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: Season 7, Episode 1: Managing Risk and Seeing Opportunities in U.S. Pork Production

Today’s episode features three guests discussing the similarities and differences between pork production in the United States and Brazil, along with strategies for managing risk in today’s industry while recognizing and acting on opportunities. First, Dr. Anne Caroline de Lara, executive manager of live pig production at Seara Alimentos, a JBS company in Brazil, is joined by Dr. Matthew Turner, head of operations for JBS Live Pork. Together, they discuss how labor, climate and ventilation challenges vary between Brazil and the United States, while underscoring their shared commitment to raising healthy pigs. They also point to lessons producers in both countries can take from one another’s systems and on-farm experiences. Then, Brady Reicks, risk manager at Reicks View Farms, shares his perspective on risk management, drawing from his background in markets and his transition into farming. He discusses how protecting margins varies by operation and offers practical approaches producers can use to make marketing and business decisions with greater confidence rather than hesitation.

Both conversations were recorded at recent industry events focused on swine livability, including the International Conference on Pig Livability and Iowa Swine Day.