Soaring Beef Prices Help Farmers
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All it takes is a quick trip to the grocery store and you’ll that beef prices are at an all time high.
That means record profits for cattle farmers across the state. Â
A year ago, these calves would have sold for about $700 a piece.Â
Now, each one would fetch well over $1,000.
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That’s great news for long time cattle farmer Tony Hopper.Â
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“We operated at a loss for many years. For many years prices were below break even on an operation like this. Even now it’s not that lucrative because of the cost of equipment. A pickup truck can cost 60 to 70 thousand dollars,” said Hopper.
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He  says that’s one reason many farmers have gotten out of the business, which helps to drive prices up.
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At the end of the day, it’s all about supply and demand.Â
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“Because of continuing drought out west and our cattle numbers are at a 60 year low. Demand for beef both domestically and internationally is strong,” said Billy Powell, Executive Vice President of the Alabama Cattleman’s Association.
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That demand helps make cattle one of the biggest farming industries in the state, second only to poultry.Â
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Powell says with higher prices, that means an even bigger impact on the state.
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“We’ll sell over 500 million dollars worth of cattle and calves this year. And that money turns over in the local economy. So we have about a 3 billion dollar impact on the economy for the state,” said Powell.
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Hopper is already planning on what to do with the extra money he’ll have coming in this year.Â
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“We’ve invested in some tractors and another bailer and a hay cutter we’d like to have and have needed. We’d like to have a few more cows, but the price of cows now is going to make it difficult to do that,” said Hopper.
