Although calf prices have taken a slight dip, they are still sky high! Your calves, believe it or not, are worth $1500 More per head today than they were worth just five years ago. You have the world by the tail, don’t you? Life is GREAT!
But wait a minute… How long do you think these stratospheric prices will last? No one knows how long they will last – but we all know they won’t last forever. When cattle prices fall, the cost of inputs will remain at record-high levels – and there will be weeping and gnashing of teeth.
Warren Buffett has a quote that perfectly fits this scenario. He said, “When the tide goes out (market goes down), we will find out who has been swimming naked (not prepared).” Are you swimming naked? Will you be able to survive the upcoming fall in prices? NOW is the time to make the transition from high-input ranching to low-input ranching.
Making those changes after cattle prices break will be nearly impossible because survival will take precedence over all else. If you don’t plan to make any changes, then I strongly advise you to get out of the cow-calf business – while we are at the top of the market. NOW is the time to make the necessary changes – or to sell out.
Quote Worth Re-Quoting
“Procrastination is like a credit card; it’s a lot of fun until you get the bill.” ~ Christopher Parker
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