Cattle Prices Are Posting New Highs
Cattle prices are now at record highs of around $1.36 per pound primarily due to herd liquidation caused by the drought in the American Southwest. Bloomberg has a good article on the reasons for the rally in cattle prices and it is anticipated that high prices will continue for some time.
Unlike hogs or chickens where the leadtime on getting a new litter or hatch is less than 4 months, cattle take at least 10 months to give birth and any changes in supply take much longer. Unlike 2008 when feed prices were extremely high and cattle prices were lower, this time feed is high, but cattle prices are much higher.
Paul Neiffer is a certified public accountant and business advisor specializing in income taxation, accounting services, and succession planning for farmers and agribusiness processors. Paul is a principal with CliftonLarsonAllen in Walla Walla, Washington, as well as a regular speaker at national conferences and contributor at agweb.com. Raised on a farm in central Washington, he has been immersed in the ag industry his entire life, including the last 30 years professionally. Paul and his wife purchase an 180 acre ranch in 2016 and enjoy keeping it full of animals.
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