Technology has made it possible for us to nearly double agricultural production in the last 60 years. That is quite impressive until you realize that our net profits per acre have substantially decreased during the same time period. How can that be? Our input costs have increased much faster than the prices we receive. Consequently, today’s status-quo producers are working harder and harder for less and less pay.
I have talked to a lot of producers and Herd Quitters – and I have yet to find anyone who believes this trend will not continue. I think it is obvious that a cow-calf producer’s net profit will become more and more dependent on inputs – or lack thereof – than anything else. Producers who are unable and/or unwilling to substantially reduce and/or eliminate inputs are slowly but surely going broke.
We still believe most of today’s cow-calf producers can double their sustainable profit per acre. I know most status quo producers disagree with this statement. So be it. Enough Herd Quitters have proven this statement to be true that it needs to be said – over and over again.
First and foremost, this will require producers to think in terms of production and profit per acre – instead of per animal. It will require producers to work with nature – instead of against nature. It will require producers to implement proper grazing management – and it will require producers to have efficient, low-maintenance, grass-based cattle.