Let’s put risk management in the agenda again
- ZISK
- 1 hour ago
- 1 min read
Dairy farming requires a wide range of skills, and one that often gets overlooked is risk management, a key factor in keeping your business economically sustainable.
Surprisingly, financial risk management in dairy is not as common as other types of risk coverage. Think about it: most of us would not hesitate to insure our car or home, yet many hesitate to protect their dairy operation from financial swings.
Since early 2025, milk prices have been on a slow but steady decline. For example, the All-Milk price dropped from $24.10 per hundredweight (cwt.) in January to $20.90 per cwt. in August. Due to the recent government shutdown, the latest data are not yet available, but the downward trend is clear.
When milk prices fall, it is time to review your risk management options. One common strategy is Dairy Margin Coverage (DMC), which is popular among smaller farms.
However, as of now, there is no announcement for new enrollment, so it is uncertain if this option will be available soon. Also, with feed prices currently very low, margins look decent, meaning the chance of triggering a DMC payment is slim.
Gonzallo Ferreira
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