In addition, other beef enterprises possess ideal opportunities to incorporate recreational activities. Once producers identify their strengths and weaknesses, they must accentuate the strengths and minimize the weaknesses. Although these three factors ultimately determine a beef producer's niche, production capital acts as the biggest limitation of that niche. I can assume that if your are reading this article, you have a limited monetary supply. Capital requirements generally increase as one moves down through the segments of the beef production chain.
Capital also limits the number of choices one has regarding genetic and environmental decisions.
A beef producer with limited capital might be wiser to purchase terminal cross bulls and produce feeder calves. Under this program, alliances might be formed with a seedstock producer to purchase bulls, and with another producer to purchase replacement heifers. Environmental limitations also should be considered when determining the direction of your operation. If you have large, unimproved pastures it is more difficult to manage a seedstock enterprise. Producers cannot afford to underutilize productive land.