Should I Liquidate the Herd While the Cattle Market is Strong?

Jan 16, 2025

By Dr. Andrew Griffith

This week a question was asked concerning liquidating the cow herd while the cattle market is strong. This is not the first time I have received this question as several producers have certainly entertained the thought.

The answer or the correct move for an individual producer is dependent on expectations, goals, longevity in the business, and alternative land uses if the land the cattle are on is owned. One thought some should consider is that the cattle market is expected to stay high for three years. If a person can stand to stay in business for a couple of years then it may be a wise decision to capitalize on a couple or three of years of strong calf prices and slowly market a few cows without keeping any heifers as replacements. This will result in taking advantage of the market while reducing the herd size. The producer can then reevaluate the alternative in year three and determine if liquidating the herd completely is still in the best interest of all parties.

Tax implications should also be considered when making this decision.

Source : osu.edu

Video: Season 7, Episode 1: Managing Risk and Seeing Opportunities in U.S. Pork Production

Today’s episode features three guests discussing the similarities and differences between pork production in the United States and Brazil, along with strategies for managing risk in today’s industry while recognizing and acting on opportunities. First, Dr. Anne Caroline de Lara, executive manager of live pig production at Seara Alimentos, a JBS company in Brazil, is joined by Dr. Matthew Turner, head of operations for JBS Live Pork. Together, they discuss how labor, climate and ventilation challenges vary between Brazil and the United States, while underscoring their shared commitment to raising healthy pigs. They also point to lessons producers in both countries can take from one another’s systems and on-farm experiences. Then, Brady Reicks, risk manager at Reicks View Farms, shares his perspective on risk management, drawing from his background in markets and his transition into farming. He discusses how protecting margins varies by operation and offers practical approaches producers can use to make marketing and business decisions with greater confidence rather than hesitation.

Both conversations were recorded at recent industry events focused on swine livability, including the International Conference on Pig Livability and Iowa Swine Day.