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.

If we go back 10-plus years, most dairy farms bred all their cows and heifers for dairy calves and raised all heifer calves as dairy herd replacements.

Lenders tend to put a lot of weight on the strength of the balance sheet and primarily appraise tangible assets to make our balance sheet flow. This helps to set sale prices and make lending work. 

Borrowing money to pay the bills? If that’s you, you are not alone. As a dairy consultant who helps farmers increase income and efficiencies and reduce their expenses, these are the phone calls that have been coming in recently as worries loom over what’s to come in 2023.

There’s a lot of buzz around renewable natural gas (RNG) as a means for dairy farmers to diversify revenue while improving their carbon footprints. For many operators, it can be a particularly attractive option, especially given the current market and economic conditions.

What sets successful dairies apart from the rest of the industry? According to agricultural economist Bruce Dehm, president of Dehm Associates LLC, there are four key indicators of success: efficient milk production, low or profitable cost per hundredweight, effective management, and financial stability/sufficient cash flow and equity.

Twenty-five miles inland from the Atlantic coast, along the Savannah River, you can still see the rise and fall of the ocean tide.