By Kenny Burdine, Extension Professor, Livestock Marketing, University of Kentucky
Over time, I have probably done more programs focused on price risk management than any other cattle marketing topic. This article will not be focused on specific risk management tools and how they work, but rather will focus on some overarching considerations as cattle producers look at ways to manage price risk. Some of these are based on generally accepted strategies, while others are things that I felt important to share based on my experience working with producers. I often share some of these ideas at the conclusion of my risk management programs, but wanted to briefly walk through a few of them for this article. While they are in no particular order, these are some things that I think producers should understand as they develop their risk management plans. I also think the timing is good as the market is currently offering feeder cattle pricing opportunities that we have not seen in quite some time.… Continue reading