When times of uncertainty seem to abound, a sound risk management plan has never been more important. Fortunately, there are some data points— like costs related to production — that we can use to prepare for the future, even if we cannot predict it.
Land O’Lakes, Inc. is excited to announce the release of the Risk Margin Insights (RMI) Tool. The RMI Tool offers dairy member-owners advanced analysis of cost of production, and risk management planning with the assistance of the Dairy Business Advisor and Risk Management team.
The RMI Tool captures information and automatically generates reports and analysis, which means our Dairy Business Advisors and risk management specialists spend less time gathering and compiling data and more time analyzing information and consulting with dairy member-owners. Reviewing your income and expenses line-by-line empowers fact-based decision-making on management practices and risk management strategies. With the RMI Tool, you get a cost of production analysis based on your actual operation, and a risk management plan tailored to your operation.
How does this member-exclusive service work?
The first step is contacting your local field staff representative who will connect you with your region’s Dairy Business Advisor. Your regional Dairy Business Advisor will then meet with you to review the process and outline the financial information that is needed to start the cost of production analysis. Once all the necessary information has been collected, the Dairy Business Advisor will use our new RMI Tool to analyze your cost of production and then work with our risk management specialists to design a risk management plan based on your cost of production and operational needs.
What can you expect from this service?
You can expect a detailed report on your cost of production that includes their net break-evens and class III/IV break-evens. You will also receive a risk management plan based on the analysis, which you can execute through Land O’Lakes Risk Management or your existing broker.
What if I know my cost of production?
You may already be working with outside consultants on your cost of production. If so, you can still work with our risk management specialists.
Are there fees associated with this service?
Our commitment is an annual cost of production and risk management plan. Members actively engaging in risk management through Land O’Lakes may receive additional risk management planning.
Land O’Lakes offers a portfolio of fee based strategic consulting services through Dairy Enterprise Services. Dairy Enterprise Services can assist in strategic business planning, project planning, and part-time chief financial officer (CFO) service.
What should I do if I am interested?
If you know your regional Dairy Business Advisor, contact them directly. Otherwise, your local field staff representative can help connect you to the Dairy Business Advisor.