LUBBOCK, Texas (RFD-TV) — Dairy and livestock producers across the Northeast are entering year-end planning with fresh reminders of how quickly markets, costs, and weather can change. Preparing for 2026 is increasingly about more than setting budgets — it requires a full review of risk management strategies to protect revenue and maintain financial stability.
The past year featured volatile milk prices, tight cattle supplies, shifting global demand, and rising input costs. Evaluating how tools such as Dairy Revenue Protection (DRP) and Livestock Risk Protection (LRP) performed in 2025 can help identify gaps and fine-tune coverage for the year ahead. Changes in expansion plans, debt levels, or facility investments should also be considered when assessing how much price risk an operation can realistically absorb.
Megan Clancy, a Livestock Insurance Specialist for Crop Growers, says updating break-even costs remains critical as feed, fuel, and operating expenses fluctuate. Scenario planning—testing outcomes under scenarios where milk prices fall, cattle prices soften, or feed costs rise—can clarify where protection is most needed. Aligning risk tools with operational and financial goals helps improve cash-flow predictability and lender confidence.
Farm-Level Takeaway: Reviewing risk management now can help dairy and livestock producers enter 2026 with clearer margins and fewer surprises.
Tony St. James, RFD-TV Markets Specialist
The Lexington shutdown pushes national slaughter capacity utilization nearer long-run averages, underscoring how tight cattle supplies are reshaping packer operations.
December 06, 2025 06:00 AM
·
RFD-TV Farm Legal and Tax Expert Roger McEowen explains the basics of Low-Risk Credit in Farming, and how an understanding of the farm credit landscape lets producers tactfully approach debt.
December 05, 2025 02:40 PM
·
The FAO Food Price Index for November fell by more than 1 percent in November, marking the third straight month of declines.
December 05, 2025 11:54 AM
·
Texas livestock producers face a heightened biosecurity threat as New World screwworm detections in northern Mexico coincide with FDA approval of the first topical treatment.
December 05, 2025 11:27 AM
·
“The Expanding Access to Risk Protection (EARP) Final Rule streamlines requirements across multiple crops, responds to producer feedback, and strengthens USDA’s commitment to putting America’s farmers first,” said the USDA.
December 05, 2025 10:49 AM
Low-risk credit farming is not a technique; it is a culture of financial discipline. It requires the same level of expertise in the farm office as it does in the field.
December 05, 2025 07:00 AM
·
