By Andi Anderson
Cattle prices across the U.S. are reaching record levels. At local markets, top loads of fed cattle have recently sold for over $2.40 per pound, with some animals fetching more than $3,800 each. Alongside strong feeder and cull cow prices, the current market gives cattle producers a rare opportunity to reinvest profits back into their operations.
CattleFax data from 2024 estimated the average calf revenue at $1,615 per head, while keeping a cow cost just $795. This shows the potential for profitability in the cow-calf sector. But where should this profit be directed?
First, facility upgrades offer strong returns. Simple equipment like a catch pen and head gate allows better animal management, including castration and vaccination, adding value to calves. Improvements in ventilation, especially in older feeding barns, can be affordable yet impactful.
Farm succession planning is another key area. While not always urgent, having a solid plan in place helps secure the future for multi-generation farms. It ensures that the next generation can access capital and continue the business with fewer challenges.
Marketing is also critical. Developing a strong plan, exploring risk protection, and focusing on uniform, healthy cattle all contribute to higher returns. Understanding buyer preferences and fine-tuning your feeding system are small efforts that yield big results.
Genetics continue to be a valuable investment. High cattle prices have raised the value of quality herd sires. Choosing the right genetics helps build a reputation herd, benefiting the operation for years.
In the words of industry expert John Grimes, “The rules of engagement to be involved in the beef industry change rapidly.” Cattle producers must adapt to economic and social changes while maintaining strong business strategies.
Photo Credit: ohio-state-university
Categories: Ohio, Livestock, Beef Cattle