Young Ranchers Should Consider Selling Heifers Now -- Not Buying

Cattle prices are very strong right now as all of my smiling rancher friends know. Headlines read of the strong beef demand and high cattle prices. Is now the best time to buying cattle to expand your herd?

While at the Colorado Ag Classic recently Colorado State University Ag Professor of Commodity Markets and Price Analysis Dr. Stephen Koontz spoke about the cattle market. He encourages young people who are just entering the cow-calf business or have just a few years under their belt to take a long-term approach to buying and selling. I asked him if young people should be buying cattle in this high demand market.

Koontz: “No, if I was a young person looking into looking getting into the cattle business and I had any herd whatsoever, I would be selling heifers because the money is just too good. Sell the heifers and save the money you will be able to buy some of them back — not them in particularly — but you’ll be able to buy heifers back, or hold cows or even get cheap cows three to four years down the road is when expansion needs to be considered. Not doing it right now when everybody else is doing it. Because there is a lot of dollars chasing heifers right now. Sell them and buy them when they are cheaper.”