News

Managing cattle risk

Prices are up in the cattle markets, but so is risk.       

“I think we’ve got more to lose, but we also have more to protect.”

Dave Duzan, outgoing president of the Illinois Beef Association, says he’s utilized the USDA’s Livestock Risk Protection program to safeguard his operation.

“It’s a put option.”  He says, “It basically puts a floor for a subsidized premium. You can do it on calves. You can do it on fed cattle. So, for small cow/calf guys, I think it makes a lot of sense.”

He tells Brownfield…

“It’s a huge drain on equity; you know as feeder cattle get higher or fed cattle get higher.”  He says, “I think there’s a lot of producers going back and asking lenders to increase lines of credit. They want some type of risk protection.”

Duzan says he’s also increased his focus on herd health as calf mortalities become more costly due to the elevated cattle prices.

Brownfield spoke with Duzan at the Illinois Beef Association annual meeting in Springfield.

AUDIO: Dave Duzan – Illinois Beef Association