Results of a large, ongoing study of Midwest dairy operations show six factors that separate top financial performance herds from their peers.

Although it is easier to strategize about protecting profitability when times are good, a sound risk management plan applies to all margin environments and is especially important when the outlook is bad. When margins are low and opportunities are hard to find, producers may not consider it worthwhile to initiate margin coverage, preferring to stay open to the market.

When it comes to the “right” amount of debt, farm business owners sometimes feel like “you’re damned if you do and damned if you don’t.” Borrowing money can be risky, but on the other hand, not investing in the business could limit opportunity and put the farm at a significant competitive disadvantage over time.

While the long-term outlook for agriculture is bullish, dairy producers face short-term financial challenges, Rod Wautlet, Agri-Business Consultants LLC, told producers attending the 2017 Vita Plus Dairy Summit, Dec. 6-7, in Madison, Wisconsin.

The dairy industry is volatile and unpredictable, and that isn’t likely to change. Dairy managers must embrace and adapt to that mentality to be successful, Michael Swanson, ag economist with Wells Fargo, told dairy producers attending the 2017 Vita Plus Dairy Summit, Dec. 6-7, in Madison, Wisconsin.

Most federal tax reform changes signed into law under H.R. 1 went into effect Jan. 1, 2018, meaning they will impact tax returns filed in 2019. However, dairy farmers need to understand how the law is impacting them early in 2018 so they can make good business decisions and plan accordingly in the months ahead.

Most dairies I work with utilize dairy software to help organize daily activities such as what cows to breed, treat, etc. While this can be extremely helpful in staying organized, what can make data even more valuable to a dairy is its ability to help us solve mysteries.

Over the years, I’ve had the opportunity to work with and provide technical support to numerous dairies here in the U.S. and internationally. One of the most common questions asked pertains to feeding fats, fat sources and the hoped-for effects on milk volume, components and reproduction.