You can only throw a rock up so high before it starts falling back to the ground. As you know, this well-established truth also applies to cattle prices. Cattle prices can only go so high before they start falling. As always, the best cure for high prices is high prices.
Cattle prices have never been this high since the beginning of time. I encourage you to take advantage of these record-high prices. Fix what needs fixed. Build what needs built. Tear down what needs torn down. Improve what needs improved. Change what needs changed.
Take advantage of these record-high prices – but always keep in mind they won’t last. You need to be prepared for the inevitable fall. Unfortunately, if history repeats itself, many cow-calf producers will be caught totally off guard. They mistakenly think cattle prices will stay this high forever.
We encourage you to think ahead. This is a great opportunity to change what needs to be changed in your program to maintain profitability when cattle prices hit bottom. It would be a shame to look back five years from now and realize you have very little to show for the blessings you are currently receiving.
Notice what happened to the record-high calf prices (blue line) we had in 2015. What goes up always comes down. History repeats itself every 10 to 12 years in this business. We refer to this as the Cattle Cycle.