Capital - Articles

Managing capital costs for 2026

To navigate tighter margins, dairy producers should prioritize disciplined capital spending by focusing on essential investments, evaluating returns, aligning financing with asset life and protecting cash flow.

May 21, 2026

Steve Schwoerer

A disciplined approach to capital spending in 2026 will help ensure the operation remains strong not only through this cycle but into the next one as well.

More than price: How to choose the right hay equipment and maximize return on investment

Hay equipment choices matter most when viewed as a system, where rising costs, labor limits and tight harvest windows make efficiency and consistency the real drivers of return on investment for livestock operations.

March 23, 2026

Derek Reusser and Jessica Williamson

Hay equipment choices hinge on system-wide efficiency, not sticker price, as producers push every acre and hour to deliver real return on investment.

Managing risk in the modern cattle cycle: What resilient operators are doing

Resilient cattle operators prioritize risk management, financial discipline and strategic investments. They track costs, use risk tools, maintain liquidity, stress-test scenarios and build strong lender relationships to navigate market volatility and ensure long-term success.

January 6, 2026

Josh Davis and Todd Moore

Beef producers today are navigating one of the most dynamic environments in recent memory, with many unpredictable variables positioned to influence the next phase of the market cycle.

Managing capital purchases: When to repair or replace

Guidelines to assist in determining whether to replace or repair equipment.

September 24, 2025

Matt Lange

In some cases it is better to repair farm equipment and other times it is better to replace. Knowing when to take action on one versus the other is also part of a bigger strategy for managing your dairy operation.

Milk production costs: Actionable strategies that don't negatively impact the cows

Manage rising costs on the dairy farm by utilizing strategies such as focusing on interest on operating capital and opportunity costs of land, capital recovery, custom services, equipment breakdowns, fuel, lube, electricity usage and more.

February 20, 2025

Alvaro Garcia

In recent years, dairy farming costs have risen across several categories, posing challenges to farm profitability. However, not all costs are beyond a farmer’s control. By focusing on specific actionable items, farmers can manage expenses effectively without negatively impacting cow health or milk production.

To build, or not to build? Economics of a farm shop

Farmers face three options for equipment storage: no covered storage, a machine shed or a farm shop. Key considerations include location, design and capital, with benefits in value retention and repair efficiency.

November 12, 2024

Brett Wilder

One of the most difficult decisions to make on the farm is whether or not to build a space for equipment and machinery storage and what type of space to build.

Have an appreciation for depreciation

Understanding the methods of calculating depreciation can aid in making investment decisions.

August 13, 2024

John Molenhuis

When looking to buy new equipment or build new buildings, one of the key considerations is the cost of ownership or their fixed costs. The largest of the fixed costs is depreciation.

Value-added dairy – From feasibility to follow-through

July 1, 2024

Kelsey Neckers and Heather Weeks

Farms start value-added enterprises for many reasons. A dairy may have a high cost of production for the commodity milk market. More revenue may be needed to pay an additional owner or a retiring generation.

3 steps to a smoother loan application process

Gather essential documents, comprehend the five C’s of credit and be proactive in submitting complete paperwork for a smoother and quicker loan application process.

January 13, 2024

Miguel Villafana

To obtain a loan, your application must be approved by an underwriter – a specialist who examines your finances. To obtain capital on favorable terms, it’s helpful to understand what underwriters are looking for and take action to accelerate the underwriting process.

Dairy real estate values: Navigating trends and turbulence for financial success

Appraised values rebounded in 2023 with a 22% surge in value compared to 2022. Rising construction costs elevated per-stall values, while land values near dairy facilities have consistently risen due to competition within the industry and due to external factors.

January 5, 2024

Jay Retzer

In the realm of capital and collateral, the appraised value of dairy real estate, including specialized facilities, takes on great importance.

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Articles Tagged with ''capital''

Managing capital costs for 2026

More than price: How to choose the right hay equipment and maximize return on investment

Managing risk in the modern cattle cycle: What resilient operators are doing

Managing capital purchases: When to repair or replace

Milk production costs: Actionable strategies that don't negatively impact the cows

To build, or not to build? Economics of a farm shop

Have an appreciation for depreciation

Value-added dairy – From feasibility to follow-through

3 steps to a smoother loan application process

Dairy real estate values: Navigating trends and turbulence for financial success

Corn price unchanged at $4.40 per bushel

What Idaho grain producers need to know about ARC-CO and PLC changes

Water quality: The problem child on beef operations

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