It is becoming more and more obvious the future belongs to those who are able to successfully transition to a low-input (high-profit) program with efficient, low-maintenance cows. It belongs to those who are taking the Ten-Step approach to Profita-BULL, Enjoya-BULL and Sustaina-BULL ranching. Cow-calf producers who have taken these steps are two to four times more profitable than their neighbors. Allow me to share the first four of the Ten Steps to Double Your Profits.
Step 1… Focus on pounds and profit per acre – instead of per animal. There is a BIG difference. Trying to increase pounds per animal will always have a negative effect on your profits.
Step 2… Purchase ultra-low-maintenance bulls that will produce cows that fit your environment. This is much easier and much more profitable than artificially changing the environment with expensive inputs to fit your cows.
Step 3… Increase stocking rates by over 30% with the right size and type of cows. Smaller, more efficient cows will always produce more total pounds per acre – and those pounds will always be worth more per pound.
Step 4… Utilize rotational grazing to increase forage production and stocking rates by another 50 to over 200 percent. Stocking rate affects profitability, or lack thereof, more than anything else.
If you have not taken these steps… NOW is the best time to get started. Why wait? If you wait until you are forced to make changes in your operation, it may be too late. In the last 20 years, nearly 200,000 cow-calf producers have gone out of business. That represents a decline of 20%. Most of these operations went under because they did not have enough income to cover their expenses. I fully expect the next 20 years will be substantially worse than the last 20 years.
Opportunities Abound… As you might expect, cow-calf producers who are two to four times more profitable than their neighbors are slowly but surely buying out their neighbors. This allows them to create a business that will support the next generation – and beyond. Properly done… ranching is a tremendous wealth-building tool.