Impact of Milk Income Loss Contract (MILC) and Section 179 Expensing on Rates of Return for Alternative Dairy Systems
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The impact of the Milk Income
Loss Contract (MILC) and
Section 179 expensing on
internal rate of returns (IRR) for
three dairy systems, a 120-cow
grazing, a 120-cow
conventional, and 600-cow
concentrated was evaluated.
With MILC, the grazing and
conventional systems had higher
IRRs. Without MILC, the 600-
cow dairy had the highest IRR.
Without Sec. 179, IRRs declined
proportionally more for grazing
and conventional systems.