In the News

The drought conditions and extreme wildfires this season have created a shortage of feed typically available for grazing livestock. This shortage leaves many operators with tough management decisions to get through the loss suffered at the hands of Mother Nature.

If you find yourself managing through a feed shortage, there are a few options to consider. Options include selling some or the entire production herd and purchasing replacement stock after the drought, selling animals earlier, purchasing or raising enough feed to cover any feed shortage, and shipping livestock to a location that has feed available. All of these decisions come with challenges, but a thorough analysis of the financial implications surrounding each option will help you make prudent management decisions during difficult times.

To help our customers with this decision, we have created a calculator that will analyze the financial implications of each of these scenarios. This will help livestock producers make decisions based on the reality of their operation. If you are interested in this tool, click here.

This information is provided for general reference. Please consult a tax advisor and your loan officer before implementing a modified business model. We certainly hope that the drought will not continue for an extended period, but we know that wise management decisions now will help producers get through the challenges brought on by the drought.