WEBVTT 00:00:11.720 --> 00:00:15.060 Breaking free from the chains of the past Where 00:00:15.060 --> 00:00:18.820 truth moves faster than a Holstein calf No law 00:00:18.820 --> 00:00:21.660 waiting on some printed page We're charting new 00:00:21.660 --> 00:00:25.300 ground in the digital age From genomic codes 00:00:25.300 --> 00:00:29.120 to robot facts We cut through the noise, no hold 00:00:29.280 --> 00:00:32.460 them back not your daddy's dairy news tonight 00:00:32.460 --> 00:01:03.030 we're sparking Welcome back to the Bullvine Podcast. 00:01:03.270 --> 00:01:05.530 This is where we try to cut through all that 00:01:05.530 --> 00:01:07.890 dairy industry noise and get you the insights 00:01:07.890 --> 00:01:10.829 that actually matter for your operation. Today 00:01:10.829 --> 00:01:14.829 we are strapping in for a pretty critical look. 00:01:15.230 --> 00:01:17.790 a real deep dive into a feature piece we published 00:01:17.790 --> 00:01:22.010 it's focused on the dairy farm survival scorecard 00:01:22.010 --> 00:01:24.670 yeah we're analyzing this really provocative 00:01:24.670 --> 00:01:27.730 idea that financial health that's actually the 00:01:27.730 --> 00:01:30.290 last place trouble really shows up yeah and uh 00:01:30.290 --> 00:01:32.349 this piece has definitely been stirring things 00:01:32.349 --> 00:01:35.189 up a bit generating some serious i'd say necessary 00:01:35.189 --> 00:01:37.530 friction because this isn't just theory right 00:01:38.250 --> 00:01:40.590 It's a deep look at the operational stuff, the 00:01:40.590 --> 00:01:43.409 habits, the maintenance schedules, the human 00:01:43.409 --> 00:01:46.010 side of things that can predict financial collapse 00:01:46.010 --> 00:01:48.569 months ahead, sometimes even like 18 months before 00:01:48.569 --> 00:01:50.430 the bank actually calls. We're really focusing 00:01:50.430 --> 00:01:51.969 on those leading indicators, and that's what 00:01:51.969 --> 00:01:54.049 every producer needs right now. Okay, let's unpack 00:01:54.049 --> 00:01:56.469 this because the timing, I think, is just critical 00:01:56.469 --> 00:02:00.650 here. The market right now, it feels profoundly 00:02:00.650 --> 00:02:02.689 disconnected. You've got production growing, 00:02:02.829 --> 00:02:05.609 right? But prices are persistently softening. 00:02:06.920 --> 00:02:09.240 just completely defies the historical trends 00:02:09.240 --> 00:02:12.520 we're used to seeing. Normally, tighter margins 00:02:12.520 --> 00:02:14.800 force immediate production discipline. You pull 00:02:14.800 --> 00:02:18.000 back. But those normal price signals, they just 00:02:18.000 --> 00:02:20.479 don't seem to be working this time around. And 00:02:20.479 --> 00:02:22.479 what's masking that immediate need for discipline? 00:02:22.840 --> 00:02:24.680 Well, it's kind of a dangerous cushion on the 00:02:24.680 --> 00:02:26.620 input cost side. If you look at Chicago futures, 00:02:26.759 --> 00:02:28.900 corn's trading around, what, $4 .20 a bushel? 00:02:29.000 --> 00:02:31.000 Yeah. Something like that, which is down maybe 00:02:31.000 --> 00:02:34.409 4 % from last year. So that... Relative relief 00:02:34.409 --> 00:02:37.569 on the feed side, it gives a significant financial 00:02:37.569 --> 00:02:39.710 buffer, but it's really a structural weakness 00:02:39.710 --> 00:02:41.990 in disguise. It allows marginal operations to 00:02:41.990 --> 00:02:44.590 sort of keep going without addressing the core 00:02:44.590 --> 00:02:46.650 inefficiencies. That cushion definitely creates 00:02:46.650 --> 00:02:49.250 a trap. It lets operations run less efficiently, 00:02:49.530 --> 00:02:52.110 but they feel like the basic math still works, 00:02:52.189 --> 00:02:55.530 at least, you know, on paper. We had this quote 00:02:55.530 --> 00:02:57.289 from a producer down in Lancaster County that 00:02:57.289 --> 00:02:59.409 just sums up the danger perfectly. They said, 00:02:59.490 --> 00:03:01.069 and this is really crucial for you listening, 00:03:01.229 --> 00:03:03.569 the math still works if you don't count labor 00:03:03.569 --> 00:03:07.669 and equipment replacement. Wow. That delay, that 00:03:07.669 --> 00:03:11.050 lag in realizing the true full operational cost, 00:03:11.150 --> 00:03:13.770 that is the structural flaw this scorecard is 00:03:13.770 --> 00:03:17.210 really designed to expose. You're just delaying 00:03:17.210 --> 00:03:19.900 the inevitable reckoning. And delaying that reckoning 00:03:19.900 --> 00:03:22.180 means you're delaying essential decisions, often 00:03:22.180 --> 00:03:24.340 painful ones. And that's not just a financial 00:03:24.340 --> 00:03:27.680 mistake. It's a psychological one, too. We're 00:03:27.680 --> 00:03:29.020 definitely going to get into the data showing 00:03:29.020 --> 00:03:31.000 how these psychological factors are actually 00:03:31.000 --> 00:03:33.800 amplifying market volatility by something like 00:03:33.800 --> 00:03:36.379 15, maybe even 25 percent beyond just pure economics. 00:03:36.919 --> 00:03:39.860 Ignoring those basic measurable operational standards, 00:03:40.159 --> 00:03:42.419 it's not just poor management. It's the real 00:03:42.419 --> 00:03:44.759 measurable early warning sign that comes way 00:03:44.759 --> 00:03:47.240 before the financial stress hits hard. Right. 00:03:47.639 --> 00:03:49.280 And here's where we really need to move past 00:03:49.280 --> 00:03:52.000 the conventional wisdom. The core issue we identified 00:03:52.000 --> 00:03:55.300 is that financial trouble, it's almost always 00:03:55.300 --> 00:03:57.560 a follower. It's not a leader. When your debt 00:03:57.560 --> 00:04:00.120 ratios start looking bad or a cash flow gets 00:04:00.120 --> 00:04:04.539 tight, the actual root cause... Maybe the lack 00:04:04.539 --> 00:04:06.580 of maintenance, the slipping cow care, that chronic 00:04:06.580 --> 00:04:09.419 decision fatigue that's been going on silently 00:04:09.419 --> 00:04:12.159 compounding for months already. That's the absolute 00:04:12.159 --> 00:04:14.000 key, the balance sheet. It just reflects the 00:04:14.000 --> 00:04:15.919 results of decisions you made six months ago, 00:04:16.000 --> 00:04:18.519 maybe longer. But what's really fascinating here 00:04:18.519 --> 00:04:20.339 and maybe a bit scary is that the problems are 00:04:20.339 --> 00:04:22.920 being hidden even more by these unusual external 00:04:22.920 --> 00:04:26.879 market forces right now. Exactly. OK, let's look 00:04:26.879 --> 00:04:29.720 at the two big structural factors masking this 00:04:29.720 --> 00:04:32.540 current operational weakness. Factor number one. 00:04:33.080 --> 00:04:35.819 China's long -term policy restructuring. And 00:04:35.819 --> 00:04:37.839 this isn't just a temporary trade tiff, right? 00:04:37.959 --> 00:04:40.120 Our sources are indicating this is systemic, 00:04:40.240 --> 00:04:43.279 a multi -year shift towards dairy self -sufficiency 00:04:43.279 --> 00:04:46.000 over there. That means permanent reductions in 00:04:46.000 --> 00:04:48.279 the import volumes they used to take. So all 00:04:48.279 --> 00:04:50.060 that global product that used to flow easily 00:04:50.060 --> 00:04:53.000 to Asia, it now needs to find new homes. And 00:04:53.000 --> 00:04:55.480 that keeps this sort of perpetual lid on global 00:04:55.480 --> 00:04:58.259 prices. That's a structural change, folks, not 00:04:58.259 --> 00:05:00.889 just a cyclical dip. And the second factor is 00:05:00.889 --> 00:05:04.029 domestic. It's the explosion of new cheese processing 00:05:04.029 --> 00:05:07.089 capacity right here in the U .S. These huge plants, 00:05:07.189 --> 00:05:08.689 I mean, built with massive capital investment, 00:05:08.889 --> 00:05:11.329 they need constant throughput just to justify 00:05:11.329 --> 00:05:13.430 their debt load. So what do they do? They actively 00:05:13.430 --> 00:05:15.350 compete for milk supply. Sometimes they offer 00:05:15.350 --> 00:05:17.589 incentives, even when the actual end market consumer 00:05:17.589 --> 00:05:19.730 demand for cheese or whatever is soft or just 00:05:19.730 --> 00:05:22.660 flat. Which creates this, well... Artificial 00:05:22.660 --> 00:05:25.139 demand signal. It tells you, the farmer, keep 00:05:25.139 --> 00:05:27.879 producing. Maybe even push for higher volumes. 00:05:28.079 --> 00:05:30.579 When every fundamental signal outside of that 00:05:30.579 --> 00:05:33.160 processor's immediate need should probably be 00:05:33.160 --> 00:05:35.300 saying, hey, tighten the belt. And that's the 00:05:35.300 --> 00:05:37.240 danger on the ground. If your higher milk check 00:05:37.240 --> 00:05:40.060 isn't coming from genuine consumer market strength, 00:05:40.240 --> 00:05:42.639 you know, people buying more yogurt or cheese 00:05:42.639 --> 00:05:45.360 at the store, but it's being propped up by a 00:05:45.360 --> 00:05:47.420 brand new processor who just needs to hit, say, 00:05:47.540 --> 00:05:50.519 85 % capacity to pay off their construction loan. 00:05:51.230 --> 00:05:53.170 Well, what happens the moment they hit that minimum 00:05:53.170 --> 00:05:55.889 throughput? Or what if the general market finally 00:05:55.889 --> 00:05:58.110 catches up to reality? The bottom just drops 00:05:58.110 --> 00:06:00.930 out and the farms that didn't adjust their operations 00:06:00.930 --> 00:06:03.430 didn't get efficient. They're going to feel that 00:06:03.430 --> 00:06:05.990 sudden severe pinch because they haven't been 00:06:05.990 --> 00:06:08.329 running lean. OK, now let's pivot to the human 00:06:08.329 --> 00:06:10.910 element because this operational slide we're 00:06:10.910 --> 00:06:13.629 talking about, it's so intimately tied to farmer 00:06:13.629 --> 00:06:17.139 stress. And the data here is. frankly it's alarming 00:06:17.139 --> 00:06:20.480 when you are under chronic stress the quality 00:06:20.480 --> 00:06:22.420 of your decision making changes dramatically 00:06:22.420 --> 00:06:26.040 oh absolutely it permeates every single decision 00:06:26.040 --> 00:06:28.620 you make from you know whether you invest in 00:06:28.620 --> 00:06:31.120 the right genetics all the way down to how closely 00:06:31.120 --> 00:06:34.379 you monitor your fresh cow protocols when you're 00:06:34.379 --> 00:06:36.980 running on fumes day after day you inevitably 00:06:36.980 --> 00:06:39.540 make expensive mistakes often ones you wouldn't 00:06:39.540 --> 00:06:41.879 normally make let's just try and contextualize 00:06:41.879 --> 00:06:44.459 the pressure you might be facing Our sources, 00:06:44.560 --> 00:06:47.519 they cite NOSH data showing dairy farmers experience 00:06:47.519 --> 00:06:51.120 depression at rates around 35%, 35. That's nearly 00:06:51.120 --> 00:06:53.920 double the, what, 17, 18 % in the general population. 00:06:54.399 --> 00:06:57.500 Anxiety disorders, they affect 55 % of farmers 00:06:57.500 --> 00:07:00.519 versus maybe 18 % broadly. And when the American 00:07:00.519 --> 00:07:03.259 Farm Bureau finds 76 % of producers reporting 00:07:03.259 --> 00:07:06.100 moderate to high stress, well, you're dealing 00:07:06.100 --> 00:07:08.839 with a population under severe sustained pressure, 00:07:09.139 --> 00:07:12.089 both operationally and psychologically. And this 00:07:12.089 --> 00:07:14.110 is exactly where we connect the dots back to 00:07:14.110 --> 00:07:16.470 the market volatility. This immense pressure 00:07:16.470 --> 00:07:20.009 leads directly to what you could call non -rational 00:07:20.009 --> 00:07:23.009 economic behavior. This is kind of the contrarian 00:07:23.009 --> 00:07:25.790 analysis part. The systemic stress is actually 00:07:25.790 --> 00:07:28.350 what amplifies market volatility by that 15 to 00:07:28.350 --> 00:07:30.850 25 percent we mentioned. It's not just simple 00:07:30.850 --> 00:07:33.370 supply and demand anymore. It's emotion driving 00:07:33.370 --> 00:07:36.990 commodity pricing swings. But how does that work? 00:07:37.610 --> 00:07:40.329 How does farmer stress translate into measurable 00:07:40.329 --> 00:07:44.050 market chaos? We see these clear behavioral patterns 00:07:44.050 --> 00:07:47.129 emerge, like producers are anchoring their expectations. 00:07:47.189 --> 00:07:49.550 They're stuck on those favorable price levels 00:07:49.550 --> 00:07:51.550 from a couple of years back, which makes it. 00:07:51.769 --> 00:07:54.089 psychologically almost impossible for the market 00:07:54.089 --> 00:07:57.430 to find a new lower equilibrium. It just delays 00:07:57.430 --> 00:08:00.310 necessary adjustments like culling or maybe consolidation. 00:08:00.569 --> 00:08:02.970 They also start avoiding major decisions, which 00:08:02.970 --> 00:08:06.389 again, just delays needed adjustments. And crucially, 00:08:06.470 --> 00:08:08.949 there's the identity factor. Downsizing can feel 00:08:08.949 --> 00:08:10.990 like admitting personal failure, right? Which 00:08:10.990 --> 00:08:13.009 can lead to really poor hedging decisions or 00:08:13.009 --> 00:08:15.110 sudden unexpected liquidation events that then 00:08:15.110 --> 00:08:17.370 flood the market. Okay, let me try and put that 00:08:17.370 --> 00:08:19.269 in plain English for the farmer listening right 00:08:19.269 --> 00:08:22.269 now. This explains those synchronized regional 00:08:22.269 --> 00:08:25.339 patterns you see sometimes, like... culling waves 00:08:25.339 --> 00:08:28.459 or sudden expansion pushes that honestly make 00:08:28.459 --> 00:08:30.720 no individual sense sometimes if your neighbor 00:08:30.720 --> 00:08:32.879 is really financially distressed and suddenly 00:08:32.879 --> 00:08:34.679 they start aggressive culling just because the 00:08:34.679 --> 00:08:37.779 beef price ticked up that panic can ripple outwards 00:08:37.779 --> 00:08:40.080 it really can suddenly the whole neighborhood 00:08:40.080 --> 00:08:42.080 seems to follow suit regardless of their own 00:08:42.080 --> 00:08:44.379 individual herd dynamics or whether their call 00:08:44.379 --> 00:08:46.899 rate was actually fine to begin with you end 00:08:46.899 --> 00:08:48.940 up making decisions based on your neighbor's 00:08:48.940 --> 00:08:51.259 emotional exhaustion not your own farm's balance 00:08:51.259 --> 00:08:53.580 sheet or a carefully considered market outlook 00:08:54.090 --> 00:08:56.409 that collective emotional reaction, that's the 00:08:56.409 --> 00:08:59.450 15 -25 % extra volatility we're seeing. That 00:08:59.450 --> 00:09:02.129 synchronized behavior, that's the perfect signal 00:09:02.129 --> 00:09:04.529 that we really need to look internally first. 00:09:05.500 --> 00:09:07.379 So let's move into those operational warning 00:09:07.379 --> 00:09:10.220 signs. The subtle things, the insidious slide 00:09:10.220 --> 00:09:11.960 that shows up months before the balance sheet 00:09:11.960 --> 00:09:14.399 finally reflects the trouble. Right. Because, 00:09:14.440 --> 00:09:16.620 look, you can kind of massage a balance sheet 00:09:16.620 --> 00:09:19.120 for a while, maybe with credit lines or just 00:09:19.120 --> 00:09:21.980 delaying paying bills for a quarter or two. But 00:09:21.980 --> 00:09:25.350 the cows, the facilities, the equipment. They 00:09:25.350 --> 00:09:27.190 don't lie. They tell you the true state of the 00:09:27.190 --> 00:09:29.350 business. So what are the first casualties usually? 00:09:29.629 --> 00:09:31.929 It often starts with maintenance. We heard from 00:09:31.929 --> 00:09:34.149 a consultant covering Michigan down through Kentucky 00:09:34.149 --> 00:09:37.230 who noticed this consistent pattern. Producers 00:09:37.230 --> 00:09:39.250 start delaying routine preventative maintenance. 00:09:39.669 --> 00:09:42.610 It's things like putting off replacing that critical 00:09:42.610 --> 00:09:45.490 bearing in the mixer wagon. Or, you know, opting 00:09:45.490 --> 00:09:47.590 for just a temporary band -aid fix on a skids 00:09:47.590 --> 00:09:49.909 to your hydraulic line instead of doing the proper 00:09:49.909 --> 00:09:52.070 scheduled repair. Yeah, and we need to be really 00:09:52.070 --> 00:09:54.850 clear here. This isn't just about, like, morale 00:09:54.850 --> 00:09:57.370 or keeping things tidy. This is about compounding 00:09:57.370 --> 00:10:00.389 cost. Deferred maintenance is financially expensive, 00:10:00.690 --> 00:10:03.090 period. You're trading a small scheduled controlled 00:10:03.090 --> 00:10:06.590 cost today, maybe that $500 bearing, and two 00:10:06.590 --> 00:10:10.070 hours of planned downtime for a massive uncontrolled 00:10:10.070 --> 00:10:12.309 emergency repair bill tomorrow. You know, the 00:10:12.309 --> 00:10:15.769 $5 ,000 tow bill plus six hours of downtime that 00:10:15.769 --> 00:10:17.690 always happens at 2 a .m. right when you're already 00:10:17.690 --> 00:10:20.730 short on sleep. The successful operations, they 00:10:20.730 --> 00:10:22.809 maintain those preventative maintenance schedules 00:10:22.809 --> 00:10:24.980 almost religiously. religiously regardless of 00:10:24.980 --> 00:10:27.059 the current financial pressure. They see it as 00:10:27.059 --> 00:10:29.559 capital preservation, not just a cost to be cut. 00:10:29.740 --> 00:10:32.039 We see the decline just as clearly in animal 00:10:32.039 --> 00:10:34.320 care too. Skipping the scheduled semi -annual 00:10:34.320 --> 00:10:36.240 hoof trimming may be delaying the vet visit for 00:10:36.240 --> 00:10:38.639 the routine bred cow checks. And the decline 00:10:38.639 --> 00:10:40.919 in facility cleanliness is often a really key 00:10:40.919 --> 00:10:43.399 visual sign, especially in those less visible 00:10:43.399 --> 00:10:45.950 areas like the dry cow pens. That critical transition 00:10:45.950 --> 00:10:49.269 phase for cows needs laser focus. But when stress 00:10:49.269 --> 00:10:51.730 hits, the dry cow area is often the first place 00:10:51.730 --> 00:10:54.190 where operational standards start to slip, mainly 00:10:54.190 --> 00:10:55.950 because those cows aren't producing immediate 00:10:55.950 --> 00:10:58.399 revenue right then. That's the absolute truth. 00:10:58.600 --> 00:11:00.559 And it's just biology, isn't it? Not just opinion. 00:11:00.759 --> 00:11:03.700 The dry cow. She's the foundation for the entire 00:11:03.700 --> 00:11:06.879 next lactation. Ignoring her health is basically 00:11:06.879 --> 00:11:09.100 a guaranteed financial hit six weeks down the 00:11:09.100 --> 00:11:10.720 line when you're suddenly dealing with expensive 00:11:10.720 --> 00:11:13.879 fresh cow problems. Which then translates into 00:11:13.879 --> 00:11:17.440 massive reproductive costs, early culling. It's 00:11:17.440 --> 00:11:19.870 a cascade. I love that anecdote you mentioned 00:11:19.870 --> 00:11:21.529 from the Dodge County producer who said something 00:11:21.529 --> 00:11:24.029 like, when we stopped doing our weekly walkthroughs, 00:11:24.029 --> 00:11:25.610 you know, the ones that only took 20 minutes 00:11:25.610 --> 00:11:28.070 just to look for clutter or leaks, that's when 00:11:28.070 --> 00:11:30.309 everything else started falling behind. That's 00:11:30.309 --> 00:11:32.730 simple attention to detail. That's often the 00:11:32.730 --> 00:11:36.029 first casualty of chronic decision fatigue. Okay, 00:11:36.029 --> 00:11:38.769 so now let's move into the core solution identified 00:11:38.769 --> 00:11:41.210 in our analysis, the eight -point assessment 00:11:41.210 --> 00:11:44.210 framework. This framework is specifically designed 00:11:44.210 --> 00:11:46.629 to target and score that operational stress, 00:11:46.750 --> 00:11:49.370 that vulnerability, like six to 18 months before 00:11:49.370 --> 00:11:51.409 the financial trouble really surfaces. Yeah, 00:11:51.490 --> 00:11:53.370 this is really the heart of the analysis and 00:11:53.370 --> 00:11:56.169 the data supporting it is, well, it's pretty 00:11:56.169 --> 00:11:59.009 staggering. Operations that consistently maintain 00:11:59.009 --> 00:12:02.389 32 points or more on the scorecard out of a possible 00:12:02.389 --> 00:12:06.509 40, they should be 95 % survival rate over five 00:12:06.509 --> 00:12:09.669 years. Compare that to only 35 % survival for 00:12:09.669 --> 00:12:12.990 those scoring below 16 points. 95 % survival. 00:12:13.210 --> 00:12:15.110 That's not just a slight edge. That's almost 00:12:15.110 --> 00:12:18.190 a guarantee of resilience, isn't it? It clearly 00:12:18.190 --> 00:12:20.429 demonstrates that your management habits, your 00:12:20.429 --> 00:12:23.549 operational discipline, are the ultimate predictor 00:12:23.549 --> 00:12:26.289 of business longevity. We absolutely need to 00:12:26.289 --> 00:12:28.610 spend some real time on this framework. So let's 00:12:28.610 --> 00:12:30.529 break down all eight indicators. Let's focus 00:12:30.529 --> 00:12:32.590 on the specific behaviors that put you at a score 00:12:32.590 --> 00:12:35.070 one, which is severe distress, versus a score 00:12:35.070 --> 00:12:37.909 five, which is thriving resilience. Okay, let's 00:12:37.909 --> 00:12:40.090 start with indicator number one, decision consultation 00:12:40.090 --> 00:12:43.620 patterns. Right. So when stress rises, the default 00:12:43.620 --> 00:12:45.899 for many producers is unfortunately isolation. 00:12:46.759 --> 00:12:49.240 If you score a one here, you're basically making 00:12:49.240 --> 00:12:52.759 most major strategic decisions entirely alone. 00:12:52.960 --> 00:12:55.460 Things like big equipment purchases, major genetic 00:12:55.460 --> 00:12:58.600 changes, strategic feeding alterations. You do 00:12:58.600 --> 00:13:01.379 it alone because collaboration feels slow. Maybe 00:13:01.379 --> 00:13:03.559 exposing vulnerabilities feels risky. It's often 00:13:03.559 --> 00:13:06.259 fueled by a mix of ego and just pure exhaustion. 00:13:06.909 --> 00:13:09.029 Conversely, the operation scoring of five here, 00:13:09.169 --> 00:13:11.629 they consistently seek out and actually integrate 00:13:11.629 --> 00:13:13.830 external input. They might have scheduled formal 00:13:13.830 --> 00:13:16.330 advisory board meetings. They probably utilize 00:13:16.330 --> 00:13:18.750 a farm financial consultant regularly, and they 00:13:18.750 --> 00:13:20.950 ensure that major capital decisions are thoroughly 00:13:20.950 --> 00:13:23.090 debated with family members and advisors before 00:13:23.090 --> 00:13:25.889 pulling the trigger. This collaborative approach, 00:13:26.129 --> 00:13:28.470 especially under stress, produces measurably 00:13:28.470 --> 00:13:31.049 better, more objective outcomes. It helps take 00:13:31.049 --> 00:13:32.950 some of that internal stress out of the equation. 00:13:33.190 --> 00:13:35.629 Okay. Indicator number two. Technology utilization. 00:13:35.870 --> 00:13:38.190 This one really surprised us, actually, because 00:13:38.190 --> 00:13:40.009 it's not about the initial cost of the tech. 00:13:40.169 --> 00:13:42.470 It's about the failure to use the tools you already 00:13:42.470 --> 00:13:45.769 own effectively. Precisely. The struggling operation 00:13:45.769 --> 00:13:48.809 that's a score one, they often use less than 00:13:48.809 --> 00:13:50.870 half of the available features in their sophisticated 00:13:50.870 --> 00:13:54.029 systems. They might have, say, robotic milking 00:13:54.029 --> 00:13:56.750 systems or advanced fresh cow monitoring tech, 00:13:56.909 --> 00:13:59.570 but they only glance at the total pounds of milk 00:13:59.570 --> 00:14:02.110 shipped. They're ignoring the rumination data 00:14:02.110 --> 00:14:04.669 that could predict acidosis three days in advance, 00:14:04.850 --> 00:14:07.129 or maybe they fail to set up alerts for sudden 00:14:07.129 --> 00:14:09.450 drops in parlor throughput that could signal 00:14:09.450 --> 00:14:12.289 a labor issue or a procedural breakdown. They 00:14:12.289 --> 00:14:14.490 pay for all that data, but the psychological 00:14:14.490 --> 00:14:16.529 overwhelm just prevents them from actually using 00:14:16.529 --> 00:14:18.529 it effectively. Where's the score five operation? 00:14:19.129 --> 00:14:21.710 They're actively leveraging those tools. We integrate 00:14:21.710 --> 00:14:25.070 the data daily, maybe even hourly, to preemptively 00:14:25.070 --> 00:14:27.210 solve problems before they become big and costly. 00:14:27.409 --> 00:14:29.990 They view their tech system not just as an expensive 00:14:29.990 --> 00:14:32.649 machine, but as a strategic labor replacement 00:14:32.649 --> 00:14:35.210 for monitoring and early detection. All right, 00:14:35.230 --> 00:14:37.509 moving to indicator number three, risk management 00:14:37.509 --> 00:14:40.710 engagement. This one feels counterintuitive because 00:14:40.710 --> 00:14:42.970 financially pressured operations often abandon 00:14:42.970 --> 00:14:45.220 these tools first. Yeah, they start seeing the 00:14:45.220 --> 00:14:48.480 premiums for crop insurance or for government 00:14:48.480 --> 00:14:50.980 programs like LRP, livestock risk protection, 00:14:51.080 --> 00:14:54.039 or DMC, dairy margin coverage. They see those 00:14:54.039 --> 00:14:56.659 as unnecessary expenses, especially when cash 00:14:56.659 --> 00:14:59.059 flow is really tight. If you basically cut all 00:14:59.059 --> 00:15:00.919 your hedging or insurance programs entirely, 00:15:01.220 --> 00:15:03.659 you score a one. Right. When you arguably need 00:15:03.659 --> 00:15:06.019 that protection the most, you cut it to save 00:15:06.019 --> 00:15:09.899 cash today. But the survivors, the score fives. 00:15:10.240 --> 00:15:12.419 They maintain a layered risk management strategy. 00:15:12.820 --> 00:15:15.419 They view insurance and hedging as a critical 00:15:15.419 --> 00:15:17.820 protection, really a fixed cost of doing business, 00:15:18.000 --> 00:15:20.600 not just an expense line item to be slashed. 00:15:20.720 --> 00:15:23.000 They might use a combination of futures contracts, 00:15:23.259 --> 00:15:26.299 LRP, DMC, maybe forward contracts to protect 00:15:26.299 --> 00:15:28.899 against margin volatility, even if it feels expensive 00:15:28.899 --> 00:15:31.440 in the short term. They understand deep down 00:15:31.440 --> 00:15:34.179 that a single catastrophic event, a direct go, 00:15:34.320 --> 00:15:36.840 a sudden market plunge can wipe out five years 00:15:36.840 --> 00:15:39.100 worth of premium savings in an instant. Okay, 00:15:39.139 --> 00:15:41.039 indicator number four relates directly back to 00:15:41.039 --> 00:15:43.019 that stress we were talking about earlier. Work 00:15:43.019 --> 00:15:45.580 -life balance, personal health. Consistent 70 00:15:45.580 --> 00:15:48.279 plus hour work weeks year after year after year. 00:15:48.399 --> 00:15:51.820 That's a clear score one. That level of chronic 00:15:51.820 --> 00:15:54.620 overwork inevitably leads to massive decision 00:15:54.620 --> 00:15:57.440 fatigue. And that fatigue is directly correlated 00:15:57.440 --> 00:16:00.220 with expensive operational mistakes, health issues, 00:16:00.460 --> 00:16:03.460 you name it. It is simply not sustainable or 00:16:03.460 --> 00:16:05.659 strategic in the long run, no matter how much 00:16:05.659 --> 00:16:07.860 you might love farming. And we see it in the 00:16:07.860 --> 00:16:10.279 data. The deterioration of physical and mental 00:16:10.279 --> 00:16:12.980 health often precedes the big operational problems 00:16:12.980 --> 00:16:16.279 by months. It's another leading indicator. The 00:16:16.279 --> 00:16:18.620 producers scoring a five here, they consistently 00:16:18.620 --> 00:16:21.620 work maybe 50 to 60 hours, and they aggressively 00:16:21.620 --> 00:16:24.279 guard non -negotiable family time. They view 00:16:24.279 --> 00:16:26.679 sufficient sleep, mental clarity, maybe even 00:16:26.679 --> 00:16:29.700 exercise as critical operational assets, not 00:16:29.700 --> 00:16:31.620 luxuries. They understand that running yourself 00:16:31.620 --> 00:16:33.679 into the ground only makes the business more 00:16:33.679 --> 00:16:36.000 vulnerable to poor decision -making when the 00:16:36.000 --> 00:16:38.259 next inevitable market shock hits. Okay, now 00:16:38.259 --> 00:16:40.279 for the final four indicators. These often get 00:16:40.279 --> 00:16:42.019 ignored until it's really, really late in the 00:16:42.019 --> 00:16:44.440 game. Indicator number five, preventative maintenance 00:16:44.440 --> 00:16:46.990 standards. A score one here basically means you're 00:16:46.990 --> 00:16:49.649 living in perpetual crisis mode. You run machinery 00:16:49.649 --> 00:16:52.149 until it breaks down, period. Your maintenance 00:16:52.149 --> 00:16:55.809 is entirely reactive, not proactive. Examples. 00:16:56.110 --> 00:16:58.389 Maybe your bulk tank generator hasn't been tested 00:16:58.389 --> 00:17:01.309 since the last power outage six months ago. Or 00:17:01.309 --> 00:17:03.809 you only bother to grease the parlor chain when 00:17:03.809 --> 00:17:05.990 it starts squealing violently during milking. 00:17:06.240 --> 00:17:09.039 The Score 5 operation, though, they have detailed 00:17:09.039 --> 00:17:11.859 written maintenance schedules. Maybe it's a whiteboard 00:17:11.859 --> 00:17:14.460 in the shop with required hours and dates listed 00:17:14.460 --> 00:17:16.920 for critical assets like the parlor vacuum pump, 00:17:17.079 --> 00:17:19.059 the feed mixer gearbox, the cooling systems. 00:17:19.140 --> 00:17:21.539 They actually budget time and resources every 00:17:21.539 --> 00:17:23.559 month for preventive work because they know deep 00:17:23.559 --> 00:17:26.700 down that scheduled downtime is always less expensive 00:17:26.700 --> 00:17:29.160 and less disruptive than an emergency failure. 00:17:29.539 --> 00:17:31.960 Indicator number six, facility and equipment 00:17:31.960 --> 00:17:34.650 care. This is more about the visual signposts 00:17:34.650 --> 00:17:36.670 of operational discipline, what things look like. 00:17:36.829 --> 00:17:39.890 Yeah, a score one is visible clutter everywhere, 00:17:40.089 --> 00:17:42.690 potential safety hazards lying around, excessive 00:17:42.690 --> 00:17:46.170 trash, just general neglect, especially in storage 00:17:46.170 --> 00:17:49.609 areas or maybe along the perimeter fences. Equipment 00:17:49.609 --> 00:17:51.710 sits broken for weeks, waiting for a part or 00:17:51.710 --> 00:17:54.730 repair. The lanes, the holding area, the facility 00:17:54.730 --> 00:17:58.029 itself are often just messy. This signals mental 00:17:58.029 --> 00:18:00.640 fatigue, doesn't it? The producer is likely too 00:18:00.640 --> 00:18:02.500 overwhelmed to manage the physical environment 00:18:02.500 --> 00:18:05.579 properly. The Score 5 operation, by contrast, 00:18:05.940 --> 00:18:07.940 maintains their facilities and equipment pretty 00:18:07.940 --> 00:18:09.980 much to a visitor -ready standard most of the 00:18:09.980 --> 00:18:12.559 time. Tools are put away after use, facilities 00:18:12.559 --> 00:18:14.339 are generally clean, and the whole environment 00:18:14.339 --> 00:18:16.980 promotes efficiency and safety. This attention 00:18:16.980 --> 00:18:19.700 to detail reflects a management mindset that 00:18:19.700 --> 00:18:22.480 really prioritizes order and control, even within 00:18:22.480 --> 00:18:24.680 what can be a pretty chaotic environment. Okay, 00:18:24.720 --> 00:18:26.700 indicator number seven, family time protection. 00:18:26.940 --> 00:18:29.740 This one is very specific and often overlooked 00:18:29.740 --> 00:18:32.200 in business assessments. A score one here means 00:18:32.200 --> 00:18:34.799 family meals are either non -existent or they're 00:18:34.799 --> 00:18:37.019 constantly interrupted by farm crises, big or 00:18:37.019 --> 00:18:40.880 small. Weekends, holidays. They're consistently 00:18:40.880 --> 00:18:43.779 sacrificed for routine tasks that maybe could 00:18:43.779 --> 00:18:46.259 have been planned differently or delegated. The 00:18:46.259 --> 00:18:49.019 farm has essentially bled into every single aspect 00:18:49.019 --> 00:18:51.619 of personal life, which fuels resentment and 00:18:51.619 --> 00:18:53.940 burnout, not just for the primary operator, but 00:18:53.940 --> 00:18:56.299 for the whole family unit. A score five operation, 00:18:56.640 --> 00:18:58.319 they have established non -negotiable family 00:18:58.319 --> 00:19:01.259 time. They make it a priority. They might strategically 00:19:01.259 --> 00:19:04.339 automate certain tasks on Sundays, or maybe they 00:19:04.339 --> 00:19:06.259 hire part -time relief labor specifically to 00:19:06.259 --> 00:19:08.660 guarantee that family time is protected. They 00:19:08.660 --> 00:19:10.920 understand fundamentally that family unity and 00:19:10.920 --> 00:19:13.140 support is actually a critical business asset, 00:19:13.319 --> 00:19:15.740 especially during stressful times. And finally, 00:19:15.819 --> 00:19:18.880 indicator number eight, personal health prioritization. 00:19:19.019 --> 00:19:21.099 This really gets down to the individual physical 00:19:21.099 --> 00:19:24.599 component. A score one producer tends to ignore 00:19:24.599 --> 00:19:27.839 chronic symptoms, that nagging back pain, the 00:19:27.839 --> 00:19:30.940 persistent heartburn. They skip mandatory medical 00:19:30.940 --> 00:19:33.259 checkups. They rely on minimal sleep and often 00:19:33.259 --> 00:19:35.940 poor nutrition just to get through the day. They 00:19:35.940 --> 00:19:37.900 might even see taking time off for their own 00:19:37.900 --> 00:19:40.220 health as some kind of moral failure or weakness. 00:19:40.960 --> 00:19:43.519 The score five producer, though, they actively 00:19:43.519 --> 00:19:46.140 prioritize their health. They schedule those 00:19:46.140 --> 00:19:48.640 regular checkups and actually go. They integrate 00:19:48.640 --> 00:19:51.359 mandatory rest periods into their week. They 00:19:51.359 --> 00:19:53.220 might engage in stress management activities, 00:19:53.440 --> 00:19:55.900 whether it's regular exercise or just deliberately 00:19:55.900 --> 00:19:58.640 taking time away from the farm. They recognize 00:19:58.640 --> 00:20:00.480 that their own physical and mental health is 00:20:00.480 --> 00:20:02.400 basically the engine of the entire business. 00:20:02.619 --> 00:20:05.079 And like any critical engine, it must be maintained 00:20:05.079 --> 00:20:07.950 to function properly. So the bottom line here 00:20:07.950 --> 00:20:10.569 is if you, the listener, are maybe scoring yourself 00:20:10.569 --> 00:20:13.490 and you come out below 24 points total on this 00:20:13.490 --> 00:20:15.470 framework, you really need to focus immediate 00:20:15.470 --> 00:20:17.529 energy on fixing those foundational operational 00:20:17.529 --> 00:20:20.329 flaws. Because the financial trouble isn't just 00:20:20.329 --> 00:20:22.650 coming, it's likely already been built right 00:20:22.650 --> 00:20:24.650 into your system through these habits. Okay, 00:20:24.690 --> 00:20:26.849 let's talk about regional patterns now. Because 00:20:26.849 --> 00:20:30.190 this score, this vulnerability... It doesn't 00:20:30.190 --> 00:20:32.170 necessarily apply everywhere at the exact same 00:20:32.170 --> 00:20:34.690 time, does it? And this variation actually creates 00:20:34.690 --> 00:20:37.410 some unique opportunities, both for profit and 00:20:37.410 --> 00:20:39.450 just for strategic positioning. It absolutely 00:20:39.450 --> 00:20:41.569 does. Our sources highlighted that the upper 00:20:41.569 --> 00:20:44.230 Midwest places like Wisconsin, Minnesota, they 00:20:44.230 --> 00:20:46.130 seem to be experiencing this kind of operational 00:20:46.130 --> 00:20:49.670 stress a bit earlier. Why? Well, often it's due 00:20:49.670 --> 00:20:51.609 to higher regulatory pressures, particularly 00:20:51.609 --> 00:20:54.549 on environmental compliance. Plus, they frequently 00:20:54.549 --> 00:20:56.869 have older facilities that just naturally require 00:20:56.869 --> 00:20:58.950 higher maintenance costs and more capital investment 00:20:58.950 --> 00:21:01.750 just to keep functioning efficiently. Meanwhile, 00:21:01.970 --> 00:21:04.450 you look at Southern and Western farms. Maybe 00:21:04.450 --> 00:21:06.769 Texas, Georgia, North Carolina, parts of the 00:21:06.769 --> 00:21:08.950 West, they might hit their operational breaking 00:21:08.950 --> 00:21:12.849 points six, maybe even 12 months later. This 00:21:12.849 --> 00:21:15.410 is often because they benefit from newer, generally 00:21:15.410 --> 00:21:18.210 more efficient infrastructure. Or maybe they've 00:21:18.210 --> 00:21:20.650 adapted particularly well to specific seasonal 00:21:20.650 --> 00:21:23.410 management systems, which allows them to postpone 00:21:23.410 --> 00:21:25.490 certain capital expenditures for a bit longer. 00:21:25.920 --> 00:21:28.059 You can potentially use these regional stress 00:21:28.059 --> 00:21:30.940 indicators to help time market moves, maybe if 00:21:30.940 --> 00:21:33.400 you're in a position to expand, or unfortunately, 00:21:33.500 --> 00:21:35.440 if you recognize you might need to plan an exit 00:21:35.440 --> 00:21:37.819 strategy. And this leads us right into the discussion 00:21:37.819 --> 00:21:40.720 about scale. Because scale definitely matters, 00:21:40.740 --> 00:21:42.799 but maybe not in the way that conventional wisdom 00:21:42.799 --> 00:21:45.839 always suggests. Smaller operations, let's say 00:21:45.839 --> 00:21:48.539 around 150 cows, they definitely face higher 00:21:48.539 --> 00:21:51.579 fixed costs per unit of milk produced. No doubt 00:21:51.579 --> 00:21:53.819 about it. That makes margin compression especially 00:21:53.819 --> 00:21:56.309 challenging for them. However, they also tend 00:21:56.309 --> 00:21:58.569 to have significantly more operational flexibility. 00:21:58.890 --> 00:22:02.069 Think about it. It's much easier and faster to 00:22:02.069 --> 00:22:04.690 implement and adjust, say, your transition cow 00:22:04.690 --> 00:22:08.470 protocols on 150 cows than it is to change standard 00:22:08.470 --> 00:22:10.990 operating procedures across a 2 ,000 cow dairy 00:22:10.990 --> 00:22:13.109 with multiple shifts and teams. Yeah, that's 00:22:13.109 --> 00:22:15.789 a great point. And on the flip side, those larger 00:22:15.789 --> 00:22:18.450 operations of 2 ,000 cow dairies, they amplify 00:22:18.450 --> 00:22:21.210 every single inefficiency. If your dry cow management 00:22:21.210 --> 00:22:23.549 system is just a little bit sloppy, well, 2 ,000 00:22:23.549 --> 00:22:25.829 cows worth of sloppy is exponentially more financially 00:22:25.829 --> 00:22:28.390 destructive and, frankly, much harder to correct 00:22:28.390 --> 00:22:31.690 than 150 cows worth of sloppy. They require absolutely 00:22:31.690 --> 00:22:34.369 superior organizational discipline just to break 00:22:34.369 --> 00:22:37.329 even sometimes, let alone thrive. So the contrarian 00:22:37.329 --> 00:22:39.390 point here, and this is really crucial, is that 00:22:39.390 --> 00:22:42.250 success is actually seen at every scale reflected 00:22:42.250 --> 00:22:44.970 in the data we looked at. You see absolutely 00:22:44.970 --> 00:22:48.450 thriving 200 -cow operations because they emphasize 00:22:48.450 --> 00:22:50.529 tight management and they consistently score 00:22:50.529 --> 00:22:52.730 high on that eight -point operational framework. 00:22:53.009 --> 00:22:55.289 And unfortunately, you also see struggling 2 00:22:55.289 --> 00:22:58.009 ,000 -cow operations that simply haven't conquered 00:22:58.009 --> 00:23:00.490 their organizational inefficiencies or that underlying 00:23:00.490 --> 00:23:03.890 decision fatigue. So discipline, proactive management. 00:23:04.460 --> 00:23:06.460 Those are the true differentiators, not just 00:23:06.460 --> 00:23:09.000 size alone. Okay, let's wrap this up with maybe 00:23:09.000 --> 00:23:10.980 the final most powerful predictors we found. 00:23:11.200 --> 00:23:13.200 These are things that sort of stand outside the 00:23:13.200 --> 00:23:14.960 eight -point framework itself, but they strongly 00:23:14.960 --> 00:23:17.279 confirm the vulnerability. And the strongest 00:23:17.279 --> 00:23:19.759 overall predictor we identified was family dynamics. 00:23:20.349 --> 00:23:23.170 Yeah, this is often the quiet red flag that advisors, 00:23:23.450 --> 00:23:26.809 maybe even lenders, can easily miss. When family 00:23:26.809 --> 00:23:29.170 members start taking off farm jobs, especially 00:23:29.170 --> 00:23:30.970 after they were previously working full -time 00:23:30.970 --> 00:23:33.890 on the operation, that is a massive, immediate 00:23:33.890 --> 00:23:36.609 indicator. It signals that the financial stress 00:23:36.609 --> 00:23:38.849 has likely translated into an internal breakdown 00:23:38.849 --> 00:23:41.109 of the family's reliance on the farm, forcing 00:23:41.109 --> 00:23:43.410 a fundamental change in the labor model and income 00:23:43.410 --> 00:23:46.220 sources. And the data really supports the importance 00:23:46.220 --> 00:23:49.200 of this relationship factor. It's stark. When 00:23:49.200 --> 00:23:52.259 off -farm income exceeds 50 % of the total household 00:23:52.259 --> 00:23:54.720 earnings, or when family members actively start 00:23:54.720 --> 00:23:57.079 avoiding farm financial discussions and refusing 00:23:57.079 --> 00:23:58.599 to look at the books or the bank statements, 00:23:58.759 --> 00:24:01.319 the probability of business failure jumps dramatically, 00:24:01.539 --> 00:24:04.220 up to 65%. But then look at the other side of 00:24:04.220 --> 00:24:08.079 that coin. Strong family unity, shared decision 00:24:08.079 --> 00:24:10.859 -making, real communication during those tough 00:24:10.859 --> 00:24:15.680 times. That correlates with a staggering 92 % 00:24:15.680 --> 00:24:18.059 operational survival rate over the long term. 00:24:18.160 --> 00:24:20.059 That number just tells you almost everything 00:24:20.059 --> 00:24:22.180 you need to know, doesn't it? You really have 00:24:22.180 --> 00:24:24.400 to accept that the psychological health, the 00:24:24.400 --> 00:24:26.779 operational health, determines the financial 00:24:26.779 --> 00:24:29.559 health, not the other way around. It really all 00:24:29.559 --> 00:24:31.960 comes down to adopting that proactive mindset, 00:24:32.240 --> 00:24:35.039 learning to separate what you can control from 00:24:35.039 --> 00:24:37.829 the chaos you can't. That Vermont producer we 00:24:37.829 --> 00:24:39.509 quoted earlier, they articulated it perfectly. 00:24:39.670 --> 00:24:41.910 They said something like, we decided early on 00:24:41.910 --> 00:24:43.990 that we couldn't control milk prices or regulations, 00:24:44.289 --> 00:24:46.670 but we could absolutely control how we manage 00:24:46.670 --> 00:24:49.269 stress and how we made decisions together. That 00:24:49.269 --> 00:24:51.150 perspective, that's what allows you to score 00:24:51.150 --> 00:24:53.690 a five on that operational framework, even when 00:24:53.690 --> 00:24:55.549 the external market pressures feel like a 10 00:24:55.549 --> 00:24:58.230 out of 10. Exactly. That ability to differentiate 00:24:58.230 --> 00:25:00.970 between what you can influence and what you just 00:25:00.970 --> 00:25:03.750 have to weather, that's true management maturity. 00:25:03.930 --> 00:25:05.650 And ultimately, that's what saves operations. 00:25:06.299 --> 00:25:08.660 All right, let's try and bring it home now. Our 00:25:08.660 --> 00:25:10.880 listener, maybe they just finished morning milking, 00:25:10.920 --> 00:25:12.299 they're driving to the feed store right now, 00:25:12.359 --> 00:25:14.839 thinking about this scorecard. Based on everything 00:25:14.839 --> 00:25:17.579 we've covered, what are the three most essential 00:25:17.579 --> 00:25:19.259 actions they need to think about implementing, 00:25:19.539 --> 00:25:21.640 starting now? Okay, let's start with the immediate 00:25:21.640 --> 00:25:24.059 action this week, the preventative maintenance 00:25:24.059 --> 00:25:28.069 audit. So, action one. Immediately pull up and 00:25:28.069 --> 00:25:29.690 review your preventive maintenance standards. 00:25:29.809 --> 00:25:32.569 That was indicator five in the framework. Make 00:25:32.569 --> 00:25:34.869 sure that scheduled critical work actually gets 00:25:34.869 --> 00:25:37.390 done this week, even if it means a little bit 00:25:37.390 --> 00:25:40.710 of planned short downtime. The data is just crystal 00:25:40.710 --> 00:25:42.990 clear. Preventive maintenance is consistently 00:25:42.990 --> 00:25:45.210 cheaper than emergency repairs down the road. 00:25:45.349 --> 00:25:48.680 And a practical tip to go with that. Re -institute 00:25:48.680 --> 00:25:52.039 those simple, maybe 20 -minute weekly walkthroughs. 00:25:52.240 --> 00:25:55.599 Focus just on facility cleanliness, looking for 00:25:55.599 --> 00:25:57.740 hazards, checking organizational discipline. 00:25:58.160 --> 00:26:01.059 Pay special attention to the dry cow area and 00:26:01.059 --> 00:26:03.859 those critical facility transition zones. Honestly, 00:26:04.039 --> 00:26:06.579 it's the cheapest early warning system you possibly 00:26:06.579 --> 00:26:08.859 have. You're right. Next up, let's look at the 00:26:08.859 --> 00:26:11.140 medium -term strategical. Next three to six months. 00:26:11.460 --> 00:26:14.660 The scorecard checkup. Right. Action two, you've 00:26:14.660 --> 00:26:16.660 got to take the time for an honest self -assessment. 00:26:16.819 --> 00:26:19.700 Score your operation using the full eight -point 00:26:19.700 --> 00:26:22.640 framework we discussed. And be tough, be honest. 00:26:22.880 --> 00:26:26.500 If you find yourself scoring below, say, 24 points 00:26:26.500 --> 00:26:29.240 total, you need to focus immediate energy on 00:26:29.240 --> 00:26:32.119 improving the lowest scoring areas first. Especially 00:26:32.119 --> 00:26:34.299 look at decision consultation, that's indicator 00:26:34.299 --> 00:26:37.319 one, and technology utilization, indicator two, 00:26:37.400 --> 00:26:40.259 because those often signal that internal overwhelm 00:26:40.259 --> 00:26:43.579 is a key issue. And the practical tip here is 00:26:43.579 --> 00:26:44.980 really about efficiency with what you already 00:26:44.980 --> 00:26:47.920 have. Commit to fully utilizing your existing 00:26:47.920 --> 00:26:51.140 technology. Dive into your robotic data. Actually 00:26:51.140 --> 00:26:53.819 use your fresh cow monitors. Explore all the 00:26:53.819 --> 00:26:55.880 features of your management software before you 00:26:55.880 --> 00:26:57.940 even think about spending a single dime investing 00:26:57.940 --> 00:27:00.779 in something new. Chances are there's a lot of 00:27:00.779 --> 00:27:02.539 value just sitting there in your office waiting 00:27:02.539 --> 00:27:05.299 to be extracted. Good point. And finally, let's 00:27:05.299 --> 00:27:07.259 talk long -term positioning. Next one to two 00:27:07.259 --> 00:27:10.119 years. Building resilience. Okay, action three. 00:27:10.589 --> 00:27:13.529 maintain multiple risk management tools, keep 00:27:13.529 --> 00:27:17.109 that LRP and DMC coverage active, maintain sensible 00:27:17.109 --> 00:27:20.069 futures or forward contracting positions. Do 00:27:20.069 --> 00:27:22.150 it even when the premiums feel tight or uncomfortable. 00:27:22.799 --> 00:27:24.799 The data proves that this layered protection 00:27:24.799 --> 00:27:27.460 is absolutely essential when market volatility 00:27:27.460 --> 00:27:29.700 and likely your own stress level is highest. 00:27:29.880 --> 00:27:31.980 And the long game tip here is really about securing 00:27:31.980 --> 00:27:34.319 your foundation, both the material side and the 00:27:34.319 --> 00:27:37.339 human side. Yeah, lock in feed and input supplies 00:27:37.339 --> 00:27:40.140 when you see favorable terms, absolutely. But 00:27:40.140 --> 00:27:42.839 maybe most critically, prioritize your personal 00:27:42.839 --> 00:27:46.150 health and find sustainable work patterns. aggressively 00:27:46.150 --> 00:27:48.930 guard that family time. Because preventing decision 00:27:48.930 --> 00:27:52.150 fatigue in yourself and your team, that is probably 00:27:52.150 --> 00:27:54.269 the most strategic long -term move you can possibly 00:27:54.269 --> 00:27:55.930 make for the health of the business. Well, this 00:27:55.930 --> 00:27:57.849 has been another, I think, really critical analysis 00:27:57.849 --> 00:28:00.849 into what matters most on the farm today, which 00:28:00.849 --> 00:28:02.789 is really your operational and your mental resilience, 00:28:02.890 --> 00:28:04.630 because that ultimately drives your financial 00:28:04.630 --> 00:28:07.549 outcomes. Yeah, this has been another deep dive 00:28:07.549 --> 00:28:10.309 from the Bullvine podcast. If this kind of no 00:28:10.309 --> 00:28:13.190 -nonsense analysis helps your operation, definitely 00:28:13.190 --> 00:28:17.069 head over to www .thebullvine .com. There are 00:28:17.069 --> 00:28:18.950 plenty more articles there that really tell you 00:28:18.950 --> 00:28:20.789 what's actually happening in the dairy industry. 00:28:21.049 --> 00:28:23.210 And seriously, subscribe wherever you get your 00:28:23.210 --> 00:28:26.019 podcasts. We're releasing these deep dials twice 00:28:26.019 --> 00:28:28.700 weekly now, covering a lot of ground. And trust 00:28:28.700 --> 00:28:30.559 me, you really don't want to miss what we've 00:28:30.559 --> 00:28:32.839 got coming next week. We're diving headfirst 00:28:32.839 --> 00:28:35.619 into that ongoing debate. Is aggressive expansion 00:28:35.619 --> 00:28:37.960 during downturns the strategically right move 00:28:37.960 --> 00:28:40.700 for long -term consolidation? Or is radical efficiency 00:28:40.700 --> 00:28:42.740 and serious debt reduction the only sustainable 00:28:42.740 --> 00:28:45.039 way forward right now? We're going to break down 00:28:45.039 --> 00:28:47.119 the data behind both perspectives. See you then. 00:28:54.160 --> 00:28:56.299 Thank you.