Cattle prices have never been this high. This is history in the making! And we expect prices to go even higher… for a while. These are windfall profits because you and I have done nothing to deserve them or to earn them. It’s like winning the lottery. Everyone in the cattle business is a winner! See the Cattle Range graph below.
Many cow-calf producers, unfortunately, have allowed themselves to be lulled into thinking everything will be this good forever. It won’t! We’ve all heard stories about people who won the lottery – but had nothing to show for it five years later. Please don’t let something similar happen to you. To make the most of your windfall profits, I suggest you refer back to the leadoff article in our Fall 2024 Newsletter.
The most successful cow-calf producers learn from history. For example, they remember how the value of their calves was quickly cut in half in 2016 (see graph above). Therefore, they won’t be caught off guard when it happens again. They have made the necessary changes in their operation and are prepared for the inevitable fall in cattle prices. Will you be ready?
Quote Worth Re-Quoting
“What we learn from history is that most people don’t learn from history.” ~ Warren Buffett