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by Dairy Business Association on Jan 27, 2026 9:45:00 AM
Reviewing the markets, dairy farmers have reasons for optimism but also reasons for some concern. At the same time, farmers also have more resources in place to protect their products and assets.
Mike North, president of the producer division at Ever.Ag, and Dr. Marin Bozic, founder and CEO of Bozic LLC, shared the latest market trends while providing advice to dairy farmers during a Dairy Strong breakout session.
Higher beef prices are a bright spot for farmers, North said. “Beef is a very big deal right now,” he said. “Since 2021, cull and cow prices have risen.”
North said while beef prices have risen, milk prices have fallen. Some of that can be traced to more processors coming online and dairy herds being at their largest since 1993.
“And those cows are way more productive than they were back in 1993,” he said. “There’s been a lot of investment in the dairy industry, which is a positive.”
North added that “profitability doesn’t look as scary when your milk and beef prices are added together.”
The return of whole milk to school lunches is a big positive for dairy farmers, Bozic said.
“The new food pyramid also includes protein at every meal and the dairy industry is a protein producer so we can expect more demand for our products,” he said.
To help farmers protect their bottom line during falling milk prices, Bozic encouraged farmers to utilize Dairy Margin Coverage, commonly known as DMC. Run by the USDA, DMC helps protect dairy farmers when milk prices fall, or feed costs rise.
“Risk management needs to be part of your farm’s plan. You’ll get about $10 for every buck you spend on DMC,” he said.
Dairy Revenue Protection (Dairy-RP) is another tool farmers can use to protect their bottom line, Bozic said. The program is designed to insure against unexpected declines in the quarterly revenue from milk sales relative to a guaranteed coverage level. The expected revenue is based on futures prices for milk and dairy commodities, and the amount of covered milk production elected by the dairy producer.
“I recommend farmers look into both the DMC and even the DRP opportunities out there. They can be a real help,” North said.
Bozic said livestock insurance is another tool farmers can use to help protect the investments they’ve made in their animals. There is even insurance for unborn calves, which has an impressive adoption rate, he said.
“The specific coverage for dairy-beef cross calves and heifers protect against price drops for these young animals expected to be sold soon after birth, with coverage adjusted for their higher value compared to pure dairy calves, making risk management more accessible for dairy farmers,” said Bozic, who was an early champion of the idea.