Financial Impacts of Postdrought Beef Cow Herd Rebuilding through Debt Financing

Authors

Eric A. DeVuyst, Oklahoma State University - Main CampusFollow
Hannah Shear, Oklahoma State UniversityFollow
Derrell S. Peel, Oklahoma State UniversityFollow
Roger Sahs, Oklahoma State UniversityFollow
Scott Clawson, Oklahoma State UniversityFollow

Abstract

Drought conditions in much of the western United States have improved, leading to opportunities for cow-calf producers to rebuild beef cow herds. Given lower beef cow herds, many producers will need to borrow funds to purchase replacement heifers. We investigate how financial positions are impacted by leveraged replacement heifer purchases. The results are useful to producers and bankers. We suggest alternatives for financially struggling producers, including delay rebuilding to avoid significantly increased financial stress

Recommended Citation

DeVuyst, Eric A.; Shear, Hannah; Peel, Derrell S.; Sahs, Roger; and Clawson, Scott (2024) "Financial Impacts of Postdrought Beef Cow Herd Rebuilding through Debt Financing," Journal of Applied Farm Economics: Vol. 7 : Iss. 1, Article 1.
DOI: 10.7771/2331-9151.1074
Available at: https://docs.lib.purdue.edu/jafe/vol7/iss1/1