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As a risk management tool, Dairy Revenue Protection (Dairy-RP) provides protection against a decline in revenue (yield and/or price). With premiums subsidized by the USDA’s Risk Management Agency (RMA), dairy producers can protect quarterly milk revenue for up to five quarters into the future.
I worked with a family farm several years ago in which the owners had changed the business structure, invested in facilities, increased the herd size and made plans for their retirement, only to find that their successors did not see owning and managing a dairy as their future.
Ah, yes. The conversation every manager will have many times throughout their careers. Employees ask for a raise, constantly. What’s a person to do? When it comes to working through this conversation, you have a few options. In this instance, prevention is key.
Producers familiar with Livestock Gross Margin for Dairy (LGM-Dairy) will see improvements to the policy beginning July 1. Starting that Thursday, LGM-Dairy will be available weekly.
You and your workforce have never seen today’s level of uncertainty. Anything you can do to reduce uncertainty in your workforce will be greatly appreciated and increase motivation and productivity.
Before I delve into the primary message I hope to convey in this article, let me suggest that an alternative title/question could be: Who serves as your farm’s CEO?
Now that the effects of the pandemic are largely behind us, dairy operators find themselves in an interesting situation. Markets are usually driven by either supply or demand, but right now, they’re being driven by both, and that has implications on how you navigate dairy and commodity prices.
The statistics are heartbreaking. Only 30% of family businesses survive the transition from first- to second-generation ownership. Only 12% make it to the third generation, and only 4% make it to the fourth. So how does a family business ensure its legacy is carried into future generations?
“Nothing in life is free; you always pay in the end.”
That old quote rings true, even when what is said to be “free” is the influx of funds into dairy farmers’ bank accounts, courtesy of the federal government’s Paycheck Protection Program (PPP), part of the Coronavirus Aid, Relief and Economic Security (CARES) Act.
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