Over $4 Million in Cash to be Returned!

Every year, I get fooled by some article on milk pricing and the forecasters predicting the price that we will see in the future. They take on the nearly impossible quest of prediction with the same confidence of the newscaster reading the weather on my tv, and we all know how that went this spring. In February the mailbox price was in the $15 cwt range and now, fast forward to June, we are around $19 cwt. On a 600-cow dairy, that’s about $75,000 a month difference equating to just under a cool million in a year. How does your farm handle this volatility? I don’t think there’s a magic cookie cutter answer in how we manage this, and it appears volatility is here to stay in commodity prices.