Beef Buzz News
Lance Zimmerman with Cattlefax Offers Cow Calf Producers Strategies for Success
Fri, 20 May 2022 08:44:08 CDT
Ron Hays, Senior Farm and Ranch Broadcaster features comments from Lance Zimmerman, Director of Research and Protein Marketing Analysis for the CattleFax organization, talking about a cow-calf strategy for success.
Zimmerman was part of the podcast Cattle Chat recently talking about cow-calf operators and the need to balance your time between production and marketing decisions. In other words, being successful with production details will help you be successful overall, but Zimmerman says you can't neglect things that are going on outside of your control beyond the farm gate.
"Time and time again, your most profitable operators, whether it is a cow-calf producer, whether it is a wheat producer, whether it is a row crow farmer in Iowa, you are always better off, financially, in those benchmark databases if you are a producer that focuses most of your time and attention internally on what you can control," Zimmerman said.
While Zimmerman said cow-calf operators primarily need to be taking care of things they can control by watching those things at the farm gate and inside the ranch operation, at the same time, he said for those that are successful at navigating these marketing risks, those things outside of the farm gate have a chance to enhance their bottom line.
"Producers that have an ability to react and change their marketing, and change their management based on this big kind of macro-level industry discussions do a great job of maintaining operational flexibility," Zimmerman said. "They do a great job of being situationally aware of what the market is around them.
Zimmerman said this gives producers the opportunity to be able to react no matter what is thrown at them.
"I cringed every time I picked up a popular press magazine article and it talked about how you just need to retain ownership," Zimmerman said. "That is not a risk management strategy, in fact, it is quite the opposite. Any time you own an asset, and you invest more money in that, and you tie up more dollars and time in it, you are inherently adding risk."
While the risk of retaining ownership might be worthwhile, Zimmerman said it is something you have to assess as you look at that particular situation. He calls it an opportunity risk.
"At certain points in a cycle, long-run production expansion, contraction cycles that we go through in the ten-year cattle cycle in the industry, there are probably long-run periods and there are probably even short-run periods where you may be willing to take on more production risk by retaining ownership because the return to enhancing your marketing flexibility is greater than the risk you inherit," Zimmerman said. "I think we are in one of those times now."
We are still contracting as a beef cow industry, Zimmerman said, but he thinks the producers that are already thinking ahead, even in the middle of a historically strong drought since 2012, are already thinking about how their cowherd and pastures are looking to make expansion decisions based on the cow market.
Click the LISTEN BAR below to hear more from Lance Zimmerman on a cow-calf strategy for success.
Click here to jump to the K-State Beef Cattle Institute Cattle Chat podcast to hear the full conversation that included Lance Zimmerman.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
Ron Hays Beef Buzzes with Lance Zimmerman of Cattlefax
right-click to download mp3
WebReadyTM Powered by WireReady® NSI
Beef News
NCBA's Ethan Lane Voices Concerns with the Cattle Price Discovery and Transparency Act of 2022 Fri, 24 Jun 2022 08:57:35 CDT
Cattle Price Discovery and Transparency Act of 2022 Passes with Objections Thu, 23 Jun 2022 13:14:46 CDT
Notable Increase in the Cost of Gain in Feedlots for 2022 says Dr. Glynn Tonsor Wed, 22 Jun 2022 16:13:24 CDT
Dan Halstrom Anticipates More Billion-Dollar Sale Export Months for Beef Exports but Warns of Headwinds Tue, 21 Jun 2022 09:57:08 CDT
USMEF's Dan Halstrom Sees Signing of Ocean Reform Act Helping U.S. Meat Exporters Be Reliable Suppliers Mon, 20 Jun 2022 13:23:18 CDT
A.J. Tarpoff Provides Medical Explanation for Cattle Deaths in Kansas Fri, 17 Jun 2022 10:13:21 CDT
Unusual Heat Conditions in Southwestern Kansas Result in Feedlot Cattle Deaths Thu, 16 Jun 2022 09:22:24 CDT
Montie Soules, CEO of the American Shorthorn Association, Promotes America's First Breed Wed, 15 Jun 2022 10:23:32 CDT
Cattlemen's Congress: The Show by Cattle Producers for Cattle Producers Tue, 14 Jun 2022 10:08:29 CDT
New Potential Listing Under Endangered Species Act to Cause More Regulatory Burden for Producers Mon, 13 Jun 2022 10:20:48 CDT
Derrell Peel Analyzes Multiple Reasons Ground Beef Market Holding Strong Fri, 10 Jun 2022 09:52:14 CDT
NCBA Hopeful the Supreme Court Will Provide Clarity on What is a WOTUS Thu, 09 Jun 2022 10:23:34 CDT
Cattle Producers Voice their Concerns at WOTUS Roundtable Thu, 09 Jun 2022 04:12:49 CDT
Dr. Wesley Tucker Advises Ranchers Against Overstocking to Increase Revenue in the Long Run Tue, 07 Jun 2022 09:37:16 CDT
New Technology Allows Ranchers to Control Mesquite Better than Before, says Brian Cain with Bayer Mon, 06 Jun 2022 13:36:29 CDT
Cattle Numbers and Prices to be Impacted by Poor Pasture and Range Conditions Fri, 03 Jun 2022 10:35:00 CDT
OCA Executive Vice President Michael Kelsey Believes Attorney General O'Connor is a Good Fit for Agriculture Thu, 02 Jun 2022 10:10:35 CDT
China Phase One Trade Deal a Success for U.S. Beef Wed, 01 Jun 2022 09:30:45 CDT
Robin Reid Urges Producers to Sign up for the USDA's LFP Program to Receive Assistance During Drought Tue, 31 May 2022 15:21:05 CDT
Congressman Frank Lucas Waits on DOJ Decision on Possible Criminal Wrongdoing by Big Four Packers Mon, 30 May 2022 09:32:15 CDT
David Lalman Stresses the Value of Being Proactive Before Poor Forage Condition Arise Thu, 26 May 2022 11:01:27 CDT
NCBA's Mary Thomas Hart Wants to Push Back Proposed SEC Reporting Rule Wed, 25 May 2022 10:41:26 CDT
Strong Marketings Key to Working Through Record Cattle Numbers in US Feedlots Tue, 24 May 2022 08:06:28 CDT
Cattle on Feed Report Shows Biggest May First Inventory Since 1996- Drought Pushing Cattle Into Feedlots Sat, 21 May 2022 15:01:06 CDT
Lance Zimmerman with Cattlefax Offers Cow Calf Producers Strategies for Success Fri, 20 May 2022 08:44:10 CDT
Kent Bacus says NCBA is Committed to Promoting Trade to Benefit US Cattle Producers Thu, 19 May 2022 09:54:10 CDT
John Butler with the Beef Marketing Group Communicates to Consumers that the Beef Industry is Sustainable Wed, 18 May 2022 09:46:15 CDT
John Butler with Beef Marketing Group Aims to See All Segments of the Beef Industry Working Together Tue, 17 May 2022 09:44:42 CDT
Fewer Pounds of Beef Coming in the Beef Pipeline Mon, 16 May 2022 09:02:35 CDT
NCBA's Colin Woodall Gives Credit to Cattle Producers for Always Being Sustainable Fri, 13 May 2022 11:08:03 CDT
Dakota Moss Describes Benefits of Utilizing an LRP Program for Cattle Producers Thu, 12 May 2022 09:53:54 CDT
Historically Poor Pasture Conditions to Hit Beef Supplies Ahead Wed, 11 May 2022 11:31:21 CDT
Six Years After Repeal, Senator John Thune Still Wants Mandatory Country of Origin Labeling Tue, 10 May 2022 09:39:50 CDT
USMEF's Erin Borror Suspects Increased Herd Liquidation May Lead to Tighter Supplies in the Future Mon, 09 May 2022 12:29:27 CDT
USMEF's Erin Borror Sees Growth in US Beef Exports for the Remainder of 2022 Fri, 06 May 2022 10:13:22 CDT