WEST LAFAYETTE, IN – Could feeders be close to longterm profitability again? According to a new article from Dr. Michael Langemeir with the Center for Commercial Agriculture at Purdue University, the answer is yes. Recent trends in feedin costs of gain, the average feeder to fed price ration, breakeven prices and cattle finishing net returns are returning hope for profitability to a sector that has been dealing with years of losses. Langemeir points to average cattle finishing losses in 2019 at approximately $80 per head. Average losses this year are projected to be closer to $85 per head. Though current breakeven and fed cattle price projections suggest that net returns will be closer to breakeven levels in the first six months of 2021, the largest chance for positive net returns occur in the second quarter.
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