Economic Information for Indiana Farmers, no. 32 (Oct. 1945) |
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ECONOMIC INFORMATION FOR INDIANA FARMERS 32 Division of Agricultural Economics October. 1945 THE BEEF CATTLE AND LAMB FEEDING SITUATION CATTLE The entire beef cattle industry occupies a rather precarious position both from the point of view of future feed supplies and price adjustment policies in the transitional period from war to peace. Costs of all grades of feeder cattle are above those of a year ago. Feed lot costs in 1946 are expected to be lower under Indiana conditions than in 1945. The high level of feed prices emphasizes the need for as much margin as possible between cost and selling price of cattle. Demand for meats is expected to keep slaughter cattle prices at or near maximums permitted under price controls if these are retained. If controls are removed, price advances are expected, especially on top grades of fed cattle. A stronger price situation is expected in the last half of 1946 than in the early part of the year when reconversion unemployment it a larger factor. The profitableness of cattle feeding ventures for 1946 will depend to a very large extent upon eventual government price policies not yet formulated. The General Cattle Situation The beef cattle industry is in a poor technical position at the end of the war for two reasons. In the first place, cattle, numbers have increased from a prewar level of 67 million to an estimated 82 million as the result of favorable feed conditions and high price levels. A return to average or below average weather and feed conditions in the range country or in the corn belt would lead to a forced liquidation of cattle. The cattle price structure has been complicated by various abnormal influences during the war period. These include both ceiling prices and subsidies. Although subsidies supposedly are subject to early removal, the dependence of control measures on subsidies is so great that it is impossible to predict the pattern for removal of the artificial price factors. If subsidies are removed without compensating upward adjustments in the price ceilings, undue financial hardship would be imposed on all cattle feeders. If all controls are removed from cattle prices, some upward movement of prices could be expected, with the better grades of cattle being benefitted most. Final solution of the problem will depend upon government policies which as yet are not formulated. For the immediate year ahead the principal factors to be considered by the cattle feeder include: (a) the high level of feeder cattle prices, (b) feed supplies in the corn belt, (c) cost of gains, (d) demand conditions, and (e) price control changes. Feeder Cattle Prices Are High Relative to Prices of Slaughter Cattle Thus far in 1945 feeder cattle prices have remained above those of 1944, and only slightly below the record levels of 1943. Prices of feeder cattle have reflected not only the independent strength due to very favorable range conditions, but the influence of price subsidies on finished slaughter cattle as well. Range cattle carry sufficient finish to invite active bidding by slaughterers. While there has been some decline in feeder cattle prices since early summer, any further drop in prices seems improbable because of the prospective large corn crop and favorable feed conditions on the range. The high level of
Object Description
Title | Economic Information for Indiana Farmers, no. 32 (Oct. 1945) |
Purdue Identification Number | UA14-13-econ194510a |
Date of Original | 1945 |
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-econ194510a.tif |
Description
Title | Economic Information for Indiana Farmers, no. 32 (Oct. 1945) |
Purdue Identification Number | UA14-13-econ194510a |
Transcript | ECONOMIC INFORMATION FOR INDIANA FARMERS 32 Division of Agricultural Economics October. 1945 THE BEEF CATTLE AND LAMB FEEDING SITUATION CATTLE The entire beef cattle industry occupies a rather precarious position both from the point of view of future feed supplies and price adjustment policies in the transitional period from war to peace. Costs of all grades of feeder cattle are above those of a year ago. Feed lot costs in 1946 are expected to be lower under Indiana conditions than in 1945. The high level of feed prices emphasizes the need for as much margin as possible between cost and selling price of cattle. Demand for meats is expected to keep slaughter cattle prices at or near maximums permitted under price controls if these are retained. If controls are removed, price advances are expected, especially on top grades of fed cattle. A stronger price situation is expected in the last half of 1946 than in the early part of the year when reconversion unemployment it a larger factor. The profitableness of cattle feeding ventures for 1946 will depend to a very large extent upon eventual government price policies not yet formulated. The General Cattle Situation The beef cattle industry is in a poor technical position at the end of the war for two reasons. In the first place, cattle, numbers have increased from a prewar level of 67 million to an estimated 82 million as the result of favorable feed conditions and high price levels. A return to average or below average weather and feed conditions in the range country or in the corn belt would lead to a forced liquidation of cattle. The cattle price structure has been complicated by various abnormal influences during the war period. These include both ceiling prices and subsidies. Although subsidies supposedly are subject to early removal, the dependence of control measures on subsidies is so great that it is impossible to predict the pattern for removal of the artificial price factors. If subsidies are removed without compensating upward adjustments in the price ceilings, undue financial hardship would be imposed on all cattle feeders. If all controls are removed from cattle prices, some upward movement of prices could be expected, with the better grades of cattle being benefitted most. Final solution of the problem will depend upon government policies which as yet are not formulated. For the immediate year ahead the principal factors to be considered by the cattle feeder include: (a) the high level of feeder cattle prices, (b) feed supplies in the corn belt, (c) cost of gains, (d) demand conditions, and (e) price control changes. Feeder Cattle Prices Are High Relative to Prices of Slaughter Cattle Thus far in 1945 feeder cattle prices have remained above those of 1944, and only slightly below the record levels of 1943. Prices of feeder cattle have reflected not only the independent strength due to very favorable range conditions, but the influence of price subsidies on finished slaughter cattle as well. Range cattle carry sufficient finish to invite active bidding by slaughterers. While there has been some decline in feeder cattle prices since early summer, any further drop in prices seems improbable because of the prospective large corn crop and favorable feed conditions on the range. The high level of |
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