“Cattlemen are now looking straight down the barrel of $7 corn, and that may just be the beginning,” said Gregg Doud, chief economist for the NCBA. “We already saw a lot of acres migrating away from corn this year, and that was before the wet spring pushed into June. By the time conditions improve in many of these fields, planting corn will no longer be an option.”
NCBA President Andy Groseta said in written comments to the committee that even as consumers face higher food prices, producers are under the most burden in meat production.
“Many cattle feeders are currently losing about $150 per animal. With 525,000 head of steers and heifers going to market each week, that amounts to an average weekly industry loss of approximately $79 million,” said Groseta.
With proposals introduced to stop or reduce ethanol mandates, Groseta asked the committee to weigh market conditions in debates on the issues.
Source: National Cattlemen’s Beef Association