Over my 38-plus years servicing dairy farms in southwest Ontario, I have always been intrigued by what strategies make some dairy farms more profitable than others. For the fiscal year 2025, I came to the conclusion that five main factors really stood out.

I have had the opportunity to analyze dairy software files from dairy operations across many states in the U.S., and I still see great opportunities to reduce herd turnover costs within many dairy operations. Here are a few areas to consider as you look at how to plan for your future replacement costs.

With current milk prices, dairy farmers are trying to lower costs, while optimizing their return opportunities. With the average cost of raising a dairy replacement heifer at over $2,500, according to a 2019 Cornell Cooperative Extension survey, heifer inventory management and raising the right replacements is a critical part of that plan.

Productive life can be like a New Year’s resolution. It sounds like a good idea, but often it doesn’t come true. Increasing the productive life of dairy herds needs to be a priority for the dairy industry.

It’s uncertain what will happen in the next quarter or two, but we all want to see farms succeed. Dairy farms help feed the world, and by taking a closer look at your operations, expenses and the comfort of your cows, you can identify areas for improvement that will keep your business profitable.