Our Thanks To: The professionals who worked with farms and completed the analyses included in this summary:

Our Thanks To: The professionals who worked with farms and completed the analyses included in this summary: Christina Benton, Program Assistant, Ohio State University Extension Haley Drake, Program Coordinator, Ohio State University Extension Don Garrett, Ag Data Solutions Dianne Shoemaker, Field Specialist, Ohio State University Extension Tom Weygandt, Tweyg Consulting, Ltd. The Center for Farm Financial Management at the University of Minnesota for selected text. Historic weather data and graphics provided by: Aaron B. Wilson, Byrd Polar & Climate Research Center, State Climate Office of Ohio, The Ohio State University Jim Noel, NOAA/NWS/Ohio River Forecast Center This project was supported by the Competitive Benchmarking: Assisting NY and Ohio Livestock Producers to Increase Profitability and Manage Risk in a Volatile Environment (GRT00035736) grant from the USDA National Institute of Food and Agriculture. The tables in this report were created using FINPACK and RankEm, copyrighted software of the Center for Farm Financial Management, University of Minnesota. Dianne Shoemaker, Field Specialist, Dairy Production Economics Ohio State University Extension. shoemaker.3@osu.edu For information about participating in the Ohio Farm Business Analysis program analyzing your farm s performance, visit our web site at: http://farmprofitability.osu.edu This data is the property of The Ohio State University and should not be reproduced without permission. The Ohio State University, 2017 Ohio State University Extension embraces human diversity and is committed to ensuring that all research and related educational programs are available to clientele on a nondiscriminatory basis without regard to age, ancestry, color, disability, gender identity or expression, genetic information, HIV/AIDS status, military status, national origin, race, religion, sex, sexual orientation, or veteran status. This statement is in accordance with United States Civil Rights Laws and the USDA. Roger Rennekamp, Associate Dean and Director, Ohio State University Extension For Deaf and Hard of Hearing, please contact Ohio State University Extension using your preferred communication (e-mail, relay services, or video relay services). Phone 1-800-750-0750 between 8 a.m. and 5 p.m. EST Monday through Friday. Inform the operator to dial 614-292-6181 Page 1

2016 Ohio Farm Business Summary Dairy Enterprise Analysis Table of Contents Pages Overview... 3-9 Dairy Summary Introduction...3-6 2016 Weather Summary..7-8 Crop Yields and Prices 9 Participating Farms Map.9 Dairy Enterprise Analysis Reports Explanation...10-11 Dairy Enterprise Analysis... 12-23 Average of all Farms and High 20% Sorted by Net Return Per Cow... 12 Benchmark Report, Per Cow...13 Average of all Farms and High 20% Sorted by Net Return Per Cwt. of Milk.14 Benchmark Report, Per Cwt..15 Farms Sorted by Profitability Group based on Net Return, Per Cow...16 Farms Sorted by Profitability Group based on Net Return, Per Cwt....17 Farms Sorted by Enterprise Size, Per Cow 18 Farms Sorted by Enterprise Size, Per Cwt..19 Benchmark Report, Herds with up to 200 Cows, Per Cow.20 Benchmark Report, Herds with up to 200 Cows, Per Cwt..21 Benchmark Report, Herds with over 200 Cows, Per Cow.22 Benchmark Report, Herds with over 200 Cows, Per Cwt..23 Appendix 1... 24 Page 2

2016 Ohio Dairy Enterprise Analysis Summary This document contains summary information for 34 Ohio dairy farms with 34 dairy enterprises that participated in the 2016 Ohio Farm Business Analysis and Benchmarking Program. These farms provided detailed financial and production information in order to complete a whole farm financial analysis and enterprise analysis for their dairy and crop enterprises. Data for more than 10,500 cows are included in this year s summary. Herd size ranged from 32 to more than 1,200 cows with six herds milking more than 500 cows. Thirty-one of the dairy enterprises were managed conventionally, and three were managed organically. Three of the conventional dairy enterprises utilized robotic milking systems. 2016 was a very challenging year for many Ohio dairy farmers. Following on the heels of 2015 s low milk prices, 2016 s even lower prices forced an even more stringent review of income, expenses and capital purchases. Milk Prices Most Ohio dairy farmers market their milk in Federal Order 33. The Class III milk price averaged $14.90 per hundredweight (cwt.) for the year (Table 1.), 90 cents lower than 2015, and $7.44 per cwt. lower than 2014. The Producer Price Differential (PPD) averaged $0.17 per cwt. for the year, down from $0.44 per cwt. the year before. Table 1: 2016 Monthly and annual average per cwt. milk prices for Federal Order 33 2016 Jan Feb Mar Apr May June July Aug Sept Oct Nov Dec Avg Class III 13.72 13.80 13.74 13.63 12.76 13.22 15.66 16.91 16.39 14.82 16.76 17.40 14.90 PPD 0.88 0.57 0.23 0.39 1.05 0.95 0.21-0.77-0.12 0.59-1.38-0.61 0.17 SUP 14.60 14.37 13.97 14.02 13.81 14.17 15.45 16.14 16.27 15.41 15.38 16.79 15.03 MPP 8.104886 7.913670 7.467087 6.830270 5.772020 5.753510 7.589470 9.260830 9.484750 8.844950 9.984140 11.100780 8.175530 2 month avg 8.00928 7.14868 5.76277 8.42515 9.16485 10.54246 less 7.3% sequestration deduction Class III @ 3.5% BF = Class III Producer Price Differential = PPD Statistical Uniform Price = SUP Margin Protection Program = MPP Milk Income Loss Contract = MILC Page 3

The PPD represents the difference in the price received for milk bottled and sold as fluid milk (Class I milk) and the value of Class III milk. These dollars are shared among all Grade A dairy farmers marketing milk in Federal Order 33. The Class III price plus the PPD are added together, resulting in an average Statistical Uniform Price (SUP) of $15.03 per cwt. in 2016. The 2016 SUP was $1.20 per cwt. lower than 2015, a 7.4% decrease from 2015 s average of $16.23 per cwt. The Statistical Uniform price represents the base price every dairy farm selling Grade A conventional milk in Federal Order 33 would receive, plus or minus component, somatic cell, and/or any quality or quantity adjustments. The average milk price received by all herds in 2016 was $17.23 per cwt. The 31 conventionally managed herds averaged $17.03 per cwt., ranging from $15.27 to $22.44 per hundredweight. The three organically managed herds received an average milk price of $37.00 per hundredweight. More information about the Federal Milk Marketing Order 33 and milk prices can be found at http://www.fmmaclev.com/ Another Year of Low Returns 2016 net return per cow was below $100 for the second year in a row, averaging $94.72 per cow for all herds. This average net return is the second lowest in 6 years of Ohio summary data. Summary data for 2012 through 2016 can be seen in Table 2. With an average milk price of $37 per cwt, the 3 organically managed herds do influence the average net return per cow. With an average milk price nearly $20 per cwt lower, the net return per cow for the 31 conventionally managed herds was $34.26. Several factors contributed to a higher average net return in 2016 than 2015. The 2016 summary includes one additional organically managed herd, and a few less conventionally managed herds. Farms choose to participate in the analysis program, so there are some new herds and some herds that exit the program and sometimes the industry each year. Another factor impacting total costs and net returns is a change made in the cost of raised feeds charged to the dairy enterprise in 2016. Change in Feed Cost Calculations Beginning with this 2016 summary, feed cost calculations for a home-raised feeds fed to the dairy herd are valued at total direct and indirect costs of production. In 2015 and previous summaries, this cost of raised feed also included a non-cash charge representing the value of labor and management for these crops. Excluding this charge will make it easier for participating dairy farmers to evaluate their cash costs of producing milk. Page 4

Table 2: Comparison of total cost of production per cwt. and net return per cow, 2012-2016 2012 2013 2014 2015 2016 4 Average of all herds: Total cost $18.76 $19.21 $20.42 $18.21 $16.85 per cwt 1 Net return per cow 2 $231 $544 $1,266 $36.42 $95 Average of High 20% 3 : Total cost $15.38 $16.04 $18.14 $15.28 $14.91 per cwt 1 Net return $1,145 $1,501 $1,976 $905 $949 per cow 2 1 Total cost per cwt. including revenue adjustments (income from cull cows, bull calf and other animal sales) before labor and management charge. 2 Before a labor and management charge. 3 Farms sorted by net return per cow 4 Home raised feed cost includes direct and indirect costs of production, but not a value of labor and management charge. We typically see a large range in net return per cow among the farms in the analysis with this year s reaching nearly $3,192 per cow (Table 3), ranging from a loss of $792 per cow to a positive net return of $2,400 per cow. If we consider only the 31 conventionally managed herds, the average net return drops to $34.26 per cow. More than half of the conventional herds (17 of 31) experienced a negative net return per cow, with 3 additional herds generating less than $100 per cow. Those conventional herds that generated positive net returns averaged $489 per cow. The conventional herds that experienced a net return of less than zero experienced an average loss of $325 per cow. Net returns represent the return to the owner s unpaid labor and management as well as the capital invested in the dairy enterprise. The only non-cash charge in the dairy enterprise s expenses is a share of the annual depreciation charge for machinery and equipment (7%) and buildings and improvements (5%). This charge represents the annual loss in value of these assets due to use, normal wear and tear, and age. Farms with negative net returns may not be able to make all scheduled principal payments and generate sufficient dollars to cover all operating expenses and family living needs. Page 5

Table 3: Average of all farms, range, and average of the high 20% for selected factors for 34 Ohio dairy enterprises, 2016 Average of 34 Farms Range Average of High 20% Number of 309 32 1,201 260 cows Milk sold 24,780 12,234 26,519 per cow 30,698 Feed cost per $10.02 $7.56 $10.26 cwt of milk 2 $19.36 Total cost $18.71 $13.63 $16.92 per cwt 3 $26.99 Net return $95 ($ 792) $949 per cow 4 $2,400 1 Farms sorted by net return per cow, 7 farms. 2 Includes feed costs for mature cows and raised replacements excluding custom raised heifers if feed is included in the custom raising charge. All raised feed is valued at total cost of production not including a labor and management charge. 3 Total cost per cwt. including revenue adjustments (income from cull cows, bull calf and other animal sales) before a labor and management charge. 4 Before a labor and management charge. Herd Size All herds averaged 323 cows, with herd size ranging from 32 to more than 1,200 cows. While the average numbers for all herds together are interesting, they have limited value when comparing performance of an individual herd with this broad range in herd sizes. To provide meaningful information for herds of different sizes, enterprise summaries per cow and per cwt. are included in this summary for herds with 50 to 100 cows, 100 to 200 cows, 200 to 500 cows, and herds with more than 500 cows. Benchmark reports were also generated for herds with 30 to 200 cows and more than 200 cows. Page 6

2016 The Year in Review Weather Jim Noel, NOAA/NWS/Ohio River Forecast Center Across Ohio, 2016 brought warm and humid weather. Actually, it was one of the most humid years on record, and we set some of the warmest overnight minimum temperatures during the main growing season. During 2016, rainfall was considered near normal overall. In comparison to 2015, which was one of the wettest years on record, 2016 was relatively normal. In regards to temperature, 2016 was a much warmer year than 2015. 2015 was the 23 rd warmest year on record while during 2016, we moved up to the 3 rd warmest year on record. Breaking it into seasons, winter of 2016 for Ohio was near normal for temperatures and slightly wetter than normal for precipitation. Moving into the spring planting season, Ohio saw temperatures above normal with near normal rainfall. Ohio temperatures ranked 13 th warmest out of 122 years. During the summer growing season, the most notable temperature patterns were the overnight minimum temperatures. The average daily temperature was the 2 nd warmest on record and maximum temperatures were the 17 th warmest on record for over 122 years. Over that same 122 year stretch, 2016 s summer minimum temperatures reached the warmest on record for Ohio. Rainfall was considered normal in the summer of 2016, as well as the fall. Fall harvest season was the 2 nd warmest on record, and during this time, northwest Ohio set a new record for warm temperatures. Rainfall was slightly below normal in southern areas and slightly above in the north and northeast sections, averaging out to near normal. In summary, there were ups and downs throughout 2016 but the main theme, thanks to a very strong El Nino, was Ohio s record-breaking temperatures. Overall, it was the 3 rd warmest year on record with most of the year being very warm. This was driven by high humidity and record high minimum temperatures. Source: National Climactic Data Center Page 7

Each year, no matter the statewide weather conditions, at least one of the farms participating in the analysis experiences local weather conditions that cause a steep decline in crop yields. This may cause farms that are otherwise profitable to experience a year of declines in working capital resulting from a decline in raised feed and crop inventories as well as low profitability resulting from higher feed costs. Lower crop yields increase the crops cost of production as total costs are divided by lower yields. This situation is then compounded by the need to purchase additional feed to compensate for lower raised feed production. 2016 Ohio Regional Temperature Rankings Source: Byrd Polar and Climate Research Center/ Polar Meteorology Group Page 8

Crop Yields and Prices Table 4: Ohio Crop Yields and Marketing Year Prices as reported by the USDA National Agricultural Statistics Service in the Ohio Annual Bulletin (September 2017) Corn Yield bu/acre Corn Price $/bu 1 2016 159 3.60 54.5 9.65 80 4.20 3.4 180 1 Marketing year average price https://www.nass.usda.gov/statistics_by_state/ohio/publications/annual_statistical_bulletin/ohio%20b ulletin%202016-2017.pdf Participating Farms Soybean Yield bu/acre Soybean Price $/bu 1 Wheat Yield bu/acre Wheat Price $/bu 1 Alfalfa Hay tons/ac In 2016, participating dairy farms were located in 12 counties. The majority of farms were located in the northeast part of the state. Figure 2: Locations of the 34 Ohio dairy farm businesses participating in 2016 Alfalfa Hay $/ton 1 2011 153 6.44 48 13.00 57 6.73 3.4 183 2012 120 7.09 45 14.60 68 7.94 2.8 231 2013 174 4.41 49.5 13.00 70 6.54 3.5 194 2014 176 3.78 52.5 10.30 74 5.60 3.5 175 2015 153 3.89 50 9.16 67 4.57 2.9 158 Page 9

Dairy Enterprise Analysis Reports The Dairy Enterprise Analysis reports show the average physical production, gross margin over purchase costs, direct costs, overhead costs, and net returns on a per cow or per hundredweight (cwt) basis. Information is presented for the average of all farms and the High 20% sorted by net return per cow. Gross Margin is the accrual gross value added by the enterprise. It includes income from sale of offspring and livestock products, cull income, non-cash transfers to other enterprises, and the value of production used in the home or for feed. It also includes the value of the livestock inventory change from the beginning to the end of the year. Inventory changes are calculated using the cost-basis balance sheet, and each farm s per-head values for their breeding livestock inventories are held constant from the beginning through the end of the year. The cost of livestock purchased and the value of any animals transferred in are deducted from gross returns. Net Return is the amount contributed by a unit of the enterprise toward operator labor, management, and equity capital. Any wages and benefits paid to the operator are removed from labor costs (and added to Labor and Management Charge) so that all farms are on equal footing. Net Return over Labor and Management is the return remaining after compensating the operator for unpaid labor and management. This is the per-unit return to equity capital. Labor and Management calculation: Management is calculated at 5% of the Value of Farm Production (VFP) Labor is valued at $13.50 per hour for 3,000 hours annually (one operator) The Value of Farm Production is the farm s total income less the cost of purchased feed. Example: Management at 5% * $950,000 VFP = $47,500 Labor of 3,000 hrs * $13.50 = $40,500 $88,000 Cost of Production shows the average cost per unit in each cost category. Total direct and overhead expense per unit is the breakeven price needed to cover cash costs and depreciation. With Other Revenue Adjustments is the breakeven price adjusted for cull sales, other offspring sales, the cost of replacement stock, and any other miscellaneous income. This assumes that some costs can be covered by these other income sources. With Labor and Management is the final breakeven price to provide a labor and management return for the operator(s). Other Information contains both economic and technical efficiency measures for the enterprise. Rounding of individual items for the report may cause minor discrepancies with the calculated total. Page 10

Benchmark Reports Benchmark reports follow each enterprise summary, both per cow, and per cwt. These reports include information on 34 income, expense, and efficiency measures from the dairy enterprise analyses. Benchmark reports allow farms to compare their performance against other Ohio farms. Farms that complete an analysis receive benchmark reports personalized for their farm. These reports include their farm s dairy enterprise numbers in a My Farm column next to the Group Median column, and the corresponding percentiles are highlighted for each of the 34 items. Managers can quickly see where they are doing well and where they have opportunities for improvement. The Benchmark reports are generated using the RankEm software from the University of Minnesota s Center for Farm Financial Management. Benchmark reports include the median value (half of the data points were higher, half of the data points were lower which will frequently be at least slightly different from the average) for each of the 34income, expense and efficiency measures. For each measure, the corresponding data is sorted from lowest to highest. Then the median value of for each 10% grouping of the data set is sorted into the 10%, 20%, 30%...100% columns of the table. Each line is calculated separately. In other words, the 10% column does not represent the bottom 10% of all farms, nor does the 100 th percentile group include only the top performing farms. An individual farm may be in the 80 th percentile for Gross Return, but in the 30 th percentile for feed cost. Typically, a farm s values will be scattered in multiple percentile groups (columns) across the chart. Hired Labor: Hired labor is listed on line 13 (the first line of overhead expenses). Ohio treats hired labor as a direct expense to the dairy enterprise; Minnesota treats it as an overhead expense. While it is listed in these benchmark reports after total direct expenses, it is included in the direct expense total. Utilities: Utilities are listed on line 17 of the benchmark reports. Ohio treats utilities as a direct expense to the dairy enterprise; Minnesota treats it as an overhead expense. While it is listed in these benchmark reports after total direct expenses, utilities are included in the direct expense total. Machinery Leases: Not enough farms had machinery leases to include data on these benchmark reports. Building Leases: Not enough farms had building leases to include data on benchmark reports. Corn, Corn Silage, and Alfalfa Fed: These numbers do not reflect all of the corn, corn silage, or alfalfa fed on the farms in the analysis. It would include all of the corn, corn silage or alfalfa raised on a farm which was fed in 2016. Purchased corn, corn silage, or alfalfa is often included as a purchased feed cost on some farms. Page 11

Dairy Enterprise Analysis (Farms Sorted By Net Return) Dairy -- Average Per Cow Avg. Of All Farms High 20% Number of farms 34 7 Quantity Value Quantity Value Milk sold (hd) 24,727.3 4,259.38 26,453.0 4,879.95 Dairy Calves sold (hd) 0.4 90.11 0.3 81.82 Transferred out (hd) 0.0 7.97 0.1 4.77 Cull sales (hd) 0.3 273.45 0.2 226.75 Other income 19.29 24.65 Purchased (hd) 0.0-18.01 0.0-3.51 Inventory change (hd) 0.1 96.26 0.2 221.26 Gross margin 4,732.26 5,435.70 Direct Expenses Protein Vit Minerals (lb.) 532.6 1,513.42 2.7 1,433.43 Corn (bu.) 37.6 147.06 34.0 132.27 Corn Silage (lb.) 22,020.0 400.86 19,856.4 502.80 Corn, Ear (lb.) 697.4 26.40 2,116.2 89.66 Hay, Alfalfa (lb.) 2,276.3 111.23 545.0 23.27 Rye Silage (lb.) 2,311.7 88.92 2,631.6 123.04 Hay, Alfalfa, Organic (lb.) - 22.89-131.87 Other feed stuffs (lb) 4,115.9 171.84 6,409.5 285.40 Breeding fees 93.10 73.48 Veterinary 140.90 106.76 Supplies 255.11 169.98 Contract production exp. 82.21 0.93 Repairs 133.36 112.36 Custom hire 74.91 92.59 Hired labor 565.62 374.98 Utilities 112.35 84.59 Hauling and trucking 119.03 115.50 Marketing 74.86 65.90 Bedding 95.00 71.32 Total direct expenses 4,229.05 3,990.13 Return over direct expense 503.22 1,445.56 Overhead Expenses Interest 86.56 56.29 Mach & bldg depreciation 211.40 357.62 Miscellaneous 110.54 82.89 Total overhead expenses 408.50 496.80 Total dir & ovhd expenses 4,637.54 4,486.93 Net return 94.72 948.76 Labor & management charge 247.91 269.43 Net return over lbr & mgt -153.19 679.33 Cost of Production Per Cwt. Of Milk Total direct expense per unit 17.07 15.05 Total dir& ovhd expense per unit 18.71 16.92 With other revenue adjustments 16.85 14.91 With labor and management 17.85 15.93 Est. labor hours per unit 51.04 34.27 Other Information Number of cows 309.1 260.6 Milk produced per cow 24,780 26,519 Total milk sold 7,643,645 6,892,893 Lb. of milk sold per FTE 1,356,468 2,161,328 Culling percentage 30.5 20.8 Turnover rate 35.8 23.5 Cow death loss percent 5.2 2.0 Percent of barn capacity 101.2 83.7 Feed cost per day 6.80 7.46 Feed cost per cwt. of milk 10.02 10.26 Feed cost per cow 2,482.62 2,721.74 Hired labor per cow 565.62 374.99 Avg. milk price per cwt. 17.23 18.45 Milk price / feed margin 7.21 8.18 Annual Report RankEm The Ohio State University Page 12

Dairy Per Cow; 2016 Benchmark Report, 34 Enterprises Group Median Count Milk sales 4,143.06 34 Gross Margin 4,634.34 34 Total feed expense 2,398.04 34 Breeding Fees 87.61 32 Veterinary 108.71 34 Livestock supplies 121.43 34 Fuel & Oil 53.25 34 Repairs 138.31 34 Marketing 55.65 34 Operating interest 10.08 27 Total direct expenses 4,076.81 34 Return over direct expenses 412.54 34 Hired labor 1 515.67 28 Building leases 0.00 6 Real estate taxes 26.18 30 Farm insurance 32.86 32 Utilities 1 515.67 31 Interest on interm. debt 9.53 26 Interest on long term debt 93.23 26 Machinery depreciation 56.23 34 Building depreciation 80.74 33 Total overhead expenses 376.92 34 Total dir & ovhd expense 4,445.94 34 Net return -23.44 34 Net return over lbr & mgt -326.87 34 Cost of production 18.05 34 Corn Fed (Bu.) 49.47 25 Corn Silage Fed (Ton) 11.43 28 Hay, Alfalfa Fed (Ton) 2.57 16 Avg. number of head 188.0 34 Milk produced per head 23,002 34 Culling percentage 26.3 34 Turnover rate 33.6 34 Percent of barn capacity 100.5 34 Feed cost per cwt of milk 10.14 34 Feed cost per head 2,398.04 34 Hired labor per cow 515.67 29 Avg. milk price per cwt. 16.52 34 RankEm 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% 3,097.09 3,258.98 3,543.60 3,753.86 4,046.25 4,198.02 4,414.16 4,765.36 4,986.53 5,795.38 2,823.98 3,700.20 4,030.62 4,212.04 4,461.34 4,737.20 4,869.41 5,358.34 5,469.31 6,453.98 3,156.57 2,811.99 2,723.09 2,589.56 2,509.40 2,374.41 2,275.54 2,123.93 1,976.83 1,797.78 138.09 127.85 110.39 96.59 89.39 82.85 70.76 61.61 49.44 42.89 249.34 233.60 170.99 143.29 118.15 98.09 91.01 81.54 59.86 34.75 260.16 208.25 164.58 156.96 131.30 115.63 108.55 82.86 68.08 61.59 100.57 84.38 68.60 60.00 55.37 45.08 40.25 35.39 23.53 18.03 494.21 240.13 181.90 162.55 151.95 127.42 91.96 77.56 60.12 37.08 189.51 81.08 67.82 61.79 57.78 54.74 47.73 43.77 33.33 18.21 124.80 41.02 22.52 16.33 11.86 9.91 5.24 4.80 2.64 0.73 5,421.54 4,792.40 4,506.62 4,334.05 4,088.99 3,999.09 3,590.08 3,417.34 3,225.78 2,740.52-295.68-183.76-25.84 186.59 344.43 456.82 887.47 1,162.10 1,569.97 2,362.29 939.12 720.45 638.97 588.25 504.48 348.80 257.07 45.82 0.00 0.00 55.25 51.19 45.99 31.98 28.47 23.57 18.74 15.31 13.60 5.57 82.04 52.91 47.69 43.94 34.89 30.28 24.39 20.48 13.90 7.97 193.62 178.94 167.07 138.21 109.05 93.39 89.76 87.58 78.85 10.48 54.00 34.73 21.19 17.20 11.68 8.29 7.61 5.80 5.14 3.67 252.05 134.83 125.28 114.51 105.19 78.98 47.63 38.81 27.64 10.89 371.10 187.62 102.54 84.08 67.92 52.82 48.19 38.12 25.28 18.39 367.84 207.31 163.62 155.25 98.42 76.99 57.12 41.13 34.63 7.16 932.38 537.92 476.97 428.30 381.38 336.35 299.77 280.21 242.37 139.65 6,161.74 5,126.61 4,933.90 4,653.54 4,477.19 4,382.24 4,009.15 3,681.71 3,416.45 3,041.52-726.99-484.75-312.57-194.03-95.29 56.53 417.61 609.51 957.41 2,131.65-1,015.39-815.25-666.32-561.83-388.37-199.69 104.52 307.63 559.29 1,400.13 26.26 23.48 21.17 20.36 18.77 17.59 17.02 16.50 15.48 14.52 134.80 103.90 95.63 65.58 56.18 48.02 29.98 22.37 12.27 5.14 18.37 14.71 13.59 12.76 11.66 11.18 9.42 8.78 7.43 2.62 6.30 4.23 3.89 3.61 2.74 2.08 1.50 0.74 0.39 0.00 44.0 77.0 128.0 145.5 182.0 251.5 350.0 413.0 590.0 1,137.0 15,965 18,637 19,526 20,437 21,978 23,867 26,085 26,624 29,057 30,418 13.6 17.7 20.4 22.0 23.6 28.1 34.5 37.8 46.1 54.6 20.4 23.5 25.0 27.5 30.7 39.1 44.6 50.5 52.6 65.4 74.8 85.6 94.2 98.3 99.5 104.0 111.6 120.0 135.0 159.9 17.36 14.65 11.90 10.83 10.30 9.92 9.37 9.19 8.58 8.20 3,156.57 2,811.99 2,723.09 2,589.56 2,509.40 2,374.41 2,275.54 2,123.93 1,976.83 1,797.78 998.39 727.32 639.41 610.04 566.36 493.30 358.89 285.87 235.55 40.68 15.45 15.97 16.08 16.21 16.46 16.83 17.39 18.27 21.13 36.71 1 Hired labor and utilities are included in total direct expenses in the Ohio Summary Refer to page 11 for information on how to use benchmark reports Page 13 RankEm The Ohio State University

Dairy Enterprise Analysis (Farms Sorted By Net Return) Dairy -- Average Per Cwt. Of Milk Avg. Of All Farms High 20% Number of farms 34 7 Quantity Value Quantity Value Milk sold (hd) 99.79 17.19 99.75 18.40 Dairy Calves sold (hd) 0.00 0.36 0.00 0.31 Transferred out (hd) 0.00 0.03 0.00 0.02 Cull sales (hd) 0.00 1.10 0.00 0.86 Other income 0.08 0.09 Purchased (hd) 0.00-0.07 0.00-0.01 Inventory change (hd) 0.00 0.39 0.00 0.83 Gross margin 19.10 20.50 Direct Expenses Protein Vit Minerals (lb.) 2.15 6.11 0.01 5.41 Corn (bu.) 0.15 0.59 0.13 0.50 Corn Silage (lb.) 88.86 1.62 74.88 1.90 Corn, Ear (lb.) 2.81 0.11 7.98 0.34 Hay, Alfalfa (lb.) 9.19 0.45 2.05 0.09 Rye Silage (lb.) 9.33 0.36 9.92 0.46 Hay, Alfalfa, Organic (lb.) - 0.09-0.50 Other feed stuffs (lb) 16.61 0.69 24.17 1.08 Breeding fees 0.38 0.28 Veterinary 0.57 0.40 Supplies 1.03 0.64 Contract production exp. 0.33 0.00 Repairs 0.54 0.42 Custom hire 0.30 0.35 Hired labor 2.28 1.41 Utilities 0.45 0.32 Hauling and trucking 0.48 0.44 Marketing 0.30 0.25 Bedding 0.38 0.27 Total direct expenses 17.07 15.05 Return over direct expense 2.03 5.45 Overhead Expenses Interest 0.35 0.21 Mach & bldg depreciation 0.85 1.35 Miscellaneous 0.45 0.31 Total overhead expenses 1.65 1.87 Total dir & ovhd expenses 18.71 16.92 Net return 0.38 3.58 Labor & management charge 1.00 1.02 Net return over lbr & mgt -0.62 2.56 Cost of Production Per Cwt. Of Milk Total direct expense per unit 17.07 15.05 Total dir& ovhd expense per unit 18.71 16.92 With other revenue adjustments 16.85 14.91 With labor and management 17.85 15.93 Est. labor hours per unit 0.21 0.13 Other Information Number of cows 309.1 260.6 Milk produced per cow 24,780 26,519 Total milk sold 7,643,645 6,892,893 Lb. of milk sold per FTE 1,356,468 2,161,328 Culling percentage 30.5 20.8 Turnover rate 35.8 23.5 Cow death loss percent 5.2 2.0 Percent of barn capacity 101.2 83.7 Feed cost per day 6.80 7.46 Feed cost per cwt. of milk 10.02 10.26 Feed cost per cow 2,482.62 2,721.74 Hired labor per cow 565.62 374.99 Avg. milk price per cwt. 17.23 18.45 Milk price / feed margin 7.21 8.18 Annual Report RankEm The Ohio State University Page 14

Dairy Per Cwt. Of Milk; 2016 Benchmark Report, 34 Enterprises Group Median Count RankEm 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Milk sales 16.52 34 Gross Margin 18.70 34 Total feed expense 10.14 34 Breeding Fees 0.39 32 Veterinary 0.50 34 Livestock supplies 0.56 34 Fuel & Oil 0.22 34 Repairs 0.59 34 Marketing 0.23 34 Operating interest 0.05 27 Total direct expenses 16.88 34 Return over direct expenses 1.71 34 Hired labor 1 2.11 28 Building leases 0.00 6 Real estate taxes 0.13 30 Farm insurance 0.16 32 Utilities 1 0.47 31 Inerest on interm. Debt 0.05 26 Interest on long term debt 0.39 26 Machinery depreciation 0.26 34 Building depreciation 0.42 33 Total overhead expenses 1.65 34 Total dir & ovhd expense 18.67 34 Net return -0.11 34 Net return over lbr & mgt -1.34 34 Cost of production 18.05 34 Corn Fed (Bu.) 0.22 25 Corn Silage Fed (Ton) 0.05 28 Hay, Alfalfa Fed (Ton) 0.01 16 Avg. number of head 188.0 34 Milk produced per head 23,002 34 Culling percentage 26.3 34 Turnover rate 33.6 34 Percent of barn capacity 100.5 34 Feed cost per cwt of milk 10.14 34 Feed cost per head 2,398.04 34 Hired labor per cow 515.67 29 Avg. milk price per cwt. 16.52 34 15.45 15.81 16.05 16.21 16.46 16.75 17.16 18.27 20.97 35.88 16.02 17.33 17.65 17.98 18.37 18.85 19.88 21.01 23.85 38.96 17.36 14.65 11.90 10.83 10.30 9.92 9.37 9.19 8.58 8.20 0.53 0.47 0.45 0.42 0.40 0.36 0.32 0.30 0.24 0.16 0.99 0.84 0.70 0.58 0.51 0.44 0.40 0.33 0.30 0.26 1.64 1.04 0.82 0.61 0.57 0.53 0.42 0.38 0.27 0.21 0.50 0.35 0.31 0.27 0.23 0.22 0.18 0.14 0.12 0.09 1.97 0.90 0.79 0.70 0.67 0.54 0.43 0.33 0.29 0.20 0.99 0.38 0.28 0.26 0.26 0.21 0.20 0.20 0.17 0.09 0.51 0.21 0.11 0.08 0.05 0.04 0.03 0.02 0.01 0.00 25.15 21.96 18.93 17.86 17.16 16.72 16.13 15.70 15.08 13.70-1.51-0.60-0.10 0.78 1.35 2.05 3.55 4.37 5.40 17.20 3.89 3.33 2.80 2.42 2.05 1.50 1.03 0.28 0.00 0.00 0.23 0.19 0.18 0.17 0.14 0.11 0.08 0.07 0.06 0.02 0.38 0.28 0.20 0.17 0.16 0.14 0.09 0.08 0.07 0.04 0.98 0.75 0.69 0.61 0.52 0.46 0.38 0.36 0.31 0.05 0.19 0.14 0.09 0.08 0.06 0.04 0.03 0.03 0.02 0.01 1.07 0.66 0.57 0.52 0.42 0.33 0.20 0.15 0.10 0.04 1.22 0.69 0.44 0.39 0.28 0.26 0.22 0.14 0.13 0.09 1.28 0.76 0.62 0.56 0.44 0.34 0.29 0.22 0.13 0.04 3.07 2.34 2.01 1.85 1.76 1.54 1.39 1.29 1.07 0.95 26.22 23.64 21.56 19.91 18.82 18.15 17.45 17.11 16.38 15.69-3.04-2.37-1.36-0.84-0.39 0.23 1.73 2.34 4.05 14.86-5.08-3.57-2.80-2.50-1.62-0.80 0.35 1.19 2.37 11.17 26.26 23.48 21.17 20.36 18.77 17.59 17.02 16.50 15.48 14.52 0.57 0.47 0.36 0.32 0.25 0.22 0.12 0.10 0.06 0.02 0.08 0.07 0.06 0.05 0.05 0.05 0.04 0.04 0.03 0.01 0.03 0.02 0.02 0.02 0.01 0.01 0.01 0.00 0.00 0.00 44.0 77.0 128.0 145.5 182.0 251.5 350.0 413.0 590.0 1,137.0 15,965 18,637 19,526 20,437 21,978 23,867 26,085 26,624 29,057 30,418 13.6 17.7 20.4 22.0 23.6 28.1 34.5 37.8 46.1 54.6 20.4 23.5 25.0 27.5 30.7 39.1 44.6 50.5 52.6 65.4 74.8 85.6 94.2 98.3 99.5 104.0 111.6 120.0 135.0 159.9 17.36 14.65 11.90 10.83 10.30 9.92 9.37 9.19 8.58 8.20 3,156.57 2,811.99 2,723.09 2,589.56 2,509.40 2,374.41 2,275.54 2,123.93 1,976.83 1,797.78 998.39 727.32 639.41 610.04 566.36 493.30 358.89 285.87 235.55 40.68 15.45 15.97 16.08 16.21 16.46 16.83 17.39 18.27 21.13 36.71 1 Hired labor and utilities are included in total direct expenses in the Ohio Summary Refer to page 11 for information on how to use benchmark reports Page 15 RankEm The Ohio State University

Ohio Dairy Enterprise Analysis (Farms Sorted By Net Return) Dairy -- Average Per Cow Low 20% 20-40% 40-60% 60-80% High 20% Number of farms 6 7 7 7 7 Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value Milk sold (hd) 23,915.8 3,990.96 22,989.1 4,064.78 24,500.7 4,115.03 25,937.2 4,313.06 26,453.0 4,879.95 Dairy Calves sold (hd) 0.4 168.38 0.4 55.55 0.5 78.37 0.4 86.84 0.3 81.82 Transferred out (hd) 0.1-0.0 12.37 - - 0.1 21.16 0.1 4.77 Cull sales (hd) 0.3 188.48 0.4 329.32 0.3 276.89 0.3 314.59 0.2 226.75 Other income 5.43 5.20 48.11 6.68 24.65 Purchased (hd) 0.1-94.56 0.0-3.10 0.0-3.65 0.0-4.23 0.0-3.51 Inventory change (hd) 0.1 88.83 0.1 34.55 0.0 3.39 0.1 167.66 0.2 221.26 Gross margin 4,349.34 4,511.08 4,518.14 4,909.83 5,435.70 Direct Expenses Protein Vit Minerals (lb.) - 1,669.15 2,479.2 1,488.54-1,463.21-1,544.98 2.7 1,433.43 Corn (bu.) 30.3 157.70 32.4 121.11 34.2 141.63 55.0 183.67 34.0 132.27 Corn Silage (lb.) 27,387.9 466.19 18,754.5 359.56 19,830.5 358.77 25,581.2 358.41 19,856.4 502.80 Hay, Alfalfa (lb.) 1,231.5 69.32 2,675.6 125.27 3,452.3 192.19 2,729.8 108.13 545.0 23.27 Rye Silage (lb.) 1,905.0 83.36 1,639.1 77.14 2,680.3 80.09 2,614.3 87.14 2,631.6 123.04 Hay, Alfalfa, Organic (lb.) - - - - - - - - - 131.87 Other feed stuffs (lb) 4,349.0 175.36 9,433.5 380.25 336.2 25.85 2,542.6 82.66 8,525.7 375.06 Breeding fees 88.59 104.96 83.98 110.89 73.48 Veterinary 166.18 149.60 137.69 144.83 106.76 Supplies 321.57 296.65 291.47 191.76 169.98 Contract production exp. 174.68 109.86 2.15 142.84 0.93 Repairs 140.62 108.93 150.67 150.13 112.36 Custom hire 75.76 86.77 36.81 91.15 92.59 Hired labor 562.99 599.13 780.01 445.70 374.98 Utilities 95.87 124.52 107.14 140.96 84.59 Hauling and trucking 116.42 69.71 140.04 149.85 115.50 Marketing 105.12 77.73 73.96 57.73 65.90 Bedding 60.74 109.35 128.12 87.71 71.32 Total direct expenses 4,529.61 4,389.08 4,193.78 4,078.56 3,990.13 Return over direct expense -180.26 122.00 324.37 831.27 1,445.56 Overhead Expenses Interest 144.39 105.45 74.85 62.39 56.29 Mach & bldg depreciation 174.47 166.04 179.98 200.95 357.62 Miscellaneous 104.08 100.64 140.71 113.68 82.89 Total overhead expenses 422.94 372.13 395.54 377.02 496.80 Total dir & ovhd expenses 4,952.55 4,761.20 4,589.32 4,455.58 4,486.93 Net return -603.21-250.13-71.18 454.25 948.76 Labor & management charge 233.50 235.61 237.62 265.19 269.43 Net return over lbr & mgt -836.71-485.73-308.80 189.06 679.33 Cost of Production Per Cwt. Of Milk Total direct expense per unit 18.92 19.09 17.03 15.71 15.05 Total dir& ovhd expense per unit 20.68 20.71 18.64 17.16 16.92 With other revenue adjustments 19.21 18.77 17.08 14.88 14.91 With labor and management 20.18 19.79 18.05 15.90 15.93 Est. labor hours per unit 51.90 55.26 62.45 46.88 34.27 Other Information Number of cows 277.2 322.3 362.4 318.6 260.6 Milk produced per cow 23,945 22,993 24,622 25,969 26,519 Total milk sold 6,628,656 7,409,067 8,879,766 8,262,843 6,892,893 Lb. of milk sold per FTE 1,290,369 1,164,823 1,098,590 1,549,121 2,161,328 Culling percentage 25.6 37.1 33.0 32.4 20.8 Turnover rate 35.1 43.8 36.6 37.5 23.5 Cow death loss percent 9.4 6.7 3.5 5.0 2.0 Percent of barn capacity 104.0 113.7 100.8 106.0 83.7 Feed cost per day 7.18 6.99 6.20 6.48 7.46 Feed cost per cwt. of milk 10.95 11.10 9.19 9.11 10.26 Feed cost per cow 2,621.09 2,551.87 2,261.74 2,365.00 2,721.74 Hired labor per cow 562.99 599.13 780.01 445.70 374.99 Avg. milk price per cwt. 16.69 17.68 16.80 16.63 18.45 Milk price / feed margin 5.74 6.58 7.61 7.52 8.18 Ohio Farm Business Analysis Annual Report Page 16 The Ohio State University

Ohio Dairy Enterprise Analysis (Farms Sorted By Net Return) Dairy -- Average Per Cwt. Of Milk Low 20% 20-40% 40-60% 60-80% High 20% Number of farms 6 7 7 7 7 Quantity Value Quantity Value Quantity Value Quantity Value Quantity Value Milk sold (hd) 99.88 16.67 99.98 17.68 99.51 16.71 99.88 16.61 99.75 18.40 Dairy Calves sold (hd) 0.00 0.70 0.00 0.24 0.00 0.32 0.00 0.33 0.00 0.31 Transferred out (hd) 0.00-0.00 0.05 - - 0.00 0.08 0.00 0.02 Cull sales (hd) 0.00 0.79 0.00 1.43 0.00 1.12 0.00 1.21 0.00 0.86 Other income 0.02 0.02 0.20 0.03 0.09 Purchased (hd) 0.00-0.39 0.00-0.01 0.00-0.01 0.00-0.02 0.00-0.01 Inventory change (hd) 0.00 0.37 0.00 0.15 0.00 0.01 0.00 0.65 0.00 0.83 Gross margin 18.16 19.62 18.35 18.91 20.50 Direct Expenses Protein Vit Minerals (lb.) - 6.97 10.78 6.47-5.94-5.95 0.01 5.41 Corn (bu.) 0.13 0.66 0.14 0.53 0.14 0.58 0.21 0.71 0.13 0.50 Corn Silage (lb.) 114.38 1.95 81.57 1.56 80.54 1.46 98.51 1.38 74.88 1.90 Hay, Alfalfa (lb.) 5.14 0.29 11.64 0.54 14.02 0.78 10.51 0.42 2.05 0.09 Rye Silage (lb.) 7.96 0.35 7.13 0.34 10.89 0.33 10.07 0.34 9.92 0.46 Hay, Alfalfa, Organic (lb.) - - - - - - - - - 0.50 DDGS, wet (lb.) - - 14.96 0.46 - - - - - - Other feed stuffs (lb) 18.16 0.73 26.07 1.20 1.37 0.11 9.79 0.32 32.15 1.41 Breeding fees 0.37 0.46 0.34 0.43 0.28 Veterinary 0.69 0.65 0.56 0.56 0.40 Supplies 1.34 1.29 1.18 0.74 0.64 Contract production exp. 0.73 0.48 0.01 0.55 0.00 Repairs 0.59 0.47 0.61 0.58 0.42 Custom hire 0.32 0.38 0.15 0.35 0.35 Hired labor 2.35 2.61 3.17 1.72 1.41 Utilities 0.40 0.54 0.44 0.54 0.32 Hauling and trucking 0.49 0.30 0.57 0.58 0.44 Marketing 0.44 0.34 0.30 0.22 0.25 Bedding 0.25 0.48 0.52 0.34 0.27 Total direct expenses 18.92 19.09 17.03 15.71 15.05 Return over direct expense -0.75 0.53 1.32 3.20 5.45 Overhead Expenses Interest 0.60 0.46 0.30 0.24 0.21 Mach & bldg depreciation 0.73 0.72 0.73 0.77 1.35 Miscellaneous 0.43 0.44 0.57 0.44 0.31 Total overhead expenses 1.77 1.62 1.61 1.45 1.87 Total dir & ovhd expenses 20.68 20.71 18.64 17.16 16.92 Net return -2.52-1.09-0.29 1.75 3.58 Labor & management charge 0.98 1.02 0.97 1.02 1.02 Net return over lbr & mgt -3.49-2.11-1.25 0.73 2.56 Cost of Production Per Cwt. Of Milk Total direct expense per unit 18.92 19.09 17.03 15.71 15.05 Total dir& ovhd expense per unit 20.68 20.71 18.64 17.16 16.92 With other revenue adjustments 19.21 18.77 17.08 14.88 14.91 With labor and management 20.18 19.79 18.05 15.90 15.93 Est. labor hours per unit 0.22 0.24 0.25 0.18 0.13 Other Information Number of cows 277.2 322.3 362.4 318.6 260.6 Milk produced per cow 23,945 22,993 24,622 25,969 26,519 Total milk sold 6,628,656 7,409,067 8,879,766 8,262,843 6,892,893 Lb. of milk sold per FTE 1,290,369 1,164,823 1,098,590 1,549,121 2,161,328 Culling percentage 25.6 37.1 33.0 32.4 20.8 Turnover rate 35.1 43.8 36.6 37.5 23.5 Cow death loss percent 9.4 6.7 3.5 5.0 2.0 Percent of barn capacity 104.0 113.7 100.8 106.0 83.7 Feed cost per day 7.18 6.99 6.20 6.48 7.46 Feed cost per cwt. of milk 10.95 11.10 9.19 9.11 10.26 Feed cost per cow 2,621.09 2,551.87 2,261.74 2,365.00 2,721.74 Hired labor per cow 562.99 599.13 780.01 445.70 374.99 Avg. milk price per cwt. 16.69 17.68 16.80 16.63 18.45 Milk price / feed margin 5.74 6.58 7.61 7.52 8.18 Ohio Farm Business Analysis Annual Report Page 17 The Ohio State University

Ohio Dairy Enterprise Analysis (Farms Sorted By Enterprise Size) Dairy -- Average Per Cow 50 100 200 Over 100 200 500 500 Number of farms 4 12 10 6 Quantity Value Quantity Value Quantity Value Quantity Value Milk sold (hd) 22,615.3 4,773.11 21,595.9 3,934.39 24,248.1 4,111.66 26,533.8 4,459.96 Dairy Calves sold (hd) 0.4 79.92 0.4 107.24 0.4 114.68 0.4 64.76 Transferred out (hd) - - 0.0 4.60 0.1 13.80 0.0 5.75 Cull sales (hd) 0.2 196.29 0.3 225.91 0.4 339.40 0.3 252.47 Other income 302.72 30.84 15.03 0.45 Purchased (hd) 0.0-53.44 0.0-9.05 0.0-2.76 0.0-30.53 Inventory change (hd) 0.2 228.32 0.0 7.20 0.1 37.45 0.1 164.41 Gross margin 5,526.91 4,307.52 4,636.51 4,917.94 Direct Expenses Protein Vit Minerals (lb.) 18.1 1,530.51-1,308.06-1,601.61 1,153.2 1,532.53 Corn (bu.) 26.9 104.34 52.3 202.36 52.9 199.96 22.2 92.98 Corn Silage (lb.) 9,115.9 371.51 18,755.6 326.53 18,115.9 288.72 26,960.4 514.16 Hay, Alfalfa (lb.) 1.4 0.60 3,519.6 144.28 3,388.4 180.53 1,173.2 57.55 Rye Silage (lb.) 1,007.2 35.08 687.3 30.64 1,945.6 77.19 3,313.2 124.36 Corn, Organic (bu.) 13.5 170.15 - - - - - - Hay, Alfalfa, Organic (lb.) - - - 127.26 - - - - Hay, Grass, Organic (lb.) - - - - - - - - Hay, Mixed, Organic (lb.) 4,390.2 374.84 - - - - - - Other feed stuffs (lb) 7,442.3 223.53 2,326.4 174.35 3,513.3 104.25 6,159.8 232.87 Breeding fees 94.29 65.83 89.41 107.16 Veterinary 133.97 96.38 167.19 141.62 Supplies 429.27 301.95 456.23 407.64 Contract production exp. 1.78 42.40 50.78 125.48 Repairs 371.35 156.27 147.17 102.78 Hired labor 166.59 329.50 581.33 678.13 Utilities 206.40 123.69 107.83 107.43 Hauling and trucking 144.25 131.41 133.43 102.63 Bedding 46.88 90.28 122.20 80.47 Total direct expenses 4,405.32 3,651.18 4,307.85 4,407.79 Return over direct expense 1,121.59 656.35 328.66 510.15 Overhead Expenses Building leases 107.38 8.54 6.18 0.47 Mach & bldg depreciation 385.82 204.76 147.36 251.48 Miscellaneous 173.61 208.34 184.80 190.03 Total overhead expenses 666.81 421.65 338.35 441.99 Total dir & ovhd expenses 5,072.13 4,072.83 4,646.19 4,849.77 Net return 454.77 234.70-9.68 68.17 Labor & management charge 671.40 352.97 242.73 180.85 Net return over lbr & mgt -216.63-118.27-252.41-112.69 Cost of Production Per Cwt. Of Milk Total direct expense per unit 19.33 16.83 17.70 16.61 Total dir& ovhd expense per unit 22.26 18.77 19.09 18.28 With other revenue adjustments 19.19 17.16 17.00 16.55 With labor and management 22.13 18.79 17.99 17.23 Est. labor hours per unit 77.10 54.35 54.74 45.07 Other Information Number of cows 69.0 157.5 341.8 808.3 Milk produced per cow 22,786 21,694 24,335 26,536 Total milk sold 1,560,453 3,401,355 8,288,001 21,448,170 Lb. of milk sold per FTE 821,260 1,112,585 1,240,291 1,648,568 Culling percentage 23.2 26.7 37.1 27.9 Turnover rate 39.1 32.4 42.4 32.1 Cow death loss percent 15.2 5.6 5.3 4.3 Percent of barn capacity 54.7 104.4 111.7 98.2 Feed cost per day 7.70 6.34 6.72 7.00 Feed cost per cwt. of milk 12.33 10.66 10.08 9.63 Feed cost per cow 2,810.55 2,313.47 2,452.26 2,554.45 Hired labor per cow 166.59 329.50 581.33 678.13 Avg. milk price per cwt. 21.11 18.22 16.96 16.81 Milk price / feed margin 8.77 7.55 6.88 7.18 Ohio Farm Business Analysis Annual Report Page 18 The Ohio State University

Ohio Dairy Enterprise Analysis (Farms Sorted By Enterprise Size) Dairy -- Average Per Cwt. Of Milk 50 100 200 Over 100 200 500 500 Number of farms 4 12 10 6 Quantity Value Quantity Value Quantity Value Quantity Value Milk sold (hd) 99.25 20.95 99.55 18.14 99.64 16.90 99.99 16.81 Dairy Calves sold (hd) 0.00 0.35 0.00 0.49 0.00 0.47 0.00 0.24 Transferred out (hd) - - 0.00 0.02 0.00 0.06 0.00 0.02 Cull sales (hd) 0.00 0.86 0.00 1.04 0.00 1.39 0.00 0.95 Other income 1.33 0.14 0.06 0.00 Purchased (hd) 0.00-0.23 0.00-0.04 0.00-0.01 0.00-0.12 Inventory change (hd) 0.00 1.00 0.00 0.03 0.00 0.15 0.00 0.62 Gross margin 24.26 19.86 19.05 18.53 Direct Expenses Protein Vit Minerals (lb.) 0.08 6.72-6.03-6.58 4.35 5.78 Corn (bu.) 0.12 0.46 0.24 0.93 0.22 0.82 0.08 0.35 Corn Silage (lb.) 40.01 1.63 86.46 1.51 74.44 1.19 101.60 1.94 Hay, Alfalfa (lb.) 0.01 0.00 16.22 0.67 13.92 0.74 4.42 0.22 Corn, Organic (bu.) 0.06 0.75 - - - - - - Hay, Alfalfa, Organic (lb.) - - - 0.59 - - - - Hay, Grass, Organic (lb.) - - - - - - - - Hay, Mixed, Organic (lb.) 19.27 1.65 - - - - - - Other feed stuffs (lb) 37.08 1.13 13.89 0.94 22.43 0.75 35.70 1.35 Breeding fees 0.41 0.30 0.37 0.40 Veterinary 0.59 0.44 0.69 0.53 Supplies 1.88 1.39 1.87 1.54 Contract production exp. 0.01 0.20 0.21 0.47 Repairs 1.63 0.72 0.60 0.39 Hired labor 0.73 1.52 2.39 2.56 Utilities 0.91 0.57 0.44 0.40 Hauling and trucking 0.63 0.61 0.55 0.39 Bedding 0.21 0.42 0.50 0.30 Total direct expenses 19.33 16.83 17.70 16.61 Return over direct expense 4.92 3.03 1.35 1.92 Overhead Expenses Building leases 0.47 0.04 0.03 0.00 Mach & bldg depreciation 1.69 0.94 0.61 0.95 Miscellaneous 0.76 0.96 0.76 0.72 Total overhead expenses 2.93 1.94 1.39 1.67 Total dir & ovhd expenses 22.26 18.77 19.09 18.28 Net return 2.00 1.08-0.04 0.26 Labor & management charge 2.95 1.63 1.00 0.68 Net return over lbr & mgt -0.95-0.55-1.04-0.42 Cost of Production Per Cwt. Of Milk Total direct expense per unit 19.33 16.83 17.70 16.61 Total dir& ovhd expense per unit 22.26 18.77 19.09 18.28 With other revenue adjustments 19.19 17.16 17.00 16.55 With labor and management 22.13 18.79 17.99 17.23 Est. labor hours per unit 0.34 0.25 0.22 0.17 Other Information Number of cows 69.0 157.5 341.8 808.3 Milk produced per cow 22,786 21,694 24,335 26,536 Total milk sold 1,560,453 3,401,355 8,288,001 21,448,170 Lb. of milk sold per FTE 821,260 1,112,585 1,240,291 1,648,568 Culling percentage 23.2 26.7 37.1 27.9 Turnover rate 39.1 32.4 42.4 32.1 Cow death loss percent 15.2 5.6 5.3 4.3 Percent of barn capacity 54.7 104.4 111.7 98.2 Feed cost per day 7.70 6.34 6.72 7.00 Feed cost per cwt. of milk 12.33 10.66 10.08 9.63 Feed cost per cow 2,810.55 2,313.47 2,452.26 2,554.45 Hired labor per cow 166.59 329.50 581.33 678.13 Avg. milk price per cwt. 21.11 18.22 16.96 16.81 Milk price / feed margin 8.77 7.55 6.88 7.18 Ohio Farm Business Analysis Annual Report Page 19 The Ohio State University

Dairy Per Cow; 2016 Benchmark Report, 18 Enterprises Herds with 30 to 200 Cows RankEm Group Median Count 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Milk sales 4,093.23 18 Gross Margin 4,579.88 18 Total feed expense 2,354.88 18 Breeding Fees 75.75 16 Veterinary 91.01 18 Livestock supplies 131.30 18 Fuel & Oil 44.67 18 Repairs 133.84 18 Marketing 51.49 18 Operating interest 16.28 12 Total direct expenses 3,500.80 18 Return over direct expenses 531.64 18 Hired labor 1 0.00 12 Real estate taxes 31.80 15 Farm insurance 35.82 17 Utilities 1 0.00 15 Inerest on interm. Debt 8.73 14 Interest on long term debt 105.19 11 Machinery depreciation 52.82 18 Building depreciation 64.52 18 Total overhead expenses 343.81 18 Total dir & ovhd expense 3,872.02 18 Net return 56.53 18 Net return over lbr & mgt -350.53 18 Cost of production 19.13 18 Corn Fed (Bu.) 56.78 12 Corn Silage Fed (Ton) 11.43 14 Hay, Alfalfa Fed (Ton) 0.00 8 Avg. number of head 133.5 18 Milk produced per head 19,928 18 Culling percentage 21.7 18 Turnover rate 30.5 18 Percent of barn capacity 98.7 18 Feed cost per cwt of milk 10.39 18 Feed cost per head 2,354.88 18 Hired labor per cow 285.87 13 Avg. milk price per cwt. 16.64 18 2,708.18 3,108.03 3,232.18 3,498.01 3,787.27 4,215.47 4,310.87 4,631.82 5,415.57 7,033.84 2,556.76 3,150.12 3,681.80 3,842.86 4,327.59 4,736.50 4,810.41 5,161.28 6,335.89 7,673.49 3,812.80 2,799.52 2,658.84 2,535.15 2,398.04 2,275.54 2,165.67 2,121.21 1,852.02 1,632.33 138.09 125.27 90.99 88.92 81.30 70.40 64.34 50.60 48.54 19.09 249.34 184.00 116.60 99.06 95.08 86.25 76.87 55.80 40.27 25.76 260.16 212.67 189.25 163.28 136.71 123.74 112.57 104.28 75.93 61.60 100.82 96.18 87.16 68.83 51.89 42.29 38.38 27.88 20.51 14.50 583.38 403.19 257.19 168.39 143.02 127.42 96.37 74.67 37.27 23.36 81.08 66.98 58.89 56.41 54.82 47.93 45.28 36.19 24.14 18.21 114.89 42.93 39.11 17.28 16.38 11.65 5.24 5.20 3.84 2.53 5,311.20 4,795.56 4,190.31 3,856.02 3,590.08 3,428.31 3,327.59 3,172.72 2,904.54 2,711.86-295.68-202.79 16.54 314.29 424.69 882.62 1,294.82 1,606.30 2,307.02 2,778.53 90.68 55.25 51.70 50.53 33.20 30.39 28.36 18.95 13.60 0.73 85.68 82.04 69.98 51.55 44.36 34.89 27.05 18.07 9.45 4.15 0.01 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 45.27 44.57 23.47 16.80 12.55 7.96 6.61 5.80 5.25 2.39 358.97 126.85 119.69 114.51 113.75 92.08 47.63 46.46 38.81 26.90 583.86 302.58 141.39 81.34 65.25 51.63 48.44 39.42 23.74 11.21 377.52 287.57 164.22 114.16 73.77 59.71 44.52 27.34 12.76 1.09 1,253.02 838.30 500.53 452.65 378.60 307.20 299.77 264.15 165.16 120.09 6,380.09 5,411.15 4,626.20 4,411.70 4,009.15 3,842.78 3,652.96 3,400.02 3,209.57 2,831.95-559.61-502.56-264.89-185.47-10.17 198.23 659.89 1,168.35 2,008.49 2,399.90-1,015.39-818.07-717.86-623.93-391.60-221.76 172.95 709.17 1,387.40 1,804.10 29.58 25.90 22.32 20.78 19.76 18.62 17.41 16.84 15.95 15.18 109.49 98.31 97.50 93.75 69.57 52.83 26.95 22.37 21.57 17.72 14.50 13.59 13.14 12.81 11.71 11.19 8.87 7.96 5.25 0.00 32.0 47.5 68.0 99.0 129.5 136.5 164.5 180.5 185.0 189.0 12,234 16,058 18,102 19,451 19,721 20,977 23,108 25,977 28,107 30,418 7.4 14.7 17.5 19.9 20.8 22.8 27.4 34.3 47.5 54.6 11.1 22.3 24.1 24.9 26.1 36.6 44.2 50.9 58.1 69.5 29.7 78.7 89.1 95.3 97.7 99.8 106.9 118.2 137.1 154.0 19.36 17.31 13.30 11.46 10.71 10.20 9.83 9.28 8.73 8.20 3,812.80 2,799.52 2,658.84 2,535.15 2,398.04 2,275.54 2,165.67 2,121.21 1,852.02 1,632.33 727.32 605.08 571.43 560.35 439.55 267.18 216.92 45.83 40.68 33.52 15.27 15.93 16.22 16.40 16.52 16.84 18.06 19.98 36.64 37.72 1 Hired labor and utilities are included in total direct expenses in the Ohio Summary Refer to page 11 for information on how to use benchmark reports Page 20 RankEm The Ohio State University

Dairy Per Cwt. Of Milk; 2016 Benchmark Report, 18 Enterprises Group Median Count RankEm Herds with 30 200 Cows 10% 20% 30% 40% 50% 60% 70% 80% 90% 100% Milk sales 16.55 18 Gross Margin 18.82 18 Total feed expense 10.39 18 Breeding Fees 0.38 16 Veterinary 0.43 18 Livestock supplies 0.59 18 Fuel & Oil 0.23 18 Repairs 0.69 18 Marketing 0.24 18 Operating interest 0.07 12 Total direct expenses 16.96 18 Return over direct expenses 2.68 18 Hired labor 1 0.00 12 Real estate taxes 0.17 15 Farm insurance 0.16 17 Utilities 1 0.00 15 Inerest on interm. Debt 0.06 14 Interest on long term debt 0.48 11 Machinery depreciation 0.28 18 Building depreciation 0.33 18 Total overhead expenses 1.92 18 Total dir & ovhd expense 18.81 18 Net return 0.23 18 Net return over lbr & mgt -1.58 18 Cost of production 19.13 18 Corn Fed (Bu.) 0.29 12 Corn Silage Fed (Ton) 0.05 14 Hay, Alfalfa Fed (Ton) 0.00 8 Avg. number of head 133.5 18 Milk produced per head 19,928 18 Culling percentage 21.7 18 Turnover rate 30.5 18 Percent of barn capacity 98.7 18 Feed cost per cwt of milk 10.39 18 Feed cost per head 2,354.88 18 Hired labor per cow 285.87 13 Avg. milk price per cwt. 16.64 18 15.27 15.79 16.11 16.40 16.52 16.76 18.06 19.76 35.80 36.45 14.46 16.45 17.34 18.03 18.70 19.11 21.12 22.93 38.73 40.57 19.36 17.31 13.30 11.46 10.71 10.20 9.83 9.28 8.73 8.20 0.48 0.47 0.44 0.41 0.40 0.35 0.30 0.27 0.16 0.08 0.90 0.69 0.52 0.51 0.44 0.40 0.32 0.29 0.27 0.16 2.13 1.08 1.01 0.76 0.61 0.58 0.56 0.42 0.33 0.26 0.52 0.44 0.35 0.30 0.25 0.22 0.21 0.15 0.09 0.07 2.51 1.73 1.04 0.81 0.70 0.60 0.46 0.35 0.25 0.12 0.42 0.32 0.27 0.26 0.26 0.21 0.20 0.20 0.12 0.09 0.39 0.22 0.19 0.13 0.08 0.05 0.03 0.03 0.01 0.01 26.97 22.73 19.82 17.81 17.16 16.43 16.01 15.31 14.52 12.22-1.51-1.21 0.11 1.32 1.98 3.78 4.92 6.60 14.60 18.41 0.45 0.23 0.23 0.20 0.18 0.16 0.14 0.10 0.06 0.00 0.38 0.38 0.35 0.25 0.18 0.16 0.14 0.08 0.06 0.02 0.17 0.15 0.12 0.08 0.07 0.05 0.03 0.03 0.03 0.01 1.35 0.79 0.62 0.61 0.54 0.42 0.18 0.15 0.15 0.13 1.97 1.13 0.60 0.43 0.30 0.27 0.25 0.18 0.12 0.09 1.92 1.25 0.63 0.46 0.34 0.32 0.26 0.16 0.07 0.00 4.23 2.93 2.38 2.04 1.98 1.79 1.49 1.32 0.96 0.54 29.39 24.31 22.36 20.03 18.98 18.20 17.24 17.05 16.17 15.28-3.04-2.91-1.14-0.82-0.03 0.94 2.34 5.46 12.22 17.42-5.20-4.41-3.18-2.50-1.95-1.02 0.66 3.32 9.07 11.45 29.58 25.90 22.32 20.78 19.76 18.62 17.41 16.84 15.95 15.18 0.48 0.45 0.36 0.36 0.33 0.23 0.12 0.11 0.10 0.10 0.07 0.06 0.06 0.05 0.05 0.05 0.04 0.04 0.02 0.00 32.0 47.5 68.0 99.0 129.5 136.5 164.5 180.5 185.0 189.0 12,234 16,058 18,102 19,451 19,721 20,977 23,108 25,977 28,107 30,418 7.4 14.7 17.5 19.9 20.8 22.8 27.4 34.3 47.5 54.6 11.1 22.3 24.1 24.9 26.1 36.6 44.2 50.9 58.1 69.5 29.7 78.7 89.1 95.3 97.7 99.8 106.9 118.2 137.1 154.0 19.36 17.31 13.30 11.46 10.71 10.20 9.83 9.28 8.73 8.20 3,812.80 2,799.52 2,658.84 2,535.15 2,398.04 2,275.54 2,165.67 2,121.21 1,852.02 1,632.33 727.32 605.08 571.43 560.35 439.55 267.18 216.92 45.83 40.68 33.52 15.27 15.93 16.22 16.40 16.52 16.84 18.06 19.98 36.64 37.72 1 Hired labor and utilities are included in total direct expenses in the Ohio Summary Refer to page 11 for information on how to use benchmark reports Page 21 RankEm The Ohio State University