Death comes to us all. Life's but a walking shadow | You have to admit that crop insurance is a factor that allows me to gamble on a grain crop that is not available to cattle farmers. However you can get NAP on hay crops to protect you from lack of feed. There is also a new program to pay cattle farmers for a major weather loss that is the result of the catastrophe in South Dakota last fall.
But the real barrier to entry into the cattle business is the cost per cow to start. Not many young fellows can come up with the $1200 per cow today. It wasn't that long ago that you could buy a decent cow for $200. Making a $200 mistake or losing a $200 dollar calf wasn't nearly as bad as a $1200 mistake.
Also there is the attitude of the packers. The local ethanol plant here wants to buy my corn and tells me so. Likewise the grain buyers are interested in buying my grain and will forward contract for it. When was the last time you ever heard a packer encourage anyone to raise calves? All they ever want to do is screw you over as hard as they can.
Who wants to go into a business where your customer would just as soon cut your throat and bleed you out as the cattle you raise. |
cattle market fundamentals
