Can high cattle prices pay for mistakes?

With cattle prices at record high levels and many forecasts projecting relatively high prices for the next couple of years, some producers feel they can do no wrong. In times like these, even less-productive cows and mismanaged calves are likely to make a profit.

High prices are a welcome change for cattle producers, but it’s important to remember that higher prices mean mistakes cost more than when prices are low, says University of Missouri Extension livestock specialist Eric Meusch.

Profit margins briefly increase during the high part of the cattle cycle, but this is also when a lot of money can be left on the table through poor management, Meusch said.

“Rather than becoming complacent and sloppy, it pays to refine your management to capitalize on higher prices and ensure that more money ends up in your pocket,” he said. “This means following the same approach you must follow during low cattle prices. Pay attention to the basics.”