Oklahoma Farm Report masthead graphic with wheat on the left and cattle on the right.
Howdy Neighbors!
Ron Hays, Director of Farm and Ranch Programming, Radio Oklahoma Ag Network  |  2401 Exchange Ave, Suite F, Oklahoma City, Ok 73108  |  (405) 601-9211

advertisements
   
   
   
   
   
   
   
   

Beef Buzz News


Dr. Bart Fischer Says Robust Price Discovery May Not Lead to Higher Cattle Prices

Tue, 12 Oct 2021 10:48:19 CDT

Dr. Bart Fischer Says Robust Price Discovery May Not Lead to Higher Cattle Prices While beef prices soar to all-time highs, cattle producers continue to cry foul. For the most part, the issue is now common knowledge, attracting industry professionals, politicians and innovators from all corners of the country to dissect what is causing the gap between live cattle prices and beef prices.

Today, Radio Oklahoma Ag Network Director Ron Hays features comments from Dr. Bart Fischer, co-director of the Agricultural & Food Policy Center at Texas A&M University. Fischer, along with other agriculture economists, has released a book on the matter: “The U.S. Beef Supply Chain: Issues and Challenges.” Sharing the comments from Fischer is farm broadcast colleague Carey Martin.

The book examines the disparity of the symbiotic industries starting with the Holcomb, Kansas beef packing plant fire on Aug. 9, 2019. The plant was the second-largest beef packing plant in the nation. The fire kept the plant offline for the remainder of the year, which led to a temporary spike in boxed beef and decreased demand for fed cattle, according to the book.

“(The book) covers a lot of ground,” Fischer said. “We have 10 different chapters, covering a lot of different topics. Most of them boil down to issues related to fed cattle pricing.”

Fischer said AFPC was the coordinator of the project, with Fischer as editor, along with Dr. Joe Outlaw and Dr. David Anderson as editors also. Industry professionals around the country contributed research to the project this summer, he added.

“We took all of that (research) back and wrote it up in the book,” Fischer said.

Perhaps the number one finding of the book is a reminder of where alternative marketing agreements, which have been valuable to producers, packers and consumers, originated from, according to Fischer.

“One of the primary findings is that innovation on formula-based pricing was really derived from the ground up,” Fischer said. “It originated with the feeders who were looking at trying to capture the value associated with improved quality.”

The book comes at a time when talks of mandating cash trade from the federal government threaten natural incentivization of the industry.

“On one hand you have a lot of folks, including policymakers, who are saying, ‘we should mandate that … a certain percent (of trade) must be based on a cash or negotiated transactions,” Fischer said. “We found … that instead of helping prices at the cow-calf level, imposing a certain amount of cash actually leads to less efficiency in the system.”

According to Fischer, each transaction an animal goes through from its journey from farm to table means more costs that ultimately gets pushed down to the producer. Right now, a particular proposal is on the policy table that could cost cow-calf producers up to $16 billion dollars in the next 10 years, he added.

The most interesting finding to Fischer is that robust price discovery may not lead to higher cattle prices.

Click on the LISTEN BAR below to hear more from Ron Hays and Dr. Bart Fischer as they wrap up their conversation, talking about how robust price discovery could end up hurting producers and packing capacity.

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.

   

   

Listen to Ron's converstation with Dr. Fischer here.
right-click to download mp3

 

WebReadyTM Powered by WireReady® NSI

 

Beef News

  • NCBA’s Kent Bacus Hopeful Biden Administration Will Pursue Deals Beneficial to US Beef Producers  Fri, 15 Oct 2021 10:08:11 EDT
  • NCBA's Kent Bacus Talks Trade, Contrasts Biden and Trump Administrations  Thu, 14 Oct 2021 20:07:24 CDT
  • Economist Katelyn McCullock Says Holiday Beef Prices are Expected to be High  Wed, 13 Oct 2021 10:35:40 CDT
  • Dr. Bart Fischer Says Robust Price Discovery May Not Lead to Higher Cattle Prices  Tue, 12 Oct 2021 10:48:23 CDT
  • More on Fall Calving Best Practices from Dr. Rosslyn Biggs  Mon, 11 Oct 2021 16:31:33 CDT
  • NCBA's Todd Wilkinson Carries Message of Caution to Members of the House Ag Committee  Fri, 08 Oct 2021 12:31:29 CDT
  • Cattle Producers Should Review Records Before Fall Calving Says Dr. Rosslyn Biggs  Thu, 07 Oct 2021 21:15:27 CDT
  • Help Newly Arrived Cattle Recover Quickest by Providing High-Energy Feed  Wed, 06 Oct 2021 10:09:20 CDT
  • Cattle Industry Waits for Third Quarter Numbers From 75% Plan  Tue, 05 Oct 2021 10:25:26 CDT
  • Missouri Cattle Industry Leader Taking Wait-and-See Approach on Industry Price Discovery Plan  Mon, 04 Oct 2021 11:29:07 CDT
  • Fiscal Year 2022 Kicks Off New and Proven Marketing Campaigns for Oklahoma Beef  Fri, 01 Oct 2021 10:56:18 CDT
  • Hugh Aljoe Says Regenerative Agriculture Education Material Will Soon be Available  Thu, 30 Sep 2021 09:53:16 CDT
  • OSU's Derrell Peel Urges Fall Stocker Operations to Review Budgets Before They Buy Fall Feeders  Wed, 29 Sep 2021 19:27:47 CDT
  • Beef Cow Herd Liquidation Continues to Unfold  Tue, 28 Sep 2021 12:47:54 CDT
  • Latest Cattle on Feed Report Shows Some Regions of the Country are More Current Than Others  Mon, 27 Sep 2021 10:28:22 CDT
  • New Research Explores the Pros and Cons of Cash Cattle Markets in the U.S.  Fri, 24 Sep 2021 10:16:19 CDT
  • New Research Shows Grid Market System Adds $700 Million in Value to U.S. Beef  Thu, 23 Sep 2021 11:19:06 CDT
  • Don Close, VP of Rabo AgriFinance Explains How Beef Won Over the Chinese Consumer  Wed, 22 Sep 2021 10:39:31 CDT
  • OCA's Michael Kelsey: We Need to Take a Pause on Issuing New Medical Marijuana Grower Permits  Tue, 21 Sep 2021 13:19:27 CDT
  • NCBA's Josh White Says Beef Quality Assurance Produces Better Beef  Mon, 20 Sep 2021 10:35:46 CDT
  • Certified Angus Beef Program is a Win for Producers, Processors and Consumers Says John Stika  Fri, 17 Sep 2021 10:48:26 CDT
  • John Stika Believes the Pandemic Shows Consumers Want High Quality Beef  Thu, 16 Sep 2021 08:07:17 CDT
  • Dr. Jody Wade's Advice to Cattle Producers is Stay Ahead of BRD  Wed, 15 Sep 2021 13:14:02 CDT
  • Katelyn McCullock Sees High Hay Prices in the U.S.  Tue, 14 Sep 2021 10:49:50 CDT
  • NCBA's Ethan Lane Believes mCOOL is Old News  Mon, 13 Sep 2021 11:15:37 CDT
  • NCBA's Ethan Lane Heard Little New in White House Briefing on Competition  Fri, 10 Sep 2021 11:45:17 CDT
  • Dan Halstrom Predicts 2021 Will Be a Record Year for U.S. Beef Exports  Thu, 09 Sep 2021 11:15:04 CDT
  • Dietician Shalene McNeill Says Consumers Enthusiastic About Including Beef in Their Diet  Wed, 08 Sep 2021 09:25:33 CDT
  • Shalene McNeill on Why You Should Feed Your Baby Beef  Tue, 07 Sep 2021 12:20:07 CDT
  • Randy Blach Says Sustainability is an Opportunity for Beef Cattle Industry  Mon, 06 Sep 2021 05:00:35 CDT
  • Although Beef Demand is High, Dollars are Slow to Trickle Down to Producers  Fri, 03 Sep 2021 12:25:25 CDT
  • Dr. Harold Newcomb Says Strategic Deworming Helps Your Bottom Line  Thu, 02 Sep 2021 09:33:31 CDT
  • Carbon Markets: The Wild West of Free-Market Enterprise  Wed, 01 Sep 2021 10:38:53 CDT
  • Biden Administration Intent on Dumping Trump Era Navigable Waters Protection Rule  Tue, 31 Aug 2021 16:57:44 CDT
  • NCBA's Scott Yager Says Redefining WOTUS Will Be Repetitive  Mon, 30 Aug 2021 11:18:40 CDT

  •  

    Beef Buzz Archives

    Old Archives  |   2010  |   2011  |   2012  |   2013  |   2014  |   2015  |   2016  |   2017  |   2018  |   2019  |   2020  |   Jan 21  |   Feb 21  |   Mar 21  |   Apr 21  |   May 21  |   Jun 21  |   Jul 21  |   Aug 21  |   Sep 21  |   Oct 21  |   Nov 21  |   Dec 21
       

    Ron salutes our daily email sponsors!

    Oklahoma Beef council Oklahoma Ag Credit Oklahoma Farm Bureau National Livestock Credit Ag Mediation Program P&K Equipment Tulsa Farm Show Union Mutual Stillwater Milling Oklahoma Cattlemen's Association KIS FUTURES, INC.

       
       

    Search OklahomaFarmReport.com

    © 2008-2021 Oklahoma Farm Report
    Email Ron   |   Newsletter Signup   |    Current Spots   |    Program Links

    WebReady powered by WireReady® Inc.