ECONOMIC INFORMATION
FOR   INDIANA   FARMERS
No. 14 Division of Agricultural Economics September, 1942
THE LIVESTOCK FEEDING SITUATION
The meat and livestock market is in a position where demand is, and
seems likely to continue to be the dominant factor. This condition exists
in spile of record production and marketings of meat animals. The
unusual demand arises not only from the greatly increased purchasing
power of American consumers, but also from the government purchases
for lend-lease and army and navy needs.
Feed production and price relationships have permitted livestock expansion to record levels, but in spite of this, shortages of meats appear at
retail counters throughout the nation. Under such conditions, and in line
with the government's attempt to regulate the cost of living, price ceilings
on meat products at wholesale and retail have been imposed and newer
plans include ceilings on live meat animals and rationing of all meats to
the civilian population.
Livestock feeding profits in 1942-43 will depend to a large degree upon
the as yet unannounced and untried formula for regulating live prices.
However, in general, the coming year may be expected to be one of at
least moderate profits in feeding operations.
BEEF CATTLE
Cattle Numbers in the U. S. movement of such cattle. Th's reflects not
Favorable price relationships and feed only present indecision on the part of Corn
conditions have permitted a more rapid than Belt feeders, but also the reluctance on ths
usual expansion in cattle numbers since the part of ranchers to sell feeder cattle at any-
last low was reached in 1933. On January 1. thing but an advance in prices.
1942, the government estimate of cattle on Range Conditions
farms was 74,607,000 which not only repre- With but few exceptions, western cattle
s nted an increase of 8.5 million head over ranges have had two years of abnormally
ihe 1933 figure but put cattle numbers at an good growing conditions. Accumulated feed
nil time high in the United States. reserves will enable the West to carry an in-
The August- 1 estimate of cattle on feed creased number of both breeding and young
in the Corn Belt, however, indicated a 19 stock over winter. As a resut of this and
percent reduction as compared with the general inflationary tendencies, prices of
same date in 1941. This is accounted for by feeder cattle are 13 to 20 percent higher
the premature marketings of fed cattle dur- than last year,
irg the summer in the face of prospective Corn Belt Feed Supplies
price regulations. This situation leaves a Despite present record levels of livestock,
much smaller than usual supply of grain-fed the bumper feed crop of 1942 now appears
market cattle in prospect for the fall and to assure fairly adequate feed supplies in
winter months ahead. Indiana and the nation as a whole. Brsed rn
The movement of feeder cattle into the most recent estimates, available feed grains
Corn Belt, thus far in 1942. has been ap- per animal unit will be 2 percent lower on
proximately the same as that of a year ear- October 1 than last year for the U. S. but
Her. but in both years this has been far be- just equal to the 1937-41 average. Indiana
low   normal   mid-summer   and   early   fall figures show a slight increase in availabh