Maintaining adequate financial liquidity has become a greater issue for dairy producers in recent years because of the more intense volatility of both earnings and cash flow. While no one knows what the future holds for sure, it’s certain that we will continue to see significant variation in milk prices and subsequent earnings in future years.
Because of this reality, some of the most successful producers have worked hard to enhance the liquidity position of their operations. Farms are positioning their balance sheets to be as strong as possible going into 2021.
This article was originally published in Hoard's Dairyman. Click here to read the article in its entirety.