Is Minnesota preparing for the brave new world where U.S. dairy sector may become a major global dairy player?
Livestock Gross Margin-Dairy (LGM-Dairy) is an insurance policy; watching the margin rather than the milk price, look at predicted margins between the anticipated value of milk producers and the feed costs to produce that milk.
Producers need to think gross margin rather than milk price.
What do I need for a milk price?
What is a good price for the market?
How do I implement my marketing plan?
Used to set a minimum price for Class III milk.
One put option represents 200,000 pounds of Class III milk.
Develop a plan for protecting your milk price.
Understand the financial implications of being over-protected when hedging.
Areas of focus will include environmental pressures, technological challenges, innovation and world markets.
Other marketing resources we recommend
- Dairy market news portal – United States Department of Agriculture
- Daily Dairy Report – Chicago Mercantile Exchange
- Dairy Outlook – Pennsylvania State University
- Understanding dairy markets – University of Wisconsin
- Milk Income Loss Contract program – United States Department of Agriculture
- Dairy risk management curriculum – National Program for Integrated Dairy Risk Management Education and Research
- Federal milk marketing orders – United States Department of Agriculture
- Dairy briefing room – United States Department of Agriculture