| Dirk Diggler - 8/21/2026 10:24
I’m a grain producer from Indiana and therefore ignorant of the cattle / beef industry. However, when the price of corn went to $7 per bushel, everyone planted as much corn as possible to meet the demand. Pastures were torn up for corn fields. Folks planted corn within 10 feet of their house. Corn acres replaced wheat and cotton acres. The supply over compensated for demand and the price crashed.
When I talk with cattle producers, very few of them talk about herd expansion. My point is that the demand will be met with supply. If this increased supply doesn’t come from American producers, it will come from foreign beef that were fed with foreign grain.
Why aren’t more American cattle producers expanding???
The market is telling you to expand.
I realize that the original post included Trump, but since this isn’t TPP, I’m trying to keep it about supply and demand.
If corn goes to 7 dollars its simple. Plant less beans and more corn. Buy the inputs, hedge on the futures market. You have a large guaranteed windfall profit as long as your crop grows or maybe even it doesnt if you have subsidized insurance and good basis...
Now for cows. Build all the needed fences, water lines and corrals. Save heifers that are at record prices that wont produce a weaned calf for 30 months after they are born. Plant pasture that wont produce at full capacity its first year. Than pray that a politician trying to get elected doesn't rug pull you by shipping in bargain bin beef from god knows where that has near 0 regulations of any kind and the slaughter house employees work for 1 dollar a hour. |
Trump and beef
