Investing for the Future

By Garth Ruff

Across the country this cattle market continues to set records almost daily. At my local market recently the top 10 loads of fed cattle all averaged over $2.40, with the top load of 5 steers and heifers weighing 1556 pounds and averaging $247.59 per pound. I’ll do the math for you, that is over $3,800 per head!

The story is the same across the board, feeder cattle, cull cows, and bulls all selling for record prices. In 2024 CattleFax, based on survey data estimated the cost for keeping a cow (minus management cost and depreciation) in the Corn Belt was $795 while the average calf revenue was $1,615 per head. The cow-calf sector over the past several years has been profitable.

Where should we invest some of the profit in the current marketplace? I remember my days in Northwest Ohio where field tile and grain bins were often discussed positively as it relates to return on investment (ROI). What equates to field tile and grain bins in the beef cattle business?

In no particular order, let’s start with facilities. In 2025, I struggle to be able to find a reason as to why there are still farms with out at the very minimum a catch pen and a head gate. Just with the ability to add value to calves by castrating and vaccinating the ROI is pretty good for a simple but functional handling system. Along with handling systems, ventilation specifically in some of our older cattle feeding facilities can be easily and cost effectively improved on.