Dramatic Changes in Valuing Cattle
We’ve all misread a few trends in life, some of which evolved into forces that drastically changed lives and entire industries.
Thirty years ago, who would have thought that the roughest, most mismanaged, cedar-infested grassland in the Flint Hills of Kansas would bring as much or more at auction than well-managed parcels? A lot of this market pressure results from the spillover of disposable income from urbanites looking for recreational ground, combined with some pretty reasonable interest rates.
And what about the increasing effect of energy costs on agricultural production? We used to just shake our heads at the cost of fuel, but now we’re witnessing the effects of society’s need for SUVs competing with our need to feed livestock (ethanol).