Local cattle producers deal with effect of coronavirus

People know the coronavirus has impact on grocery stores and other retail businesses. Most, however, rarely think about the impact on farmers who produce what they can buy at the supermarket.

Northeast Mississippi farmers are trying to figure out and keep up with the consequences of the national crisis on their agricultural operations

Two local businessmen, both of whom happen to be members of the Union County Board of Supervisors, discussed with NEMISS.NEWS, the effects the coronavirus economic slowdown on their livestock operations.

One of the local markets affected is livestock.

1. J. Bright, Union County’s District 3 Supervisor, is a cattleman with a large operation by local standards, although he refers to it as a hobby and something he wants to pass on to his children.

“The virus has not affected us day-to-day but it has affected the futures market tremendously,” Bright said.

Live cattle prices are down 17 percent with the potential to fall farther, he said.

“But it did trend up this past week,” he noted. Bright attributed the increase in the price of beef cattle to possibly panic buying and hoarding of hamburger meat. That likely will not last long-term.

“Boxed beef is up 12 percent. Basically, the large processors are taking advantage of the producers,” he said.

“The straight to slaughter cattle are old and used up,” he said, not really good for other uses than ground beef.

This past week 600-700-pound feeder steers were selling for $127.04 per hundredweight, which was up five percent from the previous week but 17 percent down from a year ago.

“Steaks are three to four months before they hit the shelves,” he said. “But now restaurants are not selling better cuts of meat.” That means restaurants are not buying them, either.

Bright produces market calves.

“I have about 100 commercial beef and about 70 stock cattle at 600-700 pounds,” he said.  The stock cattle would go to feed lots and shoot for an eventual weight of 1,100 pounds.

He said the average local cattle farmer has 25-30 commercial cows. “Full time would be 500-600. Nobody in Union County has that,” he said.

While local producers are mostly small, they still count on that $5,000 to $10,000 extra income each year, Bright said.

Reduced farm income is having an effect on equipment sales and availability, he said.

Bright said he ordered a $15,000 mower several months ago and has an old one he would like to sell. “It should bring $7,000 to $8,000 but will probably bring only $4,000 to $5,000,” he said.

Bright is forging ahead. He said spring is the beginning of the time when most beef is sold. “It’s for the summer grilling season, most is sold when the students are out of school,” he said.

He is not sure the federal government’s stimulus package will really help. “It won’t add to the economy,” he said, “just replace what was lost.” The potential value of the stimulus also depends on what people do with the checks they receive, whether they spend the money wisely.

But Bright is cautious and gave no indication of wanting to get out of the cattle business. “If we have another month like this past one it may be as bad as ‘08 and ’09,” he said. “It will affect us, maybe up to a year or two.”

Chad Coffey with some of his new calves

Chad Coffey, Union County’s District 3 Supervisors, raises cattle on a smaller scale, but is thinking about expanding.

“I had 40 and sold down, but I am thinking about building back up,” he said.Coffey now has 16 head.“I’m afraid to sell the calves,” he said. “They’re not where I want them to be, so I think I may hold on to them.”

Coffey said he has plenty of hay, other feed and water and adds, “I think they will go up,” although they are getting to the point of needing to be weaned.

As to the consideration of increasing his herd, Coffey noted that right now grass is coming up very well so it might be desirable for those who don’t have a lot of hay.

Cattle farming requires space. Coffey said from an acre to an acre and a half is needed for each cow and calf, depending on the grass and soil. In addition to hay, he feeds his cattle corn, gluten and soybean pellets.

Livestock that are not sold directly may go to feed lots, where they will shoot for a weight of about 1,100 pounds. “There aren’t any around here but a lot of cattle sell to Oklahoma and go to feed lots there,” he said.

Coffey was not sure about the stimulus package either but he did say the cattle market was hampered by the rating agencies not working now, and the stimulus will fund some of these agencies.

“If you call me a cattle producer some people would laugh,” he said. “I’m still learning.”

Social distancing may be cutting farmers off from local direct sales markets as well. Also, China and other counties may not be able to live up to food import agreements they agreed to.