Cash or Credit: Working Capital, Expansion & the Cycle | Ep. 20

The conversation covers the impact of drought on livestock management, market volatility, evaluating growth opportunities in the cattle cycle, timing and neighboring properties, and risk management in the Bred Heifer program. The speakers discuss the challenges of drought, market fluctuations, and the importance of timing in making growth decisions. They also explore the role of risk management in livestock operations. The conversation delves into the topics of hedging and risk management, emphasizing the use of tools like hedging and LRP for risk mitigation. It also explores the importance of timing in decision-making and the impact of market highs and lows on hedging strategies. Additionally, the discussion covers capital allocation, working capital, and the challenges of overhead allocation and enterprise management.TakeawaysDrought managementMarket volatilityGrowth opportunitiesRisk management Hedging and risk managementTiming is crucial in decision-makingChapters00:00 Drought Management and Its Impact03:08 Market Volatility and Impact on Livestock05:05 Evaluating Growth Opportunities in the Cattle Cycle19:37 Timing and Neighboring Properties29:13 Risk Management and Bred Heifer Program30:52 Hedging and Risk Management41:13 Capital Allocation and Working Capital54:18 Overheads and Enterprise Management