Agricultural News
2014: Outstanding Year for Prairie Gateway Cow-Calf Producers, K-State's Glynn Tonsor Explains
Wed, 04 Nov 2015 15:09:17 CST
When old timers start talking about the "Good Old Days" for the beef cattle industry, they may be referring to 2014. Kansas State University Extension Livestock Market Economist Dr. Glynn Tonsor said 2014 was really good especially for cow-calf producers. The most recent evidence comes from the U.S. Department of Agriculture (USDA). Twice a year, the Economic Research Service (ERS) releases a report on the value and cost of beef production. The latest report came out on October first. Tonsor said nationally the value of beef production over operating costs were up over 260 percent in 2014 versus 2013.
"They were $108 returns over cash costs effectively in 2013 and they were up to $391 in 2014," Tonsor said. "-That's giving you some context of the magnitude of just how good 2014 was relative to '13."
Even with the pullback of the cattle markets in September, Tonsor looks for herd expansion to continue. Because of the profitability levels of 2014, he said a lot of cow-calf producers were reinvesting their money back into the industry.
USDA also publishes regional numbers on beef production profitability. The "Prairie Gateway" includes Kansas, Oklahoma, and Texas. Tonsor said profitability for this region was stronger than the overall U.S. numbers.
"So the value of production over operating costs was $437 per cow in 2014 and that's up from $155 in 2013," Tonsor said.
In looking at beef cattle returns regionally or nationally, 2014 was a great year. That's why Tonsor believes herd expansion won't end anytime soon.
Radio Oklahoma Network Farm Director Ron Hays featured Tonsor on the Beef Buzz feature. Click or tap on the LISTEN BAR below to listen to today's Beef Buzz.
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.
WebReadyTM Powered by WireReady® NSI
Top Agricultural News
More Headlines...
