High Input Costs Continue To Eat Away At Cattle Profits

For over a year, cattle producers have enjoyed elevated prices; one of the few sectors of agriculture to see the prices they receive for their commodity move higher.  Cameron Mulrony, Executive Vice President of the Idaho Cattle Association noted those elevated prices have been good for ranchers across the state, if nothing else, just to pay for input costs that continue to rise at a fast clip.

"That margin for the cow-calf guy not too long ago was the same margin they were using in the 80s," Mulrony said.  "And that margin of $80-$90 ahead, which it's been a little better this year and last year, but if we go back not that far, that margin doesn't spend the same in 2023 as it did in 1983."

When looking at those inputs, Mulrony noted diesel is one of the biggest factors, especially across the West.

"For us, forage production and harvest in order to winter these cattle, it all takes diesel. Fertilizer costs are tied to the cost of diesel," he said.  "Trucking, we do transport our cattle, you know, from high country and then down here into the valleys for the winter months. I think the best answer for agriculture from a political standpoint is $2 diesel. If we can get $2 diesel, it's going to impact every American to a benefit."

Mulrony added until input costs stabilize, or ideally come down, producers need those elevated prices for their animals to they can try to make a profit, rather than operating in the red.

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