Tablerock Ranch eastern Wa | Old rule of thumb was "never borrow on cows" feeders were always acceptable but not breeding stock, that being said "rules change" as for longevity of this market true market conditions would indicate the next three years should be good, there is almost no herd expansion and the ship doesn't turn to fast on market saturation as it pertains to Cows. BUT our livelihood can be blown up easier than almost any other business that I have been involved with, and it doesn't need to be long-term, short-term setbacks like covid/ screw worm / Trump thinks beef should cost less and four million other ways can knock you out when you have to sell now. I have bought breeding stock with borrowed funds, but it far from the best return or safety of borrowed funds. If the cull value were to drop on a mature cow substantially you will have a really hard time of even breaking even. I you have extra and enough pasture, extra and enough home raised low cost feed and the cull market stays up one could make the move. Best of success! |
is it worth expanding?
