SELL STOCK EARLY
In the last serious dry spell in the Waikato, the cost of small bales of hay shot up from $5-6 to $25+, if you could find it. There was no grass growth – because there was no rain – from October until May, and the feed shortage continued until the following spring because pastures took so long to recover.
Research into previous droughts shows those who come through these kinds of situations best and with the highest income are the ones who sell stock early – even at a loss – rather than buy in feed or move stock to agist on another property. Selling early at a loss is always more economic than selling later at a greater loss.
The earlier you sell, the more likely you’ll get better prices because stock will still be in reasonable condition and the market won’t be as reactive. You will also then save all the costs of supplementary feed.