There have been five years of marginal profitability for Minnesota dairy farmers. The second half of 2019 started to show an increase in the milk price, which put a little hope back into the market. Central Lakes College Farm Business Management instructor Nate Converse encourages farmers to explore the risk management strategies available. “The new product out there called the Dairy Revenue Protection Program is available through your insurance agent,” says Converse. “It’s a nice tool, especially if you know your cost of production. Since it’s based on futures, you need to follow the market and try to lock in a floor. However, DRP doesn’t limit your upside potential.” There are several lessons that can be learned from navigating a difficult dairy economy. Converse says farmers need to be aware of their tolerance to risk. Find out more from Converse in this RRFN interview.
