Many are selling off their livestock in record numbers and at a loss.
Here is what I am hearing locally;
I usually cut 20 bales, only got 9 this year, reduced my cows down to 12.
Not cutting this year, tilling it all under (2 different hay guys)
only an extra $4 per mile plus $100 a bale? Call that a deal!
Texas this weekend saw record number of cattle arriving at their auctions. This is a good deal for consumers as the price of beef will drop as the majority of these cows are headed to feedlots. However the next few years will be a problem. Selling off so many cows for butcher means that breeding herds next year will cost even more, some predict they will double in price. Ok and southern KS has also seen the amount of cattle sales increasing by 40% at some auction houses.
I highly suggest if you are thinking about purchasing a beef cow, to buy a dam calf pair now if you can secure feed. The prices are the lowest you will see them for awhile. If the drought doesn't lift next year, cattle prices will go up. And those of us able to keep our herds will be able to make a decent return on our investments.
Many of the small ranchers are selling off their Angus (here locally) and have been asking us about our heritage cattle. If they are going to be able to stay in business as a ranch, they are going to have to find a smaller breed that takes less feed to survive. And with the rumor that next years beef prices will be double, they are willing to take on the less weight to break even.
edited to add the following so that some of you have a clearer understanding why this is so bad.
|Q: Which state produces the most beef cattle annually?|
A: Ranking for total cattle:
Texas, Kansas, Nebraska, California, Oklahoma
Found ranking here>>
US Cattle Futures Fall