Ranchers currently have exciting opportunities, but it’s important to position yourself appropriately. Operational costs as well as the price of critical inputs for cattle – such as feed and labor – have increased in recent years. To build a sustainable operation, ranchers should take advantage of the current market to develop financial resilience and thoughtfully manage risks.

How can farms rise above financial risks and a volatile market to eventually move toward growth? Three dairy producers opened up about their journeys and offered honest insight during a recent panel discussion.

For those considering growing their beef cattle herd, quick wins and day-to-day details may be extremely tempting to pursue. But like most things in life, it’s important to look well beyond the immediate. Expansion may have different meanings for different operations.

The livestock industry is thriving with high calf prices. Sound accounting principles are crucial for strategic investments and sustainable growth. Managerial accounting offers a broader perspective on expenses and profitability.

A well-conceived and coordinated plan is essential for a successful expansion that achieves the dairy family's objectives. Here are key areas to address and implement.

Making sure the farm is financially organized could be a key to running a successful and sustainable operation. Unlike many other industries, farmers are faced with unique challenges such as fluctuating market prices, unpredictable weather and potentially volatile cash flows. Ensuring you are aware of the current financial position of the farm by creating accurate and timely reports can allow you to make quick decisions when necessary.

During the farm crisis of the 1980s, the term “cash flow is king” drove home the importance of using cash flow to pay debt. That’s still important as we continue to ride the cycles of the industry, but a projection of earnings is equally important. As the calendar transitions to 2025, dive into the question of why both are valuable.

The current business climate of high interest rates and ongoing inflation is challenging. It requires business owners to be proactive and strategic with cash management, debt management and requires an overall increased focus on every aspect of the business.