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Why producers should prepare for tough times ahead

Beware of dry conditions returning suddenly and market factors that make it an interesting time to be a cattle producer.

Cow-calf producers have made some money and now need to be "steeling" for what is to come, says Ted McCollum, Texas A&M AgriLife Extension Service specialist.

"We are just out of the drought of the decades and rangeland recovery is underway,” says McCollum. ”But the strong El Nino is over next spring and we could revert back to dry conditions very quickly.”

The question is whether conditions will return to the long-term normal or "do we run the risk of dry weather," he adds.

Couple that with the end of a long bull cattle market that is settling back into a lower trading range, a strong dollar that is hampering exports and incentivizing imports, and large meat supplies after both the poultry and pork industries overcompensated to recover from bouts with disease issues.

To read more tips for preparing for a decline in prices, click here.


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