With a strong calf market, cow-calf producers are enjoying more cash in their pockets. With this increased income comes the chance to evaluate opportunities for using the extra dollars earned.
Julie Haggard, Valley Vet senior category manager, says they have seen sales increase on weighing devices and other health management tools.
“Vaccine, dewormer, ID tags and fly and lice control have been on the rise all year long,” she says. “With cattle prices at an all-time high, producers are protecting their investments.”
Other items Valley Vet has seen an increase in sales for are the Palmer Cap-Chur riffles, EID tags, EID stick Readers, loads bars and complete weigh systems.
“The technology available to producers for precise dosage of medications is actually quite amazing,” she adds.
Drovers Readers Weigh in
Interested in how Drovers followers are reacting to the high market and increased profits, we asked this question on Facebook: “With today’s cattle market, how are you planning to invest in your operation? What purchases are you considering.”
More than 80 producers responded to the question. Here are 10 responses readers shared:
- Cow Herd Expansion
One follower wrote, “Steers are paying the bills, so I am breeding more heifers.” Similar responses include: “Raising heifers to increase our two herds” and “Breeding more cows.” - Subsidizing Farming or Row Crops
- Paying Down Debt
- Update Facilities
One follower wrote, “Update facilities a bit, bought a hydraulic chute. May buy portable corral yet, too. Otherwise just keeping debt in check and planning for the crash, it’ll make 15 look like a cake walk in my opinion.” - Maintenance
- Fence
- Concrete
- Building a Butcher Shop
- Preparing for the Crash
When one follower who answered “preparing for the crash” was asked how exactly he was preparing, he responded: “Retaining more heifers, culling running-age, under-performing cows, stockpiling hay and cash to be able to either buy cows or retain our own calves.” - Saving
Experts Share Ideas
A recent Kansas State University Beef Cattle Institute Cattle Chat podcast focused on options for producers to consider with the profit potential this fall.
Beef cattle nutritionist Phillip Lancaster says producers should consider alternatives to traditional haying systems, especially as equipment continues to depreciate quickly and the cost of new machinery rises.
“Ranchers often want to invest in new tractors and hay equipment when the real opportunity lies beneath their feet,” Lancaster explains. “Every acre of grazing land represents a potential efficiency gain.”
Lancaster encourages producers to maximize forage utilization to reduce operational costs.
“When a cow can effectively graze versus me spending time and resources harvesting feed, we’re talking about significant economic advantages,” he says.
Veterinarian Scott Fritz suggests facilities as another area where investment can lead to long-term gains in safety and efficiency.
“Sometimes those old working facilities are flat-out dangerous for employees and animals,” Fritz says. “If you’re hurt, you take away from the labor you have, and if it’s a one-man operation, that’s a significant loss in day-to-day management.”
In summary, don’t make a hasty decision just because you have some savings in the bank. Spend the time and come up with a plan for strategic purchases and investments to position your cow herd for future profitability and success.
Your Next Read: 6 Equipment Purchase Strategies To Improve Ranch Efficiency
