With volatility in the markets dairy producers are looking for financial stability now more than ever. Matt Ramsey, Livestock Services Manager with Purina Animal Nutrition and Land O’Lakes Inc., gives a look into how programs like Dairy Revenue Protection (DRP) and Livestock Risk Protection (LRP) are helping farmers take control of uncertain markets.
“What these tools really do, is allow producers to set a price floor—protecting revenue when prices drop, while still benefiting if the market rises,” says Ramsey. “Risk management isn’t just about today’s milk price—it’s now about protecting revenue from beef-on-dairy calves and cull cows too, because those streams have become meaningful parts of a dairy operation’s bottom line.”
Ramsey’s team gives tailored guidance to help producers apply these programs effectively. “We work one-on-one with operations to understand their goals and costs,” he said. “It’s about fitting risk management to the needs of each farm, not just for today, but for years to come.”
With new opportunities to protect income from milk, beef-on-dairy calves, and cull cows, these risk management strategies are quickly becoming essential tools for long-term profitability in the dairy industry.
Looking ahead, as dairy operations prepare for 2026, the focus isn’t just on revenue, but on managing costs and long-term resilience. “Protecting your milk and livestock markets is one piece,” Ramsey noted, “but you also want to know your cost per hundredweight and where you stand on feed, labor, and production efficiencies.” With margins tighter than ever, this approach is increasingly critical in helping dairy operations thrive.
If you are interested or have any questions visit purinamills.com/risk management.
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