I’m pleased to see the grain farmer getting a shot at higher prices but don’t get too carried away. You have yet to go through a full growing season and sell a whole crop at high prices. Given the rise in input costs I wonder how high your net margins will be after the 2008 crop is harvested, given all the production risks involved with weather etc.
I’d still rather be a beef producer believe it or not. One important thing you (and also many beef producers) forget is that you don’t need grain to produce beef. This gives us quite an advantage over the pork and chicken producers as they need to feed grain every day. They have been our low price competitors in the meat cabinet but they may become the more expensive meats.
There is a huge future for forage produced beef as we have millions of acres that can only be grazed by cows. Any increase in grain acres will also lead to greater supplies of by-products like straw, chaff and screenings which all make good cattle feed. I’m sure some grain crops will still get hailed out, some won’t get seeded until too late and others may get frosted – there is enough wastage around the grain sector to feed a lot of cattle on the odds and ends and both parties benefit mutually. Bottom line protein production from grass using cattle as harvesters is a far more sustainable system than burning fossil fuels and spraying chemicals to grow grains. I’m happy to stick with beef – we have our challenges but there are always opportunities.
I’d still rather be a beef producer believe it or not. One important thing you (and also many beef producers) forget is that you don’t need grain to produce beef. This gives us quite an advantage over the pork and chicken producers as they need to feed grain every day. They have been our low price competitors in the meat cabinet but they may become the more expensive meats.
There is a huge future for forage produced beef as we have millions of acres that can only be grazed by cows. Any increase in grain acres will also lead to greater supplies of by-products like straw, chaff and screenings which all make good cattle feed. I’m sure some grain crops will still get hailed out, some won’t get seeded until too late and others may get frosted – there is enough wastage around the grain sector to feed a lot of cattle on the odds and ends and both parties benefit mutually. Bottom line protein production from grass using cattle as harvesters is a far more sustainable system than burning fossil fuels and spraying chemicals to grow grains. I’m happy to stick with beef – we have our challenges but there are always opportunities.
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