With the growing costs of utilities, more dairy owners across the nation are turning to renewable energy alternatives. There are many benefits to using renewable energy, such as the long-term savings, less maintenance, decreasing your carbon footprint and even saving money on your taxes.

What is the cost of growing your own crops? Do you even care? You should care; feed costs are the largest cost of production for a dairy operation and play a key role in getting your company the best bottom line. Knowing your costs will help you decide which crops to grow, what quality of feed you need and how much is needed to match your feeding rations.

There has been a lot of talk about the Margin Protection Program (MPP) introduced in the new farm bill. As the saying goes, “Out with the old and in with the new.” The MPP replaces the Milk Income Loss Contract (MILC), Dairy Product Price Support and the Dairy Export Incentive Program.

Learning how to run a dairy operation is much harder than learning how to read a financial statement. Trust me; I remember working on my family’s dairy, and I saw firsthand all the work involved in making sure the milk goes into that bulk tank each day.

By the end of 2011, the dairy industry thought it had taken a turn to better days, but instead it was just a “U-turn” to higher feed prices and dropping milk prices in 2012. Some operations still experiencing weak legs from the 2009 downturn might not be able to pick themselves up off the mat this time. If all of your options have been exhausted, including reorganization under Chapter 11, then you might decide it is time to throw in the towel. For those who go this route, it is very important to consult with your CPA on the tax implications of liquidation.