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itsmetoo92774
Frequent Contributor

Re: Cost of Cow Calf rent?

I'm not sure how feedlots are making the current feeder calf prices pencil out. But I'm certain it will not pencil out if you make the 4 in the corn price a 5,6,7,or 8.  Cattle feeders have little control over their selling prices so the only thing they can do make their feeding margin pencil out is to pay less for feeders when feed costs increase.  Finished cattle prices are only slightly higher then they have been the for a few years.  I have been selling cattle in the meat for $2+/- a little bit for 2-3 years.  So current finished cattle prices are only around $100 per head higher then they have been in recent years.  Current finished cattle prices don't make feeder cattle several hundred dollars higher then last year without a big drop in corn prices.

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Husker-J
Senior Contributor

Re: Cost of Cow Calf rent?

What made calf prices so high, was the ongoing drought down South (Texas) that caused thousands of cattle to be liquidiated, which shortened the supply.  Back then, I could have bought you bred heifers for $1500 each, the best at the sale for under $2000
Now, they are getting the rains and grass back, and bred heifers are approaching $3000 per animal.

 

I sold calves 2 years ago, for just under $800 per animal, last year I got almost $1000 (when I sold them corn was under $5), this year, I didn't sell yet, but the guy down the road who ususally gets about the same price as I get, got $1100 per calf.   The price for feeding them out has not gone up nearly $300 per animal, the difference is the cheaper grain, coupled with higher demand.

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