The third scenario starts with one hundred pregnant cows weighing one thousand pounds each. Because the cattle have maintained their weight and are in good nutrition, we know that the next calf crop will be excellent. Due to sound management practices, this rancher also realizes a net gain of forty-six thousand pounds. In livestock production, it is essential to have a clear concept of how each environmental factor influences the animal and how animals can be bred to better adapt to a given environment. To evaluate the interaction between the animal and its total environment, a rancher must have a clear concept of what the total environment entails.
Many ranchers use operating financing.
They borrow against the expected calf crop since that paycheck normally comes in only once a year. Because their expenses are ongoing, the money made available by way of a loan keeps them current. This is fine as long as there is a calf crop. The profit margin of a small or medium size ranch may already be so low that the owners have to struggle for other sources of income, even in good times. Allowing things to reach this point quite often spells foreclosure and loss of a ranch that may have been in a family for generations.