– Stan Smith, PA, Fairfield County OSU Extension
Typically, when feed prices go down, we see feeder calf prices begin to climb as a corresponding move. That is, unless fed cattle prices are unstable or declining. A fire in a Kansas cattle packing plant just before a report detailing that the U.S. might have planted more acres of corn than earlier anticipated caused the perfect storm that allowed pressure on feeder calf prices at the same time as declining feed prices. With the time of year when the vast majority of U.S. feeder calves are weaned and marketed quickly approaching, there’s little time to develop a plan that might preserve or even enhance some of the value and profit in feeder calves that simply may not be in as strong of demand now as they might have been just a few weeks ago.
However, less expensive feed combined with the thought that calf prices can rebound in the coming months once we are past the seasonal tendency for lower prices and the damaged Kansas packing house comes back on-line offer incentive for developing a strategy to hold on to this fall’s feeder calves while also adding value to them.
To recap the path that’s brought us to this point, on Continue reading Why Consider Backgrounding a Calf?