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 6, Episode 7: Takeaways from the Second International Conference on Pig Livability

This year’s conference fostered open, engaging conversations around current research in the swine industry, bringing together hundreds of attendees from 31 states and six countries. Two leaders who helped organize the event joined today’s episode: Dr. Joel DeRouchey, professor and swine extension specialist in the Department of Animal Sciences and Industry at Kansas State University, and Dr. Edison Magalhaes, assistant professor in the Department of Animal Sciences at Iowa State University. They share key takeaways from the conference, including the importance of integrating data when evaluating whole-herd livability, building a culture of care among employees and adopting new technologies. Above all, the discussion reinforces that this industry remains, at its core, a people business.