Farming has always been a risky business. Markets shift, input costs climb, weather patterns change, and disease threats never fully go away. But the producers who manage risk well don’t just react—they prepare. And preparation starts with discipline.
Risk management isn’t about avoiding risk altogether. It’s about recognizing where you’re vulnerable, planning ahead, and building habits that protect your farm when times get tough. It’s the quiet, consistent work behind the scenes that creates room to grow when opportunities come.
Know Your Breakeven
The most disciplined producers know their breakeven like they know their chores. It’s not something they check once a year, it’s a number they live by. It gives them the confidence to know when to lock in revenue and input costs. Knowing their breakeven gives them clarity in the chaos and allows them to make fast-paced decisions when needed.
Make Financial Review a Habit
Discipline also shows up in how often the financials are reviewed. It’s not just when the markets are ugly or when the lender forces it. The best operators sit down every month to look at their financials and key performance indicators (KPIs)—checking feed conversion, mortality, labor costs, and more. They do not do it to feel good; they do it to stay grounded in the reality of the business and that usually means reviewing financials more than one time per year.
Use the Right Tools
In order to manage risk effectively, one needs to know what resources are available to them—and know when to use them. Futures, options, and forward contracting aren’t just for large operations. They’re for anyone serious about protecting what they’ve worked really hard to build. Discipline means being proactive and taking action when target margins are met, and not being only reactive when the market goes against them.
Build a Trusted Circle
Risk management doesn’t happen in a vacuum. It takes communication—with your lender, your nutritionist, your veterinarian, and your support team. Keeping everyone aligned helps you respond faster and make stronger decisions when things shift. The most successful producers aren’t just managing pigs—they’re managing people and processes. And they keep the right folks in the loop.
Freedom Comes from Discipline
At the end of the day, discipline may not “hit a home run” every time—but it creates freedom. The freedom to invest in the next opportunity. The freedom to focus on operations. The freedom to be with your family and sleep at night knowing your farm is protected.
Discipline doesn’t mean you never take a risk—it means you take the right ones, with a plan in place. That’s what can separate surviving from thriving in today’s pork industry.
