Federal farm policy will continue to be very market oriented. This means that dairy farmers will continue to experience price risks for both milk prices received and prices paid for feeds. Futures and options and cash forward contracts are risk management tools that can be effectively used to reduce these price risks and to protect a price/profit objective. To successfully use these tools a dairy farmer needs a solid marketing plan and needs to be knowledgeable about the market situation and outlook.
|Organization||University of Wisconsin-Madison College of Agricultural and Life Sciences|
|Publisher||University of Wisconsin|
|Material Type||Written Material|