I am going to give away a secret to making money in the cattle business, no matter which segment you are in. You must think profit, and commit to it. If you hope to make a profit but spend most of your time worrying and/or thinking about losing money the predominant thought will certainly cause you to lose money. And you already have your excuse handy, its these up and down markets that make it impossible. There is nothing we can do right. However, if you commit to making a profit you will find yourself taking the necessary steps to hit that mark.
Here’s my closing thought this week: People are upset and saying silly things like the market is broken and we need government intervention or a bail-out for cattlemen. I, once again, outlined the market is trying to help us this week. How is that broken? We can make money on fats. We can make money as back grounders. The cow calf operator can make money with all the different classes of cattle in their inventory. The market is giving us a chance to make some real money right now. It’s also giving us the opportunity to lose big. Our free will and our way of thinking will dictate which side we choose to walk on.