We are seeing a disturbing trend in small to mid-sized feeder lots.
They are sitting empty, while the packer-owned lots are running at full capacity. R-Calf USA CEO Bill Bullard warns that it could lead to a decline in independent farm feeders.
“We have extremely high prices because of the incredibly tight supplies, and that means the feeder cattle that would be moving into feed lots are in short supply, and so those prices have skyrocketed to never-before-seen prices. However, the fat cattle market is not keeping pace with the feeder cattle markets. That means there are a lot of independent feeders out there that would like to. Fill their feed yards, but they can’t pencil out a profit, nor can they hedge their purchases.”
Bullard adds that this situation could further reduce market outlets for cow-calf and yearling operators.
Tight cattle supplies keep prices high for ranchers, but policy shifts, export barriers, and packer losses signal a volatile road ahead for the beef supply chain.
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AFBF Economist Danny Munch shares how passing the Whole Milk for Healthy Kids Act could give the dairy industry a needed boost.
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Texas Cattle Feeders Association Chairman Robby Kirkland explains how the ongoing U.S.-Mexico border closure impacts feed yards that rely on Mexican cattle due to the New World Screwworm.
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Highly Pathogenic Avian Flu (HPAI) cases are rising. In the last week, seven commercial turkey, duck, and egg layer flocks were culled across five Midwest states and California.
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