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THE OVERALL GOAL IS TO EVALUATE FARM FINANCIAL STATUS TO DEVELOP TOOLS THAT HELP IMPROVE RESILIENCY IN SMALL AND MID-SIZE DAIRY FARMS. THE PROJECT PROPOSES A HOLISTIC APPROACH TO IMPROVE DAIRY FARM RESILIENCY THROUGH THE FOLLOWING SPECIFIC AIMS: 1) EVALUATING FINANCIAL RESILIENCY IN SMALL AND MID-SIZED DAIRY FARMERS DURING ECONOMIC HARDSHIPS THROUGH A DAIRY BUSINESS ANALYSIS SURVEY AND SUBSEQUENTLY DEVELOPING A RESILIENCY INDEX AS A BENCHMARKING TOOL, 2) EVALUATING FARMERS' FINANCIAL RISK FOR THE ALTERNATIVE FARM MANAGEMENT SYSTEMS DURING ECONOMIC PERTURBATIONS USING MULTICRITERIA DECISION ANALYSES, 3) DEVELOPING DECISION SUPPORT TOOL(S) THAT CAPTURES THE COMPLEX INTERACTIONS OF THE TECHNO-ECONOMIC VARIABLES AFFECTING DAIRY BUSINESS VIABILITY, THEREBY PROVIDING INFORMED INVESTMENT DECISIONS TO SMALL AND MID-SIZED FARMS. THE PROJECT WILL CONDUCT A DAIRY BUSINESS ANALYSIS OF SMALL AND MED-SIZED DAIRY FARMS IN CALIFORNIA, TEXAS, AND WISCONSIN TO INVESTIGATE THE MANAGEMENT STRATEGIES CONTRIBUTING TO RESILIENCE DURING ECONOMIC HARDSHIPS, COMPARE AND CONTRAST THE MANAGEMENT DECISIONS CONTRIBUTING TO RESILIENCE USING MULTI-CRITERIA DECISION ANALYSIS, AND FINALLY DEVELOP VISUALIZABLE REAL-TIME WHOLE-HERD DECISION-MAKING TOOLS TO ENABLE INFORMED FINANCIAL DECISIONS DURING ECONOMIC PERTURBATIONS. UNDERSTANDING THE FACTORS THAT MOTIVATE FARMERS TO CHOOSE AMONG THE AVAILABLE ALTERNATIVES IS ESSENTIAL FOR DEVELOPING EFFECTIVE SOLUTIONS THAT CAN SUSTAIN AND SUPPORT THE DAIRY INDUSTRY. THE SHRINKING NUMBER OF LICENSED DAIRY HERDS HIGHLIGHTS A CONCERNING TREND IN THE U.S. DAIRY INDUSTRY AND THE FINANCIAL RESILIENCY ATTAINED THROUGH THE USE OF THESE TOOLS WILL SERVE AS AN IMPORTANT ASPECT IN SUPPORTING THE OVERALL SUSTAINABILITY EFFORTS OF THE DAIRY INDUSTRY.

$588,600FY2025National Institute of Food and AgricultureUSDA

Texas A&M Agrilife Research, College Station TX

Investigators

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