Cattle prices may be riding high, but smart producers know the market can turn fast. While strong prices create optimism, they also bring risk—making now the perfect time to secure protection. Unexpected shifts in demand, weather, or input costs can quickly erode profits. Locking in a risk management plan today ensures stability, no matter what the market does tomorrow.
When we think about risk management, we oftentimes equate that to our corn and soybean prices. That is a half-sighted approach to the markets. Just like we saw grain prices pull back from their highs of a few years ago, cattle could do the same thing. In fact, beef may be on a much more precarious precipice with prices that keep setting records, without taking the time to build a foundation that can stand up to whatever changing winds could blow in the marketplace.
Livestock Risk Protection is something that producers need to be thinking about. Clay Burtrum is a co-owner of Farm Data Services, and he talks about why this is important while prices are high.
There are many options out there, you need to find the one that is a good fit for your operation.
Burtrum talks about how the program works, in a nutshell.
He adds that this market for beef is quite crazy, which means it is very volatile.
Protecting profits is just as important as maximizing them. Markets change fast, and preparation today ensures stability tomorrow. Smart producers are taking steps now to secure their future.
