Connect with us

Farm & Ranch

[AgriLife Today] Cattle producers learn how to deal with smaller profit margins

Published

on

By: Blair Fannin

Texas A&M Beef Cattle Short Course attracts record attendance

Writer: Blair Fannin, 979-845-2259, [email protected]

COLLEGE STATION – After two years of historic high cattle prices, a record 1,900 producers attending the Texas A&M Beef Cattle Short Course in College Station learned more about the current decline in prices and maintaining profitability despite declining profit margins.

“We’ve had quite a run over the past two years with regards to high cattle prices,” said Dr. Jason Cleere, conference coordinator and Texas A&M AgriLife Extension Service beef cattle specialist, College Station. “Cattle prices fell considerably last fall and ranchers are concerned with where they will go in the future.”

Beef producers attending this week’s short course were all too familiar with the decline in prices.

“If prices would just stabilize, it would take some panic out of the market,” said Greg Goudeau, cattle producer and owner of Navasota Livestock Auction Co.

“We’ve seen quite a slide, 40 percent, which is quite challenging,” said Gerald Sullivan, who co-owns Santa Rosa Ranch in Navasota and Crockett with his daughter, Kelley Sullivan. “Not everything is bad, not everything is good. We’re also seeing an uptick in per capita consumption of beef. That’s directly related to the cost as far as I am concerned. I believe we are going to be looking at two or three years of this before we see a turnaround. I’m not sure where the bottom is at this point, but we’ve seen this before.”

Dr. Ted McCollum, AgriLife Extension beef cattle specialist, Amarillo, said during the general session, “It’s like a game of limbo right now. How low can you go? Price discovery in the fed cattle market has been an issue as well as volatility in the futures markets and relation to the cash markets.”

Duane Lenz, CattleFax market analyst, said it was the best of times when prices rallied to historic levels in 2015 and hundreds of dollars in profit margins were raved.

Duane Lenz, CattleFax market analyst, gives a cattle market outlook at the 62nd Texas A&M Beef Cattle Short Course. (Texas A&M AgriLife Extension Service photo by Blair Fannin)

Duane Lenz, CattleFax market analyst, gives a cattle market outlook at the 62nd Texas A&M Beef Cattle Short Course. (Texas A&M AgriLife Extension Service photo by Blair Fannin)

“Looking back at historical returns, in 2015 it wasn’t good; it was really, really good,” he said.

But when prices started to break going into the fall and spiral downward, Lenz said feeder operators who paid high bids began holding on to cattle, feeding them longer, hoping for prices to come back up to a level of profitability. When those cattle went to slaughter, weights were significantly higher and lots of beef was on the market.

That also pressured prices downward, he said. As a result, that left a lot of beef that continues to be cycled through the chain, which has weighed heavily on prices. Commodities across the board, led by the energy sector, have seen sharp declines due to global economic concerns, which hasn’t helped spark strong rallies in cattle prices.

Looking forward, Lenz said consumption is forecasted upward and export demand for beef is also projected higher in the coming years. That’s good news, he said, as lower cattle prices have also trickled down to the retail meat case and major grocery chains have returned to featuring beef cuts in weekly sales flyers.

Though prices won’t reach historic levels seen in 2015, the floor price for a 550-pound steer is targeted at $155 per hundredweight, he said.

“Could we see $150 to $155 in the coming years? We probably could,” Lenz said.

But just two weeks ago, Lenz said Kansas fed-cattle prices reached as low as $115 per hundredweight.

“Now we’re getting in the mid-$120s,” he said. “There’s no reason we can’t be there as we finish out the year. But going into next spring, $105-$110 is a possibility.”

Brian Bledsoe, meteorologist, who is featured in Southern Livestock Standard, gives a weather outlook at the 62nd Texas A&M Beef Cattle Short Course. (Texas A&M AgriLife Extension Service photo by Blair Fannin)

Brian Bledsoe, meteorologist, who is featured in Southern Livestock Standard, gives a weather outlook at the 62nd Texas A&M Beef Cattle Short Course. (Texas A&M AgriLife Extension Service photo by Blair Fannin)

By comparison, 2015 prices got as high as $275 per hundredweight for a 550-pound steer.

The beef short course is one of the largest beef-education workshops in the country. This year’s short course attracted participants from 24 states and eight countries, Cleere said. Many attended the two-and-a-half day event to receive comprehensive education from a variety of experts.

“Where else can you go in Texas and find 1,500 ranchers and vendors?” Goudeau said. “It’s not just the sessions, but an event to find out about what your friends and neighbors are doing with their operations. It’s a rancher’s family reunion. It’s a place to learn more about the hot topics in the industry.”

“There are a number of different sessions you can attend and really pinpoint what we are doing and you can do it all at one time in one place,” said Sullivan, who operates a seed-stock cattle operation. “You don’t get to see all the people at the same time. Plus the trade show, you pick up on tidbits of information that are valuable to your operation. For us, two things, we meet with our customers and potential customers and having all the experts in one place. It’s efficiency, getting to see everyone at the same time.”

This year’s short course was dedicated to the late Rick Hirsch, AgriLife Extension agent for Henderson County. Hirsch passed away unexpectedly in April. His family was recognized during the formal dedication by Cleere during the Aggie Prime Rib Dinner Monday evening.

The short course is coordinated by AgriLife Extension and the department of animal science at Texas A&M. The event showcases the latest research and educational programs offered by AgriLife Extension, Texas A&M AgriLife Research and the department of animal science at Texas A&M. The short course continues through Wednesday.

 

-30-

LikeTweet

Find more stories, photos, videos and audio at http://today.agrilife.org

Continue Reading

Farm & Ranch

Texas FFA State Vice President Weston Parr

Published

on

By

Future Farmers of America was founded by a group of farmers in 1928 with the mission of preparing the next generation of agriculture. It has done just that during its 95-year history, as the organization works to give back to others by following its motto, “learning to do, doing to learn, earning to live, living to serve.”

FFA is an organization made up of state associations, and at the helm of the Texas FFA is a team of 12 officers representing their respective areas within the Lone Star State. These individuals dedicate a year of their lives as they serve members, provide leadership, and work together with the state staff and board of directors to develop policy and lead the organization of over 177,000 members.

North Texas is represented by Area IV and Area IV, stretching from Wilbarger County to Bell County and from Runnels County to Grayson County. This year, those chosen to lead this great area are State President Isaac Hawkins Jr., Area IV, and State Vice President Weston Parr, Area V.

Parr is from the Sam Rayburn FFA chapter and the Area V Association, but the leader who now serves more than 19,100 members of Area V entered the FFA organization as a shy teenager who sat in the back of the room.

“I didn’t talk to a whole lot of people. I didn’t know what I wanted to do with my life or where I could see myself, so I wasn’t involved on my high school campus,” Parr recalled.

“Then I started FFA and slowly but surely, my ag teachers worked me into attending more contests, meeting new people, and speaking. I remember the first time I gave an officer speech to my chapter. I can still remember how embarrassing it was. To see the progression from that moment to speaking on stage at the state convention in front of thousands of people. Now I feel like I can enter the industry I want and be successful all because of what FFA afforded me for five years.”

There is not much Parr did not do during his time in high school. His contest participation included chapter conducting, wool judging, cotton judging, wildlife, and job interview, but his favorite was extemporaneous speaking, which he did not start until his senior year of high school.

“I wish I could go back to my freshman, sophomore, and junior years and start that sooner. I think if I had more time, I would have been more successful than I already was, but that was something I didn’t realize I liked at the time. I’m not naturally somebody who likes to speak in public, but it was actually my favorite,” Parr said.

Parr won several awards during his time competing. In 2023 alone, Parr earned the Texas FFA Service-Learning Proficiency title, was a National FFA Service-Learning Proficiency finalist, and a Texas FFA Extemporaneous Speaking finalist. In addition to his CDE and LDE events during high school, he showed commercial steers at Houston, and boilers at most major shows, participated in the county show with projects in ag mechanics, showed goats from time to time, and showed heifers until graduation.

“FFA provides invaluable resources and knowledge to be successful once you leave high school and you are out of the blue jacket for the first time. I have been a part of a lot of great organizations over the years, and they are all great in their own way, but in my opinion, FFA is the most successful at producing members of society who want to go and do something with themselves,” Parr said.

He was halfway through his time as Area V Association President and attending the national convention when he began to ponder the idea of running for state office.

“This is around the time when you usually figure out if you want to go through and be a state officer or you decide that area officer is your last run. I was unsure of where I wanted to go, but I knew I didn’t want to be done with FFA. I decided maybe it would be a good opportunity not only for me to make more friendships and connections, but also to give back to the program that allowed me to be able to do what I can do today,” Parr explained.

To read more, pick up a copy of the May issue of NTFR magazine. To subscribe by mail, call 940-872-5922.

Continue Reading

Farm & Ranch

Texas FFA State President Isaac Hawkins, Jr.

Published

on

By

FFA is an organization made up of state associations, and at the helm of the Texas FFA is a team of 12 officers representing their respective areas within the Lone Star State. These individuals dedicate a year of their lives as they serve members, provide leadership, and work together with the state staff and board of directors to develop policy and lead the organization of over 177,000 members.

North Texas is represented by Area IV and Area IV, stretching from Wilbarger County to Bell County and from Runnels County to Grayson County. This year, those chosen to lead this great area are State President Isaac Hawkins Jr., Area IV, and State Vice President Weston Parr, Area V.

These young leaders share a drive to give back to the organization that has given to them as they work to support FFA members while preparing for a future in the agricultural industry.

From the 12 selected representatives, delegates elect a president and first vice president, with the remaining 10 serving as vice presidents from their respective area associations. The selection process consists of a popular vote by delegates at the state convention, which accounts for 40 percent of the decision, and a committee process that includes a written knowledge exam, worth 10 percent, and an interview, accounting for 50 percent. This year, after all was said and done, Hawkins was named this year’s Texas FFA President.

Hawkins grew up as part of a large, blended family with five sisters and three brothers. While he says he did not grow up in agriculture, his youth was spent outside fishing and doing all things outdoors with his father, whom he calls his best friend. As he entered Hirschi High School in Wichita Falls, Hawkins knew he wanted to be a vet but was unsure of what courses to take to set himself on that path.

“I signed up for ag principals just because they had animals in the description. The first day of class we talked about churning butter, and I went to my school counselor that same day and told her to change my schedule immediately, but she refused. She made me stay there,” Hawkins laughed. “Luckily, I had an incredible ag teacher, and she really helped me to fall in love with the program.”

To read more, pick up a copy of the May issue of NTFR magazine. To subscribe by mail, call 940-872-5922.

Continue Reading

Farm & Ranch

Hazards of Backyard Poultry

Published

on

By

By Barry Whitworth, DVM

Having backyard poultry is a popular agriculture enterprise. According to the United States Department of Agriculture, 0.8 percent of all households in the United States have chickens. People keep chickens for a variety of reasons with table eggs being one of the more common reasons.

Unfortunately, some of these poultry producers are not aware of the hazards that come with keeping poultry because many times they carry pathogens but appear healthy.
Chickens are carriers of several zoonotic diseases. These are diseases that can be passed from animals to humans. According to a recent survey in Pennsylvania, a majority of backyard poultry producers were aware of the dangers of avian influenza. However, this study also revealed that far fewer producers were aware of the risk of possible exposure to Salmonella and Campylobacter.

The lack of knowledge about the hazards of raising poultry likely contributes to the continued issues of Salmonella outbreaks associated with backyard poultry. In 2023, the Centers for Disease Control and Prevention reported 1,072 illnesses of Salmonella linked to backyard poultry, and 272 of those patients required hospitalization. Oklahoma reported 43 individuals with the disease.

To read more, pick up a copy of the April issue of NTFR magazine. To subscribe by mail, call 940-872-5922.

Continue Reading
Ad
Ad
Ad
Ad
Ad

Trending