This Week In Ag #131
How crazy are farm prices these days? Just look at the beef and corn markets. Now consider this comparison: purchasing a market-ready steer costs about the same as an entire semi-hopper load of corn. That’s about 4-5 acres worth of corn required to buy just one fed calf. Wild as it sounds, this speaks to both the state of the beef and corn markets. Since 2022, beef prices have more than doubled, while corn prices have sunk to half of what they were three years ago. Meanwhile, production costs for corn have soared, while feed costs (the top operating cost) have declined considerably. Beef continues to set all kinds of records in the sale barns. National records for 6-weight steers were set last week in Nebraska, when a group of 72 steers averaging 636 pounds went for an astounding $467.50 per hundredweight. Multiple sales in Missouri, Iowa, South Dakota and Kentucky all fetched prices well above $440/CWT. These animals still need to be fed until they reach 1,200-1,400 pounds. Considering corn prices are about as low as they’ve been in five years, this may not be all bad for cattlemen. But these insane prices can work both ways. They’re great if you have cows, not so great if you want them. One of the biggest challenges ranchers face is expanding, or even replenishing, their herds. US beef cattle numbers are at their lowest levels since the Truman Administration. But unlike chickens, which can pump out eggs in a matter of months, raising beef takes time. Lots of it. From the moment a replacement heifer is born, you’ll wait well over three years before her calf is ready for market.
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