High corn prices could aid beef

摘要

Over the course of the last several months, as I've moved cattle and fixed fence, I've tried to sort out the impact the ethanol boom is having on the beef industry. My formal training is in the area of ruminant nutrition, although I've been a full-time cowhand for more than 10 years. I think the net effect of ethanol on the beef cattle industry is going to be positive, but I want to float some mental meanderings in the hope of generating discussion. For years I've complained about grain subsidies, primarily due to their effect on lowering the market price of program crops by reducing the cost of production. As a producer of feeder cattle, I like cheap corn. However, my competition, Tyson and Smithfield, absolutely love cheap corn.