There are good times and there are bad financial times for cattle producers. So far 2014 has been a period of very positive margins. As feeder and live cattle prices have soared higher, the Canadian Dollar and feed costs have lowered quite rapidly. This has put pressure on feedyards to find additional financing requirements in order to finance the new feeder cattle coming into the yard. Your cattle line of credit five years ago does not even come close to filling your yard today. The other issues Shaun and Anne discuss are cattle herd numbers, retail beef prices and the need to be proactive in your hedging even though margins are positive.
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