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
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Farmer Bridge payments are being used primarily to reduce debt and protect cash flow, not drive new spending. Curt Blades with the Association of Equipment Manufacturers joined us to provide insight into the ag equipment market and the factors influencing sales.
January 08, 2026 08:00 AM
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Retail pricing confirms tight cattle supplies and supports continued leverage for producers, reinforcing the need for disciplined risk management.
January 07, 2026 06:00 PM
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Dr. Rosslyn Biggs with the Oklahoma State University Center for Rural Veterinary Medicine shares insight into biosecurity, preparedness, and animal health concerns facing livestock producers as New World screwworm outbreaks continue in Mexico.
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Seasonal boxed beef softness does not change the tight-supply outlook — leverage remains closer to the farm gate heading into 2026.
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As the new year begins, both farmers and rural families are taking stock of their finances and planning ahead for 2026.
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Trade uncertainty—especially regarding soybeans—continues to weigh on future outlooks, even as farm finances and land values remain resilient.
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