East Central South Dakota | cropland almost never goes back to critters. I have never seen it happen---ever, not once. We used to have 200 head of cows, plus ran yearlings. Feedlot is gone, equipment is gone, grass is gone and fences are gone. If it goes back to grass it will be CRP not grazing. 8 acres to run a cow--- those same acres 8 acres x $80/acre CRP payment = $640/cow. $800 - $1000 bucks to keep a cow around for a year = CRP wins every time just on one easy straight up figure. Never even figured the capital to re-buy all the equipment and the interest expense associated.
Bottom line cattle were NOT too high, they were where they needed to be to see meaningful expansion. If you ask me the packers are playing a dangerous game in beating the cattle the way they have. The beating was more of a signal to the farmer feeder to give them the cattle at 900 - 1000 pounds to finish out. There is still some meat on the bone for the cow/calf guy but..................expansion will be just enough to cover attrition of the older producers getting out. |
Crop Acres: Slow to adjust
