Southern IA | Jackrabbit - 3/3/2021 12:42
Great question and you are reaching the right conclusion. I am getting out in the next year as well. Ideally would wait until the cattle cycle tops in a couple years. Livestock guys (as a whole) have to be the worst businessmen on the planet. Almost all are willing to do it for a hobby. If half of the competition are willing to work for a loss that essentially forces all of us to work for a loss. Great to see you using opportunity costs - especially the cow depreciation number. A lot of guys don't even know enough to even look at it. Labor costs are tremendous as well if figured accurately.
I know a lot of livestock guys who have made a large amount of wealth and paid for a lot of land with livestock. I think we're just shaking all the weaklings out of the business who have been riding the coattails of prior generations. With all the people claiming they are exiting the business, the opportunity should be excellent, you're just going to have to do things a little different than they have been done the last 100 years. |
The economics of cow/calf and when to walk away?
