February 15, 2007
Cattle producers are nervous about the upcoming year because the possibility of corn prices exceeding $5 a bushel could mean higher prices for livestock feed.
An LSU AgCenter economist recently advised, however, that those fears could be based on some assumptions that may not develop into realities.
“I know there are a lot of mad cattlemen here,” said John Queen, president-elect of the National Cattlemen’s Beef Association, in his remarks at the 10th annual Louisiana Cattlemen’s Association Convention in Alexandria, La.
Queen told those gathered for the convention that escalating corn prices, higher than $4 a bushel, which have been fed by booming ethanol production, have caused cattle prices to fall $20 to $30 a hundredweight in the past few weeks.
Cattle producers at the convention said they are preparing for higher corn prices.
Robert Joyner, newly elected association president of West Monroe, La., said he expects the market will decline more. Compounding the problem, he said, is a drought that hurt many areas of north Louisiana in 2006.
“I’ll be short of hay this year,” he said, adding that he planted winter wheat and oats for forage.
Vermilion Parish producer Calvin LeBouef said several cattle owners in his area have sold out because salt left by Hurricane Rita rendered many pastures unsuitable for grazing.
“The recovery has been a lot slower than I thought,” he said. “I’m sorry to say there’s a lot of people not coming back.”
But LeBouef said overall the cattle market should remain strong, with ranchers in drought-stricken areas of Texas eager to rebuild herds.
Dairy farmer Daryl Robertson of St. Helena Parish said escalating feed prices have hurt his operation.