Producers have so many factors to consider when they evaluate their herd and their beef operation. In years past, they’ve looked to reports of the numbers of cattle being fed out to determine the numbers of head of cattle they’ll feed out.
According to local auctioneer and Elgin Livestock Sales, Inc partner Ted Baum, the USDA’s Cattle on Feed report no longer gives cattlemen an accurate number to consider.
“The Cattle on Feed report, nobody trusts it,” said Baum. “Perfect example of that is last Friday (May 20th) we had the on feed report with 2% more cattle supposedly in the feed yard. However, then futures go up $1.35 on Monday on feeder cattle? You know, nobody believes that, nobody trusts it. Maybe we ought to have the misinformation board that they came up with investigate the cattle on feed report.”
Baum noted that in his traveling around for the business, many pastures and areas that used be home to herds of cattle now are empty.
“The last three years, I know we’ve had major cow reductions in the United States – especially Nebraska, South Dakota, North Dakota, Wyoming, Montana and Colorado — because of the drought. I mean record cow slaughter.” Baum continues “Yet, every time the USDA comes out with the Cattle on Feed report, they say we present (sic) more cattle. We haven’t had a negative – or a positive – report in the cattle business in the last seven years. Everyone say that’s the biggest one we’ve ever had with more cattle on feed than we’ve ever had. And the reason that is, is because of this quote formula.”
