HTML _ 96-115 - Cattle Prices: Questions and Answers
14-Nov-1996; Geoffrey Becker

Abstract: After 7 years of relatively high returns, cattle producers by 1994 were experiencing steeply falling prices--mainly caused by abundant supplies of cattle destined for U.S. feedlots. Record-high grain prices and dry pastures amplified the problem. Because of the lengthy biological cycle governing cattle production, large numbers will be coming onto the market for some time, as producers undertake the slow process of curtailing herd expansion. Meanwhile, low prices could force many higher cost and highly leveraged producers out of business. These difficulties led the Administration and Members of Congress to announce or propose numerous efforts to help the industry. The situation also reignited debate over the extent, if any, to which increased packer concentration and/or imports contributed to the problem. [read report]

Topics: Agriculture

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