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September 12, 2016

Alabama Cattle Industry Leaders Look at the State of the Market

The Alabama cattle industry is watching falling cattle prices and a fickle market closely

The Alabama cattle industry is an important part of Alabama’s ag commodities. Second only to broilers, the beef industry in Alabama brings in nearly half a billion dollars annually. Beef producers from around the country have their eyes on the cattle industry, and Alabama cattlemen are no exception. See the state of the national beef industry from Alabama’s perspective below.

Alabama Cattle Industry and Falling Prices

Beef prices have been high over the past few years, but the law of “what goes up, must come down,” is always in effect, said Alabama Farmers Federation Director, Nathan Jaeger, at a presentation at an AgriBusiness Now breakfast in mid-August. He maintained that the focus should be on managing your cattle in a down market.

Making sure that your cattle herd is healthy and good shape is a ‘best practice’ that serves the Alabama cattle industry well, both when the market is up and when it is down. For instance, the benefits of preconditioning calves will always improve the prices producers get at market, no matter where the market is. Essentially, producers in the business of Alabama cattle are being instructed to focus on efforts that will bring in a return at the end of the day.

The consumer can expect to see a “good, steady supply of beef in the grocery stores,” shared Jaeger. It mirrors the increase in beef seen at market. However, it’s not believed that consumer prices for beef will fall very fall, if at all. The upside of it all, according to Jaeger is that the Alabama cattle industry—and the national cattle industry—will actually enjoy “a fairly steady market.”

As the nation’s premier land lender, AgAmerica Lending is committed to supporting the producers in the cattle industry in both high and low markets. It’s our mission to customize our loan packages to help you obtain goal-oriented financing. Our products feature low interest rates, long amortizations, and an outstanding 10-year line of credit.

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