Is a $15 breakeven possible for a dairy farming business in 2024, given increases in input costs and inflation? Others may have their doubts, but I am a firm “yes.”

Trust. It’s the glue that holds together the relationship between the bank and the borrower. And just like any other relationship, trust can take years to build through communication, setting expectations and following through.

The majority of U.S. milk production comes from dairy farms with 500 cows or more. However, that doesn’t mean those who milk fewer cows can’t find a way to be profitable, successful dairy farming businesses.

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.

With interest rates, inflation and input costs on the rise and milk futures trending in the opposite direction, a lot of dairy producers I talk to are asking me this question: Is it possible to be a profitable dairy farming business, despite these external pressures?

Ask most dairy producers what their biggest headache is right now, and you will likely hear this one word: Labor.

When it comes to input costs, we are all aware of the rising price tag on fuel and labor. It’s no surprise that you will also likely see an increase in any custom services you hire out, such as manure hauling and harvesting.