Small Supplies and Record Prices

I was reading an article by Tod Kalous "Small Supplies and Record Prices" in my spring 2011 National Cattlemen. I was not surprised to read that the total U.S. cattle inventory decreased 1.3 million head in 2010 and totaled 92.6 million head on Jan. 1, 2011, which puts the total inventory back to levels not seen since the early 1950’s. I can’t say I am surprised by these numbers, I have been watching the national cattle inventory decrease for the last few years, and have been telling anyone that would listen that eventually it would mean more dollars for our product. The article goes on to say that numbers are estimated to decline another 1 to 1.5 percent during 2011. What does this mean to us as producers? The smaller beef supplies and stronger beef demand are expected to lead to record high prices for all classes of cattle in 2011 with continued increases in 2012…..can I get a big hallelujah and might I add it’s about time! Does this good news mean our struggle is over? Sadly the answer is no, we as producers are still going to have to deal with high feed prices, and for many of us drought is becoming a major issue. If drought conditions continue it could force many of us to sell cattle that we would prefer to retain. There are things we can do as producers to make our cow herds more profitable, however issues like drought our not something we can control, we just need to send up prayers for rain and hope the good Lord sees fit to send it.  I pray that he will send the rain soon, we would normally have already rolled up over 200 bales of hay, at this point we have only rolled 20, needless to say we are praying hard.