At Jer-Lindy Farms, crops are grown, cows are cared for and milk is produced, much like many dairy farms across the nation. In addition to the conventional way of dairying, the Jennissen and Sjostrom families also turn their milk into cheese at the on-farm Redhead Creamery and make whey-based spirits, all while telling their story through public and private on-farm gatherings.

During the farm crisis of the 1980s, the term “cash flow is king” drove home the importance of using cash flow to pay debt. That’s still important as we continue to ride the cycles of the industry, but a projection of earnings is equally important. As the calendar transitions to 2025, dive into the question of why both are valuable.

The reasons dairy farm families continue to invest and grow are rooted in the nature of dairy farmers and fundamental economic drivers. It is important to understand the drivers for investment decisions – both for planning on your own farm and for the industry overall.

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.

The current business climate of high interest rates and ongoing inflation is challenging. It requires business owners to be proactive and strategic with cash management, debt management and requires an overall increased focus on every aspect of the business.