Economic downturn takes toll on cattle producers

Cattle producers are earning less this year with market prices low and production expenses high, according to Jack Field, vice president of the Washington Cattlemen’s Association based in Ellensburg.

It’s a testament to the wildly fluctuating economy, he said.

“The federal government isn’t running out to bail out the cow-calf producers or other people in the ag industry,” Field said. “It makes for some pretty tough decisions for people to make.”

Field said calf prices, beef prices, and even feed prices have been impacted by the downturn in the economy.

Whitman County ranks 20th in the state for cattle production with 15,116 cattle and calves in the county, according to the 2007 U.S. Farm census. Sales value of $7 million for cattle were also reported that year.

Jon Pearson. local cattle producer, said cow-calf prices were much lower last fall than in previous years, pointing out that calves were selling for 90 cents a pound then. Cow-calf prices are about 10 to 20 percent down from last year.

“Those same calves were selling for $1.30 a pound in previous years,” said Pearson who has his own cattle farm on Chicken Ranch Road east of Colfax.

“It doesn’t take too long to see what impact that has on producers throughout the Pacific Northwest and especially the Palouse,” Field said.

“They aren’t receiving what they could.”

Consumers are opting to buy cheaper cuts of beef at grocery stores around the nation as people face limited budgets, according to research by the National Beef Checkoff.

“People aren’t lining up in long lines to pay $8 or $9 a pound for your steak when there are more cost effective alternatives like a roast for $3.50 or $4 a pound,” Field said.

Instead of buying New York steaks or a T-bone steak, people are settling for hamburgers or chuck steak, he said.

“As a result, one of the things they’ve seen is a huge increase in demand for beef value cuts,” Field said.

Hay prices in general have been high for the past two years, Field said, The prices have started to come down this summer. Even with the dip in prices, feed continues to be more expensive than normal.

Feeder hay now sells for about $90 to $100 a ton this year, Field said. That price is down from around $130 last year.

Four or five years ago, feeder hay was around $60 to $80 a ton, he said.

Dick Coon of Washtucna, president of the Washington Cattlemen’s Association, confirmed what Field and Pearson had to say. He noted feed prices have been dropping, but not in sync with the drop in cattle prices.