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| The post about Texas water got me thinking about the location of our feeding capacity, and how water may effect that.
A large percentage of our feedlots are west Texas and the panhandle, southwest KS and the OK panhandle, and northeast Colorado. I know other parts of the country have feeding operation, but I think of these 3 areas when I think feedlots. So lets stick with them
My question is, how will much will the water shortage in these areas effect feeding operations? Will water, or lack there of, effect them at all? It is obvious that some areas are running out of water. How much I don't know, I just gather this from window scouting and what I gather from here. Are we going to see a mass exodus of feedlots to the different regions? Will the feedlots haul more feed in from farther away rather than move? Close the doors and have a fire sale? I know several of the very large feedlots around NE Colorado are set up to bring in corn on rail cars, this should help them remain competitive should it ever come to that. What is the possibility of feedlots moving out of the country all together? Brazil? Argentina? Some of the old Soviet Bloc countries, parts of eastern Russia? Brazil would not be a huge leap, look who is based there (JBS Swift).
What other area are capable of supporting huge feeding operations? Iowa and the corn belt are first to come to mind, lots of corn, but snowy winters and excessive precipatation in some years could make this unfavorable. Mississippi Delta region? Don't know much about this area, but could high heat and humidity be a problem? What about the southeast, like Geogia and Florida? Again, not very knowledgeable about this region. Northwest region, specifically eastern Washington, Tri-cities area? Plentiful water from the Columbia River system, and easy export to the Pacific Rim would an advantage.
So, what do you guys say? Are we going to have a sea change in feed system in the next 20-50 years? Will feedlots stay put, hauling more feed from a greater distance. I know they already haul a lot of feed, but at what point do the economics become unfavorable? I don't see this happening tomorrow, or possibly at all, but it is something to think about.
Thanks for your time. | |
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Feedlots in the corn belt?
