Will Increasing Corn and Soybean Prices Impact Feeder Cattle Prices This Year And in Future Years?

Apr 05, 2021

By Dr. Andrew Griffith

A question was asked last week how increasing corn and soybean prices will impact feeder cattle prices this year and in future years. In the short-run, higher feed prices will put pressure on feeder cattle prices, because it will be more expensive to feed them. However, this particular question was about pasture and hay acres potentially shifting into corn and soybean acres which would reduce the number of cattle over the next few years.

There is no doubt that some acreage could be shifted to row crop production, but it may take the form of intensifying land usage as opposed to a complete shift. Cattle production tends to work off a longer planning horizon than crop production so a price increase in grains and oilseeds does not mean a cattle producer should immediately change the course of action and shift land usage.

There is really no good way to answer the exact question that was asked, because there is no way to guess what land owners will do with land. The expectation is for stronger feeder cattle prices the next two to three years.

Source : osu.edu

Video: Canadian Seed Policy Modernization: An Interview With Lauren Comin of Seeds Canada

Seeds Canada’s Lauren Comin says agriculture is at a crossroads — and the seed sector has a rare chance to push bold reforms. Her message: farmers don’t need buzzwords, they need faster, cheaper access to innovation, and the window to act is now. Policy doesn't have to be boring. In this far-reaching conversation, Lauren Comin, Director of Policy at Seeds Canada, talks innovation, transformation, and what to expect from regulatory policy in the coming year. Full interview available on SW360. Policy is at the heart of the industry, and Lauren Comin, Director of Policy at Seeds Canada, is on the forefront. Hear her thoughts on current trends, how she’s pushing for innovation, and why the seed industry is at a crossroads in this far-reaching interview