News
Illinois livestock economist urges price protection despite strong cattle markets
An assistant professor at the University of Illinois says increased volatility in the cattle markets is leading more producers to explore risk management strategies.
Brittney Goodrich, who specializes in livestock for the FarmDoc team, tells Brownfield, “Even in these times where we have really high prices for cattle, we still need to be cognizant that there is that downward price risk. We need to protect against that.”
She says lingering droughts in cattle country, unclear trade policies, and lack of cattle imports from Mexico due to New World Screwworm concerns all point to continued volatility in the new year.
“Whether that’s hedging in futures markets, if you’re big enough.” She says, “If you’re not big enough, there are insurance programs for cattle producers. One called the livestock Risk Protection Program, which is basically a subsidized option, which is really good for small producers.”
Goodrich says the Livestock Risk Protection program has benefitted from increased subsidy levels in recent years, making it more attractive to farmers. She says producers should contact their crop insurance agent to learn more about the program.
AUDIO: Brittney Goodrich – University of Illinois
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