2014: Outstanding Year For Prairie Gateway Cow-Calf Producers, K-State's Glynn Tonsor Explains

Nov 05, 2015

When old timers start talking about the “Good Old Days” for the beef cattle industry, they may be referring to 2014. Kansas State University Extension Livestock Market Economist Dr. Glynn Tonsor said 2014 was really good especially for cow-calf producers. The most recent evidence comes from the U.S. Department of Agriculture (USDA). Twice a year, the Economic Research Service (ERS) releases a report on the value and cost of beef production. The latest report came out on October first. Tonsor said nationally the value of beef production over operating costs were up over 260 percent in 2014 versus 2013.

2014: Outstanding Year for Prairie Gateway Cow-Calf Producers, K-State's Glynn Tonsor Explains

“They were $108 returns over cash costs effectively in 2013 and they were up to $391 in 2014,” Tonsor said. “…That’s giving you some context of the magnitude of just how good 2014 was relative to ’13.”

Even with the pullback of the cattle markets in September, Tonsor looks for herd expansion to continue. Because of the profitability levels of 2014, he said a lot of cow-calf producers were reinvesting their money back into the industry.

USDA also publishes regional numbers on beef production profitability. The “Prairie Gateway” includes Kansas, Oklahoma, and Texas. Tonsor said profitability for this region was stronger than the overall U.S. numbers.

“So the value of production over operating costs was $437 per cow in 2014 and that’s up from $155 in 2013,” Tonsor said.

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