The information below has been supplied by dairy marketers and other industry organizations. It has not been edited, verified or endorsed by Hoard’s Dairyman.

Effective today, MARGINSMART makes the Smart Milk Basis program available to dairy producers across the United States. MARGINSMART has worked diligently with its customers to inform them of milk basis related items and show the impacts on the dairy farm’s financial results. MARGINSMART has customers who ship milk to many privately and cooperatively owned plants, and has a wealth of information related to how plants are paying dairy farms for milk. This has changed significantly over the past 3 years. Customers have asked MARGINSMART to provide a special report to address this for their individual dairy; and to create a peer group to compare to other farms and their Federal Milk Marketing Order. Since this program can be beneficial to ALL dairy farms, MARGINSMART is making this available to both MARGINSMART and non-MARGINSMART customers. Here are a few key highlights of the program:

• Customers can choose to have the analysis done either one time for 2014 through September 2017 or monthly going forward – or both.

• The analysis will break down the following comparisons of each dairy farm’s milk basis and net mailbox price to all milk produced in the farm’s Federal Milk Marketing Order (FMMO) and all other farms in the MARGINSMART Smart Milk Basis project

  • Component percentages of butterfat, protein and other solids
  • Payment per pound by the farm’s plant for the various components
  • Producer price differentials (PPD) and market adjustments paid by the farm’s plant
  • All other premiums paid by the farm’s plant
  • Hauling charges, check-offs and other assessments applied against the farm’s net milk pay price

• The program will keep each farm’s info confidential as it relates to other customers in the peer group.

• Customers will see key differences in PPD amounts, how their plant is truly paying them versus the FMMO prices, how their component % and prices vary and the dollar impact of all these various items (adjusted for component percentages), and the net impact of mailbox price after hauling deductions to show true comparisons (again adjusted for component % differences to show true amounts)

• The report will include various charts and graphs which show both per cwt amounts and total dollar amounts based on the actual customer’s milk production

• When there are enough customers for a dairy processor in a FMMO, reports may also compare the pay differences of dairy plants as well.

• Most dairy plants have website access to each farms info. If this is provided to MARGINSMART, it makes the transfer of info very seamless and easy.

• All reports will be sent via email; however printed reports can be requested.

The cost for the Smart Milk Basis program is just $400 for the “One Time” analysis which compares the January 2014 – September 2017 period including one overall report. The cost for each 12-month period is also $400, but will include 12 individual monthly reports. If both are ordered, a $100 discount is offered. As an additional bonus, customers will receive a FREE subscription to the MARGINSMART newsletter for one year (a $300 value) with either order. For more information on the Smart Milk Basis program, please call Mark Linzmeier at 877-474-7589 or 920-264-9139.

Founded in 2012, MARGINSMART is owned by Mark Linzmeier and Linzmeier Business Solutions, LLC and committed to providing financial tools to dairy producers to allow them to make management decisions that positively impact profitability. MARGINSMART provides complete customer service to input all information for customers into its web-based tool and set regular review meetings via webinars. Customers can choose to manage their financial decisions by either directly accessing MARGINSMART via the internet or by utilizing MARGINSMART’s text and targets features directly from their phone. For more information on MARGINSMART visit or call 877-474-7589.