Think Feed Is Your Biggest Cost? Jim Gerrish Says You're Looking at the Wrong Number

In this episode, Jim Gerrish challenges one of the most common assumptions in the cattle business—that feed is always your largest expense. While winter feed has traditionally topped the budget for most cow-calf operations, Jim explains why that may soon change. As the cattle cycle shifts, depreciation—not feed—could become the biggest financial threat facing producers over the next several years.

Drawing from decades of research, industry data, and real-world ranch consulting, Jim reveals the financial metrics that actually separate profitable operations from struggling ones. He explains why producers often focus on improving weaning weights while overlooking the costs that have a far greater impact on the bottom line.

If you're serious about protecting profitability through changing markets, this episode will challenge the way you evaluate your operation.

🔑 Key Points Covered

Why cow depreciation could become the largest cost in your operation over the next 1–3 years.

How the cattle cycle impacts profitability beyond cattle prices.

The surprising research showing feed costs account for over half of the variation in ranch profitability.

Why equipment and facility depreciation often hurts profits more than producers realize.

What the Standardized Performance Analysis (SPA) data reveals about successful cow-calf operations.

Why chasing heavier weaning weights rarely delivers the financial returns producers expect.

The hidden costs of producing and feeding hay that many ranchers never calculate.

Why herd size alone has very little influence on profitability.