what to purchase

[danm]

I was looking at a few articles & the general opinion is that we are at the peak of the market for cows & calves,& we will just drop for the next couple of years. So here I sit with a bunch of hay that I do not want to spoil & looking at a market that is supposed to do nothing but drop. I was thinking of buying some bred heifers & get a calf out of them & then sell all next fall.I am trying to build a herd but the timing is not very good, what do I do until then,advice?

[kato]

Have you thought of feeding cattle for someone else? That way you use your feed and generate some cash, and they assume the risk. Sometimes lease arrangements on cows also work well, where you get a percentage of the calf crop. It would be a good source of heifers. As for getting in when they bottom out next, that is the perfect time. I would suggest starting to educate your banker well ahead of time, because when cattle are down, and you should be buying is exactly when the banks dig their heels in. As a group, they seem to have a problem grasping the 'buy low, sell high' concept when it comes to cattle. ;-)

[wilbur]

Remember we are moving into the upside of the cattle cycle, meaning producers will begin witholding heifers and cows. Calf price declines over the next three years are entirely grain price determined, not surplus supply shocked by any stretch of the imagination. Calf and yearling prices will still provide a profit for the next five years but not likely anything compared to this year. Think about buying a disposable cow herd to market your hay. Buying older bred cows early in the fall before the market develops at just over meat prices will get you some experienced units but may need a little extra care. Marketing these cows into the peak of the butcher market late next summer should recoup in cost, leaving you the calf for your winter feeding efforts. Be careful to avoid pre owned dealer cows.