Economic Information for Indiana Farmers, no. 22 (Oct. 1943) |
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ECONOMIC INFORMATION FOR INDIANA FARMERS No. 22 Division of Agricultural Economics October, 1943 THE CATTLE FEEDING SITUATION Large feed supplies and price advances for cattle during the last five years have resulted in an all time record number of cattle in the U. S. but the influences of price ceilings on beef products are keeping cattle out of corn belt feed lots. Increasing feed and labor costs have forced cattle feeding enterprises into a position where wider margins are necessary for profit. Unless price ceilings on dressed beef are raised, which seems unlikely, feeder cattle must be bought at lower prices than those prevailing in mid-September. Prospective increases in marketings of western range cattle during the late fall will, doubtless, be accompanied by some decline in prices of the "good" to "choice" grades of feeders. A decline of $1.50 to $2.00 from mid-September levels is necessary to compensate for an average 33% advance in feed costs as compared to a year earlier. Cattle feeders will find it advisable to average down the grade of slaughter cattle marketed in 1944. This may be done either by buying a plainer grade of feeder cattle or by reducing the finish put on good quality feeders. Final decisions must depend on the adjustments that will be made in the cost of feeder cattle during the next three months. The demand for beef has never been greater in the U. S. but much of this has been rendered ineffective by the rationing system in use. There will continue to be a rather urgent need for every pound of beef that can be produced. Unless corn belt feeders find it possible to purchase feeding cattle with a reasonable assurance of profit from feed lot operations, the nation will not only be deprived of the tonnage that normally would be produced in the feed lot, but will have a very bad seasonal distribution of the reduced tonnage. Beef Cattle Numbers High; percent under 1942 figures which in turn Few in Feed Lot were 19 percent below the record figures of rt., . 1941. More than three-fourths of the cattle The beef cattle situation during 1943 has on feed on August 1 were intended for mar- been characterized by the seemingly incon gruous conditions of exceeding y high cattle considered in H ht of the low summer numbers in the country, but relatively small inmovement of feeder cattle, foretells a market receipts. Favorable feed conditions beef durf com, coupled with generally rising prices since . for afc leagt firgt ha,f of 1938 have resulted in an all time record in , cattle numbers in the United States. At the beginning of 1943, all cattle on farms were Price Margins Unsatisfactory , estimated at approximately 78.2 million Under "hold the price line" orders issued yj^ead compared with 75.2 million a year ear- through the Office of Price Administration, Her and 65.2 million in January, 1938. Un- price ceilings on dressed beef have been in less cattle slaughter is unusually heavy dur- effect since May, 1942. Although revised ing the remaining months of 1943, further several times, these ceilings have never increases in cattle numbers are in prospect worked to the satisfaction of the industry, for January 1, 1944. Live values crowded and exceeded levels The number of cattle in Corn Belt feed consistent with ceiling prices on dressed lots is not consistent with the expansion in products. The "roll back" and subsequent cattle numbers. August 1 estimates of cattle subsidy to packers of $1.30 per cwt. begin- on feed in 1943 show a reduction of eleven ning in June, 1943, put the packing industry
Object Description
Title | Economic Information for Indiana Farmers, no. 22 (Oct. 1943) |
Purdue Identification Number | UA14-13-econ194310 |
Date of Original | 1943 |
Publisher | Purdue University. Agricultural Extension Service |
Subjects (LCSH) |
Farm produce--Indiana--Marketing Agriculture--Economic aspects--Indiana |
Genre | Periodical |
Collection Title | Extension Economic & Marketing Information (Purdue University. Agricultural Extension) |
Rights | Copyright Purdue University. All rights reserved. |
Coverage | United States - Indiana |
Type | text |
Format | JP2 |
Language | eng |
Repository | Purdue University Libraries |
Date Digitized | 02/26/2015 |
Digitization Specifications | Original scanned at 400 ppi on a BookEye 3 scanner using Opus software. Display images generated in Contentdm as JP2000s; file format for archival copy is uncompressed TIF format. |
URI | UA14-13-econ194310.tif |
Description
Title | Economic Information for Indiana Farmers, no. 22 (Oct. 1943) |
Purdue Identification Number | UA14-13-econ194310 |
Transcript | ECONOMIC INFORMATION FOR INDIANA FARMERS No. 22 Division of Agricultural Economics October, 1943 THE CATTLE FEEDING SITUATION Large feed supplies and price advances for cattle during the last five years have resulted in an all time record number of cattle in the U. S. but the influences of price ceilings on beef products are keeping cattle out of corn belt feed lots. Increasing feed and labor costs have forced cattle feeding enterprises into a position where wider margins are necessary for profit. Unless price ceilings on dressed beef are raised, which seems unlikely, feeder cattle must be bought at lower prices than those prevailing in mid-September. Prospective increases in marketings of western range cattle during the late fall will, doubtless, be accompanied by some decline in prices of the "good" to "choice" grades of feeders. A decline of $1.50 to $2.00 from mid-September levels is necessary to compensate for an average 33% advance in feed costs as compared to a year earlier. Cattle feeders will find it advisable to average down the grade of slaughter cattle marketed in 1944. This may be done either by buying a plainer grade of feeder cattle or by reducing the finish put on good quality feeders. Final decisions must depend on the adjustments that will be made in the cost of feeder cattle during the next three months. The demand for beef has never been greater in the U. S. but much of this has been rendered ineffective by the rationing system in use. There will continue to be a rather urgent need for every pound of beef that can be produced. Unless corn belt feeders find it possible to purchase feeding cattle with a reasonable assurance of profit from feed lot operations, the nation will not only be deprived of the tonnage that normally would be produced in the feed lot, but will have a very bad seasonal distribution of the reduced tonnage. Beef Cattle Numbers High; percent under 1942 figures which in turn Few in Feed Lot were 19 percent below the record figures of rt., . 1941. More than three-fourths of the cattle The beef cattle situation during 1943 has on feed on August 1 were intended for mar- been characterized by the seemingly incon gruous conditions of exceeding y high cattle considered in H ht of the low summer numbers in the country, but relatively small inmovement of feeder cattle, foretells a market receipts. Favorable feed conditions beef durf com, coupled with generally rising prices since . for afc leagt firgt ha,f of 1938 have resulted in an all time record in , cattle numbers in the United States. At the beginning of 1943, all cattle on farms were Price Margins Unsatisfactory , estimated at approximately 78.2 million Under "hold the price line" orders issued yj^ead compared with 75.2 million a year ear- through the Office of Price Administration, Her and 65.2 million in January, 1938. Un- price ceilings on dressed beef have been in less cattle slaughter is unusually heavy dur- effect since May, 1942. Although revised ing the remaining months of 1943, further several times, these ceilings have never increases in cattle numbers are in prospect worked to the satisfaction of the industry, for January 1, 1944. Live values crowded and exceeded levels The number of cattle in Corn Belt feed consistent with ceiling prices on dressed lots is not consistent with the expansion in products. The "roll back" and subsequent cattle numbers. August 1 estimates of cattle subsidy to packers of $1.30 per cwt. begin- on feed in 1943 show a reduction of eleven ning in June, 1943, put the packing industry |
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