Farm Director KC Sheperd is talking with the Vice President of Operations at Farm Data Services and Oklahoma cattle producer Clay Burtrum, about Livestock Risk Protection.
“If you have ever been on a rollercoaster, that is what we are on in the cattle market if you have ridden this ride since last fall,” Burtrum said. “I am going to speak a little bit from personal experience. I have calves on wheat pasture that I have had insured since they were born.”
When it comes to events that move the markets down, such as the recent case of Highly Pathogenic Avian Influenza found in a herd of dairy cows, Burtrum talked about how having that protection early can ensure producers still make a good profit when it comes time to sell their cattle.
“Last Friday, we were down four or five dollars, Monday we put it all back on, and today we are up two dollars, but you have to look at what the price protection looks like for your operation,” Burtrum said.
When it comes to deciding if it is worth it to purchase LRP, Burtrum said producers need to ask themselves if they want to stay in business.
“We look at these prices and volatility in this up and down market, and we just have to look to the bottom line,” Burtrum said.
Because producers know their profit potential and margins, signing up for LRP is a great way to rest easy and have those prices locked in.
“Lock those cattle in at the floor you want,” Burtrum said. “You don’t have to have a full load of cattle. It can be ten head, or it can be 1,000 head. You don’t have to have all of the cattle you want at the time you want them. Lock them in as you buy them.”
Burtrum also talked about the value of annual forage sign-up as rumors of drought circle the southern plains. He recommends getting in touch with a local crop insurance agent to stay up to date on upcoming programs. Click the listen bar above the story to hear the full conversation!
