Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211


Agricultural News

Focus on What You Can Control- Good Advice from Dr. Derrell Peel

Tue, 12 Apr 2011 12:08:15 CDT

Focus on What You Can Control- Good Advice from Dr. Derrell Peel Oklahoma State University Livestock Market Economist Dr. Derrell Peel says that it's important for cattle producers to realize that we have a new playing field we are on- and Dr. Peel believes it will be around for awhile. He offers the following "first person" analysis that every cattle producer should read- and heed.

"For many years I have heard cattle producers say that production is easy and marketing is hard. At today’s record price levels, I would argue that the opposite is true and will be for some time to come. Most anything one has to sell brings a good value in the market these days. Producers need to focus on having something to sell and managing production to take advantage of the market opportunities today.

"It has always been true that producers had more opportunity to influence profitability by managing production and cost than by marketing. Nevertheless, there have often been market signals that encouraged cattle producers to emphasize certain production practices over others at various times. Historically, cattle cycles encouraged maximum cow-calf production on some occasions and emphasized retained ownership or stocker production at other times. The advantage of the current market situation is that there is no tradeoff in market incentives. The current market is rewarding any type of forage-based production so it makes little difference if a producer sells weaned calves, retained feeders or runs stocker in place of cows. For stocker producers, the market signals that much of the time in recent years limited feasible stocker systems to a narrow set of production (e.g. small beginning weights and limited total weight gain) have been replaced by expanded flexibility to choose a wider range of beginning weights. There is more opportunity to own cattle longer and take them to higher weights.

"In the current environment, almost anything works and producers should focus on what works best for them. Producers can choose production systems where they have the greatest production advantage and the greatest opportunity for profits. High prices are no guarantee of profitability but high prices, combined with production flexibility gives producer more opportunity to control their fate. Cost of production will certainly be higher and input markets are volatile. Producers must evaluate input use carefully and be prepared to adjust production practices accordingly. Business as usual now means not necessarily doing things the same old way. For example, the value of reducing death loss by one calf is significantly more at today’s prices, which means that the health program requires additional attention. High fertilizer and fuel prices make pasture and hay management more important. And high feed cost makes supplement management critical.

"I would not say that there are no marketing challenges but a focus on productivity, efficiency and production costs will pay the greatest dividends in this unprecedented market environment. Forage is worth more now and producers who can grow and manage forage most efficiently and market that forage efficiently through cattle will benefit the most from the current market situation."

Our thanks to Dr. Derrell Peel for offering this analysis of this week's beef cattle marketplace- a part of his weekly electronic newsletter called Cow Calf Corner.



WebReadyTM Powered by WireReady® NSI


Top Agricultural News

  • Stay Ahead of Nematodes and Participate in BASF’s SCN Action Month  Fri, 15 Oct 2021 21:59:28 EDT
  • Oklahoma Grain Elevator Cash Bids as of 2 p.m. Friday, October 15, 2021  Fri, 15 Oct 2021 21:49:39 EDT
  • Friday, October 15, 2021, Market Wrap-Up with Justin Lewis  Fri, 15 Oct 2021 21:46:09 EDT
  • 2022 Edition Now Available of the NCBA Redbook   Fri, 15 Oct 2021 15:32:28 EDT
  • Congressman Frank Lucas and the Rest of the Oklahoma Delegation Call on Biden to Put American Energy First  Fri, 15 Oct 2021 13:02:04 EDT
  • USDA Designates Eight Oklahoma Counties as Primary Natural Disaster Areas  Fri, 15 Oct 2021 11:31:22 EDT
  • NCBA’s Kent Bacus Hopeful Biden Administration Will Pursue Deals Beneficial to US Beef Producers  Fri, 15 Oct 2021 10:10:35 EDT
  • Feeder Steers and Heifers Steady to Higher, Steer Calves Higher at Woodward Livestock on Thursday  Fri, 15 Oct 2021 05:26:37 EDT

  • More Headlines...


    Ron salutes our daily email sponsors!

    Oklahoma Beef council Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment Tulsa Farm Show Union Mutual Stillwater Milling Oklahoma Cattlemen's Association KIS FUTURES, INC.


    Search OklahomaFarmReport.com

    © 2008-2021 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.