Cattle feeding cost might alter practices

A Purdue University ag economist says cattle feeders are sustaining large losses to net returns.  Michael Langemeier tells Brownfield cattle feeding cost to gain went from $82.25 per hundredweight in January to an expected $102 to $105 for the second half of 2021.

“Each dime movement in corn prices, which is a small movement compared to what we’ve seen, increasing feeding cost to gain about 90 cents,” he said.

 Langemeier said higher corn prices typically cause a few management changes for cattle feeders including using alternative feed inputs and…

“We tend to back graze our cattle a little bit longer and the cattle aren’t placed on feed, these heavy corn rations, until they’re a little heavier,” he said. “We’ll see several different adjustments occur.”

Langemeier said feeders should think about locking in later corn contracts to manage risk against its upward potential.

Michael Langemeier Interview

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