With a mind uncluttered by facts or any relevant or meaningful experience, let me offer a solution. Feed what’s perceived to be the excess to beef cattle so I can afford a couple of steaks every month or so.
LOL!
Except that with the beef prices on the hoof dropping, producers are looking at herds that were fed $8 corn being sold for prices that reflect $3 corn.
In other words, they are going to lose money. Many will not go to market, or choose not to calf, in order to try to force prices up. Long term, the prices will drop, but you will see many guys go under. Despite what the article says, most haven’t been saving the profits of the last two years. They were advised to go out and get more land and equipment at inflated prices.
Now, with the corn and soybean crash, they can’t make the payments on the loan. If they have cattle or hogs, it is even worse since we cut Russia out (that dropped the price of meat on the hoof quite a bit).
In short, I fear we are seeing the bubble burst on ag commodities. I lived through that in the 1980’s, and this is shaping up to be worse.
Cattle can’t eat more grain. Their digestive tract isn’t designed for grain. Cattle are fed roughages with grain being fed as a portion of the ration just before slaughter. The price of your steak is not based on grain prices.