Will Cowboys Have Spending Money When They Hit Town Saturday Night?
Beef prices have allowed cattle producers to cover costs, make profits, and think about expansion, indicated in last Friday’s USDA cattle inventory report. Will those prices remain buoyant or, will they be overcome by strong gravitational forces? Our cadre of cattle market specialists could double as instructors in Physics 101.Posted by Stu Ellis on 02/02 at 03:37 PM | (0) Comments | Permalink
Cowboys Need to Keep Courting the US Consumer
While US diplomats are trying to survive their “loss of face” and wriggle out of the embarrassment of sending banned beef products to Japan, there needs to be a realization that while Japan may be a high profile beef market, it is the domestic consumer that buys the bulk of the beef produced in the US. The question for the cowboy is “how do you satisfy that shopper at the meat counter?”Posted by Stu Ellis on 02/02 at 11:45 AM | (2) Comments | Permalink
Records Are Meant to Be Broken. And They Have Been!
Friendly heating bills, less livestock feed consumed, fewer snow drifts on rural roads. The January thaw lasted an entire month, and will we ever pay for it later! The close of January sent meteorologists scurrying to check their record books to see how January of 2006 compared to past years, since most of them had a hunch the warm temperatures were worthy of note. Although the books are not closed on the winter of 2005-2006, we have begun a precedent for the balance of the season.Posted by Stu Ellis on 02/01 at 03:52 PM | (1) Comments | Permalink
Reconciling Macro and Micro Economics. UGH!
The Federal budget for FY 2007 will soon be debated in Washington, and although the USDA share is less than 2% it is one of the areas of discretionary spending that Congress will push and pull in an effort to satisfy constituents. One of the major points of contention is the amount of money distributed to farm operations in the past year, which is the second largest on record. In a period of large federal deficits and the desire to control federal spending, farm program payments will be scrutinized vis-à-vis the US agricultural economy. While the final chapter will not be written for some time to come, the number crunchers are providing extensive fodder for the number debaters.Posted by Stu Ellis on 01/31 at 01:53 PM | (1) Comments | Permalink
No Gripes, If You Have a Good Grip on GRIP
Have you called your crop insurance agent yet to discuss options for 2006? If, and when, you do, inquire about the Group Risk Income Protection (GRIP) policy. It may not be on the agent’s list to suggest to you, but should be on your list to ask about. GRIP is available widely to cover corn, beans, wheat, sorghum, and cotton, but where you farm makes a difference whether it is a great tool, or a mediocre tool to help you manage risk.Posted by Stu Ellis on 01/30 at 03:42 PM | (3) Comments | Permalink