With plant-based milk growing in popularity and consumers moving away from daily products, prices have been falling. This has a direct impact on dairy farmers as they constantly look for ways to cut down on expenses. While many have decided to take out a ranch refi to make up for the loss in profits, others have adopted clever money-saving strategies. Let’s look at some of the different options available.
Where Can Costs Be Cut?
Tough times call for tough measures. Some of the most important expenses for a dairy farmer include cattle feed and labor. Then, there are expenses for supplies, drugs, veterinary costs, and repairs. But it isn’t always possible to take away from some of the most important expenses, which is where farm financing options can be helpful.
Milk Production Is Precious
Because milk production is essential for revenue, it is important to not cut down on anything that may negatively impact milk production. Instead, the focus must be placed on increasing income, rather than decreasing the cost of feed, etc., even if it means obtaining a ranch refi.
Money-Saving Tips for Dairy Farmers
Remember, you’re not the only dairy farmer that’s been impacted by falling milk prices. There are many other farms who are in the same situation as yours. The good news is, many farmers have found viable solutions to help them succeed during these hard times. Try using these money saving tips to cut costs and increase your earnings.
Use Higher Quality Forage
Higher quality forage can help bring down the expenditure on cattle feed. Your nutritionist has to work with what you give them in terms of feed. Higher the quality, the lesser the amount needed, allowing you to increase dry matter intake.
Try to Lower Your Feed Cost per CWT
This can be accomplished by having higher milk production. One way to do this would be to have absolutely none of your cows in milk for over 365 days and having about half of your cows in milk for under 150 days.
Keep Up with the Pregnancy Rate
While the most important activity is to feed the cows, keep them healthy, and of course milking them, you have to get them pregnant to continue making a profit. Keep in mind your goal is about 150 days in milk.
Keep up with the Calculation: Feed Cost/CWT of milk
Calculate this number every month. Make sure to add all of the animals on your farm. This way, your calculation would provide you with the daily feed cost per head.
Get Extra Help When It’s Needed
As experts in ranch refi, AgAmerica has the answers to your refinancing questions. Talk to one of our loan officers today about financing and refinancing options available for farms of all sizes.