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
Set targets and use forwards, futures, or options to manage downside while preserving room for rallies.
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