The attributes of trading heifer’s vs. keeping “quality” heifers have been expressed numerous times. Principles that are set in concrete are often neglected when herd expansion begins to gain momentum. Remember that profitable black ink has already left a bunch of sizable operations.
Many decisions that cattlemen make tend to prove that we are in the “hobby” business. There is nothing wrong with hobbies as long as they don’t bury us. I realize that money is cheap and interest rates are low. But everything has to be for at some point in time. Using savings or borrowed money to lose in the business does not compute.
Here’s some of their dos and don’ts. Low cost producers:
Fancy stuff and toys, including fancy cattle are made to sell when the market is headed north. They’re not made to buy.
Ups are always followed by downs. Neither is totally predictable as to timing. How far will your grass grow without another good rain? Good planning costs a lot less than spending does. Grass, water, shade, and fences come first. Then comes the right cattle.
