Being Average

While thumbing through a status quo beef publication, I came across an article about “average producers.”   The leadoff sentence said, “Being average in the cow-calf business means you are probably just breaking even.”   That got my attention, so I read on.

When you look at cow-calf producers across the nation, you will find producers with several thousand cows all the way down to producers with just 20 cows.   Nationwide, most cow-calf producers have small herds that are subsidized by off-farm income.   Their cow-calf programs were never designed to be profitable.  

Competitive Advantage

When a business is able to sustain profits that substantially exceed the average for its industry, that business is said to have a competitive advantage.   We firmly believe having a competitive advantage will be the difference between mere survival and true success in the future of the cow-calf business.   There is no reason you cannot have a competitive advantage – if you want one.   It is up to you!   There are two primary types of competitive advantages – a cost advantage and a differential advantage.A cost advantage exists when a business is able to deliver the same product as competitors but at a much lower cost.  

The Power of Persistence

With the coming of the New Year, it is traditional to look back at what happened, good or bad, in the world around us.   For the cattle industry, one definite change I have seen in the last year is that “cow size” is mentioned more and more and finally given its full due – even in the freebie magazines!   These are the same magazines devoted to following the path of the money laid down by the sellers of inputs who depend on pushing production as opposed to profit.

Going back to the early 1970s,

Profit Per Cow is a Loser

One of the smartest things I’ve heard anyone say was Johann Zietsman’s comparison of corn farming and beef production.   The rancher-consultant from Zimbabwe said if corn farmers thought like beef producers, they would space their plants far apart and try to maximize the number of kernels per ear and the number of ears per plant.   They would think nothing about yield per acre.   In the end, they would surely go broke.

This is pure, sound logic, and yet the cow business has been chasing profit per corn plant …

Easy Money

The easiest money you will ever make is the money you DON’T spend.   Ben Franklin once said, “A penny saved is a penny earned.”   Folks, this is just as true today as it ever was – and it applies to every $10, $100 and $10,000 you DON’T spend.   Guess what?   This income is tax-free.   You DON’T have to pay income taxes on the money you DO NOT spend!

Reducing and eliminating expenses is easier than most cow-calf producers think – but it will require a paradigm shift for most producers.  

Tremendous Response

I received a tremendous amount of response to last week’s PCC Update.   This included an inordinate number of unsubscribers.   To be honest, I expected to receive a tremendous response.   Our Cowboy Logic said, “You’re not old until your dreams are replaced by regrets.”   I followed that with an article entitled “Regrets” which was followed by an article entitled “A Cowboy Hat and a Dream.”

All of this was designed to push people out of their comfort zone and challenge them to make the most of their life – before it is too late.  

A Cowboy Hat and a Dream

I am fortunate enough to know several very successful cattlemen who started out with nothing more than a cowboy hat and a dream.  They did what everyone in the status quo herd said could not be done.  I have always been greatly impressed and inspired by such people.  Some of these people did not even have an agricultural background.  In my opinion, that was more of a blessing than a curse.  They were not handicapped or hindered by status quo traditions and ways of thinking.

Fall 2018 Bull Sale Analysis

We sold 381 low-maintenance, grass-developed bulls in our two fall bull sales for an average price of $5509 – with a range of $2500 to $14,000.   Below is a brief analysis of our two sales.   Calving ease, fleshing ability, disposition and overall rating were evaluated and scored using our unique 5-star system.   In this system, 5-star is the best and 1-star is the worst.

 

Consider the Future

Have you noticed that the most successful and happy people throughout history have been those who made decisions that were based on the future?   It’s true!   Successful people know that nothing stays the same.   The present is different from the past – and the future will be different from the present.   Those who make decisions that are based on the future will always have a HUGE competitive advantage over those who continue to make decisions based on the past and/or the present.

Unfortunately, nearly all people from all walks of life are afraid to make decisions that are based on anything but the past or the present.  

Where Else?

We hope you are making plans to attend and/or participate in our Colorado Bull Sale…

Where else can you purchase coming-two-year-old bulls that have been developed on native grass?   Where else can you find bulls that were produced by efficient, easy-fleshing, moderate-sized cows that have never been pampered?   Where else can you find bulls that can reduce cow size and maintenance costs – without cheating you on pounds?   Where else can you find bulls that come with a One-Year Guarantee?  

Three Keys to Financial Success

Status quo cow-calf producers are getting by – but most would not consider themselves to be financially successful.   Truth be known, in a ten-year period, status quo producers are doing very well just to break even.   Well over half of them won’t break even.   In a nutshell, there are three keys to attaining real financial success in the cow-calf business.

1. Reduce and eliminate expenses
2. Increase pounds per acre
3. Sell calves for a premium

Reducing and eliminating expenses is easier than most cow-calf producers think – but it will require a slight paradigm shift.  

Hottest Topic in Nebraska

There was a tremendous amount of talk and excitement at the Nebraska Bull Sale about PCC’s Grass-Fed Beef Alliance with Cactus Feeders and Tyson Foods.  Cow-calf producers are thrilled to be receiving big premiums for their calves and yearlings.  Everyone wants to be involved.  More than once I heard someone say, “This is a No-Brainer!If you would like to know more about this program and how you can participate, make plans to attend our pre-sale meeting Sunday night in Burlington,

The Three Cs

Circumstances are where you are right now.  You had no control over some of your circumstances.  Circumstances of your birth and childhood, for example, are not the result of any choices you made.  Other circumstances, however, are the consequence of choices you have made.

Choices are what you make happen to alter your circumstances.  The choices or decisions you don’t make can have as much of an effect on your circumstances as the choices and decisions you do make.

PCC’s Grass-Fed Alliance

There continues to be a tremendous amount of excitement about PCC’s Grass-Fed Beef Alliance with Cactus Feeders and Tyson Foods.  Everyone is anxious to see how the steers in in our trial run perform and grade.

We have already procured 2000 head of PCC calves for late fall delivery.  Tim Goodnight is in the process of going through customer surveys to identify cattle for deliver next spring.  Cow-calf producers are thrilled to receive a $75 to $120 per head premium for their calves.

If you would like to know more about this unique program and how you can participate,

The Total Program

Pharo Cattle Company does much more than sell bulls.  We provide a program and a way of thinking that are focused on helping you make your business as profitable, enjoyable and sustainable as possible.  Our ultra-low-maintenance bulls are just one part of this program.  We also provide a way for you to receive a substantial premium on your calves.  There are several reasons our customers are the happiest and most profitable cow-calf producers in the world.

Create Your Future

We believe… people have the ability to create their own future.  Yes, we know many things are totally out of our control – but we also know many things are within our control.  The key is to focus on the things we have control of – and take action.  Make things happen!  The world is full of people who just sit around waiting for something to happen.

Quote Worth Re-Quoting –

“Some of the world’s greatest feats were accomplished by people not smart enough to know they were impossible.” ~ Doug Larson

 

Willingness to Change

Whether you want to believe it or not, your long-term success in the cow-calf business will be dependent on your willingness to make some changes.  Cattle prices will continue to go up and down – while the cost of inputs will continue to go up.  In the last 50 years, the cost of inputs has risen four times faster than cattle prices.  As time moves on, more and more producers will fail to have enough income to cover their expenses.

WHATCHA GONNA DO?

Those who would like to increase their long-term,