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Cow Calf Operation Costs Are Up. Tell Us How You’re Managing For This
The business success of beef enterprises often suffers because two questions are not evaluated regularly:
1. How much do I have invested in my cattle operation?
2. Can I get a fair market return
Nice article. Im curious how you are calculating the percentage price increase. Without doing any math, if something goes up 100% it doubles. All of the price increases should be doubled digit percentages in this article. Shouldn’t the percentage increase be the (price difference/original price)?
Thanks
Pat
Regarding return on investment (ROI), it is critically important that ranchers separate out the land investment/enterprise portion of their operation from all of their other enterprises. This is particularly true as land prices continue to be less and less connected to production agriculture. It is certainly handy to own some land, and we may have many good reasons for wanting to own more, but generally speaking, the more money you have invested in true cash-flow-positive enterprises the better off you will be. Land ownership is becoming less and less attractive and relevant to profitable agriculture.