Wednesday, April 25, 2012

Bred Heifers Bring Fortune

Progressive Farmer:
Doug Crooks watched in amazement as bidding on his bred heifers topped the $2,400 mark. The last time bred heifers brought this much? How about never.
Crooks' take on these prices is cowboy pragmatic. "When 600-pound steers are bringing $2 a pound at the sale barn, a guy can afford to give a little more for a really good heifer."
Today, Crooks Farms, a partnership between Doug, his dad, Alvin, and his brother-in-law Howard, is all about bringing those really good heifers to the auction ring. This fourth-generation cattle operation, based in Leeton, Mo., started turning the heat up on heifer quality in 1999, when the family decided to take a chance on the state's Show-Me-Select Replacement Heifer Program. That first year, the operation put about 20 heifers in the program, heifers Doug Crooks says were just too good to send down to the feedlot.
This year, the farm will market 100 to 110 bred heifers through Show-Me-Select. The program focuses on things like artificial insemination (AI), expanding working relationships with livestock specialists and veterinarians, and providing additional marketing opportunities. It's a good fit for a state with more than 2 million cows across 60,000 farms.
As he enjoys what are undeniable good times for cow-calf producers, Crooks can't help but wonder just how long it will last. He can't pencil out how feedlots can continue to pay such high prices and still survive.
"If it doesn't work out on their end, it won't work out on ours. Cattle are bringing a lot right now, but we're putting a lot more out there to get them where they need to be," he says, referring to the higher cost of feed and other inputs.

My guess for where it won't work out is on the consumer end. Beef prices will slow down demand, then the prices will go down.  At least that's my guess.

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