By Dan Gingue
Farm Business Advisor
How much less can be spent before the farm is cutting corners rather than costs?
During periods of depressed milk price, dairy farmers focus on reducing costs to conserve cash. When there is not enough money to go around, fewer purchases are made and many purchases are second-guessed. Dairy farming through 2009, I fully understand the actions farmers are inclined to take today.
It is natural to cut spending. However, will doing so without thoroughly evaluating the full effect on earnings result in decisions that cost more than they save?