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Rising break-evens add pressure for cattle producers

High prices are creating challenges for cattle producers. 

Jase Kracht with Professional Ag Marketing says there’s some concern about elevated prices.

“Concerns now would be buying cattle back for the fall, that’s been a little tough. Market has been really high, so the ranchers wanting a premium for their calves, it’s tough to buy anything that works. And we’re starting to see a little struggle on the cash side.”

Speaking to Brownfield during the Minnesota Cattlemen’s Summer Beef Tour in southwest Minnesota Tuesday, he said that’s having a trickledown effect.

“We’re starting to see cash head lower, choice boxed beef is not as strong. Cash bids have been lower, and we’re struggling on the breakeven side. We’ve got a lot of high breakeven, $240 $250 area cattle and we’re selling them in that area and getting nervous that we’re going to dip below it.”

cattle, beef, livestock, risk management, farm income, Minnesota,