Conventional wisdom tells us that the proper strategy to investing in a business or commodity is to “buy low and sell high!” I have heard that phrase for years and would agree that it is sound advice. However, the current outlook for the beef industry might put a different spin on the traditional investment advice.
There is little doubt that there is plenty to be excited about in the beef cattle industry. Nearly every class of beef animals is receiving historically high prices. The portion of the country experiencing drought has been reduced significantly over the past two or three years. Feed costs are trending downward on the expectations of a second consecutive large corn crop and improved forage production across much of the country.
Nearly all the market signals are in place for cattle producers to expand their herds. Yet, the U.S. beef cow producer fully realizes that expanding the herd is a long-term investment and commitment.… Continue readingRead More »