to run the tool.
- If you already have a consultant on your team who is trained in use of the online PA Dairy Tool, the consultant may run the online version of the tool immediately.
- If you have a consultant on your team who will undergo training on the tool this summer, we will contact your consultant about proposed training dates.
- If you do not have a consultant identified to help you, we will identify a Penn State dairy Extension educator to work with you.
We will follow up with you upon receipt of the Producer Registration Form to answer any questions you may have regarding the tool, reimbursement for its use, etc.
What data is required to use the Tool?
Questions about entering financial data may be directed to these Extension educators:
- Cumberland County: Tim Beck at tbeck@psu.edu or 717-240-6500
- Huntingdon County: Amber Lemin at anl113@psu.edu or 814-643-1660
- University Park Campus: Robert Goodling at rcg133@psu.edu, Virginia Ishler at vishler@psu.edu, and Rebecca White at rwhite@psu.edu. Toll-free phone: 888-373-7232.
For more information about the Dairy Resource Team Program, visit the Center for Dairy Excellence Web site.
The following three pdf files can be printed out and used to collect the data required to input into the Prep Cash Input Form or directly into the online PA Dairy Tool:
The balance sheet lists all assets and liabilities. Use this form to collect and record all the information needed to calculate total asses and liabilities and other inputs. (pdf file; revised June 2008)
Use this data sheet to collect all revenue and expense information for multiple categories, such as labor expenses or machinery repairs. pdf file; revised June 2008)
Use this form to organize data from the balance sheet and income/expense sheet before netering the data into the PA Dairy Tool. Additional information is collected in this form, such as farm specific goals and DHIA information. (pdf file; revised June 2008)
A quick guide to how to collect the farm's financial data. Explains cash versus accrual basis for accounting and the information needed prior to collecting data.
(Excel file; revised July 2008)
(Excel file; revised July 2008)
