Portions of the U. S. have recently or are currently experiencing extended periods of drought. Producers considering the purchase of breeding stock to rebuild herds while forage supplies recover could be doing so at or near the top of the current cattle price cycle. This research investigates purchasing additional hay and partial liquidation as management strategies under various scenarios of drought and price cycles. Results indicate that purchasing hay may be a more risky strategy than partial liquidation, and it only provides positive returns over a 12-year planning horizon when extended drought occurs during a trough-to-trough price cycle.