Do cattle work for you or do you work for cattle?  This fundamental question gets to the root of an underlining problem in today’s cattle complex, especially on the cow/calf producer side.  Too often we treat our cattle enterprise as a hobby rather than as a business whose goal is to be profitable.

I had a young man come in my office one day who wanted to purchase a new cattle trailer for his 10 cow operation.  The shinny new all aluminum trailer was almost $15,000.  After he talked for twenty minutes about all the bells and whistles of the trailer and how it would make hauling his calves to market so easy I asked him one simple question. Does a calf bring any less money if it gets to the sale barn in a $1000 trailer?  This caught him off guard and after he swallowed some humble pie we talked about the economic impact of buying that trailer.  If he took what would have been a $500 per month payment and reinvested that into his cow herd, at the end of three years he would have enough income to pay cash for the trailer if he still wanted it.

I am happy to report that that young man did the smart thing and is now on his way to having a profitable cattle operation.  Amazingly, after three years of reinvesting into his herd, he decided his old trailer worked just as well as a new one.  I know I talked myself out of making a $15,000 loan but some day that young man will need to expand his cattle herd and will be in a financial position to buy that piece of pasture to incorporate into his cattle operation.  Trust me; he will remember me when he needs a little help buying it.

Now there is nothing wrong with new trailers, trucks, tractors and gadgets.  I fall victim to shinny new stuff just like everyone else.  I am going to the Ozark Farm Fest in Springfield Mo this weekend and I am sure there will be some piece of equipment or a new diesel pickup that I just have to have.  Oh, it would make my life so much nicer and my cows would look good behind a 2010 Dodge Ram but the answer is no.  My dog is my pet not my cows.  My cattle operation has to make money even if that money is reinvested back into the operation.

Dave Ramsey is famous for the quote “Live like no one else so that someday you can live like no on else” and I couldn’t agree more.  I talk with many young couples that are on the brink of bankruptcy but have two brand new vehicles in the drive way or one of them uses a credit card like an ATM machine.  Our generation has replaced the concept of save for enjoyment with borrow for enjoyment.  Now don’t get me wrong, credit is a valuable tool but borrowing needs to be sound and constructive.  Managed debt is the key but we need to learn a good lesson from our grandparents who struggled through the depression and that is save first - pay later.

What do you think?  Do you think I am way off my rocker or am I making some sense?  Just remember, sustainable agriculture has to be profitable agriculture.  Email me at hardeckecattle@hotmail.com with your comments.