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Tarrah Dunnaway

Taking Advantage of a Strong Cattle Market
9/15/2014 (new)

 UK Authors: Tarrah Dunnaway
 Departments: Agricultural Economics

A combination of several factors has led to extremely strong prices across beef cattle markets during recent years. Established cow-calf operators are the primary beneficiaries of these unprecedented price levels as they represent the only industry within the beef sector that is not margin oriented. While the current market environment has greatly improved profitability at the cow-calf level, it also presents challenges as producers consider long term decisions about cattle inventory, investments in equipment and facilities, and managing the financial aspects of greater cash flow in the coming years. The purpose of this publication is to (1) outline the factors behind the current strength of the cattle market and describe how producers typically respond to strong markets and (2) to help frame the economics of several key long-term investment decisions that producers are likely considering.

web only | 5 pages | - | 58 downloads | PDF: 93 kb