ID

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 (http://pubs.ext.vt.edu/DASC/DASC-30/milk-commission-base.xlsx) 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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Virginia Cooperative Extension is a partnership of Virginia Tech, Virginia State University, the U.S. Department of Agriculture, and local governments. Its programs and employment are open to all, regardless of age, color, disability, gender, gender identity, gender expression, national origin, political affiliation, race, religion, sexual orientation, genetic information, military status, or any other basis protected by law.

Publication Date

March 23, 2018