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It’s no secret that the cattle market is in a down-cycle. Cattle numbers and beef supplies are on the rise. Cattle prices have declined significantly during the past two years, and will probably continue trending lower for another year or two.
Lower calf prices are creating a major cost/price squeeze for many producers in the cow/calf segment of the industry. Cattle-Fax estimates that less than 25% of U.S. cow/calf operations will be profitable in 1995. Over half of all producers will see significant red ink.