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How Can SlowMoneyFarm Save You Money?

January 4, 2012

It’s the beginning of the year and just like every year many have resolved to lose weight, get healthy, eat better, get control of finances and live better. There are many things in motion that most consumers aren’t aware of – and it can affect them.

Wise people know to check the weather before going out. Financial experts keep tabs on financial markets and advise when to buy and sell stocks. While we don’t aim to influence Wall Street and the only stock we invest in is livestock, there are important events in motion than many have seen but don’t understand what it means for them.

For example, unless you’re in hiding you know the drought and fire in Texas depleted many ranchers of cattle. The expected beef supply is about to get extremely tight – and now is the time to do something about it. “The analysts at Pro Farmerexpect the cattle cycle to post its high in 2013.” Additionally ”

The good news is that those strong feeder prices should continue, but expect the typical seasonal dips. David Anderson, Texas AgriLife Extension livestock economist, projects target prices for 600-lb. steers in 2012:

 

  • First quarter       $131-138/cwt.
  • Second quarter $136-144/cwt.
  • Third quarter     $137-147/cwt.
  • Fourth quarter  $133-144/cwt.

But those higher feeder and fed prices translate into higher beef prices for consumers, which may cause consumers to balk at the meat case.”

What does this mean? That projection shows by the end of the year beef cattle on the hoof can be $1.33-1.44 per pound. Now double the size (to market weight), slaughter, cut, wrap and send it to your grocer, who a year ago (when prices were much lower) had meats at $7-12 per pound and you can expect an increase in meat prices. How much more is anyone’s guess. It means that 12% loss in Texas and Oklahoma affects you in Missouri or Kentucky or Illinois more than you think when it comes to the national level grocery prices.

So what to do? There are several options – you could buy some of those 600 pound calves now and raise them yourself. You could sign up for one of our farm shares, allowing us to have land to put some cattle that are raised for you. You could switch to other types of meat and reduce the beef in your diet. You could work harder and pay more at the grocery store. We all have food options, but planning ahead could save you money.

With prices already hovering at $3 for ground burger, it’s sure to go up as prices climb and availability falls. Everyone moving to smaller farm suppliers, realistically, isn’t going to happen unless right now signing up with other places like ours, if you can find them, or contracting with farms to raise those cattle.If you do that, it’s best to act now because *they* have those same costs to incur by waiting.

Added to that are ag issues that increase the testing required on ground meats. While all these costs were said to be ok to pass along to the consumer, it’s a concern for those who are concerned about their food dollar and affording food.

Add all that together, and it makes our farm shares a bargain! Not only from an insurance in your food supply, but controlling costs and knowing where and how your food is grown. The down side is, like many things, there is a limited supply as there’s only so much room and time. It’s important to act now.

There will be food available – it’s not that the sky is falling doomsday as American farmers will provide. The cost of that food, however, is certain to go up. Your finances now help us and that helps your food choices.

There are great times ahead – we don’t want anyone to miss it! We still have openings in St. Louis, Nashville and Louisville, but there is a limited number we serve. There is a statistic that the average farmer serves 155 people. If we strive to serve that average amount with just part of their food supply, it leaves no time to waste! Contact us today!

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