Publication Date

2015 12:00 AM

Description

Ask any veteran cattle producer about profitability and they likely will have several “I remember back in...” stories. It is well known that economic returns to cattle production fluctuate considerably over time and year-to-year and even within year swings can be quite extreme. When profits are high, producers must decide how to allocate these funds to capitalize on the good times. The key question for cattle producers to consider is “How do I reinvest profits from the prosperous times to remain profitable over the long-run when profits come back down?” Many investment options do exist and they are all very situational dependent and dependent upon the goals of the business.

 
Jan 1st, 12:00 AM

Reinvesting profits from the beef operation

Ask any veteran cattle producer about profitability and they likely will have several “I remember back in...” stories. It is well known that economic returns to cattle production fluctuate considerably over time and year-to-year and even within year swings can be quite extreme. When profits are high, producers must decide how to allocate these funds to capitalize on the good times. The key question for cattle producers to consider is “How do I reinvest profits from the prosperous times to remain profitable over the long-run when profits come back down?” Many investment options do exist and they are all very situational dependent and dependent upon the goals of the business.