Since God created the very first cow, we have never ever experienced cattle prices as high as they are right now! This should be the BEST of TIMES for cow-calf producers – but you will find very few who are doing the Happy Dance. Are you enjoying the BEST of TIMES?

These record-high prices are the result of a shrinking cattle inventory. Cow numbers are lower today than they have been for 72 years! When supply decreases, prices will increase. Normally when we have low cattle numbers and high cattle prices, we will see some rapid herd expansion like we did in the 2014/2015 time period. However, that is not happening.

The beef industry experts blame the delayed expansion on lingering drought, high input costs, limited labor availability and high interest rates. Although all of these things are true, I’m going to be much more blunt and to the point. The reason there has been very little herd expansion is because most cow-calf producers are not very profitable – even with these record-high prices! Without profit, there is no incentive to increase herd size.

The record-high calf prices of the 2014/2015 time period created record-high profits for nearly all cow-calf producers. Those record-high profits quickly stimulated the desire to retain heifers and increase herd size. That, however, was before the increasing cost of inputs started taking huge bites out of our profits. If you think the cost of inputs will go down, you are delusional! While cattle prices continue to go up and down, up and down, the cost of inputs will continue to go up, up, up!

The only cow-calf producers who are currently experiencing record-high profits are those who found and implemented ways to drastically reduce their dependence on outside inputs, while at the same time increasing their production per acre (not per cow). These producers are among the few who are truly enjoying the BEST of TIMES! Pharo Cattle Company has the genetics and the philosophies you need to produce MORE for LESS! That’s the key to long-term success in this business!

Cow-calf producers who are unwilling to make the necessary changes in their operation will be in BIG TROUBLE when herd expansion takes off and calf prices are cut in half. I’m afraid this will be the end of many family farms and ranches. Be honest with yourself… will your business be able to survive when your calves are worth half as much as they are worth today? Those who are unwilling to change will eventually be forced to sell out and their kids and grandkids will be forced to get jobs in the city.

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