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A Decision-Making Tool to Determine the Feasibility of Purchasing Virginia Milk Commission Base


DASC-30P (DASC-111P)

Authors as Published

Gonzalo Ferreira, Assistant Professor and Dairy Management Extension Specialist, Dairy Science, Virginia Tech; Mike McGilliard, Professor Emeritus, Dairy Science, Virginia Tech

This publication is available in an enhanced digital version and PDF.

Dairy farmers are usually subject to net income fluctuations due to volatility in both milk and feed prices. Risk management tools, such as hedging milk prices in the futures market, may be used to protect dairy farmers against milk price volatility. Alternatively, dairy farmers selling milk in Virginia can buy Virginia milk commission base (MCB) to obtain higher milk prices and, therefore, sustain or increase net cash flows. A decision- making spreadsheet ( was developed to help farmers evaluate the decision whether or not to purchase a certain amount of MCB to increase their net cash flows.

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Publication Date

February 14, 2023