Galaxy, thank you for the interesting ISU link to historical cattle prices.

Comparing the year avg price for 500-600 lb feeders in 1994  (88.91) vs 2012 so far (172.48) is a 94% increase. (table 3a in the link)

Now we can always look at fertiliizer, corn etc and say it's gone up more than that....but this year's (2012) corn prices along with other inputs is hopefully a weather induced aberration. I think this year's cattle prices would be even higher if it were not for the weather-induced liquidations.

Overall I think there is almost always some reason to look back and say things are tougher.  But on average things are always tough, with an occasional bonus year.

Personally I think the cattle market is strong for the foreseeable future. The key to success, as usual, will likely be keeping input costs down.  There are lots of things we do differently now than in 1994.  No reason to think we can raise cattle the same as years ago and make a profit. Stuff changes. Constantly.

I happen to think the future of beef overall is bright, maybe different but still bright.  And the time to get into something is often when everyone else is talking about getting out.

Unfortunately there are dry areas where as farmdude points out, the weather trumps everything else in agriculture. jmho.

Jim