The most gratifying part of my job is hearing from people who made the transition from high-input, break-even ranching to low-input, profitable ranching. I receive emails on a weekly basis from those who are so glad they made the transition when they did. Most wonder why it took so long to see the light. I can remember having the same thoughts myself over 30 years ago. Making a paradigm shift of this magnitude is not easy.
I visited with many PCC customers at our spring bull sales. Most long-term customers have operations that are much more profitable, enjoyable and sustainable than they ever thought possible prior to making the transition. I also visited with people who were very enthusiastic about taking the first steps in making the transition. They saw the light, and they are extremely excited about the future for their family and their business.
A few new customers will admit they are a little nervous about making the transition. It requires going against what their neighbors and family believe to be right. They have seen the light – but they are reluctant to enter what we call the New Frontier in Beef Production. I remind them that the New Frontier is not totally uncharted territory. Well over 2000 PCC customers and others are already there. Those who are part of the New Frontier are two to five times more profitable than their status quo neighbors will ever be. Their lifestyle is also substantially better than their neighbors.
Status quo ranching may have made sense 40 to 50 years ago – but it is making less and less sense every year. As cattle prices continue to go up and down, up and down, the cost of land and inputs continues to increase – sometimes at unprecedented rates. Most status quo producers are slowly but surely going broke. Some status quo producers see the futility in what they are doing – but it seems as though they would rather fail conventionally than succeed unconventionally.
The fact that most status quo producers will not change until they are forced to change gives the rest of us HUGE opportunities. Throughout history, the first to enter new territories and new frontiers have always had HUGE advantages over the late-comers. I continue to believe the next ten years will be remembered as the best of times for some – and the worst of times for others.
Good Morning Kit, I hope that all is well in Colorado, things are wet here in Michigan. As i read your email, I wonder to myself how many people reading this will know what Kit means when he says things like “making the transition.” I know that you talk about these things all the time, but what would you say would be one thing that producers could do to start that transition?
Kable, the FIRST thing would be to STOP trying to increase production and profit per animal — and START focusing on production and profit per acre. Apparently this is much easier said than done. The status quo beef industry has been focused almost exclusively on increasing production and profit per animal for the last 40 years. That will NEVER work! Those who are focused on increasing production and profit per acre are at least two times more profitable than their neighbors. As time goes on, they will be three to four times more profitable than their neighbors.