Improving Your Profits With Low Milk Prices – AG Matters

With low milk prices forecast to continue for the near future, it may be time to evaluate each cow's production.  And it would be wise to do the same for each acre of land.  Cornell Cooperative Extension even suggests working with a Dairy Profit Team.

Marylynn Collins, a Dairy/Livestock Educator at CCE, says milk price "projections for the remainder of 2015 and beginning portions of 2016 are looking at $17.00/cwt milk." She adds that before thinking about cutting expenses, remember this rule of thumb.

from the Journal of Finance, 1998? It states: “Investments that increase revenues improves profits at six times the rate of investments that reduce expenses.”

To get an accurate idea of where your operation is at, and where it may be headed in the future, consider enlisting the help of a dairy profit team. The New York Farm Viability Institute will help pay for assembling a team that includes; a banker, nutritionist, extension agent and other Ag professionals. "The dairy producer agrees to meet a minimum of 7 times over the course of 15 months and covers 20 percent of meeting costs with NYFVI picking up 80 percent of the costs, up to $2500."

For more information on Dairy Profit Teams please call Cornell Cooperative Extension of Oneida County at 736-3394 ext. 132.

SOURCE: Cornell Cooperative Extension - Marylynn Collins