CANYON, Texas (KAMR/KCIT) — It’s no secret, local ranchers are being hit hard by increasing prices, drought conditions, inflation, but there’s some other costs hitting their wallets hard.
“We have corn costs, hay costs, supplement costs, fuel costs, labor costs, insurance, repairs,” said Kelly Giles of Giles Angus Ranch.
On top of all that, the cost of feed across the board, is up.
“We keep track so we can come up with an average cost per ton of feed delivered into the feed bunk,” he said.
Feed prices have skyrocketed recently, and Giles told KAMR from March 2021 to March 2022, costs to deliver feed doubled.
The next month in April, those costs rose another eleven percent.
“Producers have to start making choices of is it worth it to continue to feed the cattle on these high prices? Or do I need to cut back?”, he explained.
As a result, Giles says ranchers are having to make hard decisions of keeping the most efficient cattle, and selling others before they make weight.
“That is sold for salvage value. That’s mostly old cows, bulls, but cattle are coming to market much earlier because of the cost to maintain those cattle at the ranch,” he added.
The short-term and long term effects will be felt in the grocery store, and ultimately, your wallet.
“It’s a good thing for the consumer because you buy cheaper beef, but as time goes on, that’s going to work the other way,” he said.
For more information on Giles Angus Ranch, click here.