The months ahead are going to be trying times for those with livestock. Tight feed supplies and high feed prices are forcing some tough decisions. Brad Guse is an ag loan specialist with BMO Harris Bank in Wisconsin, he has been talking to his clients about “right sizing” their operations. “You really have to push a pencil on your own numbers and make sure you have a margin there,” says Guse. “If you don’t have a margin there, why are you buying $8 corn and feeding it to your animals?” Guse says producers need to take a hard look at their livestock numbers and if, by selling-down they will have enough feed or even have some to sell; it might be a wise decision.
If you have feed to sell, is this the right time to sell it? “I’m not a market expert”, Guse quickly notes but, “selling at a profit is never a bad thing.” He contends that while prices may go higher, “only one guy sells at the top of the market, do you really think you are that smart?”
BMO Harris Bank recently announced a North American Drought Relief Program for Farmers where they will sit down with their customers and work out a plan to help them get through these challenging times.