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Dairies look to diversification to manage risk

A dairy group says more producers are looking for ways to diversify their income streams.

Cassandra Strupp with the Professional Dairy Producers tells Brownfield that with low milk prices and high input costs, farmers are looking at what they can do outside the parlor to bring income to the operation. “So it could be value-added. It could be beef-on-dairy. It could be, you know, looking at the land value around you, and maybe we do some custom work for additional people if we have the labor force for it. It could be something completely out of the dairy sector.”

Strupp says producers should look at the available resources and skill sets on the farm to see new ways to bring income to the farm. “Thinking outside the box is going to be more important than ever, especially where we’re in the day where we can’t be a ‘just.’ We can’t just be good at one thing.”

Strupp says diversifying the dairy’s income now will help keep the farm viable over the long run. “Survive not only here in 2026, but look into 2030 and beyond. What do you have to do? What do you need to do today so that you’re here for the long haul and you can continue to benchmark yourself out and even talk about 2030.”

The Professional Dairy Producers have programs and resources to help farmers assess how diversification can improve their bottom line, including presentations during this week’s PDPW Business Conference in Madison, Wisconsin.

AUDIO: Cassandra Strupp with the Professional Dairy Producers discusses diversifying income on the dairy with Brownfield’s Larry Lee.