An unnatural expansion

[cowman]

In the cattle cycle(if there really is such a thing anymore) when profits reach a certain level producers start to retain more breeding females and when losses start to add up they start to cut back? In the situation we find ourselves in the opposite has happened? Prices away down and we have the largest calf crop on record? Not supposed to happen?
Now I suspect this will resolve itself fairly soon as the bankers start getting real anxious about their money? Will we then be forced to downsize the cow herd...no matter what the losses are?
I would imagine there could be a lot of nervous bankers out there this year when the figures are all added up? Some positive news on the BSE front might be helpful? If there is some sort of light at the end of the tunnel those old money boys might ride the tiger a bit longer?

[blackjack]

... well cowman did we not use to change to grain when the cattle prices were down... even grew some canola myself like everyone else this year heck of a crop if it grades number one... for those that are having problems with the bank in my opinion would be the farms that were in expansion mode prior BSE ... caught with payments on 1300 $ cows and newly purchased land to no fault of their own but bad luck...

[blackjack]

right blackjack, and the prices weren't sky high for too many years, so many producers used that time to invest in some badly needed upgrades to farm machinery, buildings and even their house. Now the payments are still due, and as you said the situation is through no fault of their own.