Minnesota Milk Producers Association (MMPA) hosted AgCentric Director Keith Olander this week for a dairy farm finances webinar, Review the Past to Plan our Future on Tuesday, June 22. The presentation summarized the 2019 findings of the Minnesota Farm Business Management (FBM) report, breaking down the data for dairy farmers to easily understand so that they can make informed management decisions for their farm.
Major findings included an average cost of production of $17.65 in 2019 among FBM enrollees, compared to an $18.81 milk price. Farms with 50 cows and fewer saw a loss on average of $14,999, while farms with over 50 cows did stay positive after labor and management for the year. Across five types of all 299 state FBM herds, the non-robotic 3x milking sort returned the most and organic the least in net returns.
FBM leaders chose to include an environmental cohort for the first time. The 53 dairy farms included in the Minnesota Ag Water Quality Certification Program showed very strong financial results, leading to the question of following these farms as to whether environmental and financial results are aligned.
“Farmers are in a position that requires micromanagement of their finances to reduce the impact of an unpredictable market,” says Keith Olander. “As agriculture ambassadors, it’s important to communicate dairy farmers’ financial condition to consumers to encourage a shared vision of dairy’s future.”
The webinar was recorded and is available to view on the MMPA website, mnmilk.org, under the Workshops and Webinars tab. Minnesota Milk strives to continue providing high-value educational sessions for Minnesota dairy farmers. To keep up to date on current events and happenings visit mnmilk.org or the Minnesota Milk Facebook page.
ABOUT THE MINNESOTA MILK PRODUCERS ASSOCIATION
Minnesota Milk Producers Association is a membership organization representing grassroots dairy farmers through policy work, education and membership development. Our work is vital to the future of Minnesota’s dairy industry and is directed by a board of dairy farmers elected by their peers. For more information, visit www.mnmilk.org.