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Alex Tolbert

Association Perspective

How to take advantage of these tides of change.

The price of gas, tuition, political leaders and, sadly, even the color of my hair (at least some of them) over time has changed. Each wave of change brings difficulties and hardships, yet inevitably yields opportunity, and through opportunity comes triumph. John C. Maxwell, famed author and leadership expert, asserts, “Change is inevitable, growth is optional.”

In today’s cattle market, it’s not hard to find smiling faces and good spirits. Whether you are in a sale barn in Fort Pierre, S.D., or at a production sale in Fayetteville, Tenn., people are happy to be in the business because business is good. In these times of historical prices and favorable margins, how do we harness this change to produce growth?

While I’m certainly no financial advisor, it’s imperative as producers to remember that we are also business owners, we are CEOs, we are CFOs and we are marketing agents. In this time of changing margins, we are offered a great opportunity to invest in the growth of our business, to position ourselves favorably for the days down the road when things may not be so favorable.

As the year draws to an end, I would encourage producers to take a look at your operation and identify areas where you can make sound investments that will improve your product, or improve the marketing of your product. Here are a couple of investments you might consider:

Genetics — Prices of cull cattle, whether your herd bull or that group of cows that we all have that we’ll get “just one more calf” out of, have never been higher. You may consider cashing them in to invest in a new herd bull with fresher genetics; or you may decide to take that money and invest in a group of young cows with lots of life in front of them, reducing the average age of your herd.

Technology — Technology and the use of technology are ever evolving and offer great opportunity for return on investment. We test our feed for nutrient content, we test our hay for forage quality and our soil for proper fertilizer application. How about genetic testing of your replacement heifers through GeneMax® Advantage™ or one of the high-density genomic tests to identify and select for the things you cannot see?

Advertising — What about advertising? If you don’t believe in it, McDonald’s and Coca-Cola sure do. People need to know what you have. I was surprised when Brian Forsee, a commercial producer from Owenton, Ky., asked me about building a website to showcase his commercial operation to help market his bred heifers … it is something to consider.

Relationships — While this may not help your taxes at the end of the year, this could be the single most important investment that you can make. Who bought your steers this year? The man gave you a nice check and didn’t ask for much … I’d want to know him. Establishing relationships up and down the chain pays dividends, especially when times get hard.

Positive changes help a growing business.

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Editor’s Note: Alex Tolbert is the regional manager for region 3, including Kentucky, Ohio and Tennessee. Click here to find the regional manager for your state.



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