Price Takers

Our big sale was last week.  The sale was right before a big blizzard, plus calf prices dropped 33% last fall.

The cattlemen buying the bulls took a shot in the shorts last fall and that deduction in income means less income for us.

Cattle ranchers are price takers.

The buyer(s) decide what your product is worth.  And you are stuck with the price.  Make money or lose money.

Farmers and ranchers are both risk takers- paying hundreds of thousands of dollars of expenses.  And then wondering if the market will hold.

And what price they will get.

Categories: Ranching in the Sandhills | Leave a comment

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