NASHVILLE, TN – With calf prices at their highest levels in years, cow-calf operators have a range of strategies to capitalize on the market beyond simply expanding their herds. According to Kenny Burdine, livestock economist at the University of Kentucky Extension, the current environment is ideal for long-term investments that improve profitability and resilience.
Genetic improvements are one such option. Higher returns may allow producers to invest in better sires or upgrade their cowherds by culling more aggressively and adding higher-quality females. Facility upgrades also make sense, especially for operations looking to implement value-added practices such as health protocols or improved sorting and loading.
Improving grazing systems can reduce winter feeding costs, which are often the highest for cow-calf operations. Interior fencing, water access, and portable mineral feeders can help stretch the grazing season and reduce hay usage.
Stronger revenues also give producers a chance to pay down debt, reduce interest costs, and build working capital—moves that can lower risk and improve margins in less favorable markets.
While herd expansion may still make sense for some, Burdine emphasizes that each operation must assess what fits its goals, resources, and long-term sustainability.