Cattle producers can expect to breakeven in 2022 as feed costs remain the problem
Rising feed costs are one of the challenges cattle producers will face in 2022.
Purdue University livestock economist Michael Langemeier says “Feeder to fed ratio is expected to be below the average compared to the last 10 years,” he says. “That’s a good sign but if you combine slightly below average with a high feed cost, you’re pretty much still looking at a breakeven scenario.”
He tells Brownfield high corn prices will persist through the next six to nine months at more than $100 per hundred weight. “But as you go into the latter part of 2022, it does look like we’re going to get a little break in corn prices, but nevertheless, corn prices will stay relatively high.”
He says there is good news in the cattle markets. “If prices remain in the upper 130s, we’ll be fine and we’ll see some positive net returns if they stay there.”
Langemeier says if prices fall, that could change the outlook at the end of the year.