Posted by Jerry/MT on November 17, 2009 at 17:21:16 from (206.183.116.129):
In Reply to: Where's the Beef posted by Larry B 1486 on November 17, 2009 at 10:04:35:
There probably isn"t a single factor that you can put your finger on. We"re in a recession and that usually means that people choose to spend their protein dollars on an the low cost alternative, chicken. With the alchohol mandate, a lot of ground that was devoted to fed corn shifted to alchohol production. That forced corn prices up and feeder cattle prices dropped as a result to lowered demmand and increased input cost. The gross margin for cow calf producers dropped significantly. My neigbor sold his calves last year for a $103/cwt and took $86/cwt this fall. Input costs increased (fuel,fertilizer,vet supplies, feed, etc) People who were just making it at $103/cwt are dead at $86/cwt so they sell the cows and get out. Most of the folks in cattle around here have their ranches paid off and aren"t hurt as much in a down year or two. But the guys that has a marginal operation with high debt is in bad shape.
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