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This week's Perspective with Al Gustin

 

 

PERSPECTIVE   FEB 1, 2012

 

   To look at what cattlemen are paying for replacement females one might think they’re hell-bent on expansion.   But the latest USDA report would seem to indicate otherwise.

   Good quality bred heifers are bringing well over 2-thousand dollars each.. and yearling, open heifers, well over 1-thousand dollars.   Of course, given the record high cattle market overall, those prices are not out of line.   Still, demand is strong for replacement females.

   So it was a bit of a surprise when USDA’s cattle inventory report last Friday indicted that the number of beef cow replacement heifers was actually down about two thousand head from a year ago.

   Some cynics might suggest that those are the 2-thousand heifers that got sent to Kazahkstan.   But it’s much more complicated than that.

   The state’s declining cattle population can be traced to ranchers who are retiring… a difficulty getting good help or affording good help… strong crop prices attracting land out of grass… oil development… environmental regulations… not drought, but flooded pastures and haylands… several tough winters and calving seasons… and many others.

    And so it is good that the beef industry in North Dakota has begun discussions on what’s happening to cattle numbers, why, and what, if anything, can be done about it.

   It’s good, too, that corn and soybean grower groups are being brought into the discussion.  They have a lot at stake.

   We wish them well as the talks continue.

With Perspective, I’m Al Gustin.