Farm Finance: Taking stock of high stock prices - will buying now pay off?

There can be some unintended consequences of higher stock prices, writes rural accountant and tax adviser Kieran Coughlan

One issue faced by some farmers who buy stock this time of year with the support of a stocking loan is they will find their usual stocking loan amount is in many cases not near adequate to fund the quantity of animals usually purchased. Picture: O'Gorman Photography.

Cattle prices are at a record high, which is fantastic for those with animals to sell, but not so good for those who have animals to buy. Hopefully, if prices remain strong, they will get a just reward when it comes time to sell. 

Speaking to one farmer this week, he said: "You’re either in the game, or you're not." His point was valid, and if you try to second-guess the market and jump in and out, it’s easy to get caught offside.