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Cow/calf producers face increased downside risk

A livestock economist says there is a lot of downside risk right now for cow/calf producers.

University of Missouri’s Scott Brown says hay prices are on the rise and cow/calf producers, who are traditionally more set in their management practices, might need to get creative when putting together feed rations to improve their bottom line.  “Some say I’ll never feed anything other than hay,” he says.  “Now’s a time to take a pencil to that and look at other options.  Producers can use things like soy hulls in their rations to reduce feed costs.”

He tells Brownfield because of drought issues, there’s likely going to be a dramatic slowdown to expansion on the cow side.

Brown says producers might have to become more flexible in their long-term planning.  “There needs to be some strategy in how many cows producers want in 2019 and 2020,” he says.  “Those are important planning decision to be made today in terms of wanting calves to go earlier or cows to go earlier.”

The latest report from USDA dropped hay yields by more than 8 percent from last year.