Remodeling Your Production System
Production systems developed and optimized with $1.25/lb calves, $2/bu corn, $40/ton hay, $30/acre pasture rents and $150/ton nitrogen need to be re-evaluated in the light of higher input costs and cheaper calves. Economic returns to cowherds depend on both revenue and costs. Both of these depend on your production system and most if not all the pieces interact within the system of production, marketing and management. Following an overview of the economic implications of changing market conditions, we discuss a few of the critical factors that producers should evaluate and before deciding to remodel their system.