Digest Highlights: Dairy co-op deduction added to tax reform bill. Cooper stepping down as GM at FarmFirst. Dairy exporting will be competitive. Find a summary of these and other news here.

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.

Basis – the amount received from a milk buyer above the monthly Federal Milk Marketing Order Class III minimum price – has been shrinking.

Recently, many dairy producers have seen their revenues decline as a result of milk check deductions. Dairy risk managers who want to protect their profitability must account for these deductions as they calculate their forward margins and consider adjusting existing margin management strategies.

Milk prices improved somewhat in 2017, but price announcements don’t tell the whole story. Market deductions are cutting into the totals dairy farmers actually receive in their milk checks.

Below is a letter released on Dec. 14, 2017, from MacDon Industries: Today we are announcing that we have entered into an agreement to sell the MacDon Group of Companies to Linamar Corp., a Canadian company headquartered in Guelph, Ontario.

As we continue into the winter feeding months, cow-calf producers have additional opportunities to impact their bottom line. Winter feeding costs represent the single largest cost to cattlemen, typically representing 55 to 80 percent of total costs for their cow herd.

We know dairy farmers have limited time to participate in events, so we design the Dairy Strong conference to give you the best return on your time and money.

At Farm Credit East, we are often asked about equipment purchases – what constitutes a “major” equipment purchase, how to plan for them and whether to buy new or used. Paul VanDenburgh, an experienced credit officer and tax specialist, recently provided his insight on some of these frequently asked questions.

Editor’s Note: Follow along as Progressive Cattleman editors share conversations and news learned from the road in the new ‘Trail Rides’ blog.