Cattle markets have delivered a year of historic highs. Both live cattle and feeder cattle futures have reached unprecedented levels, month after month. Many producers did what risk advisors recommend-they locked in margins through forward selling or hedging strategies. But as the market continued to climb, doubts and second-guessing crept in.

Margin calls and missed highs left some feeling they made the wrong move. But experts caution: **you didn't make a mistake-**you made a risk-based decision when the market gave you the opportunity. Now, with rising input costs and the natural volatility of livestock markets, abandoning risk management altogether could be dangerous.

Emotion often clouds decisions when the market rallies. If you've sold on a futures contract, seeing prices continue upward can feel like a loss-even though your physical cattle are now worth more. For others, watching neighbors profit from a do-nothing strategy adds mental pressure. But risk management isn't about beating the market-it's about protecting your operation from sharp reversals.

In commodity markets, what goes up often comes down-fast. A shift in consumer demand, feed prices, or export dynamics can send cattle prices plummeting. That's why the most disciplined producers stay the course. Comfort leads to complacency. And in high-price environments, complacency is costly.

What can producers do today? Maintain a balanced strategy. If forward contracting or hedging feels too limiting, consider call options to stay protected while retaining some upside. The goal is not to guess where prices are going, but to position your farm to weather both the highs and the lows.

Talk to a professional who understands your operation. Ask the right questions. Understand the costs and the coverage. The right strategy won't remove all risk, but it can minimize exposure and bring confidence to your marketing plan.

Commodity markets are always changing. Livestock producers who stay disciplined, ask for guidance, and manage emotion as well as price risk, will be better positioned for long-term profitability-even when cattle prices break records.