When looking to buy new equipment or build new buildings, one of the key considerations is the cost of ownership or their fixed costs. The largest of the fixed costs is depreciation.

To obtain a loan, your application must be approved by an underwriter – a specialist who examines your finances. To obtain capital on favorable terms, it’s helpful to understand what underwriters are looking for and take action to accelerate the underwriting process.

In the realm of capital and collateral, the appraised value of dairy real estate, including specialized facilities, takes on great importance.

When evaluating new loan requests or reviewing existing credit, various factors come into play, each holding significance. These factors are commonly referred to as the 5 C's of finance: character, capital, capacity, conditions and collateral. Meeting the standards set for these factors is essential for obtaining approval.

The underlying factor when trying to make big decisions on whether to build a freestall barn, heifer shed, new parlor or that new robot barn is what it will be worth once it is erected and operational.

It feels like these days we are inundated with information about automated milking systems. We have learned how these new innovative systems can increase productivity and improve efficiencies.

Automation and technology go far beyond relieving dairy’s labor pains.