White Paper – Is accepting the market price worth the risk?
Accepting the market price for milk seems a reasonable approach to many dairy farmers. But take a closer look, and you will see it’s risky, especially in a volatile market. Here are three reasons taking the market price can be costing you.
Benefits of taking a holistic approach to managing price risk
If you manage your milk price risk, you should manage the cost of feed and fuel inputs too. Did you know that if you’re receiving a higher price for milk, you’re probably pay more for feed and fuel inputs? It can pay to manage all three.
The case for us all having our heads examined
When you think about the price of feedstuffs, equipment, or even a new pair of work boots, you’re probably not thinking rationally. Cognitive biases compel us to make poor decisions. Find out how to keep them from influencing your farm marketing.
Is the market price your default price?
Research suggests that when faced with a tough decision, we often let someone else make it for us. This may be why many dairy farmers accept the market price rather than manage their risk. Read about the effect this can have on your marketing.
Three behaviors that can influence your decision-making
It’s easy to act irrationally when markets are volatile. In fact, irrational behavior can be explained. Here are three behaviors that can influence your decision making when it comes to purchasing feed (or selling milk).
How Market Scenario Planning helps feed buyers
You can follow to help you protect against market risk and capture market opportunities. Stewart-Peterson President Patrick Patton explains how the concept of Market Scenario Planning helps feed buyers, on Dairyline Radio.