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Investing for the Future of Your Operation

Garth Ruff, Beef Cattle and Livestock Marketing Field Specialist, OSU Extension

Across the country this cattle market continues to set records almost daily. At my local market recently the top 10 loads of fed cattle all averaged over $2.40, with the top load of 5 steers and heifers weighing 1556 pounds and averaging $247.59 per pound. I’ll do the math for you, that is over $3,800 per head!

The story is the same across the board, feeder cattle, cull cows, and bulls all selling for record prices. In 2024 CattleFax, based on survey data estimated the cost for keeping a cow (minus management cost and depreciation) in the Corn Belt was $795 while the average calf revenue was $1,615 per head. The cow-calf sector over the past several years has been profitable.

Where should we invest some of the profit in the current marketplace? I remember my days in Northwest Ohio where field tile and grain bins were often discussed positively as it relates to return on investment (ROI). What equates to field tile and grain bins in the beef cattle business?

In no particular order, let’s start with facilities. In 2025, I struggle to be able to find a reason as to why there are still farms with out at the very minimum a catch pen and a head gate. Just with the ability to add value to calves by castrating and vaccinating the ROI is pretty good for a simple but functional handling system. Along with handling systems, ventilation specifically in some of our older cattle feeding facilities can be easily and cost effectively improved on.

Farm succession planning is another area of high ROI, perhaps more so in a multi-generation operation. It isn’t a glamorous topic to address, but it is one that can make a world of difference should something happen to the principal operator. Getting into the cattle business requires a lot of capital. Having a farm succession plan can aid in ensuring a next generation can continue to farm and raise cattle.

Marketing. Have a plan. Look into risk protection. Do the little things right, sell uniform calves, don’t shortchange health protocols. If selling fed cattle, be a student and see what the order buyers are looking for, optimize versus maximize your feeding system. Building a herd of reputation cattle often speaks for itself as it relates to ROI.

Genetics. Certainly, higher cattle prices have driven up the value of a herd sire. I’ve written before about how valuable a good bull is to an operation.

As I wrap up, I want to leave you with some thoughts from a good friend, colleague, and better cattleman: John Grimes. While I was fortunate to work with John, I certainly learned a lot as well. He encouraged me to apply for this position and I’m glad I took that advice.

The first thought summarizes the discussion about investing the future of your operation. The latter is one that is a bit lighthearted has been stuck in my mind for a decade now.

In the 2018 Early Fall edition of the Ohio Cattleman. “The rules of engagement to be involved in the beef industry change rapidly. Regardless of if you are a part-time producer who works off the farm, raise cattle as part of a diversified operation, or operator of a full-time cattle enterprise, the continuation of your current business model should be re-evaluated. History can teach some valuable economic lessons, but we must recognize the beef industry will be impacted by unique economic and social changes.”

On beef genetics: “We need six breeds of cattle to produce high quality beef in the varying environments in the US.” I will let you all guess as to the breeds he went on to name in my beef production course in 2015. Hint: Angus was one of them.

Source: Ohio State University