Before the nation can rebuild its cattle herd individual ranchers must begin restocking, not an easy chore while drought hangs on and limits pasture and range recovery, says a Texas A&M AgriLife Extension Service economist.

“You have and will continue to hear about the glorious market incentives that will cause you to rebuild the national cow herd,” said Stan Bevers, AgriLife Extension economist from Vernon, who spoke at the recent Panhandle Ranch Management workshop in Amarillo. “But many people don’t understand there is a difference between rebuilding and restocking a cow herd.

Good records necessary for farm law assistance.

“Everyone’s ready to rebuild the cow herd. We’d all love to do it. Just tell me when my water is ready, and tell me when my grass is ready.”

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Rebuilding starts with restocking on the individual ranch level, Bevers said.

“The unique thing about a cow-calf operation compared to other components of the beef industry is it is a totally different business model,” he said. “We are talking about an asset management business where we have to pay attention to the fixed assets and fixed costs within that operation.”

Bevers explained that the only way from a micro-economic theory standpoint to decrease a fixed cost is to increase the number of cows.

 

Also of interest:

Records essential for livestock losses

Consider all options in restocking decisions

Rancher signup coming for federal drought relief