BURLINGTON, Vt. – Dairy farmers made more money last year than in any year but one since 1979, an annual study found.

The Northeast Dairy Farm Summary for 2001 analyzed the bottom line of 511 dairy farmers from throughout the Northeast as well as their income and cost of production.

“Dairy farm profitability rebounded during 2001,” read the summary, which comes out each summer for the prior year.

“A year such as 2001 provides much opportunity to prepare for the next downturn by paying down debt, building liquidity and reinvesting capital in facilities, machinery and cows,” the report said.

But the good news for farmers isn’t continuing. The price of milk has fallen substantially since the end of last year.

“Prices are substantially lower than the last year, plus there is going to be poor feed quality in a lot of areas up here,” said Dean Moreau, president of Yankee Farm Credit in Vermont. “So with a combination of the higher costs and lower prices for milk, people are struggling.”

But the report on 2001 found:

. The yearly average farm milk prices increased $2.72 per 100 pounds of milk, or 23 cents a gallon from 2000. This is 9 percent better than the five-year average. More people were drinking milk and farmers were making less milk;

. The average dairy farm earned $384 profit per cow in 2001, or about $38,400 for the average Vermont 100-cow farm. This amount exceeded the five-year average by nearly 47 percent when adjusted for inflation;

. Cost of production increased $1.35 per 100 pounds of milk, or 12 cents a gallon from increased grain and labor costs;

. Farmers spent 39 percent more on tractors and other big expenses, and they borrowed less money to pay for it.