Today we had a visit from some vacationing PCC® customers, the Unruhs. We’re about the same age, so we had a good time getting to know one another, as well as a great discussion about retirement. This raised many questions, especially how to manage the cow herd as the time draws near.
Click to read the full transcript
Most of the time, when someone comes for a ranch visit, they want to look at PCC® cows. This one was different. These folks see PCC cows every day. Harlin and Doris Unruh are vacationing through Colorado and Utah from their home in Peabody, Kansas. Harlin told me that he drank the Kool-Aid back in 2012 and has been a PCC bull customer ever since. We thoroughly enjoyed getting to know them, hearing about their cow/calf operation and on-farm market where they sell beef, eggs, and garden produce.
We talked about the cattle prices, the rain, grass production and family. We discussed Tenet® beef, it’s superior tenderness, and recent marketing developments.
However, one topic struck a chord with all of us and that was retirement. Harlin and I are both in our mid-60’s, looking to slow down, with more freedom, and less work. That brought up several questions:
How does a cattleman retire? What is the best way to go about it? Do I sell my cows all at once or scale down gradually? Should I keep replacement heifers? How will that affect future income, land use and taxes? Am I emotionally ready to retire?
Well, a man who sells bulls for a living should never tell you to sell cows, but Kit Pharo says if you’re not going to make the necessary changes to remain profitable when prices fall, you should sell out now at the top of the market. However, this could cause a significant tax event, as well as a decline in health. Of course, we’d much rather sell you the right kind of bulls.
My wife and I chose to scale down gradually, reducing our labor requirements and freeing up time for grandkids, hobbies and travel. I kept my heifers too, that way if I don’t like my newfound freedom, I can always get right back in the game. This plan could benefit your herd as you cull to improve certain traits, like Tenet®, udder quality or fleshing ability.
Others use their cow herd to help the younger generation get started. Whether you have family or not, develop partnerships with younger counterparts who will trade labor in exchange for the use of your assets, and share the profit. Pharo Cattle Company® can help you connect with like-minded individuals through the classified ads on our web site. If you are my age, you are probably having these same conversations. If PCC can help, let us know. I’ll see you next time on the Herd Quitter® Minute.
There are several farm family coaches, one of them is Elane Froese, she has videos on transition.
Something like 20% of farmers and ranchers have a succession plan.
Chapters like; Why Founders are hanging on and how to help them let go. (My dad was 83 when he rented farm to my brother he could still work at 82, died at 85.)
How to tell non-farming/ranching children they aren’t getting a raw deal.
As it stands Moms will has the farm divided equal and it is to be sold. (This is why 30 % of land stays in the family, poorly put together succession plans)