by Linda Geist, University of Missouri

Livestock producers are now 10 years into a 10-year cycle, says Joe Horner, University of Missouri Extension ag economist. Cow inventories are tight. Feeder calves available to feed will get tighter as higher prices encourage people to keep more heifers on-farm. Economists are forecasting good prices ahead.

A 50% hay cushion that you can rotate through every year comes as a one-time investment that is tax-deductible.

“2024 will be as good as any time we’ve seen since 2014,” he says. “Periods like the next two to three years only happen a few times in a 50-year farming career.”

Horner predicts higher margins will lead farmers to look for tax deductions. Rather than buying a new pickup or farm equipment, he recommends producers first invest in a “top 10 list” to make their farm business more profitable and resilient — more bulletproof — when the cattle cycle inevitably turns with lower prices:

1. Have a separate bull pasture. A defined breeding season reduces odd lots at the sale barn. Lots of like calves sell at higher prices. Batch calving is easier to manage.

2. Follow your veterinarian’s advice. Follow vaccination schedules and test for bull soundness, advises Horner. “Veterinarians create value on your farm because of what they know. Pick your vet’s brain and follow their suggested protocol.”

3. Invest in good cattle-handling facilities. Properly designed and maintained handling facilities make cattle working easier. Easy jobs get done, and good facilities lead to fewer injuries.

“You can’t put a price on your family’s safety,” he says.

4. Invest in good fences for weaning. Bawling calves bring less money at the sale barn, so do the extra work. Wean calves before selling. Buyers pay more for weaned calves.

5. Carry 50% extra hay inventory. Add 50% more hay stocks once and rotate out hay yearly. The carrying cost is a good investment.

“That’s your drought insurance, and it is easier than finding hay and it makes life less stressful,” says Horner.