USDA: Cattle producers could be paid more in 2022

Cattle producers are hoping the market rally at the end of 2021 is a good sign of things to come this year.

USDA says that producers may get more money for steers this year, even though we are still in the contraction phase. Consumer demand for beef is still strong, but producers are cutting back on breeding cattle.

This year’s calf crop was smaller than the year before and beef production this year is expected to be down 3 percent.

Economist Seth Meyers explains: “You know we might have a couple of years continuing decline in beef production as decisions made today still have to make their way into the system, and those steer prices, seeing a pretty good increase expected for 2022 and overall in steer prices.”

Those prices are expected to average $135.25 this year. That would be a 10 percent increase from last year.


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