Ranches for Sale: Beef Market Outlook for 2015 Remains Optimistic
The beef market reached record highs in 2014, but that’s all in the rearview mirror. Now, farmers are looking forward to the market outcome this year, and outlook has been mostly optimistic. According to former Oregon Cattlemen’s Association president Bill Hoyt, although June beef prices weren’t as high as a year ago, they are still considerably better than the years that preceded 2014.
And it’s not only Hoyt who’s optimistic. Other Oregon ranchers, such as Stacy Davies of Roaring Springs Ranch, felt there were plenty of reasons to be positive as well. “These are very profitable times for the cow-calf and yearling sectors,” he said. The USDA National Agricultural Statistical Service claims that Oregon produced 1.3 million cattle as of Jan. 1 this year, slightly more than the 1.28 million recorded during the same period a year ago.
The business of producing and selling cattle can be a significantly lucrative one. If you’re planning to purchase a ranch for sale to raise cattle, it bears knowing that the amount of profit you make largely depends on your ability to market your calves.
Profitable cattle ranching is more than just fetching the highest price for your animals. First and foremost, you have to produce the type of calf desired by the market. You need to identify all your options and evaluate each based on potential cost and returns, then select the more profitable option over the more convenient one.
Evaluate the cost of raising cattle while you look for potential buyers, of hiring and training employees, and of keeping the cattle healthy for cow-calf producers. This means knowing the cost per pound of calf sold. Don’t hesitate to consult a local cattle rancher or ranch broker about how to compute your projected unit cost of production.
Plan for the Market
If you know where you’re going, you’ll reach your destination faster. That said, if your destination is to market your cattle at a profit, then you need to plan accordingly. A good place to start is to attend trainings and seminars on how to become a better cattle marketer and to learn better cattle ranch management.
If you’re ready to move forward with buying your own ranch in Oregon, get in touch with trusted brokers like Mirr Ranch Group.
Ranchers like outlook for cattle prices, Capital Press, Jul. 2, 2015
Profitable Cattle Marketing for the Cow-Calf Producer, UGA Extension