What you said is what I feel is part of the conundrum in terms of short listing the problems with dairy farming. I would guess that part of your FIL's success is having a comparatively high land production base versus many other farmers. In other words it takes less area to feed one cow or more cows that can be supported by a given acreage. Probably over the decades this meant less feed purchased and perhaps more crops sold out of the barn or bin. As I hinted at earlier my neighborhood was not at the ultra high end in terms of hay or corn tonnage produced per acre. So fixed costs on that land such as taxes and insurance were comparatively higher on a per cow basis. When margins were not tight the less productive farms could offset with purchased feed and still make a living. As margins tightened during the 1970's purchased feed cut substantially into profitability.
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