Dairy Producers Should Expect Increased Production Costs

The outlook for dairy production shows producers will receive strong prices, but they will also be confronted with high input costs.

A Wisconsin dairy consultant recommends farmers redo their cash flow and projections to get a clear picture of 2022.

“If you can, cash flow it on a monthly basis because there are certain times during the year that you’re going to need more cash, whether it be custom operating, harvesting, manure hauling, things like that, maybe purchasing. And for goodness sakes, bring that cash flow into your lender now and talk to your lender about it, because they know what’s going on, but they are more than happy to sit down with producers and put some numbers to it.”

Gary Sipiorski says input costs could result in anywhere from a 10-20% bump in expenses.


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