It’s been a busy month in the cattle industry. As we discussed in last month’s blog, the USDA released two reports in the last few weeks: the Cattle on Feed Report and the Cattle Inventory Report. February also featured the 2022 Cattle Industry Convention, hosted in Houston, Texas this year. While we won’t attempt to cover everything that happened at a three-day convention, there are a few things that caught our attention from the event.
There was talk of many interesting trends in the industry, but the news that grabbed a lot of attention is the ongoing cattle price explosion. This was predicted by many late last summer, and it’s proving to be true. “The surging market for all classes of cattle explains the smiles on producers’ faces at the 2022 Cattle Industry Convention,” Successful Farming reports. “Fed cattle prices, now near $140 per cwt, are up $25 from last year. Feeder calves are now over $2 a pound at many auction markets, from $1.60 last year.”
Beef Magazine also reports that “Cattle supply and beef demand expectations for 2022 are optimistic,” in part because of record exports. Successful Farming adds that, “We finally got through a backlog of heavyweight cattle brought on by the COVID pandemic,” and they expect the good times to last for a while, which is certainly encouraging to read.
Other news people were talking about that caught our attention is that the USDA provided an update on assistance for agricultural producers impacted by weather-related disasters in calendar years 2020 and 2021. It’s been a tough couple years for a lot of agriculture businesses, between droughts and the ongoing pandemic. Relief is certainly welcome. “With the help of Congress, USDA is working to deliver $10 billion in much-needed relief, including $750 million for livestock producers impacted by the severe drought,” said Robert Bonnie, Under Secretary for Farm Production and Conservation. It’s worth looking into, to find out if this can help your business.
Were you at the Cattle Industry Convention this year? If so, let us know on social media what you thought, if there was any news you’re excited about for 2022.
(Photo courtesy of Cattle Industry Convention.)