Income Over Feed Cost

Monitoring income over feed costs (IOFC) is a way to evaluate a dairy's profitability. Several options are available to determine and interpret IOFC.
Income Over Feed Cost - Articles

Updated: August 8, 2017

Income Over Feed Cost

Introduction

Monitoring income over feed costs, or IOFC, is a proven way to evaluate a dairy's profitability. When IOFC is monitored on a monthly basis, it can be a good barometer to gauge when the herd is profitable, when it is not, and when changes need to be made. The challenge faced by many Pa. producers is that they do not know how to monitor IOFC. This puts the industry at a disadvantage compared to producers in other states. Penn State's risk management group, consisting of extension educators, faculty and staff, continues to focus its efforts on this important topic.

There are several strategic decision-making levels related to calculating IOFC. In order to make this process user friendly, a web-based tool is available that will allow the user to determine actual feed cost per cow, their IOFC, and compare it to industry benchmarks and to the IOFC index developed by Penn State (Bailey and Ishler, 2008).

Submit your IOFC Data

Instructors

Dairy Herd Management Dairy Cattle Nutrition Dairy Feed Management Dairy Cattle Feed Management Dairy Business Management Dairy Cattle Business Management

More by Virginia A. Ishler