Tuesday, August 23, 2011

Value of Gain at Record High

According to Beef Magazine and Derrell Peel, Value of Gain is at a Record High. The first line of the article: "If there was ever a time to be in the stocker business, this may be it, at least when it comes to value of gain." Now I'm not one to toot my own horn, but this is exactly what I have been saying, the reason we have moved from cows to stockers, and why I don't understand the argument of "high corn is bad for ranchers". What am I missing? Calf prices are record high. Value of gain is record high. Corn is record high. Got it?

So if value of gain is record high, can I also suggest that the value of grass should also be record high? I'm not sure why this has been lost on the writers at Beef and Drovers that continue to preach the evils of high corn, but as I've said many times before, high corn = high value of grass. It's really that simple. Have you locked in your leases for the long term? If not, you need to, and quickly. The landowner will end up with the abnormal economic profits, trust me on this. Act now to keep some of those abnormal profits in your pocket.

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