How often have you heard about the importance of having financial statements? Perhaps you have heeded that advice and have used a variety of spreadsheet tools, software and outsourcing alternatives for creating accurate balance sheets and accrual income statements. Now what?

If we go back 10-plus years, most dairy farms bred all their cows and heifers for dairy calves and raised all heifer calves as dairy herd replacements.

Borrowing money to pay the bills? If that’s you, you are not alone. As a dairy consultant who helps farmers increase income and efficiencies and reduce their expenses, these are the phone calls that have been coming in recently as worries loom over what’s to come in 2023.

To capture the full potential of genetics, facilities, feed and precision technology, dairies need to establish and maintain a strong culture of goal-driven management and human accountability.

There’s a lot of buzz around renewable natural gas (RNG) as a means for dairy farmers to diversify revenue while improving their carbon footprints. For many operators, it can be a particularly attractive option, especially given the current market and economic conditions.

What sets successful dairies apart from the rest of the industry? According to agricultural economist Bruce Dehm, president of Dehm Associates LLC, there are four key indicators of success: efficient milk production, low or profitable cost per hundredweight, effective management, and financial stability/sufficient cash flow and equity.