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Holding back cattle requires proactive business plan

Reference: FCC

Holding back cattle when processing facilities slow – or even stop – has multiple implications on the farm business. And the sooner risks are identified, the better.

“Being proactive is key,” says Denise Filipchuck, a farm management advisor of Swan River, Man. “The sooner you identify and address the risks and come up with mitigation strategies, the stronger your farm or ranch will be and be able to weather the storm.”

For example, she says keeping cattle back requires adequate holding facilities and pasture, both of which have financial implications. So does the human resources required to keep cattle longer. Producers may need to transition a worker from part-time to full-time, to handle increased obligations, she points out.

Filipchuck says planning is more effective if beef producers have a solid understanding of their financial position, including an updated net worth statement and a financial and strategic plan based on historical profitability and a scenario impact analysis.

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