Peel Recommends Producers Make Their Strategic Plan for Rest of DecadeThu, 09 Apr 2015 14:55:49 CDT
The cattle market outlook is highly variable for 2015. Oklahoma State University Extension Livestock Market Economist Dr. Derrell Peel said a lot will depend on which sector a producer is involved in and continued process of drought recovery.
"You want to take advantage of these markets as the best you can, but you have to work with your forage resources," Peel said. "Other folks, I think are being much more aggressive in general. Particularly the cow-calf sector, definitely sitting in the driver's seat now. We don't have enough cattle and the market is increasingly telling them to do that."
Radio Oklahoma Network Farm Director Ron Hays featured Peel on the Beef Buzz feature. Click or tap on the LISTEN BAR below to listen to today's Beef Buzz.
Peel recommends cow-calf producers make their expectations for the next three to five years. He said producers need to ask themselves if they think cattle prices will remain strong for several more years and can justify paying these high costs for breeding animals. If you don't believe that, he said producers need to determine their plan to take advantage of these high prices.
As herd rebuilding is underway, Peel said he thinks the ideal U.S. beef cow herd is above 32 million head. Currently the U.S. has around 29 million head. He thinks more drought recovery will be needed and it will most of the decade to reach that target goal. Peel said right now there are more factors that can slow down herd rebuilding and not much can help speed up the process. He expects herd rebuilding to take at least another three to five years.
The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network- but is also a regular audio feature found on this website as well. Click on the LISTEN BAR below for today's show- and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
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