4 Ways to Invest Cattle Income in Drought

In the face of recurring droughts and the emotional toll of selling beloved cattle, it's crucial for cattle producers to find innovative ways to invest in their farm's long-term efficiency. By understanding how to strategically manage income from cattle sales, farmers can transform their operations and build resilience.

Let's explore four game-changing ideas for turning income streams into valuable investments

1. Revitalizing Forages: Your Farm's Lifeblood

Forage is crucial for grass farmers, but extreme weather conditions strain pastures and hayfields. Assessing fields requires renovation, fertilization, weed control, and overseeding legumes. Adapting grazing mix for cool and warm seasons can improve preparedness for future droughts.

2. Fencing and Water: Enhancing Forage Management

Investing in additional fencing and water sources empowers rotational grazing and maximizes forage utilization. As input prices rise, smart forage management becomes invaluable. Even small improvements in fencing and water systems can yield substantial dividends for years to come.

3. Unlocking the Power of Irrigation

While not commonly associated with Midwest cattle production, consecutive years of drought have sparked interest in irrigation. Producers with access to large water sources can make small investments in highly mobile irrigation systems to boost high-value forages. Though not suitable for everyone, it can be cost-effective in certain cases.

4. Upgrading Feeding Infrastructure: Expanding Options

Consider strategic investments in feeding infrastructure as an alternative to high-priced hay. Silage feeders and bulk storage can open up more feeding options, reducing dependency on costly feeds. Evaluate the cost versus return for investments such as hay unrollers, hay barns, quality hay rings, and silage-handling equipment.

By thoughtfully planning spending and considering these strategic investments, you can fortify your farm's resilience against future droughts.

Remember, the goal is not to make impulsive purchases based solely on tax advice but to make well-informed choices that contribute to a sustainable and prosperous future for your cattle operation.

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