Forage Production And Feeding Of Dairy Cows At Changing Economic Conditions In Norway

Norwegian dairy farmers are facing changes in the economic environment. Dairy farm models (LP) are designed to examine impacts of changes in economic conditions on production systems and profitability. The “typical” Norwegian dairy farm has a small quota compared to other farm resources. Producing the milk quota with moderate yielding cows is then most profitable. Representation of milk quotas and the biology of milk production systems yield valuable policy information about farm level adjustments. Within a quota system, milk price support is a targeted instrument to improve farm incomes. Area and headage payments influence production decisions, as lower yielding milk production systems increase grassland use.