338 | Dairy Farm Finances in 2026: What Smart Producers Are Planning for Q2
How are your finances looking for Q2? In this episode of the Uplevel Dairy Podcast, Peggy Coffeen interviews Steve Schweoer of Compeer Financial on what financially strong dairy farms are doing in 2026 amid tight first-half cash flow, lower milk prices, and higher costs of capital. Steve notes many producers prepaid 2026 expenses in 2025, easing near-term pressure, and expects improved markets in the second half while emphasizing preparing during good times by building working capital and paying down lines of credit.
He advises maintaining a three-to-five-year capital replacement plan using “needs vs. wants,” evaluating land purchases case by case, and not letting taxes drive decisions. Key profitability levers include beef-on-dairy and managing net herd replacement cost, feed efficiency and ration cost, strong components and herd health, disciplined capital spending, and low employee turnover. He urges producers to know their cost of production, keep a consistent operating model, and bring lenders and advisors a long-term plan including risk management and family goals.
This episode is sponsored by Compeer Financial. Compeer Financial is a member-owned Farm Credit cooperative serving and supporting agriculture and rural America. Their dairy team brings world-class expertise and tailored solutions to support dairy producers’ financial goals and lending needs.
Visit https://www.compeer.com/specialists/dairy
01:17 Cash Flow Cycles Ahead
03:02 Needs vs Wants Capital
05:11 Land Buying Decisions
06:36 Cost of Capital Squeeze
08:17 Beef on Dairy Boost
11:07 Feed Efficiency Levers
12:48 What Profitable Looks Like
15:04 Tech Investments Timing
17:36 Lender Talks and Planning
19:34 Disciplines for Stability
21:50 Know Your Cost Production
23:16 Stick to Your Model
