It may be too early to be raising this concern but what do we do if we get a very dry year in Western Canada?
Whatever problems we had last year with low cattle prices, high grain prices will be many times worse if we get a very poor growing season. I hear some feedlots are growing to plant canola this year rather than grow their own silage as they have good silage stocks on hand plus they can buy cheap hay. I can see hay going up in price pretty quickly and I doubt that as many people will be swath-grazing cereals next winter given the input costs / potential returns from selling a grain crop.
We have had a dry winter in this area but as usual fared better than many areas. We still have snow banks covering maybe 15% of the land and pools of surface water in low spots. I hear that even around Innisfail there are people who haven't had their dugouts filled.
Our own strategy is to try and lock in costs by renting more acres to graze through late fall and as far into winter as possible. The prospects of buying feed in a higher priced market with lower priced calves concerns me greatly.
Whatever problems we had last year with low cattle prices, high grain prices will be many times worse if we get a very poor growing season. I hear some feedlots are growing to plant canola this year rather than grow their own silage as they have good silage stocks on hand plus they can buy cheap hay. I can see hay going up in price pretty quickly and I doubt that as many people will be swath-grazing cereals next winter given the input costs / potential returns from selling a grain crop.
We have had a dry winter in this area but as usual fared better than many areas. We still have snow banks covering maybe 15% of the land and pools of surface water in low spots. I hear that even around Innisfail there are people who haven't had their dugouts filled.
Our own strategy is to try and lock in costs by renting more acres to graze through late fall and as far into winter as possible. The prospects of buying feed in a higher priced market with lower priced calves concerns me greatly.
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