I'm in an area where there are several small dairies, and several start ups. Is it tough, you bet, is it expensive, absolutely. Are they making money? Some are and some arent.
What I've observed from the people who are making it is they put their money in cows. Everything else is low cost and as they can afford it but high quality cows are the turn key. Equipment, mostly 60s and 70'stuff (except round balers and skid loaders, silage balers are the norm and the skid steers typically run daily so its better to get good quality). Land, too expensive to own. The more successful ones have 80-100 acre farms where they milk and grow silage corn. All of them get their hay on shares harvesting somewhere else.
The ones that look like they will make it challenge feed. As long as production increases they increase feed for those cows. The ones who wont are shorting the cows on groceries, hay/silage/and concentrate.
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