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Articles Tagged with ''financial stability''

2025 consumption, export and milk production trends

Despite a positive outlook for stronger dairy profitability in 2025, trending topics such as avian influenza, labor and tariffs will continue to provide uncertainty for the dairy industry.
March 5, 2025
Lucas Fuess

Looking ahead, significant questions persist in both the dairy and political landscape for the coming months, with uncertainty and volatility never taking a rest. From tariffs to demand, and labor availability to avian influenza, a variety of topics are likely to command attention throughout this year.


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Interest rate outlook for 2025 – higher for longer

The Federal Reserve reduced rates by 1% in late 2024 but paused further cuts due to inflation concerns. Long-term interest rates have risen, driven by higher term premiums, economic risks and inflation expectations. Analysts are divided on whether the Fed will resume cuts or hike rates in 2025.
February 6, 2025
Doug Robison

Long-term interest rates, as measured by the 10-year U.S. Treasury, have a strong correlation with the federal funds rate. As a result, long-term interest rates are likely to remain higher until economic risks to the outlook clear and/or the Fed resumes interest rate cuts in the second half of the year.


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The financial condition of Idaho agriculture: 2024

Despite lower crop revenues, livestock sector gains propelled Idaho farmgate cash receipts to another all-time high in 2024. Net farm income is forecast to increase for the total farm sector, but there will be large differences across individual commodities.
December 20, 2024
Xiaoxue (Rita) Du and Brett Wilder

Cash receipts for livestock and crops in 2024 are estimated at $11.3 billion, a 4% increase over 2023. Cash receipts for milk, Idaho’s leading agricultural commodity, were estimated to be 11% higher than 2023. Those for potatoes, Idaho’s highest revenue crop, were estimated to be 6% lower than 2023.


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Dairies big and small are likely to return to profitability in 2025

While commercial dairy farms of nearly all sizes are expected to return to profitability in 2025, the correlation between farm size and profitability has never been clearer.
December 18, 2024
Aidan Connolly

The latest Zisk report projects profitability on dairy farms for 2025. It shows that U.S. dairy producers are expecting a profitable next 12 months, but as with previous reports, the picture isn’t equally as rosy for all producers.


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Dairy risk management: A need in today’s environment

Risk management programs like Dairy Revenue Protection help dairy producers manage price volatility and maintain financial stability.
November 15, 2024
Adam Cardwell and Tim Patchin

Producers now have a valuable opportunity to secure higher revenue floors in an increasingly volatile market by enrolling in the Dairy Revenue Protection (Dairy-RP) program. The program is a great addition to a sound risk management strategy, allowing producers to give added focus on managing volatility beyond the commodity sector and unpredictable geopolitical, macroeconomic and other unforeseen risks.  


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Four tips to help unlock the potential of beef-on-dairy

Beef-on-dairy can be a viable and useful option for increasing calf value. However, for maximum return, farms should provide quality care and strategize when they sell them.
October 28, 2024
D J Dominguez

Using beef semen to cross with Holsteins, Jerseys and other dairy breeds has helped change the value of each calf. Dairy producers are looking for ways to maximize this strategy and reap the financial benefits. Here are four tips to help unlock the potential of beef-on-dairy calves and secure maximum results.



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The mindset of margin management

Culture, labor and feed costs, risk management and revenue management are key considerations when managing margins on a dairy farm.
September 26, 2024
Brad Guse

Whether we’re at the high point of a cycle or in the depths of a downturn, the best managers regularly manage their margins. They understand that margin management is an “always” mindset, one that builds stronger positions during the good times so they can get through the bad.


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Three ratios to improve your dairy’s financial fitness

As we age, health principles like stability, cardio and strength are vital, just as key financial ratios like working capital, debt-to-equity and debt service are essential for assessing and improving the financial health of dairy operations.
July 16, 2024
Mark Verwey

We spend a lot of time talking about properly saving and investing money to ensure a happy retirement, but if you are not investing in your own health, what good is monetary wealth?


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It pays to be paranoid: Considerations when developing contingency plans for your farm

Cross-training employees for multiple roles, preserving working capital, having a balance sheet with depth of equity, developing contingency plans and clear protocols, and conducting scenario-based trainings can help an operation navigate unexpected circumstances.
July 3, 2024
Brad Guse

From COVID-19 to governmental policy changes to H5N1 avian influenza (bird flu) outbreaks, the unpredictable is coming at us at a faster and faster pace. When making your contingency and continuity plans, here are some of the key areas of preparedness you should consider.


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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.


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