Cattle Economics: We are Talking about Practice!

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Andrew Griffith

Dr. Andrew Griffith
Assistant Professor
Department of Agricultural and Resource Economics
P: 865-974-7480


“We are talking about practice. We are not talking about the game. We are talking about practice.” This is a quote from Allen Iverson many years ago when he was asked about missing basketball practice. The word practice and study seem to be closely related. As a child, having to study or go to practice was not nearly as fun as playing the game or utilizing the information that was learned from studying to achieve something. However, as life progresses, it feels as if life is constant practice and study!

There are several examples of practice including medical practice, dental practice, and veterinary practice. There is a reason these fields are called practices. The reason is because no two living beings are the same, and the people who have trained to lead these practices are constantly practicing on new patients and learning new things. These professions also have continuing education, because new methods and procedures are constantly being evaluated. What person reading this wants to have a doctor from the year 1908 performing heart surgery on them today with the same knowledge base they had in 1908? For that matter, who wants a doctor from 1998 and the technologies that were available then? Most people want an experienced professional who has continued to learn and grow their knowledge through study and practice.

Are cattle producers across this nation in practice? The answer is yes and no. There are many cattle producers who wake up every day with the intent to improve some part of their cattle business. Look no further than the seedstock producers who have improved physical conformation of their cattle as well as the genetic components of the herd that are not seen as easily. Maybe it is the cow-calf producer who has worked tirelessly year after year to improve conception rates by culling some cows, improving forages to enhance nutrition, and tweaked their mineral program to make sure both macro and micro nutrients are at the correct levels. The point is that each and every day cattle producers pull on their boots, they are walking into the field of practice while playing the game.

Just as all previous years have been practice while playing the game, 2022 will be another year of practice while playing the game. Cattle producers have been through years of high cattle prices and low cattle prices. Cattle producers have been through years of increased input prices and relatively low input prices. Similarly, producers have been through years of herd expansion and herd consolidation. However, it is unlikely producers have faced the exact mix of factors that are currently in front of them.

My wife is a breast cancer surgeon, and I am sure she has seen a lot of similarities from one breast cancer patient to another. However, I am willing to bet that no two breasts and treatments have ever been exactly the same. (If they have been then she can correct me, and I will not tell anyone I was wrong with my previous statement.) The same is true for cattle production in that no two years have ever been the same and producers cannot do exactly what they have always done and expect to be profitable. With higher fertilizer, fuel, and feed costs, producers will be tempted to skimp on a few things. The key is to work on the margins. For instance, skimping on herd health and nutrition could result in dead cattle, sick cattle, or cows failing to produce a calf, which could be a large marginal cost. However, reducing fertilizer application by 15 percent may not have as large of a marginal cost. Changing fertilizer rates will influence forage production that leads to other necessary changes, but this is where we study, practice, and ultimately learn.

There is very little that looks fun from the current perspective as it relates to input prices, but cattle prices look extremely promising. It will be tough to navigate production in 2022, because it will be different from all other years. However, if the year turns out to be a success for a producer then that producer will likely agree that it was worth playing the game while practicing this year. Here is to practicing while playing the game, because we are talking about both.