Consider a Timely Financial Tune-Up For Your Operation

Dairy farm

If you thought dairying has been volatile the last few years, shifts in fundamental economic drivers could make dairying a much more expensive endeavor in the years ahead. What should we do when certain financial advantages we’ve relied on start changing? How can we mitigate some of the risk to our operating costs if interest rates go up and workers become more and more difficult to find?

It is anticipated that rates may increase three times in 2017. The increase in interest rates will require a shift in mindset when it comes to how we spend money within the dairy operations. One practice that has become common is financing equipment purchases on lines of credit instead of taking out term loans.

We’re seeing changes in the availability of labor and the cost of labor. While we don’t have a clear vision of how that will unfold, we expect to see labor costs go up and the availability of labor to become even more scarce.

In short, we expect dairying to become a much more expensive endeavor. To read the full article, click here.

Tags: Dairy Operation