Feedyard News

Breaking the $250 Barrier: Cattle Markets Charge to New All-Time Highs

Wed, 15 Apr 2026 15:13:54 GMT

Live cattle futures surpassed the historic $250 mark on Tuesday, driven by record-breaking $250 cash trades in the North and a 75-year low in U.S. cattle inventory . Despite geopolitical tensions and higher fuel costs, robust consumer demand and a lack of Mexican imports continue to push both fed and feeder cattle to all-time highs as the industry enters the peak spring grilling season.

After the correction off of record highs late last year — triggered by President Trump posting he wanted to lower beef prices — some market watchers were unsure the market would retest those levels. However, live cattle futures hit all-time highs on Tuesday, exceeding last October’s record prices, while feeder cattle made new contract highs.

Record Cash Driving Futures

The spot month (April) live cattle futures contract moved above the psychological $250 mark this week, hitting a new high of $253.60 on Tuesday, while June hit a contract high at $252. The futures were pushed by the recovery in the equity markets, but more importantly, they were chasing the fed cash trade. Last week’s 5-area weighted average steer price hit a record $248.38, up $3.42 from the previous week.

Brad Kooima, of Kooima Kooima Varilek, says although it was on light volume, the North led the cash trade with live sales hitting an eye-popping $250 for the first time ever.

“Some of us got $250 in the North to a regional packer. It wasn’t widespread at all. None of the majors ever bid it,” he explains. “The rest of the feedlots were more like $248, and so most everybody passed. Then there was a little bit of trade in Kansas Friday at $249. And then it was kind of unusual, but there was some trade in Texas on Saturday at $248.”

The previous cash record for the 5-area weighted steer was $246.91, scored the week of Feb. 23.

Higher Fed Cash Cattle Trade This Week

Even after these lofty levels, Kooima says he believes fed cash trade could keep climbing this week as tight supplies continue to support the market.

“The feedlot has still maintained leverage. So, I think there’s a shot we’ll be a little bit higher — let’s go $252,” he says. “I don’t know. Maybe that’s a little bit optimistic, but I’ll take my shot that we’re going to be a little bit better, but it won’t happen until late in the week.”

His optimism is based on beef packers buying very few cattle last week and with feedlots holding out for higher money due to tight breakevens.

“I still think we’re in a window of time here of 30 to 45 days where we are cleaning up the old-crop yearlings. You know there’s a few big cattle, but we don’t have the weight problem that we had three to four weeks ago as you’re going into the front end of these calves that aren’t hardly fat. I just don’t think that the feedlot’s going to have any urgency at all to sell as these cattle.”

Futures Continue to Make New Contract Highs

With higher cash trade, Kooima expects the futures to remain resilient, even in the face of the Iran War, higher gas prices and equity market corrections. Additionally, speculative “fund” traders have returned as aggressive buyers.

“There’s an end to that game. However, in the meanwhile, the holding action rally that we’re experiencing, I expect, is going to continue for a little while yet,” he adds.

The 14-Minute Metric: Why Consumers Aren’t Feeling “Sticker Shock”

Supply is only one-half of the equation, as the strength in consumer demand cannot be underestimated as the market enters the peak grilling season.

“It begins with buying for Mother’s Day,” Kooima explains. “So let’s hope that we’ve energized the Choice cutouts, that we see the middles, you know, the steak cuts lead us out of here.”

Kevin Good , vice president with CattleFax, says the rally the last couple of years has been driven by beef demand, which is at a 40-year high. He concludes there is no evidence of sticker shock.

“Even though we’re at a price point where we’re a little concerned we might have some consumer pushback,” he explains. “If we look at how many minutes it takes to buy a pound of beef and at 14 minutes it is back to the level we were at the last cycle peak in 2014 to 2015. So if we put that into perspective, the consumer is saying for that eating experience we’re still a bargain.”

Feeder Frenzy: The Impact of the 1.2 Million Head Border Gap

The feeder cattle futures also reached new contract highs on Tuesday with the May contract topping at $377.57 1/2. That market has also been pushed by the 75-year low in the cattle herd, plus the lack of Mexican feeder cattle imports has further tightened supplies.

The Southern border has been closed for the last year to prevent the introduction of New World screwworm (NWS), resulting in 1.2 million head fewer feeder cattle being placed in southern feedlots. The feeder cattle cash index is reflecting the tight inventory and the red-hot prices at auction barns across the country. The index was up $7.27 on Tuesday at $373.94.

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Shrinking Slaughter Capacity: What's Next in 2026?

Wed, 24 Dec 2025 17:33:42 GMT

The long-feared rightsizing of shackle spaces to more closely match the number of cattle has begun.

“The market’s reaction to the November announcement was a good reminder that market volatility still exists even when the supply and demand fundamentals continue to be positive forces into the start of 2026,” says Dave Weaber, Terrain senior animal protein analyst, in his Q1 2026 Outlook .

In late November, Tyson Foods announced its plan to end operations at its Lexington, Neb., beef facility and convert its Amarillo, Texas, beef facility to a single, full-capacity shift.

“Terrain estimates the changes will eventually reduce U.S. slaughter capacity by about 6.6%,” Weaber explains. “However, slaughter plant capacity utilization is still nearly 6% behind historical norms, as the number of cattle is still well short of filling available slaughter capacity.”

Weaber predicts this positive shift in operational efficiency will likely encourage plants to fill available capacity and better compete for the available cattle.

“I expect utilization to decline by about 2% during 2026 when two new plants in Nebraska and Missouri complete their startups,” he adds.

A proposed plant in the Panhandle of Texas that would handle 6,000 head per day has the potential to lower utilization rates back to early-2025 levels if completed.

“Even without additional future slaughter capacity, utilization rates will remain low; fed cattle numbers are expected to decline during the next two to three years because of cow-calf producers’ beef cow herd expansion efforts,” Weaber summarizes.

The reduction in current fed slaughter capacity will help the remaining plants run more volume, improving efficiency by spreading fixed and semi-variable costs across more head and pounds of beef. This positive shift in operational efficiency will likely encourage plants to fill available capacity and better compete for the available cattle.

“I expect that in the near and intermediate term, this effect will at least partially offset the shift in market leverage, which currently favors the packer,” Weaber says.

Markets and Beef Prices Remain Resilient

Beyond the near-term impacts to futures traders’ sentiment, the market impacts of the announced closures are fading.

“Calf, feeder cattle and fed cattle cash markets are already recovering and have posted significant rallies,” Weaber says. “Fed cattle supplies for the first half of 2026 are not going to change. The number of cattle placed into feed yards is the number placed and will be the number that gets slaughtered. The location the cattle get processed into beef may change, but overall beef production is mostly set.”

(USDA NASS, Terrain)

He adds: “ Consumer beef demand and spending remain strong and supportive of cattle prices. Presidential and executive branch rhetoric about lowering beef prices has had little to no impact on retail and wholesale beef prices. Tariff reductions on imported lean trimmings from South America are driving volumes, but prices for contracted loads delivering in the first quarter of 2026 are record high, up 20% from a year earlier.”

“I expect the choice cutout to average between $375 per cwt and $385 per cwt and fed cattle prices to average between $234 per cwt and $238 per cwt in Q1.”

— Dave Weaber

Q1 2026 Price Outlook

“I expect available fed cattle supplies during the first quarter of 2026 to be 6% to 7% smaller than the year prior,” Weaber says. “Even with a 2% shift in leverage (fed cattle price to comprehensive cutout) to the packers’ favor, I expect the Choice cutout to average between $375 per cwt and $385 per cwt and fed cattle prices to average between $234 per cwt and $238 per cwt in Q1.”

By early December, light feeder cattle and calf auction prices have recovered much of the losses incurred since late October and appear poised to start 2026 at record levels.

“Changes to the U.S.-Mexico border status remain the greatest known risk for cattle prices,” Weaber stresses.

Further rallies in deferred live cattle futures will drive the balance of the recovery in prices for heavy feeder cattle that make up the CME feeder cattle price index. He explains demand for light cattle to be turned out on wheat pasture and California coastal range has been a key driver for the rally in light cattle.

Biggest Risk Is South of the Border

Changes to the U.S.-Mexico border status remain the greatest known risk for cattle prices.

“The Mexican government has implemented broad cattle movement and import restrictions within the country as well as greater fly control measures in partnership with the USDA,” Weaber says. “Meanwhile, U.S. and Mexican officials have begun inspections of only one border crossing into New Mexico. Additional cases of New World screwworm have been found in Mexico, which I expect to further delay the reopening.”

Active risk management to preserve operation equity should remain a priority.

“If the border were to reopen, cash feeder cattle and calf prices and feeder cattle and live cattle futures would be the first to move down,” Weaber explains. “The magnitude of the impact will depend on the rate-limiting and cost impacts of the protocols that are implemented and the number of backlogged cattle south of the border.”

One Lesson From Plant Closures

“If we’ve learned anything from the market reactions to the plant announcements, it’s that price volatility should be a focus for producers in all segments of the cattle industry,” Weaber says. “Active risk management to preserve operation equity should remain a priority.”

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Navigate Market Volatility with Risk Management Strategies

Beef’s Future: Consumer Demand, Risk Management and the Path to Continued Profitability

What Does Tyson's Announcement Mean to Beef Producers?

Mon, 24 Nov 2025 23:32:27 GMT

Chaos in the cattle market continues as Tyson Foods announced on Friday its plan to end operations at its Lexington, Neb., beef facility and convert its Amarillo, Texas, beef facility to a single, full-capacity shift. The cattle complex was limit down Monday reacting to the announcement.

The Lexington plant employs nearly 3,200 people and can harvest 4,500 cattle a day, but has been running 3,600 to 3,700 according to John Nalivka of Sterling Marketing. It is one of 11 beef facilities in the company and one of the largest. The transition in Amarillo is expected to reduce daily harvest numbers from 5,500 to 2,700 to 2,800 and impact 1,700 workers. Tyson says the changes will go into effect on Jan. 20, 2026.

Jeff Stolle, Nebraska Cattlemen’s Association director of marketing, predicts the Lexington plant closure will reduce Nebraska cattle harvest capacity by 15%.

“The Tyson plant in Lexington has been a very valuable and consistent piece of our packer processor infrastructure in the state for up against 35 years now, and to lose this amount of harvest capacity on a daily basis is definitely going to be a challenge,” Stolle says.

The announcement is a shock as Stolle says there are significant feedyard expansion projects in the works, and he hopes there’s a future opportunity to bring the Lexington facility online with different ownership.

“Given the feeding infrastructure that is located near the Lexington plant, and the availability of high-quality feeder cattle and feedstuffs, we obviously hope there is some sort of path toward the plant continuing to operate as a harvest facility,” Stolle summarizes.

Don Close, Terrain senior animal protein analyst, explains the announcement comes following a rough year for the meatpacking industry and admits a plant closing has been a possibility for the last 18 months.

“Fed beef packers have been losing an average of $200 per head,” he says. “Those margins have certainly improved over the last two or three weeks, but it has been a tough year, and I don’t know that we’re near the end of this yet.”

Tyson’s announcement says it is shifting production to other plants to increase efficiency. But why close Lexington?

Elliott Dennis, University of Nebraska-Lincoln livestock and meat economist, predicts Tyson targeted its least efficient plant for closure to maximize profitability across its operations, highlighting the importance of operational efficiency in the beef industry.

Other analysts speculate competition from the new Sustainable Beef Plant in North Platte might have played a role.

According to Trey Wasserburger, Sustainable Beef is currently harvesting 1,100 head per day but plans to ramp up to 1,500 by Jan. 1.

Overcapacity Issue

Derrell Peel, Extension livestock marketing specialist from Oklahoma State University, says the Tyson announcement reduces capacity in the industry but does not solve the problem of overcapacity.

“This will reduce industry slaughter capacity by roughly 7,000 to 8,000 head per day,” he explains. “The exact impact will depend on forthcoming details, especially how Tyson will manage a one-shift plant. Depending on the details, the reduction represents roughly 7.5 to 9% of total industry slaughter capacity.”

Peel says Monday to Friday daily fed slaughter thus far in 2025 has averaged 90,529 head per day, down 3.6% from the recent peak (93,931 head per day) in 2022. However, Saturday slaughter has averaged 4,878 head this year, just 13.1% of the 37,137 head per day average in 2022.

For the first 45 weeks of the year, total weekly fed slaughter has averaged 457,524 head compared to 506,793 head per week in 2022, a decrease of 9.7%. The Tyson planned reduction in packing capacity might be nearly (but not quite) enough to balance the decrease in cattle slaughter since the peak in 2022. However, fed slaughter is expected to continue decreasing in 2026 and 2027.

“Excess packing capacity will continue to be an issue for beef packers for the foreseeable future,” Peel summarizes.

Short- and Long-Term Impacts of Lexington Plant Closure

Dennis says the Lexington plant closure will have immediate short-term effects on cattle prices. Drawing parallels to the 2019 Holcomb, Kan., plant fire, he predicts prices potentially falling and taking months to recover.

“Back in 2019, it took us about five to six weeks to find a bottom on the live cattle market,” Dennis says. “From the time we had that announcement of the fire, we ended up going about 12% down from where we were at pre-fire, and it took us almost three, three and a half months to get back to pre-fire prices.”

Dennis says the finished cattle will redistribute to other regional plants and the impact will be more about change in value proposition and logistics for producers than the ability to find a buyer.

Hyrum Egbert, meatpacking industry analyst, explains, “Tyson just changed the math on U.S. beef.”

He predicts the short-term impact will be:

Live cattle and feeders. Nearby futures and regional cash should soften, especially around Lexington/Amarillo as cattle lose a local bidder and get pushed farther to other plants. Expect weaker basis in those draw areas.
Beef cutout/wholesale. He says this is a rationing signal to beef buyers. Even if some volume is picked up elsewhere, the headline is tighter kill space which will lead to bullish cutout as buyers front-load coverage.
Packer margins. Less capacity chasing the same tight cattle supply will equate to better gross margins for packers.
Logistics and spreads Longer hauls for cattle will lead to higher freight, wider regional price dispersion and more noise in cash versus formula debates.

Long-term Egbert summarizes: “This isn’t a Saturday kill adjustment; it’s a permanent trim in hooks. Capacity is being pulled closer to the ‘new normal’ cattle supply, which reduces the odds of prolonged negative packer margins in the next phase of the cycle.”

Likewise, Dennis predicts long-term the closure will reduce cattle prices due to lower processing capacity and less competition. Yet despite disruptions, he says the fundamental demand for beef is historically high, driven by consumer preference and quality improvements, which should help support cattle prices in the long run.

“With tighter U.S. kill space on top of a small herd, imports — especially lean for grind — matter even more,” Egbert adds. “Tariffs, quotas and border policy will have an even stronger influence on spreads and retail prices. This is not likely going to be the last of plant closures. Regional plants are still extremely vulnerable and susceptible to closure.”

What’s Next for Producers and Packers

“I don’t think producers necessarily need to do anything different,” Peel says. “I still think there’s excess capacity in the industry, even with this downsizing, so there will be plenty of demand. I don’t think it changes anything. It doesn’t change the supply fundamentals at all.”

Close agrees with Egberts prediction that this might not be the last plant closure. He says Tyson’s announcement clears the path for other packers to follow suit.

“It’s not out of the realm of possibilities that we see another large plant or some of the smaller regional plants closed before we reach bottom in this cattle supply,” Close says.

Peel says with Tyson’s decision to reduce a shift and not close Amarillo is a positive.

“By only making a one shift adjustment in Amarillo, that tells me that decision was very much just directly a function of availability of cattle, but it also means they have the ability to go right back up to two shifts when the time gets right, as far as cattle availability,” Peel explains. “They just spent a lot of money in Amarillo remodeling and refurbishing that plant, so I don’t think they’re going to walk away from it completely, unless things continue to deteriorate for them in terms of their beef business.”

Dennis reminds producers the importance of managing price risk using available tools (like futures and options) because market volatility is unpredictable. He stresses risk management should be proactive, not reactive.

Close was a guest on AgriTalk Monday discussing the impact of the Tyson announcement as well as other beef industry economic factors today.

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Unpacking the Beef: Report Clarifies Cattle Market Realities, Packer Challenges & Trade Tensions

Fri, 31 Oct 2025 20:17:59 GMT

Since President Donald Trump’s comments last week, a lot has been discussed on social media and at the coffee shop about increasing beef imports from Argentina, beef retail prices, the cattle market and beef processing concentration.

“It is complicated,” the Meat Institute posted on LinkedIn regarding the current state of the beef industry and the dialog about beef prices. In response, the Meat Institute released a nine-page document — The Reality of Beef and Cattle Markets — addressing import trends, market conditions, industry concentration, ground beef production, policy proposals and international trade challenges.

Key discussion points include:

1. Argentine Beef Imports

The report summarizes increasing beef imports from Argentina is unlikely to significantly lower ground beef prices in the U.S. If Argentina fills the proposed 80,000 metric ton quota, it will only increase its share of U.S. beef imports from 2% to 5%, which is unlikely to significantly impact retail or restaurant beef prices.

Argentina primarily exports grass-fed frozen lean trim for ground beef production, with limited impact on overall U.S. beef imports. In 2024, Argentina was the eighth-largest beef supplier to the U.S., exporting 32,798 metric tons, while the U.S. imported 1.56 million metric tons overall.

2. Beef and Cattle Market Conditions

The report summarizes current market conditions with these six statements:

Cattle producers are enjoying record prices, while beef packers are suffering under negative margins.
The shortage of market-ready cattle continues, adding further pressure to packers’ margins, which first dropped to negative values in September 2024.
Packing plant utilization rates have dipped, and some facilities are scaling back operations, including reduced shifts and shortened workweeks. Uncertain immigration policy moving forward can have an impact here as well.
Trade policy uncertainty from proposed tariffs adds to the cost pressures on the cattle market.
Additionally, foreign animal disease import restrictions — particularly on Mexican feeder cattle — are another contributing factor to increasing costs.
Consumer demand has remained resilient with improved beef quality. However, prospects for elevated cattle prices and the beef those cattle yield remain directly tied to the extent end-user consumer demand can remain robust.

“Cattle prices were at record levels for most of 2023, surpassing the 2014-2015 previous record highs as the cattle herd rebuilt from the previous low points of the cattle cycle,” the report says. “Through 2024, prices continued at new record levels and increased further into 2025, exceeding an average of $242 cwt. in August, the highest nominal price on record.

“Cash prices have declined to $232 cwt. in the first two weeks of October, but futures contracts are at record levels, even after adjusted for inflation. The previous highs in October 2015 would be $222 cwt. in today’s dollars, a full $10 cwt. below the current prices as of Oct. 14.”

The report goes on to say: “This has put U.S. beef packers under financial pressure. Packer margins slipped into the red in September 2024. Through the week ending Oct. 4, 2025, packer margins were a negative $126.50 per head, up slightly from a year earlier at a negative $125.65 per head, according to Sterling Profit Tracker. The outlook for the year is a packer margin of negative $165.96 per head.”

(Meat Institute)

For 2025, cow-calf producer margins are estimated to be up 122.3% from 2024 and 180.67% from 2023 to $900 per head. Feedlot margins are estimated to be up 351% from 2024 to $514.33 per head. But packer margins have declined 120% from already negative margins in 2024 and are estimated to be down 269% from 2023.

“With fewer market-ready cattle available, plant utilization rates have dipped and some facilities are scaling back operations, including reduced shifts and shortened workweeks. Packing plants were operating at 77% capacity for the week of Oct. 4, down from 85% a year ago. Uncertain immigration policy moving forward can have an impact here as well,” the report summarizes.

(Meat Institute)

The share of the retail beef dollar also indicates producers have been faring well. The producers’ share of the retail beef dollar was 55% in August 2025 and has averaged 54% so far in 2025. The packers’ share has dropped from 13% to 5%, reflecting the negative packer margins.

Download the Meat Institute’s full Cattle and Beef Market Update .

3. Concentration in the Beef Packing Sector

“The U.S. meat packing sector is a dynamic, resilient and highly competitive industry with a long history of providing an abundant supply of high quality, safe and affordable products to American consumers and serving as a vital economic engine that supports America’s farmers and ranchers,” the report says.

(Meat Institute)

The top four beef packers in the U.S. account for the purchase and slaughter of about 81% of all fed cattle in the U.S., according to the most recent report from the USDA’s Packers and Stockyards Division. But those fed cattle make up only about 78% of the Federally Inspected cattle slaughtered in the U.S. The other 22% is made up of cows, both dairy and beef and some bulls.

“Much of the rhetoric about beef industry concentration implies that consolidation in the beef packing sector is ongoing and that market power is becoming increasingly concentrated. That is not the case,” the report says. “The four-firm concentration ratio in the beef cattle industry has not changed appreciably over the past 30 years. According to USDA, in 1994, for example, that ratio was 82%, compared with 81% today.”

4. Ground Beef

Ground beef accounts for approximately 50% of U.S. beef consumption. Imported lean trim complements U.S. beef production from cull cows, helping maintain affordability without directly competing with domestic beef.

“Without imported lean trim, more highly marbled quality U.S. beef would be used, and ground beef would be more expensive,” the report explains.

5. Policy Issues

Despite record cattle prices and the smallest cattle herd in 75 years, there are increasing calls for mandatory country-of-origin (COOL) labeling for beef.

“The mandatory COOL experiment was implemented and it failed,” the report says. “From 2002 through Congress repealing the law in 2015, we learned that mandatory COOL adds massive compliance costs — the industry incurred implementation costs of approximately $1.5 billion, plus $200 million in additional annual compliance costs thereafter — yet by USDA’s own analysis, it did not increase consumer demand. Mandatory COOL simply adds cost, not value.”

On Jan. 1, 2026, USDA’s Food Safety and Inspection Service will begin implementing its voluntary COOL rule.

“Let the rule and the free market work: if consumers demand ‘Product of the U.S.’ labels on their meat, then processors can and will provide it,” the report says.

For more info, download the Meat Institute’s mCOOL paper .

The reports also explains proposals like the PRIME Act and interstate shipment of state-inspected meat are seen as threats to food safety and international trade relationships.

“The concept in the PRIME Act is even worse,” the report explains. “Under Rep. Thomas Massie’s legislation, custom exempt meat establishments would be allowed to slaughter animals, process the meat and sell it directly to consumers or to restaurants, hotels or grocery stores within the state, without any inspection. It is a recipe for foodborne illnesses, and consumers in restaurants and hotels would have no idea they would be eating uninspected meat (and grocery store consumers would only know if they look for and can’t find the USDA inspection symbol). Food safety should be the top priority, not something legislated away.”

6. China Beef Exports

The Meat Institute urges action as China blocks more than 415 U.S. beef facilities from exporting.

“In 2024, China was the U.S.’s third largest market, by value, for beef, at over $1.5 billion,” the paper summarizes. “The strong beef exports to China were thanks to President Trump’s leadership in securing the U.S.-China Phase One Agreement during his first term. However, since the beginning of 2025 — and in contravention of the terms of the Phase One Agreement — China has failed to renew the registrations for more than 415 U.S. beef establishments, making them ineligible to export to China. This is a massive market loss for the U.S. that Brazil and other countries have been eager to fill.”

Rust in the Ration: How to Combat Southern Rust’s Impact on Corn Silage

Thu, 04 Sep 2025 14:04:48 GMT

With the warm and wet conditions this season, southern rust is on the rise in Midwest corn crops. It may be time to start considering the impact that could have on corn silage and preparing to adjust rations accordingly. While southern rust is not a direct threat to herd health, it has been shown to lower the nutritional value of silage and can compromise feed quality.

Southern rust, a fast-developing fungal disease caused by Puccinia polysora, does not itself produce toxins, but it weakens the plant and provides the opportunity for other diseases to move in. These opportunists include various Furasium species, which produce mycotoxins (fumonisin and deoxynivalenol) that can be harmful in feed.

Southern Rust and Corn Silage Quality

Southern rust is known to impact corn silage quality. A study from the University of Florida showed increasing rust infestation resulted in increased dry matter and fiber fractions, but that dry matter digestibility decreased by 13%. Further, high rust silages had lower neutral detergent fiber digestibilities than medium and no rust silages. Southern rust also affected the concentrations of lactate and volatile fatty acids, causing both to decrease with increasing infestation. These results indicate decreased nutritive value.

The observed increased dry matter also reduced silo packing effectiveness. If moisture levels are too low at harvest, it is difficult to achieve adequate packing, which leads to poor fermentation and an increased risk of mold growth.

Because southern rust coverage reduces the photosynthetic area of the leaf, grain fill is often hindered, leading to a lower energy and protein content in the silage.

Southern Rust Silage Management

There are a handful of strategies producers can apply to counteract the effects of southern rust:

Adjust harvest time based on moisture content. Southern rust can cause corn to dry down faster than normal. Monitor moisture levels closely to ensure the proper fermentation of silage.
Consider a silage inoculant. Inoculants improve fermentation, and the rapid pH drop can inhibit mold and yeast growth.
Ensure good packing and storage. Pack silage well to limit oxygen exposure and prevent mold growth. Cover bunkers immediately and weigh down coverings thoroughly.

Feeding Southern Rust Silage

To counter the nutritional challenges of feeding southern rust-infected corn silage, dietary supplementation may be necessary.

Prior to inclusion, test all potentially infected silage for mycotoxins. This will allow you to determine the safety of the feed and avoid potential health issues. If mycotoxins are high, the incorporation of a mycotoxin binding agent into the ration will help reduce toxin absorption in the animal’s digestive tract. Additionally, supplementation with antioxidants, such as vitamin E and selenium, could help animals by countering oxidative stress caused by mycotoxins and supporting immune function.

If grain fill was affected and starch levels are low, you may need to incorporate an additional energy course to compensate. Further, poor grain fill could reduce the already low protein content of corn silage, and protein supplementation may be required.

When incorporating infected silage, ensure it is thoroughly mixed into the TMR to dilute potential ‘hot spots’. Inclusion levels of contaminated silage in the feed may need to be limited or removed entirely for sensitive animals, including lactating or breeding animals. Livestock should be monitored closely for symptoms of mycotoxin toxicity, such as reduced intake, weight loss, digestive issues or reproductive challenges. Be prepared to respond if issues arise.

When feeding corn silage infected with southern rust, caution is essential to protect livestock health and performance. The thoughtful use of compromised silage can help minimize risk while maintaining efficiency and animal well-being.

Your next read: Southern Rust Set To Take Big Bite Out Of Midwest Corn Crop?

Be Aware: Dangerous Asian Longhorned Tick Continues Migrating West

Wed, 18 Jun 2025 14:42:46 GMT

The Asian Longhorned Tick (ALHT) poses a serious threat to cattle health. ALHTs carry Theileria, which is a protozoan parasite that infects red and white blood cells. It can lead to anemia and, in some cases, death.

ALHTs are native to eastern Asia, eastern China, Japan, the Russian Far East and Korea but were introduced to Australia, New Zealand and western Pacific Islands. In other countries, it can also be called a bush tick, cattle tick or scrub tick.

In the U.S., ALHT was first detected in New Jersey in 2017. Since then, it has spread to more than 20 states with recent confirmations in Illinois , Michigan and Iowa .

According to USDA’s Animal and Plant Health Inspection Service (APHIS) ALHTs are known to carry pathogens, which can cause disease and may also cause distress to the host from their feeding in large numbers. For example, a dairy cow may have a 25% decrease in milk production after becoming a host.

A female can reproduce without a mate and lay up to 2,000 eggs at a time. This can cause great stress on a heavily infested animal and result in reduced growth and production. A severe infestation can kill the animal from excessive blood loss.

Asian longhorned tick life stages and relative actual size.

(Photos of unfed ticks by Centers for Disease Control. Photos of engorged ticks by Jim Occi, Rutgers, Center for Vector Biology.)

What does it look like?

Unfed ALHTs range from a light reddish-tan to a dark red with brown, dark markings. While the adult female grows to the size of a pea when full of blood, other stages of the tick are very small — about the size of a sesame seed.

Adult females are a grey-green with yellowish markings. Male ticks are rare.

APHIS reports it only takes a single tick to create a population in a new location.

The above photos are of a AHLT engorged (on the left) and an adult AHLT not engorged.

(New Jersey Department of Agriculture)

ALHTs need warm-blooded hosts to feed and survive. They have been found on various species of domestic animals — such as sheep, goats, dogs, cats, horses, cattle and chickens — and wildlife. The tick has also been found on people.

What are the health risks?

APHIS says ALHTs are not known to carry Lyme disease, but they can cause tickborne diseases affecting humans and animals such as:

Rocky Mountain spotted fever
Heartland virus
Powassan virus

APHIS says those diseases have not been confirmed outside of a laboratory setting in the U.S. In addition, U.S. ALHT populations can transmit U.S. Theileria orientalis Ikeda strain (Cattle theileriosis) in the laboratory.

In an Iowa State University release , Grant Dewell, Extension beef veterinarian and associate professor, says cattle affected by Theileriosis will show signs of lethargy, anemia and difficulty breathing. They may develop ventral edema, exercise intolerance, jaundice and abortions.

“Although signs of Theileriosis are similar to anaplasmosis, younger animals and calves often display more severe signs compared to mature cows and bulls,” he says. “Due to anemia from both tick infestation and Theileria, the risk of death can be elevated. If cattle producers suspect either Theileria or ALHT, have a veterinarian collect appropriate samples and submit them to a veterinary diagnostic lab.”

According to an Oklahoma State University press release , under laboratory conditions ALHT is a competent vector of numerous pathogens that can cause disease in humans, including Rickettsia rickettsii (Rocky Mountain Spotted Fever), Heartland Virus and Powassan Virus.

In “ Clinical Infectious Diseases, ” Bobbi Pritt, MD, MSC, with the division of clinical microbiology at the Mayo Clinic in Rochester, Minn., reported a human bite that occurred in New York in 2019. She says though the report of a human bite isn’t surprising, it proves the invasive longhorned tick continues to bite hosts in its newest location.

“This is extremely worrisome for several reasons,” she writes. “One reason is Asian longhorned ticks can carry several important human pathogens, including the potentially fatal severe fever with thrombocytopenia syndrome (SFTS) virus and Rickettsia japonica, which cases Japanese spotted fever. While these pathogens have yet to be found in the United States, there is a risk of their future introduction.”

Also, Pritt says several other human pathogens have been detected in the ticks, but it’s not clear if the ALHT species are able to transmit them to humans. They include Anaplasma, Ehrlichia, Rickettsia, and Borrelia species. Lyme disease is caused by Borrelia burgdorferi bacteria.

She warns the organisms are present in states where ALHTs have been found and that it’s possible the tick — known to be an aggressive biter— might be able to transmit Heartland virus given its close relationship to SFTS virus.

How to Tackle Ticks

According to APHIS, various strategies effectively mitigate tick populations on hosts and in the environment.

Regular tick treatments should be effective against ALHTs. Consult your veterinarian or agriculture extension agent about which products to use.
Check your livestock for ticks regularly.
Safely remove ticks from people and pets as quickly as possible. If you think you’ve found an ALHT, seal it in a zip-top bag and give it to your veterinarian for identification.
Habitat modifications can help prevent ticks on feedlots and pastures. This may include mowing grass, removing trees, reducing shade by thinning trees, understory removal and placing mulch barriers.
Apply acaricide using label instructions to tick habitats, such as woodland edges and grassy patches, during times when ticks are most actively seeking hosts. Although it varies by year, ALHTs are generally active from March to November. Consult your state and local regulations for approved acaricides.

“Cattle producers should aggressively control external parasites this summer,” Dewell summarizes. “Insecticide ear tags alone are not enough to control ticks. Consider incorporating a back rubber or regularly applying a pour-on during the summer. Pyrethroid-based products are also available that include a tick control label. If an increase in tick infestations is observed, an avermectin pour-on may be the best intervention.”

Your Next Read: 1,500-lb. Carcasses the New Normal, Not the Exception

Rollins Rolls Out 5-Point Plan to Contain New World Screwworm

Wed, 18 Jun 2025 19:00:05 GMT

Today Secretary of Agriculture Brooke Rollins announced a five-pronged plan to combat New World screwworm (NWS) – a pest that would devastate ranchers if it made its way across the border.

Rollins made her announcement at the Moore Air Base facility near Edinburg, Texas. Moore was instrumental as a sterile fly production lab to rid the U.S. of NWS in the 1960s and 1970s. Hundreds of millions of flies were reared, sterilized with radiation and dropped from aircraft to eliminate the parasitic pest that preyed upon wildlife and livestock. According to a USDA spokesperson it will cost an estimated $8.5 million to get the base up and running as a distribution facility.

U.S. Secretary of Agriculture Brooke Rollins this morning launched an $8.5 million sterile New World screwworm (NWS) fly dispersal facility in South Texas and announced a plan to enhance USDA’s already robust ability to detect, control, and eliminate this pest.

(U.S. Department of Agriculture)

According to the Texas Wildlife Association , there are currently more than 1,800 cases of livestock infestation in southern Mexico. The flies are moving north and are currently 600 miles from the south Texas border.

“We have defeated the screwworm before, and we will do it again,” Rollins says.

Here in McAllen, TX to announce a BOLD 5-pronged plan to combat the deadly parasite called New World Screwworm – which would devastate ranchers if it made its way across the border.

We are protecting producers, strengthening biosecurity, and ALWAYS standing up for American… pic.twitter.com/VHOlqZyZ9a
— Secretary Brooke Rollins (@SecRollins) June 18, 2025

Her five-pronged plan to combat NWS includes:

Stop the pest from spreading in Mexico.
Rollins plans to continue partnering with her Mexican counterparts and using sterile insect technology to stop the spread. This includes investing $21 million to produce up to 100 million additional sterile flies weekly.

“We are first enhancing the international sterile fly production and investing $21 million in renovation of an existing fly facility in southern Mexico, which will provide up to 100 million additional sterile flies every week to stop the spread,” Rollins says.

Currently, the only sterile fly facility is located in Panama. It’s jointly run by the Panamanian government and the U.S. government. USDA had previously announced its plan to invest in the retrofiting of a fruit fly facility in Chiapas, Mexico, to produce additional sterile flies.

According to the National Cattlemen’s Beef Association , “The Chiapas facility produces about 117 million flies per week, but to form an effective barrier along the U.S. southern border, we need upward of 300 million sterile flies per week.”
Protect the U.S. at all costs.
Rollins temporarily closed the southern border to live animal imports and intercepting illegally introduced livestock. USDA is working closely with Mexico to improve surveillance.

“I do believe we have met and moved into a new era of productive partnership —perhaps better than ever before — with our Mexican counterparts,” Rollins says.
Maximize our readiness.
This will be achieved by partnering with state animal health officials to update emergency management plans and stockpile therapeutics for ranchers.
Take the fight to the screwworm.
The domestic fight includes establishing a sterile fly dispersal facility at Moore Air Base. Rollins says they are exploring options for building a domestic production facility at Moore that could produce up to 300 million sterile flies per week.

“We can’t get a brand new facility up and running probably before two or three years. So, that’s why we’ve got to really focus on the today,” Rollins explains.

She also announced USDA will be hosting listening sessions in affected areas starting next week.
Innovate Our Way to Eradication.
Leverage the sound science including USDA’s Agriculture Research Service (ARS) to continue to quickly develop novel treatments, preventatives and response strategies. Rollins says this includes working with land grant universities in Texas, Arizona and New Mexico. She listed these key strategies during the press conference:
- Develop better fly traps and lures
- Provide local training
- Improve surveillance methods
- Create new response strategies

Nearly 80 lawmakers led by House Ag Committee Chair Glenn “GT” Thompson (R-Pa.) sent a bipartisan letter on Tuesday to Rollins urging immediate action and promising congressional support for the significant funding required.

The letter included this message, “When looking solely at the historical impact of NWS in Texas, USDA’s Animal and Plant Health Inspection Service (APHIS) estimates a contemporary outbreak would cost producers $732 million per year and the Texas economy a loss of $1.8 billion. Extrapolating those results to the states within the historic range of NWS pre-eradication, a contemporary outbreak of NWS could cost producers $4.3 billion per year and cause a total economic loss of more than $10.6 billion. This does not account for the possible expansion of NWS beyond the historic range.”

U.S. Congresswoman Monica De La Cruz (R-Texas) was at the announcement and recently shared in a letter to Rollins these key advantages of the Moore Air Base location:

Border proximity: The proximity to the border with Mexico is crucial for effective monitoring and control of potential incursions of invasive fly species. A facility in this region would allow for rapid response and containment, minimizing the spread of infestations into the U.S.
Existing agricultural infrastructure: The region boasts a robust agricultural sector with established infrastructure and expertise in livestock management. This existing framework would facilitate efficient integration of the sterile fly facility and streamline its operations. Additionally, Moore Air Base has operations runways equipped to distribute sterile flies.
Strategic location: Moore Air Base offers a central location for distribution of sterile flies to other areas in the southern U.S., if such a need arises. Additionally, this base was the site of a facility used in the 1960s to successfully combat NWS.
Economic impact: The establishment of such a facility would provide valuable economic opportunities for the region by generating jobs and stimulating local economies.

U.S. Congressman Ronny Jackson (R-Texas) summarized at the announcement, “This is important to the whole country. We are going to be aggressive about this, and we are going to make sure that we don’t get screwed by the screwworm.”

Your Next Read: Urgency in Action: We Must Eradicate New World Screwworm

How Kansas Cattle Feeder Joe Morgan Shaped a Remarkable Story of Success Built on Strong Relationships

Mon, 10 Feb 2025 21:12:17 GMT

Growing up in agriculture, Joe Morgan developed an interest in cattle feeding when visiting an uncle who fed cattle in Texas. He even started feeding some cattle when he was still in high school. After graduating from lowa State University in 1973 with a degree in Animal Science, Morgan began farming, then the opportunity to manage a feedyard east of Omaha came in 1983. In 1985 he moved to Garden City, Kan., to manage Poky Feeders, growing Poky from its original capacity of 17,000 head to the current 105,000. Poky also partners on leased feedyards in Kansas and Nebraska and has extensive ranch holdings.

“I fed cattle as a farmer in Iowa, and my family had been in in the cattle business for a long time,” Morgan says. “I was always fascinated with the cattle market and the cattle industry, so when the opportunity came up for me to manage a yard, I took that avenue.”

Morgan says the concentration of the industry both on the packing side and feedyard sector has been the biggest changes he’s seen in his years in the business.

“Our customers have grown their businesses too,” he adds. “When we started, we had a lot of customers that had cattle, and today, those our customers handle a lot more cattle also.”

Poky Feeders averages about 95% customer cattle and 5% company-owned cattle.

“We’ve been really blessed,” Morgan says. “We have a large customer base that has grown through the years. We’ve got a great customer base with some that are third generation family customers.”

One of the largest challenges is labor, which Morgan points out everybody faces.

“I think more on the other side of the coin is we have strived really hard to help our customers be profitable and stay in the business, and that’s what’s allowed us to have the immense growth that we’ve had,” he says.

Making yard improvements and capital investments also help Poky Feeders be competitive.

“We’ve added on new facilities several times, including a brand-new mill in recent years,” Morgan says. “It’s a state-of-the art mill with lots of technology and computer systems. We’re always trying to look at a better way to feed the cattle, at a more profitable deal for our customers, and less cost to us.”

Joe is a long-time member of the Kansas Livestock Association and NCBA, serving on several committees over the years.

Morgan says it’s important to be involved in cattle organizations.

“These organizations have relationships with members of Congress, and keep the industry abreast of all the laws and regulations with EPA and help us in production agriculture,” he says. “A unified voice is way better than individuals trying to accomplish all that on our own.”

Being in the custom feeding business, Morgan is a big believer in customer service.

“If you help your customer make money, he’ll be your customer for a long time,” is advice he offers others. “That’s one of the things I have preached in my organization with my management people for years. At every meeting we have, we discuss how we’re going to help these guys make money, and if they make money, then we’re going to be successful.”

Morgan encourages young producers to find mentors and peers they can relate to and respect.

“Mentors can help them with their career and their own personal lives and make it a lot more enjoyable life,” Morgan says.

Watching the growth of Poky has been rewarding for Morgan.

“When I came in 1985 we had capacity for 17,000 and today we’re up 105,000,” Morgan says. “We’ve also diversified into other businesses.”

Morgan was instrumental in starting US Premium Beef and has served on the USPB board since 2007, currently serving as Vice Chairman.

In the late 1990s, Poky diversified into the pork business, with a sow unit on site and production in lowa and Minnesota. Poky has also diversified into long-term health care and memory facilities across the Midwest and other business interests.

While Morgan currently serves as CEO of Poky, and his son, Grant, manages the company.

“It’s definitely rewarding to have family be able to be involved for another generation,” Morgan adds.

Buckle Up: Here's Why Cattle Prices Are Setting Up for Another Wild Ride in 2025

Fri, 07 Feb 2025 21:19:50 GMT

The cattle markets hit historic highs again to start 2025, and as USDA’s latest Cattle Inventory report showed U.S. beef cattle inventory fell to the lowest level in 64 years , tight supplies and strong demand could push cattle prices to even higher highs in 2025.

USDA’s annual Cattle Inventory Report released Friday shows the U.S. total cattle inventory shrunk another 1% over the past year, with the number of beef cows also down 1%.

Those numbers, along with questions around just how much higher these markets can go, were major topics surrounding the 2025 CattleCon in San Antonio, Texas, (the annual cattle industry convention) this past week.

Signs of a Slowdown?
Economists and market analysts knew the cattle herd was still shrinking, even before the report was released last week. But economists say there are some signs starting to signal that is slowing down.

“We certainly got smaller in 2024. That was actually kind of obvious about a year ago when you looked at heifer numbers,” said Derrell Peel, Oklahoma State University Extension livestock specialist. “If you look at the heifer numbers in this report, we don’t have a lot. And so we’re going to be challenged going forward to stop this liquidation. I think we might stabilize numbers this year, but I think growth is pretty much a long shot at this point.”

“I think we’re getting close to the bottom, as Darrell referenced,” said Don Close, senior animal protein analyst for Terrain, during the U.S. Farm Report live taping at NCBA’s annual convention. “I think the challenge is retaining enough heifers out of the supply that we have to provide the fuel for the build back.”

Calf Crop Was a Big Surprise
Casey Mabry, with Blue Reef Agri-Marketing, said there actually was a surprise in the latest cattle inventory report, and that wasn’t with heifer numbers.

“The biggest surprise to me was really looking at the total calf crop report, because we’re looking at the total cow inventory numbers. I think that probably caught some people off guard, having the calf crop a little bit bigger than what most people’s expectations were,” said Mabry.

Incentives Drive Outcome
With cash cattle hitting records to start 2025 a question on almost everyone’s mind is, can it continue? Mabry said it really depends on if demand can remain steady, since the supply side will remain tight.

“Incentives drive outcome and obviously with grain prices as cheap as they’ve been, and cattle prices as high as they’ve been, we’ve held on to some cattle. So it’s kept the front end of the market really, really tight and it’s kept packers chasing after cattle. So that ran the market $10 or $15 higher, in my opinion, than what we should have on the front end,” said Mabry. “So, it’s going to be really interesting to watch as we go through the back end of this thing. We’ve probably got to work through some stuff right here on the front end. But if the analysts continue to say we’re going to be tighter and demand stays pretty good, we’ll probably see prices exceed where we were before.”

“We’re Still Bullish”
Peel reminds producers there’s a great deal of risk in these markets. He said the markets don’t like uncertainty. With trade concerns and tariff threats, combined with a strong U.S. dollar, the combination is throwing uncertainty into the market.

“We’re very bullish and still bullish in general going forward for average prices,” said Peel. “But we also know that we’re subject to a lot of shocks right now. We’ve seen a couple already. We’re certainly vulnerable. There’s a lot of air below us since this market is so high. So producers really need to still do that risk management. Producers need to think about those marketing windows. If you got caught in a shock in one of those, it could really be devastating to you.”

Close has similar advice. He said with the development of insurance products, plus futures and options contracting, there are several ways for producers to manage risk today.

“At the price level we’re at, and just any measured retracement in the market, it could take you out of the game. At these price levels, it is absolutely imperative to have some kind of price risk management program in place,” said Close.

“I think you just need to run with what I call a keen sense of paranoia,” said Mabry. “I mean, be bullish, be excited about the market, but don’t get overly euphoric. We’ve got to remember back a short three or four years ago, we were all in the doldrums and very scared. And there’s a lot of people that were telling their kids to get into a different business. And now all of a sudden, we’re all jumping on the bandwagon of cattle and getting excited about this. So, we want to make sure that you guys are running your businesses like businesses and not gambling on cattle.”

Your Next Read:

Are More Record Cattle Prices Ahead in 2025?

Monarch's MK-V Dairy Tractor Rolls Out Autonomous Feed Pushing

Wed, 05 Feb 2025 15:28:37 GMT

Monarch Tractor announces its first-in-class, fully-autonomous Autodrive feature is now commercially available on its MK-V driver-optional dairy tractor (EV or diesel) , according to a press release from the startup.

“Autonomous feed pushing offers value to dairy farmers by improving efficiency and increasing milk production,” says Praveen Penmetsa, CEO and co-founder of Monarch Tractor. “It allows the dairy farmers to focus on what matters most – the health and well-being of their animals.”

Autonomous feed pushing helps dairy farmers manage through labor shortages, and the ability to monitor feed pushing remotely while tending to other critical tasks ensures cows can be consistently fed every hour.

Additionally, the “smart tractor” is armed with Monarch’s Wingspan Ag Intelligence and WingspanAI technology stack , which tracks performance data while 360-degree cameras record video footage for real-time and historical insights. The MK-V Dairy is also a mobile power bank with 12v, 110v, and 220v plugs.

Monarch is hosting an in-person Autodrive demonstration at a working dairy on February 12, at 3 p.m. in Tulare, California, during World Ag Expo. Monarch reps and engineers will be on hand to talk to attendees and give them the opportunity to engage with the tractor. Reservations for the demonstration can be made here.

If you can’t make it to California next week, Monarch says dairy farmers can reach out and set up a demonstration at their farm.

Mexican Border is Expected to Open for Feeder Cattle Week of Jan. 20, Sources Say

Tue, 07 Jan 2025 20:12:03 GMT

Imports of feeder cattle from Mexico are expected to partially resume the week of Jan. 20, according to sources. Imports will be slow at first due to the need to implement and test new protocols. Live animal movements are expected to resume fully sometime after the initial reopening.

USDA’s Animal and Plant Health Inspection Service (APHIS) suspended imports of live cattle and bison from Mexico on Nov. 22, 2024, following the detection of New World screwworm (NWS) along Mexico’s southern border. This pest can have a significant negative impact on cattle health, and U.S. authorities have been working to develop protocols to screen animals coming into the country.

Several factors are influencing the timeline and pace of reopening:

Facility inspections: Both countries have agreed on protocols, but implementation requires facility inspections and approvals.
Quarantine period: A seven-day quarantine after animal checks
Port readiness: The most important port to get moving again is Santa Teresa, New Mexico.

The temporary suspension of cattle imports from Mexico has had notable effects on the U.S. cattle market:

Reduced supply: About 250,000-300,000 fewer head of cattle are estimated to have been imported due to the suspension.
Price support: The trade disruption has been supporting feeder cattle and calf prices in the U.S.

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Blackshirt Feeders: Closing the Loop

Wed, 26 Jun 2024 12:41:58 GMT

Despite the smallest U.S. cowherd in 73 years and corresponding tight feeder cattle supplies, the largest cattle feedyard north of the Rio Grande is under construction in Nebraska. When complete, Blackshirt Feeders near Haigler in the far southwest corner of the state, will have a capacity of 150,000 head, all standing on a concrete pad covering a full square mile, replete with an accompanying biodigester.

None of that previous paragraph defies logic, provided you know the track record of the principals involved and understand the growing beef-on-dairy (BxD) phenomenon that has captured the attention of stakeholders throughout the chain — feedyards, dairies, backgrounders, seedstock providers, feed companies and packers. In short, the BxD segment has provided a new profit opportunity for cattle feeders and seedstock suppliers, a lifeline for some dairies, and promises to revolutionize the way the beef industry accepts, captures and uses animal ID and the data it provides.

CLOSED LOOP

The BxD production model offers a unique opportunity for innovators to utilize every available tool and management practice to foster improvement. Specifically, this new model links the semen provider to the dairy to the feedyard in what is called a closed-loop system.

“We’ve long dreamed about this type of system,” says Lee Leachman, CEO of Leachman Cattle, now part of the URUS group of companies. “We supply the semen, and Alta or Genex distributes it to a dairy, then the dairy signs a contract with GK Jim Farms to sell those calves either as day-olds or after a growing period, then they are shipped to the feedlot for finishing.”

Th e contracts stipulate that every calf is tracked from birth with sire, health and performance data. That information is used to determine future matings to improve performance and reduce undesirable characteristics.

“This is a game changer,” Leachman emphasizes. “This enables progress like what we’ve seen in poultry and swine. If you don’t have the loop with the data you can’t make the progress.”

The closed-loop system is already operational at several U.S. feedlots, including five operated by GK Jim Farms in Colorado and Texas.

Veterinarian Kee Jim, principal at GK Jim Farms, says as his company began expanding their beef-on-dairy model they sought to acquire feedlots, but none were available at the scale they desired.

“Three years ago we began investigating what we believe would be the best site to build a new feedlot,” Jim says. “We looked at availability of grain, the climate, proximity to available feeder cattle and proximity to packers.”

That led to the selection of the construction site near Haigler, Neb., in the southwest corner of the state that joins both Kansas and Colorado.

ENVIRONMENTALLY FRIENDLY

Designed to be much more than just a large-scale feedlot, Blackshirt Feeders has several unique features that will make it the “most environmentally friendly feedlot on the planet.” That is how it’s described by veterinarian Eric Behlke who is both a founding partner of Blackshirt Feeders and project leader for its construction.

First among the new yard’s unique characteristics is the compressed rolled concrete that will cover every feeding pen. The concrete offers several advantages but is essential to capturing the manure for the biodigester that will be built adjacent to the site.

“The concrete allows for the collection of the manure without contaminating it with dirt, which is essential for a digester,” Behlke says. “But the concrete is impermeable, which provides superior protection for both the groundwater and the surface water. All of the ponds will be lined with high-density HDPE liner, a synthetic liner which is also impermeable, to prevent leaching of nutrients.”

Behlke says Blackshirt Feeders is committed to leveraging the latest technologies and feedlot construction to make the new yard as environmentally sound as possible.

“These efforts will help change the narrative about beef production and make it a much greener process,” Behlke says.

All of which sounds good, but like most agribusinesses today, finding labor is likely an issue, especially in a remote area. The company is already working to ease that problem, Jim says.

“We have plans to construct housing in Wray, Colo., about 20 miles away,” Jim says. “The first 24 units are under construction now.”

DATA AND SCALE

It can be easy for observers to focus on the massive size of Blackshirt Feeders, but it’s much more than an effort by a large player to further capitalize on efficiencies of scale, though that is important.

“What makes our system unique is that our large and ongoing investments in data collection and analysis are what have allowed us to scale our business,” says Holt Tripp, DVM, MBA, director of cattle operations for GK Jim Group of Companies.

Tripp says the company has used rigorous, large-scale, field trials to better understand the biology of the animals they are feeding.

“In turn, we have been able to make consistent incremental progress that allows us to make calculated bets on how, when and where to deploy risk capital in our system,” he says. “We are not using data to describe a system that has already come to scale — we are using data to get to scale. In our minds, anything else would be putting the cart before the horse.”

It’s ironic that an offshoot of the dairy industry might be the catalyst that could drive the beef industry toward expanded use of animal ID and data capture.

“I think eventually these (beef-on-dairy) calves may be better than the average beef-on-beef animals,” Leachman says. “AI’ing millions of dairy cows is a big advantage. We get so much selection pressure. If we don’t have a data feedback loop on beef-on-beef calves, then it will be harder to keep up. If we don’t have data feedback, we won’t be able to make progress as rapidly on the most important traits. Having ID and feedback on economically relevant traits is critical.”

The closed-loop system will eventually find its way to the native beef-on-beef segment.

“Cattle feeders will likely increasingly want to adopt that sort of model,” says Nevil Speer, industry consultant based in Bowling Green, Ky. “Knowing more about the feeder cattle they purchase and subsequently also providing feedback (and payment incentives) based on cattle performance (both in the feedyard and on the rail).”

Data, of course, is the key driver. “There’s more opportunities all the time for beef producers who are willing to embrace participating in a specified supply chain,” Speer explains. “It means giving up some independence, and it requires more accountability, but ultimately willingness to do so will likely also establish new opportunity to maximize the value of genetic and management inputs made at the ranch.”

Texas-Sized Problems Hit the Lone Star State, but Ag Commissioner says ‘Things are Getting Better’

Thu, 04 Apr 2024 21:26:34 GMT

Already this year, farmers and ranchers based in the Texas Panhandle have dealt with some Texas-sized problems that have impacted their livelihoods.

In March, the Smokehouse Creek Fire burned more than a million acres and killed thousands of cattle, primarily in the Panhandle and in Oklahoma.

Cal-Maine Foods, the largest producer and distributor of fresh shell eggs in the U.S., announced on Tuesday that chickens at its facility in the southwest part of the Texas Panhandle, in Parmer County, tested positive for highly pathogenic avian influenza (HPAI). As a result, Cal-Maine had to cull nearly 2 million chickens − 1.6 million hens and 337,000 pullets.

Dairy producers in the Texas Panhandle have also grappled with outbreaks of HPAI in their cow herds in recent weeks. To date, the USDA has confirmed the H5N1 strain of HPAI in dairy cattle on seven Texas farms.

In addition, one dairy worker has contracted an HPAI infection and displayed mild symptoms, the Texas Department of Health and Human Services reported Monday.

“It’s a mild, mild case and the only symptom he had was pinkeye,” Sid Miller, state commissioner of the Texas Department of Agriculture, told AgriTalk Host Chip Flory on Thursday. Miller said it’s unknown how the individual was infected.

You can listen to their conversation here:

What’s Going To Happen Next?
Flory asked Miller whether he believes state agriculture department investigators are in front of the latest issues with HPAI in dairy cattle.

“I think so,” Miller replied. “We’ve got about 10 months before the ducks and geese come back, so I think we’ll have it figured out by then.”

Miller speculated that waterfowl caused the dairy and poultry HPAI infections.

“Cowboy logic would tell you that cattle were drinking from the same ponds where waterfowl were present,” he said. “Or, maybe waterfowl had been in the feed boxes eating grain or something (along those lines). So, we’ve got to take better biosecurity measures to make sure that we eliminate all those possibilities.”

Despite the challenges Texas agriculture has faced the past few months, Miller is cautiously optimistic.

“Things are turning around and getting better. They really are,” he said.

One concern the livestock industry has now is whether HPAI will impact beef cattle at some point.

“You’ve seen what’s happened in the cattle markets,” Flory said. “They’re looking at it like this is a major problem for beef.”

Miller replied that he doesn’t anticipate there will be an HPAI problem in Texas beef cattle, which consist primarily of feedlot cattle in the Panhandle.

“The cattle that get it are the older lactating cows, and we don’t have those in the feedlot,” Miller said. “I think we’re OK, but we’re certainly going to research that.”

Food Safety Precautions
Miller said one of the Texas Department of Agriculture’s primary responsibilities is to make sure food produced in the state is safe for consumers. None of the affected milk, meat or eggs ever reached the marketplace.

“If you want to take some precautions, you might lay off the raw milk and unpasteurized dairy products, because that’s about the only way (HPAI) could get there,” Miller said. “But it’s not in the food chain. It’s not going to create a shortage of milk and dairy products. There’s no shortage of eggs. So, consumers, just rest assured. Don’t be alarmed. This is really not going to affect you.”

In a statement last week, the Centers for Disease Control said it considers the human health risk to the U.S. public from the virus to be low, though people who work with livestock are at higher risk of infection. The agency also advised against eating unpasteurized dairy products, such as raw milk or cheese, from animals with suspected or confirmed cases of HPAI.

More news on HPAI is available here:

Rare Human Case of Bird Flu Confirmed. Officials Believe it Began on Texas Dairy

HPAI Now Detected on Ohio Dairy: Strange Bird Flu Concerns See Growth

New Regulation: Dairy Cattle Entry into Nebraska Now Requires Permit Amid HPAI Bird Flu Concerns

Twelve Cases of HPAI in Dairy Cattle Confirmed in Five States

Profit Tracker: Cattle And Hog Margins Positive

Fri, 07 Jul 2023 19:15:54 GMT

Cattle and hog finishing margins are both positive for the third consecutive week.

Cattle feeding margins posted average profits of $150 per head last week, $27 higher than the previous week. Cash prices for fed cattle rose about $1 last week to $108 per cwt., but margins have made gains due to significantly lower feeder cattle prices calculated in closeouts, according to the Sterling Beef Profit Tracker .

Cattle marketed last week were purchased last spring at prices diminished significantly by the onset of the coronavirus pandemic. Feeder steer prices factored into last week’s Profit Tracker were $121.60 per cwt., which is $20 per cwt. lower than last year. Those lower feeder cattle prices produced an average breakeven of $97 for cattle marketed last week. The previous week’s breakeven price was $98 per cwt., and a year ago the breakeven was $112 per cwt. A year ago cattle feeders lost an average of $38 per head.

Packer margins declined $39 per head last week, though profits remain at $312 per head. Last week’s beef cutout price averaged $214 per cwt., a decline of $2 per cwt.

Feedyard margins reported by the Sterling Beef Profit Tracker, by Sterling Marketing, Vale, Ore., are calculated on a cash basis only with no adjustment for risk management practices.

(Note: The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs.)

Sterling Marketing projects 2020 feedyard margins to average a $10 profit per head, while annual packer profits are projected at $314 per head. Cash cow-calf margins for 2020 are projected at $57 per calf.

Farrow-to-finish pork producers have seen their margins improve significantly over the past month with rising lean carcass prices. Last week saw average closeouts post $24 per head profits, about even with the previous week, and $38 per head better than a month ago.

Lean hog carcass prices traded at $67.05 per cwt., $0.33 per cwt. higher than the previous week. Lean carcass prices are $12.93 per cwt. higher than a month ago, and $10.86 higher than the same week a year ago. A year ago pork producers lost an average of $14 per head.

Pork packers saw average profits of $50 per head last week, about $3 per head more than the previous week.

Sterling Marketing projects 2020 annual per head losses for pork producers at $18 per head, while projected packer profits are $59 per head.

(Editor’s note: Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

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Fall Rally Continues For Fed Cattle

Profit Tracker: Modest Profits For Cattle And Hogs

Fri, 07 Jul 2023 19:15:54 GMT

Cattle and hog finishing margins are both positive for the fourth consecutive week.

Cattle feeding margins posted average profits of $136 per head last week, $14 per head less than the previous week. Cash prices for fed cattle declined nearly $1 on average to $107 per cwt., but margins held positive due to significantly lower feeder cattle prices calculated in closeouts, according to the Sterling Beef Profit Tracker.

Cattle marketed last week were purchased last spring at prices diminished significantly by the onset of the coronavirus pandemic. Feeder steer prices factored into last week’s Profit Tracker were $122.16 per cwt., which is $19 per cwt. lower than last year. Those lower feeder cattle prices produced an average breakeven of $97 for cattle marketed last week. The previous week’s breakeven price was also $97 per cwt., and a year ago the breakeven was $111 per cwt. A year ago cattle feeders lost an average of $10 per head.

Packer margins declined $46 per head last week, though profits remain at $267 per head. Last week’s beef cutout price averaged $210 per cwt., a decline of $4 per cwt.

Feedyard margins reported by the Sterling Profit Tracker, by Sterling Marketing, Vale, Ore., are calculated on a cash basis only with no adjustment for risk management practices.

(Note: The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs.)

Sterling Marketing projects 2020 feedyard margins to average a $10 profit per head, while annual packer profits are projected at $314 per head. Cash cow-calf margins for 2020 are projected at $57 per calf.

Farrow-to-finish pork producers have seen their margins improve significantly over the past month with rising lean carcass prices. Last week saw average closeouts post $20 per head profits, about $4 lower than the previous week, and $2 per head better than a month ago.

Lean hog carcass prices traded at $66.29 per cwt., $1.24 per cwt. less than the previous week. Lean carcass prices are $2.47 per cwt. higher than a month ago, and $5.61 higher than the same week a year ago. A year ago pork producers lost an average of $7 per head.

Pork packers saw average profits of $59 per head last week, about $9 per head more than the previous week.

Sterling Marketing projects 2020 annual per head losses for pork producers at $18 per head, while projected packer profits are $59 per head.

(Editor’s note: Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

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Cattle Trade: Cash And Futures Lower

Profit Tracker: Modest Profit Holding Pattern

Fri, 07 Jul 2023 19:15:54 GMT

Cattle and hog finishing margins are both positive for the sixth consecutive week.

Cattle feeding margins posted average profits of $47 per head last week, $27 per head more than the previous week. Cash prices for fed cattle improved nearly $2 per cwt. on average to $106 per cwt., according to the Sterling Beef Profit Tracker .

Cattle marketed last week were purchased last spring at prices diminished significantly by the onset of the coronavirus pandemic. Feeder steer prices factored into last week’s Profit Tracker were $130.83 per cwt., which is $7 per cwt. lower than last year. Those lower feeder cattle prices produced an average breakeven of $102.69 for cattle marketed last week. The previous week’s breakeven price was $102.33 per cwt., and a year ago the breakeven was $112.56 per cwt. A year ago cattle feeding profits were $28 averaged $25 per head.

Packer margins improved $32 per head last week, with total profits at $306 per head. Last week’s beef cutout price averaged $209 per cwt., a gain of $4 per cwt.

Feedyard margins reported by the Sterling Profit Tracker, Sterling Marketing, Vale, Ore., are calculated on a cash basis only with no adjustment for risk management practices.

(Note: The Beef and Pork Profit Trackers are intended only as a benchmark for the average cash costs of feeding cattle and hogs.)

Sterling Marketing projects 2020 feedyard margins to average $10 profit per head, while annual packer profits are projected at $314 per head. Cash cow-calf margins for 2020 are projected at $57 per calf.

Farrow-to-finish pork producers have seen their margins improve this fall with rising lean carcass prices. Last week saw average closeouts post $12 per head profits, down $5 from the previous week and about $12 per head less than a month ago.

Lean hog carcass prices traded at $64.52 per cwt., $0.91 per cwt. less than the previous week. Lean carcass prices are $16.07 per cwt. higher than the same week a year ago. A year ago pork producers lost an average of $35 per head.

Pork packers saw average profits of $37 per head last week, down about $5 per head from the previous week.

Sterling Marketing projects 2020 annual per head losses for pork producers at $18 per head, while projected packer profits are $59 per head.

(Editor’s note: Sterling Marketing is a private, independent beef and pork consulting firm not associated with any packing company or livestock feeding enterprise.)

Profit Tracker: Beef Packer Margins Decline 33%

Fri, 07 Jul 2023 19:15:50 GMT

Last week saw a significant decline in beef packer margins – 33%. It’s all relative, of course, since beef packers continued to find profits of $332 per head, according to the Sterling Beef Profit Tracker . Still, it was $158 less than the stunning $490 per head margins from the previous week.

On a percentage basis, cattle feeding margins dropped about 90%, from $108 per head two weeks ago to just $10 per head last week. Flirting with breakeven is not where cattle feeders believe this market should be given the fundamentals, but here we are.

Cash cattle prices declined about $3.50 per cwt. last week to an average of $106. Coupled with feed costs that are $15 per head higher and feeder steer prices averaging $30 per head higher, profit margins quickly eroded. Packers saw their margins shrink due to a $20 per cwt. decline in the beef cutout, which averaged $217.90. The cost of finishing a steer last week was calculated at $1,431 which is $49 higher than the previous week, but $121 lower than a year ago. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.

Cash cattle prices were about $13 per cwt. lower than the same week a year ago. The beef cutout price was about $1 higher than the same week a year ago.

A year ago cattle feeders were earning $68 per head. Feeder cattle represent 69% of the cost of finishing a steer compared with 73% a year ago.

Farrow-to-finish pork producers saw their margins fall $2.50 per head to $3. Lean carcass prices traded at $55.79 per cwt., a decline of $2.77 per cwt. from the previous week, and $6.07 lower than a month ago. A year ago pork producers lost an average of $26 per head. Pork packer margins averaged a profit of $43 per head last week, a $6 per head increase from the previous week.

Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2020 will average $51 per cow. For feedyards, Nalivka projects an average profit of $0 per head in 2020, and packer margins are projected to average $300 per head.

For farrow-to-finish pork producers, Nalivka projects 2020 will produces losses of $18 per head. Pork packers are projected to earn $48 per head in 2020.

Profit Tracker: Growing Packer/Feeder Margin Spread

Fri, 07 Jul 2023 19:15:50 GMT

The widening spread between feedlot and packer margins underscores the leverage the large packing companies wield. Beef packer margins jumped $83 per head (20%) last week to $387. The gains were mainly due to rapidly increasing wholesale beef prices, little of which translated into higher fed cattle prices.

Average prices for fed steers was $112.28 per cwt. the week ended Jan. 29, which produced average feeding margins of $47 per head. That resulted in a $340 spread between packer and feedlot profits, according to the Sterling Beef Profit Tracker.

The beef cutout average was $229 per cwt, or $11 per cwt. higher than the previous week. The cutout was also $16 per cwt. higher than the same week a year ago, while fed cattle prices were $10 per cwt. lower than a year ago. A year ago packers saw profits of $73 per head, some $314 less than this year.

The total cost for finishing a steer marketed last week was $1,479, about $5 more than the same week a year ago. Last year cattle feeders saw profits of about $185 per head the final week of January. This year feeder cattle represent 65% of the cost of finishing a steer compared with 72% a year ago. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.

Farrow-to-finish pork producers saw their margins improve from a $2 per head loss to breakeven last week. Lean carcass prices traded at $58.76 per cwt., $1.63 higher than the previous week, and $2.27 higher than a month ago. A year ago pork producers lost an average of $5 per head. Pork packer margins averaged a profit of $42 per head last week, about $3 per head higher than the previous week.

Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2021 will average $123 per cow. For feedyards, Nalivka projects an average profit of $43 per head in 2021, and packer margins are projected to average $251 per head.

For farrow-to-finish pork producers, Nalivka projects 2021 will produces losses of $13 per head. Pork packers are projected to earn $37 per head in 2021.

Profit Tracker: Cattle Margins Slip, Hogs In The Black

Fri, 07 Jul 2023 19:15:50 GMT

Cattle traded more than $1 higher but rising feed costs erased some of the modest profits found on average feedyard closeouts last week. Cattle feeding margins declined $23 per head to an average of $25 the week ending Feb. 5, according to the Sterling Beef Profit Tracker .

Total costs for finishing a steer have climbed above year-ago for the first time since January 2020 at $1,519, about $14 higher than last year.

Despite higher bids for cash cattle, beef packers saw their margins increase $3 to $392 per head. The beef cutout price increased $4 per cwt. to $233.71. The result was a packer/feeder margin spread of $367 per head.

Beef packer capacity utilization was estimated at 89.6% with an estimated 653,000 head slaughtered. A year ago packer capacity was estimated at 86.9% with a weekly kill of 631,261 head. Carcass weights this year are running 19 pounds heavier at 846 pounds.

Beef packer leverage in the current market is evident in the fact cash cattle prices are $7 per cwt. lower than the same week a year ago, yet the beef cutout price was $23 per cwt. higher. A year ago packers saw profits of $77 per head while feeding margins were $143 per head. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.

Farrow-to-finish pork producers saw their margins climb out of the red for the first time in weeks, with profits of $7.37 per head. Lean carcass prices traded at $64.49 per cwt., an increase of $5.73 per cwt. from the previous week, and $10 per cwt. higher than a month ago. A year ago pork producers lost an average of $15 per head.

Pork packer margins averaged a profit of $30 per head, down $12 per head from the previous week, but $13 per head higher than last year. Pork packer capacity utilization was estimated at 95.7%, compared to 95% a year ago.

Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2021 will average $123 per cow. For feedyards, Nalivka projects an average profit of $43 per head in 2021, and packer margins are projected to average $251 per head.

For farrow-to-finish pork producers, Nalivka projects 2021 will produces losses of $13 per head. Pork packers are projected to earn $37 per head in 2021.

Profit Tracker: Cattle Steady, Hog Margins Solid

Fri, 07 Jul 2023 19:15:46 GMT

Cattle feeding margins were relatively steady at an average of $83 per head last week, down just $2 according to the Sterling Beef Profit Tracker . Most of the inputs into closeouts are similar to year ago – except cash cattle are trading $5 per cwt. below last year. A year ago cattle feeders saw average profits of $162 per head as negotiated prices averaged $119.

Total costs for finishing a steer averaged $1,469 per head, about $2 per head higher than the third week of February last year.

Cash prices paid to cattle feeders the week ending Feb. 19 averaged $114.09 per cwt., or about $0.25 per cwt. higher than the previous week. Packer margins increased $22 per head to an average of $389 per head. The result was a packer/feeder margin spread of $306 per head, up $24 from the previous week’s $282.

Beef packer capacity utilization was estimated at 76.1%, down 7.7% from the previous week, with an estimated 552,000 head slaughtered. A year ago packer capacity was estimated at 86.3% with a weekly kill of 625,629 head. Carcass weights this year are running 16 pounds heavier at 846 pounds.

Beef packer leverage in the current market is evident in the fact cash cattle prices are $5 per cwt. lower than the same week a year ago, yet the beef cutout price was $28 per cwt. higher. A year ago packers saw profits of $69 per head while feeding margins were $162 per head. The Beef and Pork Profit Trackers are calculated by Sterling Marketing Inc., Vale, Ore.

Farrow-to-finish pork producers saw their margins in positive territory for the third consecutive week, with profits of $20 per head. Lean carcass prices traded at $72.26 per cwt., an increase of $3.16 per cwt. from the previous week, and $15 per cwt. higher than a month ago. A year ago pork producers lost an average of $18 per head.

Pork packer margins averaged a profit of $30 per head, up $1 per head from the previous week, but $15 per head higher than last year. Pork packer capacity utilization was estimated at 86.7% compared to 93.1% a year ago.

Sterling Marketing president John Nalivka projects cash profit margins for cow-calf producers in 2021 will average $123 per cow. For feedyards, Nalivka projects an average profit of $43 per head in 2021, and packer margins are projected to average $251 per head.

For farrow-to-finish pork producers, Nalivka projects 2021 will produces losses of $13 per head. Pork packers are projected to earn $37 per head in 2021.

Flash Flooding Hits Texas Panhandle, Several Feedyards Now Face Massive Cleanup and Cattle Losses

Tue, 30 May 2023 18:18:41 GMT

From drought to now major flooding, historic rainfall fell in the Texas Panhandle over the weekend and prompted flooding. Hereford, Texas, is an area that was hit especially hard by the historic rains, with feedyards flooded and cattle trapped. Now, work is underway to pump a massive amount of water out.

According to the National Weather Service in Amarillo, the Hereford, Texas, area unofficially received 8 inches of rain in the past month. The heaviest rainfall event came Friday morning, with some volunteer observers showing 2.45 inches of rain fell in just 40 minutes.

@NWSAmarillo US Highway 385 is now being overtopped in the south side of Hereford. Water has come up approximately 5 feet in the last 30 min. Taken 9:20am pic.twitter.com/Gb1wCh49sT
— Brady Kendrick (@BradyKendrick24) May 27, 2023

According to John Robinson, senior vice president of membership and communications for the National Cattlemen’s Beef Association (NCBA), the water simply had nowhere to go, which prompted the flooding around Hereford. With such a quick rainfall event, there also wasn’t any advance notice that would have allowed residents to prepare.

“It’s flat topography down there. Once those creek beds that have been really dry for years fill up, there’s no place for that water to go. So that water spills over into low-lying areas adjacent to those creek beds. And it’s really caused a problem around the Hereford-Amarillo area down in the panhandle of Texas,” says Robinson.

The flooding impacted residential areas, and from an agricultural perspective, Hereford is also a major cattle production area and home to several feedyards.

“It’s one of the largest cattle feeding areas in the United States, so there are definitely widespread impacts,” says Robinson. “There’s probably going to be some production losses, some performance losses in terms of rate of gain, things like that.”

FLOODING IN HEREFORD continues. All of this water is headed to Buffalo lake and if/when it is full, the rest will head towards Palo Duro Canyon. Here is some video from @DowningMitchell #txwx #flooding #heavyrain @ABC7Amarillo @StormSearch7 @natwxdesk @NWSAmarillo pic.twitter.com/oLXi3x1AHU
— Corbin Voges WX (@CorbinVogesWX) May 27, 2023

Robinson points out while the short-term impact is painful for any feedyard dealing with the flooding, he says it shouldn’t create a big impact on cattle supply longer-term.

“It’s mostly going to work its way out here in the next few days,” he says. “There shouldn’t be supply chain increases, there shouldn’t be significant price increases. Who knows what else might happen in the meantime, but the impacts are going to be relatively short-lived for the vast majority of these areas.”

Major flooding in Hereford, TX following the overnight storm. Houses, cars, and semi-trucks under water as authorities work to divert citizens from the area. @ABC7Amarillo @StormSearch7 pic.twitter.com/GzY48iKqK7
— Mitchell Downing (@DowningMitchell) May 27, 2023

Some rumored estimates over the holiday weekend claimed 25,000 head of cattle died in the flooding, but NCBA says its representatives are in constant conversation with several producers in the area, and those estimates are way too high. NCBA says everyone is still trying to get a handle on losses, but it’s a fraction of the 25,000 number being thrown around.

Robinson says feedyards around Hereford are getting creative in pumping water out and cattle to dry ground.

“On one yard in particular, they brought in some dewatering pumps from oil drilling sites, maybe as far away as New Mexico. They’re pumping that water out, in some cases, over a mile to get it off of the feedyard so they can dry things out, get cattle to a safe, dry place to bed down,” he says.

Most of the water has receded in the Hereford area, but Robinson says there will be a lot of clean-up work that follows.

“While they’re trying to get all this other work done, they’re getting fences repaired, VDR pens repaired and dried. And it’s a lot of work. But there’s a committed crew of folks down there doing it, and not just from the agriculture industry, but from oil and gas and others as well,” says Robinson.

More precipitation could be on the way. Forecasts point to more severe weather—and heavy rains—which could cause further flooding.

Is Grass-Fed Beef Healthier or Better for the Environment?

Thu, 16 Mar 2023 21:22:43 GMT

Whether you buy your meat from a local producer or a grocery store, there are some major misconceptions about not only how the cattle are raised, but the environmental footprint of beef that comes from cattle raised on grass or grain. That’s why we are uncovering the science behind the beef.

Misinformation About Meat

Accelerated by the pandemic, the internet and social media have created more direct sales of meat. While the web has opened new doors for local meat providers through consumers’ growing hunger for freezer beef and pork, it’s those same avenues that can also be a source of misinformation about meat.

“Probably some of the biggest misconceptions of those finished on corn or grain based diets are those environmental impacts that they could have,” says Gretchen Mafi , Professor and the Ralph & Leila Boulware Endowed Chair in the Department of Animal and Food Sciences at Oklahoma State University

As a meat scientist, Mafi has studied the scientific differences between beef that comes from animals finished on a corn-based diet versus those animals finished on grass. She says both practices produce meat that have many similarities.

“They’ve all grazed throughout the vast majority of their life,” says Mafi. “And they’re only finished on corn for a short time, and nutritionally have very minimal differences.”

Mafi says grass-finished meat is a niche market, accounting for only about 5% of the total beef produced in the U.S today. At Ralph’s Packing Company you’ll only find corn-finished beef, but that’s mainly due to consumer demand.

“There’s a tremendous difference in carcass characteristics, product attributes, aroma, palatability and visual characteristics with grain finished beef,” says Nelson. “It’s a radical difference between the two, and there’s not one better than the other.”

Instead, Nelson says it all boils down to preference. But much of that preference can be attributed to taste. Mafi says from a meat scientist’s point of view, the taste is due to one major factor: the marbling of the meat.

“That fat, that marbling, contributes to flavor, it contributes to juiciness and then somewhat to tenderness,” she says. “It’s really important to that eating satisfaction that we get from a steak or a roast.”

Environmental Impact of Grass Vs. Grain

With no nutritional difference between grass and grain finished beef, Mafi says the science also proves grass finished isn’t more environmentally friendly, which is one of the biggest misconceptions among consumers today.

“The research simply shows us that there’s really not a difference from a sustainability or an environmental impact or carbon footprint. And sometimes even the grass finished, because it takes longer to reach that market weight or to provide the same amount pounds of beef, it can have a higher impact environmentally than those finished in a feed yard,” says Mafi.

Some of the misconceptions about grass-fed beef being healthier for people and the environment stem from places like Butcher Box, which is a subscription meat service offering only grass-finished meat. On the website, Butcher Box claims grass-fed beef has arisen as a healthier, leaner, and more humane alternative to the standard beef you can find at the grocery store.

“Grass-Fed” Versus “Grass-Finished": There’s Actually a Difference

Meat scientists say that’s simply not true, one is not superior to the other. Instead, it’s terms like “grass-fed” that can be misleading and cause confusion.

“That is probably better described as grass fed and finished because we finish these animals to an endpoint,” says Jake Nelson, food safety coordinator at Ralph’s Packing Company. “Their purpose in life is to be a food source for us, so we need to be careful about the terminology we use so that we don’t confuse consumers.”

It All Comes Down to Personal Preference

For someone who’s studied beef, what type of production method does Mafi prefer? Well, she says it all comes down to taste and her personal preference.

“I definitely prefer cattle finished on corn or other grains,” she says. “It just has a beefier flavor, more juicy, it’s usually more tender. They’re going to have more inter muscular fat to give it that added flavor and juiciness to give it that beef flavor intensity, the buttery beef fat that we associate. Also, I’m not adding a ton of calories just by adding that additional marbling.”

Whether you opt for a meat that’s finished on grass or a steak finished on corn, meat experts say it’s all about preference, and they’re serving up the facts so beef is what’s for dinner for years to come.

Cash Cattle Lower; COF Placements Down 8%

Fri, 20 Jan 2023 22:25:07 GMT

Cash cattle markets were lower for the week ending Jan. 20 with a moderate fed cattle trade. Adverse winter weather conditions in the northern regions added stress to cattle and reduced weights.

Trade in the North occurred at $155 to $156 live, and $248 dressed, mainly $1 lower on a live basis and $2 to $4 lower dressed. Light volumes traded at $155 in the South, $1 lower. Feeder cattle traded mixed, from $1 higher to $5 lower. Calves sold in a wide range from $2 higher to $4 lower.

Cattle futures rebounded modestly to end the week, with February live cattle rising 67.5 cents Friday to a close at $156.625. That represented a weekly loss of $1.10. And while expiring January feeders slid 17.5 cents to $177.925, most-active March climbed 87.5 cents to $180.975, which marked a weekly loss of $1.90.

Friday’s cattle rally may have been partially driven by short-covering to end the week, but analysts suspect packers were unable to force cash prices as low as they hoped (although the Monday-Thursday average fell $2.54 from the week-prior to $155.07) and/or didn’t get the cattle numbers they wanted. The fact that February futures held at and rebounded from the upward trendline drawn across their fall lows likely triggered technical buying as well, according to Pro Farmer analysts.

Wholesale beef prices also moved lower with the Choice boxed beef closing Friday at $271.72 per cwt., down $4.90. Select boxed beef closed Friday at $256.43 per cwt., down 46 cents for the week.

Estimated weekly cattle slaughter was 646,000 head, up 9,000 head from a year ago. The year-to-date total was an estimated 1.872M head, down 3000 head from last year.

U.S. Cattle on Feed Down 3 Percent

Cattle and calves on feed in the United States for feedlots with capacity of 1,000 or more head totaled 11.7 million head on January 1, 2023, down 3% from the same month a year ago.

Placements on feed during December totaled 1.80 million head, 8 percent below 2021. Marketings of fed cattle during December totaled 1.74 million head, 6 percent below 2021.

Analysts called the report neutral as the trade anticipated a 9% decline in on-feed inventories. December marketings fell about 6% from the comparable year-ago level. A calendar-driven loss of a workday last month caused the bulk of the marketings decline, but the USDA figure came up about 1% short of expectations.

Cash Cattle Rally $3, COF Down 1 Percent

Fri, 21 Oct 2022 20:57:07 GMT

Cash cattle trade was called active with packers seeking to add inventory. Cattle sold in the North at $150 to $152 per cwt. live and $232 to $236 dressed, mostly $3 higher. Cattle trade in the South was called light to moderate with prices at $148 per cwt., also $3 higher.

Wholesale beef prices moved $7.09 higher for the week, with Choice closing Friday at 253.71 per cwt. Select boxed beef closed Friday at $224.26 per cwt., $6.22 higher for the week. Retailers have anticipated seasonal slowdown in slaughter volumes and are competing to add inventory.

Estimated weekly slaughter was 673,000 head, up 11,000 head from the same week last year. Year to date total was estimated at 27.37 million head, up 1.6% from last year.

Feeder cattle trade varied regionally with prices $3 lower to $3 higher. Calves were called $3 lower to $2 higher.

December live cattle rose 75 cents to $152.425, a lifetime-high close for the contract, and gained $4.65 for the week. October live cattle gained 70 cents to $150.475, the highest close for a nearby contract since August 2015. November feeder cattle rose 80 cents to $178.35, up $3.575 for the week.

Friday’s technically bullish weekly high closes suggest follow-through chart-based buying early next week.

Friday’s monthly USDA Cattle on Feed Report showed the Oct. 1 feedlot inventory down 0.9% from the same date in 2021, with September placements down 3.8% and marketings up 4.0%. With all three categories in-line with the pre-report estimates, the data is largely neutral and will have little impact on prices. However, declining feedlot inventories paint a bullish picture for both cattle futures and the cash cattle market into 2023.

Cattle Contract Library Act Passes Ag Committee

Thu, 22 Sep 2022 05:28:40 GMT

By a unanimous vote on Thursday, the U.S. House Agriculture Committee passed the bipartisan Cattle Contract Library Act of 2021 (H.R. 5609). The bill must be approved by the full House and would also need Senate consideration before it could be signed into law.

Introduced earlier this week by Rep. Dusty Johnson (R-SD) and Rep. Henry Cuellar (D-TX), the Cattle Contract Library Act would establish a library of contracts for the Agricultural Marketing Service to report terms of alternative marketing agreements between packers and producers. Supporters of the bill say it would greatly increase transparency in cattle markets.

Rep. Johnson said the bill is the result of nearly a year of work with producers and industry leaders following the July 2020 Boxed Beef & Fed Cattle Price Spread Investigation Report. The investigation recommended the creation of a cattle contract library.

According to a statement from Rep. Johnson, this is the first cattle market transparency bill to pass out of the Agriculture Committee since the July 2020 report was released. The Cattle Contact Library Act is supported by the American Farm Bureau Federation, National Cattlemen’s Beef Association, U.S. Cattlemen’s Association, National Farmers Union, Livestock Marketing Association, South Dakota Cattlemen’s Association, South Dakota Farm Bureau, and the South Dakota Farmers Union.

“Producers want action – they want more transparency in the cattle market – this bill is a step in the right direction,” Rep. Johnson said. “The Cattle Contract Library Act ushers in greater transparency and competition to an industry that desperately needs it. I’m grateful to the farmers & ranchers for their critical input to come to a consensus and I’m glad the committee answered this request. I’m going to fight like hell to get this bill passed out of the House.”

During an interview with Chip Flory on AgriTalk Thursday, Tanner Beymer, NCBA director of government affairs and government regulatory policy, said the cattle contract library has “broad support from all sectors” and has been a longstanding priority for NCBA.

“Members of Congress recognize this broad support,” Beymer said.

The cattle contract library will give cattlemen valuable information about “what attributes are being incentivized by packers and at what (price) levels,” he said. Such information will help producers gain more marketing leverage.

“Information is power, and this bill allows cattle producers to compare their agreements with other (packer/producer) agreements and allows them the opportunity to negotiate more favorable terms,” Beymer said.

The only cattle producer group that has not endorsed the Cattle Market Transparency Act is R-CALF USA, the group said in a statement. R-CALF directors reviewed the bill and determined it “does not address the competition-disrupting leverage” the beef packers now have.

“The problem with our broken market is not that we don’t know the details of the contracts that confer market leverage to the packers, the problem is there are too many contracts and because of that, our price discovery market is being destroyed,” said Iowa cattle feeder and R-CALF USA Director Eric Nelson. “Putting a contract library ahead of taking action to preserve our price discovery market sends a signal that more contracts are good and more producers should try to access them. This is not what is needed.”

Prior to Thursday’s vote, the North American Meat Institute urged the House Ag Committee to pause.

“Members of the Meat Institute are still analyzing the bill and how it might affect their operations,” said Julie Anna Potts, President and CEO. Due to the limited time allowed to consider the legislation, “we ask the House to pause and include packers in the conversation, since the packers would bear the burden of complying with this new government mandate.”

The bill must be approved by the full House and would also need Senate consideration before it could be signed into law.

“There is already robust price discovery provided by beef packers on a daily basis,” Potts said. “We urge members of Congress to slow down and to first do no harm.”

Related stories:

Beef Contract Library Bill Introduced In House

Did High Heat And Humidity Really Cause Cattle Deaths In Kansas? The Latest Look at Potential Losses

Thu, 16 Jun 2022 19:11:09 GMT

Drought-plagued western Kansas recently saw rain. While the moisture was welcomed, it also coupled high humidity with high heat this week. As feedyards battled through the intense conditions to keep their cattle safe, the heat and humidity proved devastating , with estimates now pointing to feedlots seeing losses of 100 to 500 head per day.

An unconfirmed video of dead black-hided cattle made its rounds on social media this week. The rare scenario is something feedlot operators couldn’t avoid. Dr. Dan Thomson , a bovine vet who specializes in animal health welfare, recently spoke to Farm Journal’s Michelle Rook .

“If we have a rain event that increases the humidity in the environment, through mud and different things like that, followed by extreme temperatures with a decrease in wind, we can see these thermal heat indexes rise to where cattle accumulate heat,” Thomson says.

He says the scenario is similar to the impact of a natural disaster. While feedlots did everything possible to prepare and provide cattle relief, the climate conditions meant the cattle didn’t have a chance to cool down, and in some cases, the internal temperature rose too much, which caused the rare losses.

“During these bouts of extreme heat, the cattle can’t dissipate the heat at night because there’s not night cooling,” Thomson says. “And so this perfect storm, it’s no different than a tornado hitting a cattle feeding facility or a derecho. We have these natural disasters.”

Estimated Losses Still in Question

While there’s no way of knowing just how many cattle have died from the heat this week, Reuters quoted the Kansas Department of Health and Environment saying at least 2,000 head of cattle had been lost. One Drovers source says it’s very possible 5,000 cattle may have succumbed to the heat, but the talk of 10,000 head is likely an exaggeration of reality.

With herd culling is already taking place due to the drought this year, Mark Gold of StoneX Group says it will have an impact on the supply of cattle in the U.S.

“The rumors are that we’re losing 100 to 500 head per feedlot out here,” says Gold. “That’s a lot of cattle.

Losses Could Have Been Worse

No matter what the final total ends up being, those losses are difficult for feedyard operators and employees who Thomson says made a relentless effort to get the cattle water and comfort through bedding in order to help the cattle cool off.

“It’s something if our people on the ground wouldn’t have been doing the job that they’re doing, there would have been so much more death loss,” he says.

High Heat Expected to Stick Around

The record-breaking heat across the South and Midwest is something that may continue to be a factor in the months ahead. The extreme weather, including hail and flooding, can all be attributed to a ridge of high pressure parked over the country.

USDA meteorologist Brad Rippey says while the ridge of high pressure is parked over the country, it has been shape shifting the past few days.

“This year, 2022, it does appear that we have a rather intense ridge of high pressure,” says Rippey.

Rippey says a ridge of high pressure is an annual occurrence, conditions just vary based on where the ridge is located, and how intense it is.

“We saw it become established over the desert southwest, it’s made a run across the great plains now more recently into the Midwest, the mid-South, and even the Southeast with early triple digit heat, that in fact is maybe a bit of a warning sign ,” Rippey explains .

Rippey says as the ridge shape shifts, the outer edge creates what’s called a “ring of fire.” That ring can then cause severe storms, including the hail and flooding this week. He expects the ridge to stick around, but there’s no way of knowing exactly where the ridge remains parked, but he does expect hot and dry conditions in the souther plains.

Parts of Texas, Oklahoma and Kansas have seen recent rains. While it is prompting pasture conditions to slightly improve, Derrell Peel, Oklahoma State University livestock specialist, says damage from the drought has already been done.

“I think we’re looking at a record level of net cow culling up around 13% and probably a 3% to 4% decrease in the beef cow herd,” says Peel. “Even if the drought conditions changed dramatically from this point on, it’s almost too late for us to really recover from the loss and forage and the amount of cows we’ve already culled this year.”

Cattle Losses Reported Due to Heat Stress

Wed, 15 Jun 2022 19:32:49 GMT

With heat indices climbing into the triple digits in cattle feeding areas, there have been some accounts of death losses. Unconfirmed reports have an estimated 10,000 head in Kansas and an undetermined amount in Nebraska. Those losses are attributed to heat stress and concerns will continue to grow as the heat wave persists.

Cattle losses like these are devastating for producers and happen even though they do everything in their power to manage heat stress in their operations. Dr. Dan Thomson of Iowa State University is a veterinarian and leading animal health and well-being expert. He says the heat and humidity combined to raise the thermal heat index for those cattle and created the perfect storm.

“During these bouts of extreme heat the cattle can’t dissipate the heat at night because there’s not night cooling and so this perfect storm hits. No different than a tornado hitting a cattle feeding facility or a derecho or whatever and we have these natural disasters,” Thomson explains.

The heat wave is expected to continue for several days. Thomson says producers will need to continue to be on high alert to try to manage that heat stress.

“There’s mitigation strategies that we place, whether its nutrition, strategies for increasing water tank space and decreasing movement of cattle, all these things we’re doing on a day to day basis.” Thomson says. Feedlot managers and their crews have been putting themselves in danger to save cattle in the extreme weather conditions, hauling water and providing bedding for the cattle, he adds. If not, there could have been higher mortality rates.

Cattle producers work hard to keep cattle comfortable so they perform at their highest level, but most importantly, for their well-being.