No two cattle operations are the same. With the recent record-breaking cattle prices, many cow-calf producers are considering how to reinvest in their business and capitalize on the market’s current momentum.
In a recent University of Nebraska Beef Watch article, Aaron Berger, Nebraska Extension livestock educator, shares options producers should consider before spending.
“Cow-calf producers are looking at the potential for exceptional levels of income for 2025 due to high calf prices,” he explains. “This income will give many cow-calf producers the opportunity to invest capital back into the operation in ways that can prepare them for future success.”
Two ideas he shared were:
- Contemplate adding a scale
- Evaluate working and loading facilities
Berger says producers who do not have a scale should consider investing in one.
“Being able to accurately know the weights of cattle has management and marketing benefits,” he explains.
He also encourages producers to consider if facility upgrades could provide a safer environment and better working experience for cattle and the people who are handling them.
Pay Down Debt, Consider Record Keeping
Likewise, a recent Kansas State University Beef Cattle Institute Cattle Chat podcast focused on options for producers to consider with the current profit potential this fall.
“Eliminating as much debt as possible is crucial,” encourages K-State veterinarian Todd Gunderson. “Operating debt-free is a significant blessing for ranchers when possible.”
Record keeping, while not directly profitable, can play a major role in identifying ways to improve margins. Good records are often the foundation for more informed and profitable decision-making.
“Investing just a few hundred dollars in a disciplined record-keeping approach can provide valuable insights into operational performance,” adds K-State agricultural economist Dustin Pendell.
K-State veterinarian Bob Larson emphasizes the relationship between improving forage utilization and economic efficiency, encouraging producers to look at long-term investments in such cost-saving strategies as cross-fencing and water improvements.
In summary, don’t make a hasty decision just because you have some savings in the bank. Spend time to come up with a plan for strategic purchases and investments to position your cow herd for future profitability and success.
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