The recent high cattle market has given ranchers a welcome reprieve from rising expenses. While our focus has been on increasing income, reducing expenses is much more important if we want to capture more profit in the future.
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The cowman’s profit is usually just out of reach, somewhere over the rainbow. It’s this hope that keeps us hanging on through thick and thin. A rancher is an eternal optimist. He believes that somewhere in the future there will be a profit big enough to replace that truck, upgrade that tractor, pay off his note, or hire an extra employee. Well, profit is no longer out of reach. If you’re not making money today selling $5 calves, you’d better sell out now. But what about the other side of the ledger, your expenses?
Sometimes we forget that profit is simply calculated by subtracting expenses from income. We are fortunate this year to have higher income, but what about rising expenses? You’re already operating on a shoestring – how do you cut back anymore?
According to Oklahoma State University, the average cost to run a cow in 2016 was $615. In 2024, that cost is estimated at $1,348 per head. Expenses have more than doubled in the last10 years. This does not include anything for your labor, and it should. It is safe to say that when the market comes back to earth, and it will, there’s going to be a lot of producers in trouble.
Here’s a couple ideas that can help you increase profit.
1) Improve your grazing. Specialist Jim Gerrish says, we do not sell beef, we sell grass. In reality, we sell sunshine that grows the grass, and market it through our beef. My grazing plan ought to make the most of every ray of sun and drop of rain. A simple rotational grazing program can increase your stocking rate, promote soil health, develop water infiltration and create drought resilience.
2) Work with nature instead of against it. Warm weather vs. winter calving will improve herd health, increase your live calf percentage and place you in a different market than all your neighbors, usually for the better.
3) Buy calving ease bulls. Why wear yourself out with calving barns, midnight checks and calf pullers? I’ve been there, and I will never go back. PCC® guaranteed calving ease bulls have turned calving season into my favorite time of year.
4) Change the maintenance requirements of your cow herd. For 35 years, Kit Pharo has been the pioneer of moderate-framed, low-maintenance, grass-based genetics. Many seedstock producers are talking the talk nowadays, but few are actually doing it. If you do find someone who can deliver on these promises, they probably got their start from Pharo Cattle Company®. PCC® genetics consistently produce more for less. Large-framed, hard-keeping bulls will never produce efficient, fertile replacement heifers.
You don’t have to hope for profit somewhere over the rainbow. You can take action to increase your profit today. PCC® has 4 bull sales this November at a location near you. For more info, visit pharocattle.com. I’ll see you next time on the Herd Quitter® Minute.
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