Compeer lending specialist says beef-on-dairy revenue could surprise producers

A dairy lending specialist says beef-on-dairy continues to boost margins.

Brad Herkenhoff with Compeer Financial tells Brownfield milk prices have not been great this year.

“But with the beef market the way it has been, it’s kind of surprising producers.”

He says beef-on-dairy is driving profits.

“Came off of last year, obviously the beef on dairy was important. But this year it seemed like we slipped a little bit on milk, but yet the beef on dairy picked up. So even though producers might be thinking our milk revenue might be down a little bit, keep in mind the beef side of it is probably going to be higher than they expect it.”

Herkenhoff says that might have income tax implications that catch some producers by surprise.