Investment Analysis—Purchasing Cows and Heifers in a Strong Cattle Market
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Many cow/calf producers
struggle with what is a fair price
to pay for cows or heifers in an
up cattle market. This article is
designed to demonstrate the
important relationship between
profitability and debt serving
capacity. With high calf prices,
it is important for each producer
to analyze the investment and
financial feasibility of
purchasing breeding animals.
Only after determining the
profitability of the investment
can a sound decision be made.