A dairy economist says producers should consistently take advantage of the new Dairy Revenue Protection program as far ahead as possible.
Dr. Marin Bozic with the University of Minnesota says dairy prices are better now than they have been, which means futures prices also trend higher, so locking in program prices into 2021 now is a wise move. “The entire term structure for the next 24 months seems to be lifted, so the prices right now for 2021 are probably at the level that where a lot of producers can either cover their costs or at least secure a floor that would not be too painful if the prices falls.”
Bozic tells Brownfield producers should enjoy the next few quarters, but history shows the good times don’t last, so start thinking beyond 2020.
