Feeder

Tug of War in the Cattle Industry: Cow Size, Carcass Weights and Total System Efficiency

Wed, 15 Apr 2026 15:52:36 GMT

The beef industry is currently experiencing a tug of war between biological efficiency and market signals that reward heavier carcass weights.

Recent Oklahoma State University Rancher’s Thursday webinar sessions highlighted the growing tension in the beef industry between the market-driven feeding for heavier carcass weights, selection for increased growth and efficiency, and the economic realities of maintaining larger cows.

The Feedlot Perspective: Why Tonnage is King in 2026

Carcass weights are increasing largely because feedyards are keeping cattle on feed longer and marketing systems reward pounds of carcass weight. At the same time, cow size has increased, in turn raising maintenance requirements and forage demand.

Speakers also discussed the biological factors behind heavier carcasses. Growth in finishing cattle remains relatively linear even at heavier weights, and modern marketing systems favor carcass-based pricing.

There are market incentives that encourage feeding cattle to heavier endpoints, including low cattle numbers, relatively inexpensive feed and reduced discounts for heavyweight and yield grade 4 carcasses. These conditions can improve gross revenue at the feedlot but also increase days on feed and reduce feed efficiency.

The Hidden Cost of Growth: Maintenance Requirements and Production Risk

Bigger cows are not necessarily more efficient cows. Cow size is closely related to feed intake, so selecting for larger mature size without considering forage resources can reduce stocking flexibility and increase production risk, particularly during drought or periods of high feed costs. Matching cow type to the ranch environment remains one of the most important management decisions producers make.

Ultimately, long-term profitability of beef production depends on balancing genetics, nutrition and available resources across the entire production system. Producers who align cow size, stocking rate and marketing strategy with their forage base are better positioned to remain resilient in volatile markets and challenging weather conditions.

Efficiency should drive replacement and management decisions. The most profitable cow herds are those that fit their environment and optimize performance from pasture to packer.

Your Next Reads:

Breaking the $250 Barrier: Cattle Markets Charge to New All-Time Highs

Wed, 15 Apr 2026 15:13:24 GMT

Live cattle futures surpassed the historic $250 mark on Tuesday, driven by record-breaking $250 cash trades in the North and a 75-year low in U.S. cattle inventory . Despite geopolitical tensions and higher fuel costs, robust consumer demand and a lack of Mexican imports continue to push both fed and feeder cattle to all-time highs as the industry enters the peak spring grilling season.

After the correction off of record highs late last year — triggered by President Trump posting he wanted to lower beef prices — some market watchers were unsure the market would retest those levels. However, live cattle futures hit all-time highs on Tuesday, exceeding last October’s record prices, while feeder cattle made new contract highs.

Record Cash Driving Futures

The spot month (April) live cattle futures contract moved above the psychological $250 mark this week, hitting a new high of $253.60 on Tuesday, while June hit a contract high at $252. The futures were pushed by the recovery in the equity markets, but more importantly, they were chasing the fed cash trade. Last week’s 5-area weighted average steer price hit a record $248.38, up $3.42 from the previous week.

Brad Kooima, of Kooima Kooima Varilek, says although it was on light volume, the North led the cash trade with live sales hitting an eye-popping $250 for the first time ever.

“Some of us got $250 in the North to a regional packer. It wasn’t widespread at all. None of the majors ever bid it,” he explains. “The rest of the feedlots were more like $248, and so most everybody passed. Then there was a little bit of trade in Kansas Friday at $249. And then it was kind of unusual, but there was some trade in Texas on Saturday at $248.”

The previous cash record for the 5-area weighted steer was $246.91, scored the week of Feb. 23.

Higher Fed Cash Cattle Trade This Week

Even after these lofty levels, Kooima says he believes fed cash trade could keep climbing this week as tight supplies continue to support the market.

“The feedlot has still maintained leverage. So, I think there’s a shot we’ll be a little bit higher — let’s go $252,” he says. “I don’t know. Maybe that’s a little bit optimistic, but I’ll take my shot that we’re going to be a little bit better, but it won’t happen until late in the week.”

His optimism is based on beef packers buying very few cattle last week and with feedlots holding out for higher money due to tight breakevens.

“I still think we’re in a window of time here of 30 to 45 days where we are cleaning up the old-crop yearlings. You know there’s a few big cattle, but we don’t have the weight problem that we had three to four weeks ago as you’re going into the front end of these calves that aren’t hardly fat. I just don’t think that the feedlot’s going to have any urgency at all to sell as these cattle.”

Futures Continue to Make New Contract Highs

With higher cash trade, Kooima expects the futures to remain resilient, even in the face of the Iran War, higher gas prices and equity market corrections. Additionally, speculative “fund” traders have returned as aggressive buyers.

“There’s an end to that game. However, in the meanwhile, the holding action rally that we’re experiencing, I expect, is going to continue for a little while yet,” he adds.

The 14-Minute Metric: Why Consumers Aren’t Feeling “Sticker Shock”

Supply is only one-half of the equation, as the strength in consumer demand cannot be underestimated as the market enters the peak grilling season.

“It begins with buying for Mother’s Day,” Kooima explains. “So let’s hope that we’ve energized the Choice cutouts, that we see the middles, you know, the steak cuts lead us out of here.”

Kevin Good , vice president with CattleFax, says the rally the last couple of years has been driven by beef demand, which is at a 40-year high. He concludes there is no evidence of sticker shock.

“Even though we’re at a price point where we’re a little concerned we might have some consumer pushback,” he explains. “If we look at how many minutes it takes to buy a pound of beef and at 14 minutes it is back to the level we were at the last cycle peak in 2014 to 2015. So if we put that into perspective, the consumer is saying for that eating experience we’re still a bargain.”

Feeder Frenzy: The Impact of the 1.2 Million Head Border Gap

The feeder cattle futures also reached new contract highs on Tuesday with the May contract topping at $377.57 1/2. That market has also been pushed by the 75-year low in the cattle herd, plus the lack of Mexican feeder cattle imports has further tightened supplies.

The Southern border has been closed for the last year to prevent the introduction of New World screwworm (NWS), resulting in 1.2 million head fewer feeder cattle being placed in southern feedlots. The feeder cattle cash index is reflecting the tight inventory and the red-hot prices at auction barns across the country. The index was up $7.27 on Tuesday at $373.94.

Your Next Reads:

The 1.1 Million Head Gap: Analyzing the Impact of the U.S.-Mexico Border Closure

Tue, 07 Apr 2026 03:01:13 GMT

For more than 35 years, Mexican cattle have been a critical component of the American beef supply chain.

The U.S.-Mexico border has been closed since July 9 . A temporary phased reopening that began July 7 with the Douglas, Ariz., port was short-lived with a case reported July 8, 370 miles from the border, which was 160 miles northward of the sterile fly dispersal grid at that time.

Derrell Peel, Oklahoma State University Extension livestock marketing specialist, says, “Prior to the border closing in November 2024, U.S. imports of Mexican cattle had averaged 1.18 million head annually in the previous decade (Figure 1) and 1.12 million head per year in the previous 35 years.”

(Oklahoma State University)

Mexican cattle imports equaled 3.4% of the total U.S. calf crop from 2015 to 2024 and 3.1% since 1990. The brief border opening in 2025 allowed about 230,000 head to cross, 0.7% of the 2025 calf crop.

(Oklahoma State University)

Figure 2 shows the average seasonal pattern of Mexican cattle imports from 2019 to 2023.

“The typical pattern is bimodal with peaks in March and again in November/December,” Peel says. “Calves carried over from the previous year are typically exported in the first half of the year with relatively few exported in the heat of the summer. New-crop calves start to be exported in the final months of the year, carrying over into the next year.”

(Oklahoma State University)

Figure 3 shows the distribution Mexican cattle imports by port in 2023, the last year with a fully open border. The largest port is Santa Teresa, N.M., which accounted for nearly 43% of cattle crossing.

Peel reports, along with the Columbus port, New Mexico accounted for more than 53% of total cattle imports. The ports at Nogales and Douglas in Arizona represented another 27.5% of cattle crossings. The six ports in Texas accounted for a total of 19.2% of total Mexican cattle imports. The largest Texas port is Presidio/Ojinaga with 7.7% of the total.

Potential Phased Reopening: How Much and How Fast Can Cattle Imports Recover?

Peel says rumors are currently swirling that the border could open soon , probably with the phased plan to open ports from west to east over time. He says, if the border would reopen, the recovery will not be very fast.

“It will take several weeks for border facilities to restaff and have USDA-APHIS personnel in place to inspect and clear paperwork for crossing cattle,” he stresses. “It takes time (and cost) for Mexican producers to prepare cattle and the paperwork needed for crossing. It’s not clear how aggressive Mexican producers will be initially until they have a sense of how stable the border situation might be.”

By the time cattle can begin crossing, it will be close to the heat of summer, which is likely to limit crossings. Peel predicts if cattle are allowed to cross relatively soon, numbers of cattle imports could begin to recover significantly by fall.

Exactly what that recovery looks like, and the numbers expected are uncertain.

“Mexico has continued to adapt since the border has been closed, utilizing previously exported cattle in domestic markets,” Peel explains. “Mexico has developed significant cattle feeding and packing infrastructure in the past 25 or so years. More infrastructure investment is underway.”

Read more about the potential border reopening:

Should Beef Producers Be Concerned About Potential Phased Reopening of U.S.-Mexico Border?

Mexico is the eighth largest beef-producing country and the seventh largest beef-consuming country. Mexico is the number 11 beef exporting country and beef exports have grown more than 10 times in the past 20 years.

“U.S. imports of Mexican cattle are part of an increasingly integrated cattle and beef trade relationship between Mexico and the U.S.,” Peel adds. “Mexican cattle imports have been important for many decades.”

(Oklahoma State University)

In the 1980s, Mexico became a significant beef export market for the U.S. and is currently the No. 3 beef export market. More recently, after 2010, Mexico has become a significant source of U.S. beef imports, currently the No. 4 source of beef imports, see Figure 4.

“Cattle and beef trade between the U.S. and Mexico are interrelated markets ,so the current disruption in cattle movement across the border may have a variety of impacts in the future,” Peel summarizes.

Your Next Read:

Tighter Supplies and Border Closures: A Snapshot of Today’s Cattle Feeding Industry

Keeping the Family Farm and Rural Community Alive with an Innovative Mindset

Thu, 02 Apr 2026 18:24:11 GMT

Innovation doesn’t always look flashy in agriculture. Sometimes it’s simply a willingness to try something new if it makes the operation stronger for the next generation. For one Indiana cattle family, that mindset has been the key to keeping both the cattle operation and its rural community moving forward.

“My grandpa’s grandpa stepped off the boat the day Abraham Lincoln was killed,” says Andrew Bredeweg. “Our farm started as more of a self-sustaining farm with a little of everything until my dad turned it more into a business.”

Today, the Bredeweg family has its hands in the cow-calf sector, feeding cattle, farming and managing a seasonal sale barn. At the heart of all they do is ensuring the business remains generational while also supporting the rural community around them.

“Everybody in agriculture pretty much has goals to pass it on to the next generation. It’ll be multigenerational,” Bredeweg says.

The Bredewegs have been able to keep the operation in the family for generations because they’ve maintained a mindset of innovation. That willingness to adapt didn’t start with Andrew. It goes back several generations.

“My grandpa was big into Harvestore systems in the ’60s — he was one of the first guys around here to put that system in,” shares Bredeweg. “That allowed him to feed a lot more cattle in a lot shorter time, which freed him up to farm more or run more cattle.”

That same thinking continues today. The family was among the first in its area to feed cattle using a TMR mixer with drive-along bunks. More recently, they’ve adopted digital recordkeeping through Performance Beef to better track feed, performance and costs.

“Just knowing everything is there and everything is correct is worth its weight in gold,” says Bredeweg. “Our performance on the cattle really showed when we started using it because what we thought we were doing wasn’t actually what we were doing.”

Having accurate numbers has also improved decision-making. Instead of guessing at cost of gain or performance, Bredeweg now has real-time data to guide purchases and management decisions.

Innovation on the Bredeweg operation isn’t just about technology, though. It’s also about strengthening the broader agricultural community.

Bredeweg also manages the local White River Valley Cattlemen’s Association sale barn, a cooperative marketing facility started decades ago by local producers. The sale barn hosts a handful of sales each year and provides an important marketing outlet for cattle producers in the region.

For Bredeweg, involvement in multiple segments of the cattle industry reinforces something he appreciates about the business.

“There’s a little more of a team aspect in the cattle business,” he explains. “For us to prosper, somebody else doesn’t have to lose.”

That mindset extends beyond cattle markets and into investing in the next generation. Bredeweg has partnered with a local high school internship program that allows juniors and seniors to leave school early and gain real-world work experience with area businesses.

Students spend part of their day learning hands-on skills and exploring potential careers while still in high school. Bredeweg has hosted several students on the ranch and sees the program as a valuable tool for keeping young people connected to rural communities.

“You’re developing them on the school side and then they get plugged right back into the business side,” he says.

For Bredeweg, keeping family operations alive requires more than just maintaining a profitable business. It requires investing in people and community as well.

“I’d rather ask how we grow and keep these young people busy instead of how we contract,” he says.

Because at the end of the day, innovation in agriculture isn’t just about improving efficiency — it’s about ensuring there are still families, ranches and communities thriving for generations to come.

Listen to the full conversation on the Casual Cattle Conversations podcast .

Cattle Market Volatility: Is the Ride Just Getting Started?

Fri, 27 Mar 2026 16:16:03 GMT

Placements of cattle into feedlots continue to decline and beef production has reached historic lows. More slaughter reductions, albeit temporary, are in the works.

“Feeder and live cattle markets will likely return to rally mode in Q2 and Q3 while calf prices remain mostly rangebound,” predicts Dave Weaber, Terrain senior animal protein analyst, in his Q2 2026 Outlook .

He summarizes beef and cattle prices have been trading at record levels.

“Choice boxed beef is up 15% this year through March versus the same period last year, and cattle prices are up 18% to 40%, depending on class,” he says. “The reductions in available slaughter capacity so far this year have shifted leverage to the packing segment and improved its margins. However, if the Iran War’s effect on consumer gas budgets persists, it could challenge beef spending.”

He reports packer margins have improved from deeply negative to breakeven or slight profits. Cattle feeding losses could turn into breakeven or profits in Q2.

Weaber summarizes the bumpy ride of cattle market volatility is just getting started. Weaber suggests producers consider these four strategies:

1. Plan Around Volatility, Not Just High Prices

Even though prices are at record highs, Weaber expects continued volatility and notes projected losses for many feeders in Q2 and Q3.

He suggests producers use conservative price assumptions in budgets; run stress tests on breakevens at lower fed and feeder prices. He encourages feeders to lock in margins when they’re available — hedging, LRP, options — not just when prices look “high.”

2. Tight Supplies Do Not Guarantee Profits

Cattle numbers and slaughter are down, but packer leverage has improved. He predicts cattle slaughter in Q2 2026 to run 4% to 6% below year-earlier levels.

The reduction in fed cattle slaughter capacity materialized with Tyson closing the Lexington, Neb., beef plant and taking its Amarillo, Texas, facility down to a single shift in January.

“As we expected, the shrinking number of shackles in plants didn’t immediately solve packers’ heavy losses,” Weaber says. “Fed cattle packer margins worsened from the second week of January through the third week of February as five-area fed steer prices rallied from $232/cwt. to $247/cwt. and Choice boxed beef cutout values were nearly flat. During the same period, fed steer and heifer slaughter dropped to a historically small average of 433,000 head per week, down 10% from a year earlier.”

(Terrain)

The packers’ slowing of slaughter has resulted in more surplus cattle, most notably in the northern feeding areas. While the increase isn’t particularly burdensome, it is enough to show up in heavier carcass weights (contrary to the seasonal trend) and a higher percentage of Choice and Prime grading carcasses.

Bargaining position has shifted to the packers’ favor.

He suggests producers need to sharpen cost control — feed, interest, yardage — and be selective on placements. He stresses don’t chase high-priced feeders without a clear risk‑management plan.

For cow‑calf producers and backgrounders, he says strong calf and feeder prices are supported, but avoid overexpansion or overpaying for replacements just because “numbers are tight.”

3. Watch the Consumer: Fuel Costs and Confidence Matter

Weaber flags Iran War’s effect on fuel costs and weaker consumer confidence in affordability as potential drags on demand, even while demand is still strong.

(Terrain)

“Consumer confidence is already getting a hit because of ongoing affordability concerns and declines in investment and retirement accounts,” Weaber says. “This combination has the potential to limit consumer spending on beef items at grocery stores and restaurants.”

He encourages producers to track domestic demand signals — retail features, food service traffic and wholesale beef moves — because a softening consumer could pressure cattle prices faster than supplies alone would suggest.

His suggestion to producers is: Be ready to pull the trigger on sales earlier if you see a combination of weaker beef movement and falling futures.

4. Use the Price Outlook to Time Marketing

Weaber’s forecast calls for:

Fed cattle around $250 to $255/cwt. in Q2, close to $260/cwt. in Q3.
Feeder cattle sideways, then rallying into Q3.
450‑lb. calves range‑bound but at very high levels into fall.

His message to producers is to align weaning, backgrounding and selling windows with predicted higher‑price periods when possible. He also suggests considering staggering sales — rather than one big shot — to spread risk across the Q2–Q3 volatility band.

In summary, Weaber says we’re in a record‑high, record‑tight cattle market, but that doesn’t mean an easy ride ahead. Shifting packer leverage, softer consumer confidence and outside shocks like higher fuel costs mean volatility in cattle prices is likely just getting started.

Who Is Who? Choosing the Right ID Strategy for Your Herd

Tue, 17 Mar 2026 17:13:29 GMT

Cattle identification is important at every sector of the industry, with many options and varying permanence. In new technological advancements, Electronic identification (EID) tags are becoming more popular with different management programs as well as freeze branding.

Freeze Branding

Rains Simmental located in western Kansas near Oakley uses freeze brands on their red and black Simmental cattle. They brand cattle with both their ranch/ownership brand and the animals’ individual tattoo number.

“We do their individual tattoo number brand on their left hip and then our ownership brand right under it on the left hip as well,” explains McKellen Rains. “We try to brand everything.”

The Rains family freeze brands the individual tattoo number and their ownership brand right under it on the left hip.

(Rains Simmental)

There are certain laws and protocols for branding in many western states where brand inspections are required for proof of ownership. Brands must be registered with the state and have different regulations in terms of locations and brand details. Other states, many in the Midwest and East, do not have brand inspection offices and do not require registration with the state.

“We’re looking to buy more spots on the left side,” Rains explains. “I’ve got three other brothers, so we’re looking to buy more spots on the left side and we can still use the same brand, but split up and have him on the shoulder, me on the ribs. That way, we don’t have to get another brand and stuff like that where we can just split it up and have the same ownership brand on the left side.”

(Wyatt Bechtel)

Hot branding is also an option, with the same regulations in brand states. There are pros and cons to both brand forms, but Rains prefers freeze branding because of the eye appeal and legibility.

“It just looks better. It comes in white if done correctly,” he adds. “We prefer the freeze brand just because it comes back in white, just easier to read. There’s nothing wrong with the hot brand. It’s just easier to read with a freeze brand over a hot brand.”

Overall, Rains likes that the freeze brand is a permanent form of identification. Cattle can often tear an ear and lose a visual tag. Rains also likes being able to see the animal’s tattoo number from farther away.

“It seems like you can’t have enough identification anymore,” he says. “It makes it easier for me, and for older guys and stuff like that, they like it because a lot of them guys struggle with reading tags. Just the ease of being able to identify an animal a lot quicker, and it’s permanent.”

(USDA)

EID Tags

Electronic identification tags contain a unique, scannable microchip that replaces the manual entry of ID numbers when processing cattle. Instant identification of an animal with a scan allows data to sync with management software immediately when compared to handwritten or typed record-keeping.

Lukassen Cattle Co. in Nebraska began incorporating EID tags as traceability and data management became increasingly important for internal decision-making and external market access.

Between their two locations, they calve out around 1,000 Limousin and Angus-based cows.

“We emphasize practical management and long-term sustainability, developing cattle that work in commercial settings while maintaining maternal strength and feed efficiency,” Elyse Lukassen says. “A key part of our operation is delivering all-natural beef directly to consumers, offering true ranch-to-table beef with no added hormones.”

With the size and scope of their operation, using EID tags provides a more efficient and accurate management process.

“The transition to EID tags has supported our participation in value-added programs,” Lukassen says. “Programs like Non-Hormone Treated Cattle (NHTC) and Global Animal Partnership require detailed record-keeping and traceability, and electronic identification helps ensure compliance is both accurate and auditable.”

Like any new technology, there is an upfront investment, both in tags and in the necessary readers and software, Lukassen adds.

“There’s also a learning curve in implementing systems effectively,” she says.

They still use plastic visual-only tags for identification pen-side. Their registered cattle also are tattooed.

Jara Settles, Livestock Marketing Association (LMA) general counsel and vice president of risk mitigation, says large-scale beef and many dairy producers can find benefits in using EID tags in conjunction with management software.

“Scanners in a milking parlor, at the feeding area or integrated with a chute-side system can help them track production traits such as weights, pregnancy status, treatments, vaccinations, etc. This application of the EIDs allows the farmer or rancher to get the most value for those devices as the investment can be spread out over the entire productive life of the animal,” Settles says.

The downside of EID tags is usually cost-related as they’re significantly more expensive than visual-only tags. Settles says many producers do not have the technology necessary to read them or integrate them into their management system.

“From an auction market perspective, the application of EID tags to livestock for sale as mandated by the Animal Disease Traceability (ADT) program is an added cost to the consignor that does not realize any premium or added value,” she adds.

On May 9, 2024, USDA APHIS published into the Federal Register the Final Animal Disease Traceability Rule “ Use of Electronic Identification Eartags as Official Identification in Cattle and Bison ” making visually and electronically readable tags the only form of official identification for sexually intact cattle and bison 18 months of age and older, all rodeo, exhibition cattle and dairy cattle moving interstate. That rule became effective Nov. 5, 2024.

“The visual-only tags that were previously allowed under the Animal Disease Traceability program were very inexpensive to purchase and were usually provided free of cost to producers and auction markets by USDA. The transition from visual-only identification for animals currently covered by the ADT program to EID tags increased the cost per tag by as much as nine times,” Settles adds.

Since the transition to EID tags, LMA in coordination with several industry partners has sought funding for these EID tags so that this transition is not an unfunded mandate by the government.

“We have been appreciative of the hard work of livestock champions in D.C. who have ensured farmers, ranchers and livestock auction markets are not unfairly burdened by yet another expense they are unlikely to see benefit from in production. We hope to see continued appropriations of funds to pay for the EID tags for currently covered animals,” Settles says. “LMA would adamantly oppose any expansion of the ADT program to include cattle not currently covered by the program, commonly referred to as feeder cattle.”

When Risk in a Crisis Becomes a Turning Point: Lessons from Top Producers

Wed, 25 Feb 2026 16:51:39 GMT

In a volatile agricultural landscape, risk is a constant. Weather, markets, input costs, succession issues, cyberthreats and pandemics all push farm families into uncomfortable decisions. During the “When Taking Risk in Times of Crisis Pays Off” panel at Top Producer Conference, six producers shared how they’ve navigated those moments — and what they’ve learned when the stakes were highest.

The panel, moderated by Rena Striegel, president of Transition Point Business Advisors in West Des Moines, Iowa, included: Edward and Rebecca Dalton, of Dalton Farms, Wakeman, Ohio; Chris Payne of 3B Hay & Straw, Ontario, Ore.; Wendy Alsum Dykstra and Heidi Alsum Randall of Alsum Farms and Produce, Friesland, Wis.; and Ron Rabou of Rabou Farms, Albin, Wyo.

Their stories spanned family tragedy, ransomware, COVID-19 disruptions, organic transitions and bold expansion moves — offering a candid look at what it really means to take risk in agriculture.

Here are five key takeaways from the conversation:

1. Crisis as a Catalyst, Not a Dead End

For several panelists, a crisis didn’t just test their operations; it forced a complete re-evaluation.

The Daltons describe being emotionally exhausted and financially stuck before a Top Producer event pushed them to question everything.

“We were floundering in agriculture,” Rebecca says. “We were not making any money, really. We were just doing it to do it and to continue that legacy. And we were to the point where, like, ‘why are we doing this?’ You know, we only have so many days here. We only have so much time here.”

After a series of family tragedies and persistent unprofitability, they made a bold move to transition about half their acres to organic production. The shift brought much-needed profitability and renewed purpose.

“The risk was I was going to quit farming,” Edward explains. “We needed something and a spark and to just want to farm again.”

In Wyoming, Rabou’s turning point came after the sudden death of his father and the unraveling of a complex family ranch structure. Walking away from a fifth-generation operation was emotionally painful, but necessary.

“We did a lot of soul searching, and I kind of came to the conclusion that the risk for me for not doing something was much greater than actually doing something,” he says.

Rabou and his wife started essentially from scratch, building an organic grain operation and a hunting enterprise, borrowing heavily despite having grown up in a “never borrow” mindset.

2. Numbers Matter — But They Aren’t Everything

A recurring theme was the importance of knowing your numbers while recognizing data alone cannot drive every decision.

“Knowing our numbers is what really helped us,” Edward explains. “If you know your own data front and back, when you really get into those tight situations that you need to be able to think and move… sometimes you just have to move, whether you want to or not.”

Recently, the Daltons made a bold move back to conventional production. The Daltons’ choice to step out of organic was a conscious decision to go against what the spreadsheet said, in favor of their family and team.

“Right now, when I’m hauling $12 beans instead of $40 beans, like we were for a few years, I’m not really happy with that decision, but it was too much time,” Edward explains. “We were losing time with our boys, and that ultimately is why we went back, even though we were making more money per acre.”

Rabou emphasizes having a clear philosophy about leverage: “I have no problem borrowing money on appreciating assets, but I have to be very careful about borrowing money on assets that depreciate.”

For him, land and infrastructure are long-game investments, and he admits he more often regrets the risks he didn’t take than the ones he did.

“I’ve never looked back and said I shouldn’t have made that investment,” he says. “But I have looked back a multitude of times and said, ‘Wow, I wish I would have made that investment.’”

3. Fear vs. Action: Moving When the Window Opens

Panelists agree that fear is often the biggest barrier to seizing opportunity — especially when decisions must be made quickly.

Oregon onion grower and packer Payne describes how, in the middle of a tense meeting, he and another young partner were essentially challenged to buy out older shareholders in an onion packing facility. They had seconds, not months, to commit.

His broader advice to producers now: “Don’t get caught up in fear. If you let fear dominate your thought processes, you’re never going to succeed.”

Preparation helps in those “15-second” decision moments, Payne adds. Continually learning, attending conferences and thinking through scenarios ahead of time gives you a framework so you’re not starting from zero when opportunity knocks.

Edward adds, “You absolutely know how it’ll go if you don’t try. If you’re not willing to try, it’s not going to work. You can’t move forward if you don’t do something or try.”

4. Cyberattacks, COVID-19 and the Power of Systems

For Alsum Farms & Produce crisis came in very modern forms: a ransomware attack and then the COVID-19 pandemic.

“At 3 a.m. one morning in October, I got a call from our IT manager that we had been hit with ransomware,” Wendy explains.

She explains recovery from the attack required all hands on deck, multiple external experts and months of work to protect traceability and keep product moving. The aftermath included layered backups, new server and email security, user training and an ongoing relationship with cybersecurity and insurance professionals.

Just months later, COVID-19 hit. With 90% to 95% of their business retail-focused, the Alsum team quickly formed a COVID-19 response group, redesigning workflows to keep employees safe and shelves stocked.

The sisters say one key result from COVID-19 was when another supplier faltered, the Alsums were ready to step up for a major retailer — turning crisis into opportunity.

5. Relationships as a Strategic Asset

Beyond capital and land, the panel underscores the value of relationships — with peers, competitors and buyers.

Edward, Payne and Rabou maintain a group text, often used when one of them is wrestling with a big decision.

“Have people in an industry that you can trust and communicate with,” Edward stresses. “There’s been days they’ve literally had to walk me off a ledge when I’m trying to figure out how to make a decision.”

In the potato and produce world, Heidi says, competitors often become collaborators when the chips are down.

“The nice thing about the potato industry and the produce industry in general that we’ve experienced is that it’s been very collaborative,” she explains.
Rabou adds he sometimes sells grain below top price to maintain long-term relationships and outlet security.

“Those relationships to me are more important than making the dollar in the moment,” he explains.

His broader warning to producers is to stop comparing your operation to your neighbors’.

“You really have to determine what works good for you as an individual, you as a couple, you as a business,” he stresses. “Stop paying attention to what everyone else is doing.”

The Bottom Line from Top Producers

Across all their stories, the panelists echoed a few core principles:

Know your numbers but also know your values.
Act in crisis — don’t let fear make the choice for you.
Be willing to pivot, even away from something profitable, if it no longer fits your life or strategy.
Invest in appreciating assets and in relationships, both of which can pay off long after the crisis has passed.

In short, risk in times of crisis isn’t just something to endure; handled intentionally, it can be the turning point that reshapes a farm for the better.

Why Livestock Risk Protection is a Critical Consideration in 2026

Fri, 20 Feb 2026 14:16:49 GMT

While cattle prices remain historically high, the 2025 market proved volatility can quickly erode margins.

“Given that the cattle cycle is set for a slow rebuilding phase, there is a reasonable expectation that the market will remain supported for the next few years,” says James Mitchell, University of Arkansas agricultural economist in the Cattle Market Notes Weekly. “But as fall 2025 showed us, cattle markets are not immune to volatility.”

Livestock Risk Protection (LRP) and option premiums are not cheap because cattle prices are high, Mitchell explains.

“This reality has led some to question whether price risk management is worth it at today’s price levels,” he says.

Case Study: The Value of LRP in Fall 2025

To demonstrate the impact of price risk management, Mitchell shares this real-world scenario from Arkansas in late August 2025:

The Setup: A producer planned to sell 550 lb. steers in November

The Policy: Purchased LRP at a $394/cwt. coverage price (100% level)
The Cost: $12/cwt. premium
The Market Shift: By Nov. 24, the actual ending value dropped to $365/cwt.

The Result:

Indemnity Triggered: $29/cwt.
Net Return: $17/cwt. (after premium)
Per Head Value: $94/head added value
Total Per Load: ~$8,500 in protection

Without LRP, the cash price for a 550 lb. steer was $378/cwt. for the week ending Nov. 21. With LRP, the realized price rose to $395/cwt.

Fall 2025 was a reminder of how sensitive the cattle market is to news and surprises. A look at the November 2025 Feeder Cattle futures contract and weekly cash prices (see below) in Arkansas highlight just how quickly prices can move.

(Cattle Market Notes Weekly)

Mitchell admits the example in this article perfectly times the purchase of LRP with the fall 2025 downturn in cattle prices.

“Buying LRP earlier last year would not have triggered an indemnity because the market rallied leading up to the fall,” he says.

Why 2026 Price Risk is Different

While the cattle cycle suggests a slow rebuilding phase with supported prices, structural risks remain. Mitchell explains how the math of risk has shifted:

More Dollars at Risk: A $20/cwt. drop is the same percentage loss regardless of the market, but at today’s record prices, the total dollar loss per operation is significantly higher.
Limited Flexibility: With high interest rates and debt obligations from herd expansion, many producers cannot afford to absorb a $30/cwt. swing.
Volatility is the New Normal: Market shocks from policy changes, trade shifts or weather events happen faster than in previous cycles.

Takeaway for Producers

“LRP is not about increasing the odds of an indemnity payment or maximizing profit,” Mitchell says. “It establishes a price floor and reduces downside risk.”

LRP is not designed to beat the market or guarantee a profit every year. Its primary function is to establish a price floor. Using LRP to cover your breakeven point or secure a target return is a more sustainable strategy than attempting to time market peaks.

CAB Insider: Feb. 11

Thu, 12 Feb 2026 12:55:52 GMT

The fed cattle market has been steadily stronger since the first of the year, gaining $10/cwt. from the opening week’s $231/cwt. value through last week’s $241/cwt. average. This closely matches the early 2025 trend but has extended the pattern a week longer than that of a year ago with last week’s continuation higher.

The drastically smaller year-on-year cattle harvest is a significant factor differentiating 2025 and 2026. Since the beginning of the year, fed cattle harvest head counts have run roughly 10% smaller than a year ago. Tightened cattle supply and packer losses deeply in the red both continue to ration the harvest pace. Logic suggests no changes to throughput as long as both cattle and cutout prices work antagonistically against packer profitability.

(Certified Angus Beef)

A counterbalance to lighter harvest runs continues to rear its head in the form of heavy carcass weights. Latest data for the week of January 19 featured a 3 lb. uptick in steer weights to average 987 lb. each, just 2 lb. below the record marked in December. January weights will average near 30 lb. heavier than a year ago.

Weekly average cutout prices turned modestly lower in early February after the comprehensive cutout value increased 3.6% since the beginning of January. As demand turned to the ends of the carcass, significant discounting on middle meats was a theme last month. History suggests that the most preferred steak items have already posted seasonal low prices, with unseasonably warm weather in some regions coupled with expected early spring buying stimulating prices.

Utilization Key to Prime Success

Fed steer and heifer carcass quality is charting new territory in the first five weeks of the quarter. Record-heavy carcass weights, the longest feeding periods on record and generations of improved genetics continue to press carcass quality grades to new heights. This has generated an average 14.2% Prime carcasses in the fed cattle mix while Select carcasses average an unprecedented low at 9.7% of the total since January 1. This stands in stark contrast to the 10.7% Prime and 13.6% Select grade mix recorded for the same period a year ago.

As the carcass mix continues to press higher with richer quality grades, the expected impact to cutout prices has also come to fruition. The Prime cutout premium to Choice narrowed to $19/cwt. in January versus $59/cwt. a year ago and $37/cwt. in January 2024. This contrast indicates a wide range and directional change in the premium across three years.

However, the number of Prime carcasses in the past five weeks has been 21% greater than a year ago while carcass weights have also been 30 lb. heavier for the period.

(Certified Angus Beef)

Recent Prime demand models show 20% and greater year-over-year consumer demand increases for multiple months for the recent two years. Growing Prime supply has been met with growing demand, generally across the last decade. The recent added upswing in the Prime carcass supply suggests that expanded utilization of Prime-specific sales across the entire carcass is warranted. In the past couple of years packers have added a growing list of cuts to their sales sheets specific to their Prime-graded product. This is evident in Certified Angus Beef ^® brand sales as we have seen the most recent year’s sales growth in the CAB^® Prime category.

Further opportunity exists to capture consumer demand across the Prime carcass as evidenced by the most recent USDA carcass cutout value report. For the first week in February, USDA lists the Prime cutout premium to Choice at $16.94/cwt. for the entire carcass. Yet, practically all of the premium is found in the rib primal which features a $73.17/cwt. premium, and loin at $39.36/cwt. Briskets have often carried a larger premium than at present, but very adequate supplies have narrowed that premium to $3.13/cwt. While Prime premiums are increasingly being captured on some cuts on both ends of the carcass, chuck and round summary values show relatively small premium contributions, as do the flank and plate.

It’s important to note that more demand for individual Prime grade cuts is being discovered on the part of packers and wholesalers as they educate downstream users about the opportunities to capitalize on growing Prime demand. Emphasis on greater utilization of Prime and CAB Prime carcasses is key to recapturing larger Prime cutout premiums that get allocated throughout the supply chain. After all, the economic drivers fueling current carcass weights and extended feedlot stays may shift over time such that carcass quality takes a step back. Even if not, building demand through exceptional quality is the factor that has allowed beef to vastly outpace other protein options in the market.

Greg Henderson's Lasting Legacy: A Champion of Information, People

Wed, 04 Feb 2026 22:01:28 GMT

From feedlots to board rooms, Greg Henderson devoted his life to listening to beef producers, elevating their stories and championing the people in the trenches every day. An award-winning journalist and revered voice for the beef industry, Henderson provided timely information and in-depth analysis on all segments of the business, including cattle-feeding margins, market trends, genetic advancements, emerging technologies and the impacts of economic factors on beef prices and production.

Only the fourth Drovers editor in history, he worked as a writer and editor for Drovers for nearly 40 years . He was also an advocate for the industry by leading and participating in panel discussions to address tough issues and helping farmers and ranchers understand current trends and challenges.

Henderson’s impact on the cattle feeding industry was celebrated Feb. 4 in Nashville, Tenn., when he was recognized with the 2026 Industry Leadership Award . The award is presented annually during the Cattle Feeders Hall of Fame banquet to a distinguished individual who demonstrates outstanding leadership, provides exemplary service and contributes to the advancement of the cattle-feeding industry.

Henderson unexpectedly passed away on Aug. 16, 2024, leaving behind a legacy in agricultural media and significant contributions to the advancement of beef production. His years of knowledge and expertise allowed him to serve as a moderator and speaker on many local, regional and national stages, representing the interests of U.S. cattle producers.

More Than a Career

His work was never just a career — it was a calling. His wife, Ruth, remembers how naturally he fit into the world he covered.

“Greg was very passionate about the industry and going out and actually meeting the ranchers, and being in the feedlots and face-to-face with people was Greg’s deal,” Ruth says. “He loved it. He never met a stranger.”

His personal connection to people shaped everything he did. Henderson didn’t simply gather information; he worked to understand it and then translate it into meaningful insight for his readers.

“He loved to take the information he got, do some extra research with it and then turn it into information that other leaders in the industry would look at,” Ruth recalls.

Dan Thomson, veterinarian and managing partner of PAC, says Henderson’s focus was always the beef producer.

“It wasn’t about Greg. It wasn’t about his magazine,” Thomson explains. “It was always about what can he do for the producer? What can he do for the feedlot operator? What can he do for people that are in the trenches every day? And that’s what set him apart.”

Thomson describes Henderson as the definition of a servant leader — grounded, hardworking and motivated by a desire to help others succeed.

“Some people think it; some people talk it. Greg Henderson walked the walk, and Greg Henderson got it done for all of us that are out there every day,” Thomson summarizes.

Greg Henderson joins former LPC President Kathy LaScala to hang his plaque in the LPC Hall of Fame.

(LPC)

Recognized for Leadership and Service

Henderson’s influence extended far beyond his loyal Drovers readers. He immersed himself in organizations that shape the beef and livestock sectors. Ruth says he believed it was his responsibility to stay informed and involved.

His peers recognized that commitment. Over the years, Henderson received the Ed Bible Distinguished Service Award, was inducted into the Livestock Publications Council Hall of Fame and earned the prestigious Jesse H. Neal Award for business journalism — even being named a finalist the year he passed away.

Industry leaders saw Henderson not just as a reporter, but as a champion of knowledge. Mark Gardiner of Gardiner Angus Ranch, Ashland, Kan., credits Henderson for elevating the beef industry.

“That thirst and that quest to get better, to help others and to make it all better than it was before, is Greg Henderson. He was such a champion of information and knowledge for our industry,” Gardiner says.

(Henderson Family)

Passionate About Family and Telling the Story

For beef industry consultant and former Drovers writer Nevil Speer, Henderson stands among the last of a rare breed in agricultural journalism.

“To me, Greg is one of the last true great journalists in our industry,” Speer says. “He’s a man of great character, and one of the things that I appreciate about him and respect about him most is his No. 1 priority over everything was his family.”

Family was everything to Henderson. He and Ruth had two children, Lisa and Jared. Prior to his passing, if you had a chance to spend time with him, you knew one of his greatest loves and joys was spending time with his grandchildren, Charlie and Amelia Suellentrop.

In the corrals, at the conferences and across the pages of the publications he shaped, Henderson leaves a legacy of service, humility and enduring impact on the beef industry he loved.

Photos from awards ceremony

1 of 7: