- Search News
- Categories
- Crops
- Equine Initiative
- Weather
- Regulatory Services
- Biosystems/Ag Engineering
- Economics
- Environment
- Extension
- Food Science
- Nutrition
- Forestry
- Entomology
- Sustainability
- Fine Arts
- Community Development
- Awards
- Horticulture
- Livestock
- Research
- 4-H Youth
- Family and Consumer Sciences
- Events
twitter
facebook
Special features
- Ag Information Center
- Ag Magazine
- Publications
- Office of Diversity
- Ag Weather
- Ag Faculty Council
- Staff Links
- College Store
College Highlights
Tri-county short course deals with dairy marketing options
Low milk prices coupled with high input costs have created economic struggles for many Kentucky dairy farmers in 2009. Kentucky Cooperative Extension agriculture and natural resource agents from Adair, Taylor and Green counties recently hosted a three-day Dairy Futures Short Course to present information on ways dairy producers can hedge future economic losses.
According to the most recent statistics from the U.S. Department of Agriculture, Adair County is the second-largest dairy producing county in the state. Taylor and Green counties also have a substantial number of dairies. Typically, the three counties present an annual short course on dairy basics, but due to the economic climate of the dairy industry, they decided to present an additional course on marketing options this year.
"This program is an example of how extension is assisting dairy farmers in tough times," said Nick Roy, Adair County extension agent for agriculture and natural resources.
During the program, specialists from the University of Kentucky and a consultant with the Kentucky Dairy Development Council presented options for managing risks including the basics of the futures market, contract specifications, hedging, basis and the USDA's Livestock Gross Margin program. A milk broker presented additional information about the futures market in the last session.
Brian Newman, Green County extension agent, said the futures market is like an insurance policy that could help producers limit economic hardships in the future.
"With futures, you may not always get the highest price, but at least you know you're making a profit," he said
UK agricultural economist Kenny Burdine said producers can incorporate these strategies into their future marketing plans and cautioned against relying on only one form of marketing for an entire operation.
"Through this program, producers will gain enough information about the futures market to make an educated decision on whether it fits their operation," said Pat Hardesty, agriculture and natural resources extension agent in Taylor County.
David Hutchison, an Adair County dairy producer, said the information he received in the program would help him make future marketing decisions.
"The futures market is something I've been thinking about and will probably be something I'll apply to my operation when the time comes," he said.
More News
Keep the brakes on planting a little longer
Record and near record warm temperatures have many corn producers jumping at the chance to get out in the field and plant corn, but it may be best to wait a little longer, said Chad Lee, extension...read more
Early summer could come at a price, UK ag meteorologist cautions
Photo depicts damage to apple trees after the Easter Freeze in 2007.
Without looking at the calendar, Kentuckians might easily be fooled into thinking...
read more
The Arboretum gears up to host a Party for the Planet
The Arboretum, on the campus of the University of Kentucky in Lexington, is partnering with LG&E and KU Energy LLC to offer a month-long celebration called Party for the Planet 2012, with activities for...
read more