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Beef Buzz News


Jerry Bohn of NCBA Believes Cash Cattle Trade Improving in the Southern Plains and Kansas

Wed, 28 Jul 2021 11:58:53 CDT

Jerry Bohn of NCBA Believes Cash Cattle Trade Improving in the Southern Plains and Kansas When he is not busy serving as the president of the National Cattlemen’s Beef Association, Jerry Bohn spends time serving as the NCBA’s Regional Trigger sub-group Chair that is working on the voluntary framework to achieve robust price discovery in the fed cattle market.

The work has been non-stop since last summer, Bohn said.

Members of the sub-group ask producers to sell cattle on a negotiated basis for at least 75 percent of the robust trade as identified by research done by Steven Coons of Colorado State, Bohn said.

They are also asking packers to participate at the same level and that they commit to buying a specified number of cattle each week on a negotiated basis, he added.

Bohn said success has been seen in the second quarter, and negotiated trade did increase substantially in the Texas, the Oklahoma Panhandle, and Kansas.

Looking forward, we do now have all four major packers lined up to participate in the packer silo, so we will begin to monitor their participation, Bohn said.

“I am hopeful we can continue the progress that we have made and the amount of negotiated trade going forward will be sufficient so we do not have to ask the government to get involved,” Bohn said.

Bohn added he is hopeful this will last and keep the attention of both producers and packers alike.

There has been a noticeable increase in the desire to trade on a negotiated grid basis because alternative marketing arrangements is the reason we have lost some of the negotiated trade, Bohn said.

It appears we are realigning and we will be able to sell cattle on a grid basis but at least negotiate base price, he added.

Bohn said he believes this will qualify for the voluntary plan if cattle are made available to all the buyers each week.

“From what I can find out, the bulk of the time that is the case,” Bohn said. “I believe the majority of the negotiation both on a cash and grid basis is legitimate.”

Earlier in July, Bohn wrote a letter to NCBA members about second quarter cattle trade- click here to read it.

Having a check-off referendum is another hot-topic discussion within organizations like the USDA and NCBA.

Bohn said NCBA has chosen to respectively not get involved in being pro or con.

We are going to let the process play out, he added.

He said it does not currently look like they are going to get the 88,000 signatures required to have a referendum, but the jury is still out.

The decision should be released in approximately one month, Bohn said.

Click on the LISTEN BAR below to hear more from Jerry Bohn.

The Beef Buzz is a regular feature heard on radio stations around the region on the Radio Oklahoma Network and is a regular audio feature found on this website as well. Click on the LISTEN BAR below for today’s show and check out our archives for older Beef Buzz shows covering the gamut of the beef cattle industry today.
   
   

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