SEWARD, Neb. — As cattle markets push higher, one Nebraska feedyard operator says the economics behind the rally are becoming harder to justify.
Mike Briggs, who operates a feedyard near Seward, said he is stepping back from buying replacement cattle as losses mount on new placements.
“I’m not going to replace them because I don’t buy losers,” Briggs said on the weekly television show Market Journal.
While fed cattle prices have surged, Briggs noted that some feeder cattle being placed today are projected to lose as much as $200 per head — a sharp contrast to the optimism seen in the broader market.
The situation highlights a growing divide in the cattle industry. Producers who already own cattle are benefiting from strong prices, but those looking to restock face significantly higher risk.
Briggs said the decision not to replace cattle could leave pens empty in the months ahead.
