Farm Credit East recently hosted its annual dairy outlook webinar featuring nationally recognized dairy economist Dr. Mark Stephenson of University of Wisconsin – Madison, along with commentary from Farm Credit East loan officer Corey Kayhart and business consultant Gregg McConnell.

Funding the startup of a new dairy operation or the transition of an existing farm can be a tall task for any producer. Remember the “five C’s of credit” – a checklist of factors for producers to consider when securing funding for an agricultural business venture.

Farm liquidity has become a greater issue in recent years because of the increased volatility of earnings and cash flow. While no one knows what the future holds for sure, there are a few things we do know: 2014 was a great year for most dairies, and 2015 is shaping up to be a down year. We know good times are unlikely to continue forever uninterrupted.

The Northeast Dairy Farm Summary (DFS), a joint report by Farm Credit East and Yankee Farm Credit, reports that profitability climbed for the Northeast dairy industry with an increase of $75 in average net earnings per cow. Average net earnings were $490 per cow, bringing the three-year average to $567. The DFS includes financial data from 517 farms in New England, New York and New Jersey.