KindHarvest summary: New cattle businesses face production, market and financial risks that cannot be removed entirely. Farm Credit Mid-America specialist Dakota Everts recommends six management habits that give younger producers clearer information, stronger advice and a more deliberate response when conditions change.
Start with people and records
Find an experienced mentor who can act as a sounding board and identify gaps in knowledge. Keep detailed production and business records, from breeding dates to pasture leases and fencing costs, so decisions are based on what each animal group and enterprise is actually contributing.
Plan marketing and risk
A marketing plan should reflect the cattle being sold, available buyers, past results and possible disruptions. It provides a course of action without depending on an unknowable market peak. Risk planning should also consider weather, price falls, lost leases and suitable livestock insurance.
Track the business and build an advisory team
An annual balance sheet shows whether the business is gaining financial strength. Everts also recommends treating the lender as part of an informal advisory board alongside the mentor, veterinarian, accountant and marketing adviser. Timely, accurate information makes each of those relationships more useful.
Source and credit
This KindHarvest Team business brief is based on reporting by Gene Johnston for Successful Farming, published 11 May 2022. Read the full article at Agriculture.com.