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.
Agri Stats would no longer be allowed to show participant lists, rankings, or “flags,” and it could only report individual company data in narrow situations.
Farmdoc economist estimates 2024 colony stock losses at roughly $175 million, with rebuilding and renovation costs near $161 million.
For dairy producers, that could help support fluid milk use in cafeterias, breakfast programs, and other child nutrition settings.
U.S. beef imports are running at a record pace while exports are falling, reflecting tight domestic cattle supplies and high U.S. beef prices.
ASFMRA’s Chad Hertz joins us to discuss farmland trends, economic pressures facing producers, and how outside influences are shaping today’s land market.
Cattle analysts say the U.S. beef cattle herd rebuild still faces major hurdles despite some minor positive signals noted in certain regions.
