It’s been said that the current cattle market is both strong and fragile. The industry has seen record money, but that also increases the risk and volatility. AgCountry Farm Credit Services Senior Vice President Marshall Hansen leads the organization’s corporate protein team and says this environment tests everyone connected to the cattle business. “I’d like to say we’re all playing the same game, but with bigger numbers, but the reality is it takes more capital to do the things we’ve done historically.” Hansen advises cattle producers to look globally to find ways to manage risk and minimize the impact to the balance sheet if something unexpected happens. “A product like LRP has become wildly popular and organizations like NCBA are looking at ways to expand those products into other sectors,” said Hansen. “Is there an opportunity to have LRP-type products in the bred heifer market, the cow market, the cull cow market? Your innovative producers who are looking for ways to minimize risk and protect their balance sheets, they’re embracing those and finding them very useful.” Listen to the interview.
