Spring is the Right Time for Cattle Budget Checkup

By Blake Jackson

“With cattle prices as high as they have been, it can be easy to assume this will be a profitable year,” said Jacob Hefley, University of Missouri Extension agricultural business specialist. “However, high market prices aren’t guaranteed to last, and rising input costs can quickly eat into profits. Because of this, a budget checkup can help you assess where your finances currently stand and help you make more-informed decisions on things such as culling, marketing and calf retention.”

With cattle prices currently high, it may seem like a profitable year is ahead. However, Hefley reminds farmers that high prices may not last and rising input costs could impact profits. A timely budget checkup can help farmers understand their financial position and make better decisions about culling, marketing, and calf retention.

If you created a beginning-of-year budget, revisit it now. Compare your earlier estimates for cattle prices and input costs with today’s actual figures. After calving season, review if your calving rates matched expectations. Even if your initial budget showed promise, assumptions may have changed and need adjustment.

For those who did not create a budget earlier, Hefley encourages them not to worry. It is not too late to perform a financial wellness check and update future plans.

Reassessing your budget helps pinpoint areas that may be affecting profitability. Look at winter feeding expenses. Could improving grazing management, stockpiling forage, or investing in better hay storage help? Have medical costs been higher than expected? Identifying these issues early can guide better decisions moving forward.

The University of Missouri Extension offers detailed budgets for different cattle enterprises such as cow-calf operations, backgrounding, feeding, heifer development, and direct beef sales. These tools help farmers understand income and expenses, monitor changes, and estimate future profitability.

Farmers can visit the University of Missouri Extension website to access these budget templates. For additional help, contacting a local agricultural business specialist is highly recommended.

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