HDRider
Well-known member
Maybe most of ya'll have read this. For those that have not, I thought it was good advice...
For those nearing retirement, the current prices offer the opportunity for a very profitable and slow exit from the ranching business. But a retiring rancher will want to spread the sale over three or more years for income tax purposes. Cattle prices should remain high for the next few years.
I suggest selling all calves born each year, slowly decreasing herd numbers. With no replacements retained and intensive cow culling while cattle prices are up, a herd will decrease 15%-25% annually. After three years, the rancher can then decide whether to liquidate the remainder of the herd or continue to shrink the herd for a few more years. This strategy will allow retiring ranchers to convert their cowherd into a nice retirement nest egg.
http://beefmagazine.com/blog/part-3-har ... ion-series
For those nearing retirement, the current prices offer the opportunity for a very profitable and slow exit from the ranching business. But a retiring rancher will want to spread the sale over three or more years for income tax purposes. Cattle prices should remain high for the next few years.
I suggest selling all calves born each year, slowly decreasing herd numbers. With no replacements retained and intensive cow culling while cattle prices are up, a herd will decrease 15%-25% annually. After three years, the rancher can then decide whether to liquidate the remainder of the herd or continue to shrink the herd for a few more years. This strategy will allow retiring ranchers to convert their cowherd into a nice retirement nest egg.
http://beefmagazine.com/blog/part-3-har ... ion-series