What is Dairy Revenue Over Feed?
Dairy Revenue Over Feed is an efficient hedging program we developed to help dairy producers manage their risk. It takes the main drivers of margins in milk production, the cost of feed and the price of milk, and distills it into one easy to hedge number.
Why hedge using Dairy Revenue Over Feed?
Revenue Over Feed allows enrolled producers to take control of their risk without having to individually manage the corn, soybean, and milk markets. Ag Hedge Desk developed a formula that calculates Dairy Profitability with the factors mentioned above, milk price and feed costs. This formula equals a number we called “Revenue Over Feed.” Ag Hedge Desk then hedges those costs for the producer, effectively helping manage risk and protect the producer in a dairy market that is more volatile than ever before. Additionally, Revenue Over Feed is completely compatible with government insurance programs like Dairy Margin Coverage or Dairy Revenue Protection to further manage a dairy’s risk.