Risk Management

Protecting high prices without giving up the upside: Why livestock risk protection matters in today’s cattle market

derek.gerratt@agwestfc.com — Thu, 16 Apr 2026 00:00:00 -0400

Cattle markets have rewarded producers over the last several years with historically strong prices. For many cow-calf and stocker operations, that has translated into significant equity built into today’s cattle inventories. But as prices rise, so does the amount of risk tied to every hundredweight.

What futures, options and basis are really telling cattle feeders about risk

luke@kapcofutures.com — Mon, 16 Mar 2026 00:00:00 -0400

Risk in the cattle market doesn’t suddenly appear in the cash market. It can surface quietly – first on the board, in how futures are priced, how options reflect uncertainty and how basis behaves compared to those markets.

Managing risk in the modern cattle cycle: What resilient operators are doing

Tue, 06 Jan 2026 00:00:00 -0500

Beef producers today are navigating one of the most dynamic environments in recent memory, with many unpredictable variables positioned to influence the next phase of the market cycle.

Tending the invisible fence: Why a payout-less risk management strategy is a win

garrenb@compassagsolutions.com — Wed, 31 Dec 2025 00:00:00 -0500

A payout-less risk management strategy, like LRP or CME options, offers peace of mind, financial stability and long-term resilience for ranchers, even when premiums aren’t paid out.

Risk, record prices and rare opportunity: A defining moment for beef cattle producers

garrenb@compassagsolutions.com — Thu, 21 Aug 2025 00:00:00 -0400

The cattle market is an uncontrollable, untethered animal. At times, it appears like a siren on the horizon – beckoning with the promise of fortune and prosperity – only to financially shipwreck cattle producers weeks or months before the calves ever sell.

Crushing the cattle crush: A smarter way to navigate feedyard operations

luke@kapcofutures.com — Thu, 19 Dec 2024 00:00:00 -0500

For years, cattle feeders have relied on the “cattle crush spread” as a hedging strategy. This involves buying feeder cattle and corn while selling fat cattle. The idea has been to manage costs and stabilize returns.

As darkness falls, are you visible to others?

jdavidson@progressiveag.org — Thu, 10 Oct 2024 00:00:00 -0400

With winter just around the corner, are you prepared for the upcoming time change? As we prepare to "fall back" with the end of daylight saving time on Nov. 3, many of us have already noticed the earlier arrival of evening darkness.

Emergency action plan

aaron.yoder@unmc.edu — Wed, 04 Sep 2024 00:00:00 -0400

Whether they’re man-made or natural disasters, emergencies such as tornados, hurricanes, wildfires, floods, severe winter storms, severe dust storms, etc., may put people, property and animals at risk.

Calf prices today for summer 2025

jimbo@compassagsolutions.com — Thu, 08 Aug 2024 00:00:00 -0400

Imagine this: You get a call today from your video sale rep, and they say, “We can offer you $275.93 per hundredweight (steers and heifers) for your 2025 calf crop.”

Beyond fundamentals: Next-level feedyard risk management

luke@kapcofutures.com — Fri, 14 Jun 2024 00:00:00 -0400

In cattle feeding, effective risk management is crucial for maintaining profitability and long-term success. Traditionally, many cattle feeders have relied heavily on fundamental analysis for their marketing strategies.

Capturing the market high

ty@compassagsolutions.com — Wed, 10 Jan 2024 00:00:00 -0500

So many of us were still waiting, hoping and assuming that the turn of summer into fall would bring the only thing we could practically fathom: higher market prices for beef cattle.

Riding the bull: The power of options in cattle feeding

luke@kapcofutures.com — Wed, 16 Aug 2023 13:52:46 -0400

In the realm of cattle feeding, navigating a bullish market can feel much like riding a bull – thrilling, swift and inherently risky. But for those equipped with the right financial tools and strategies, this volatility can be beneficial.

What cattle producers should prioritize in an inflationary market

boston.howe@fcma.com — Fri, 14 Jul 2023 17:35:13 -0400

As record-breaking inflation continues to make headlines, few consumers or industries aren’t feeling the impact of higher prices and interest rates. But even during times of incredible market volatility, producers can mitigate their risk and create staying power for the future.

Severe weather: Be aware of the risks

aaron.yoder@unmc.edu — Wed, 01 Mar 2023 16:16:25 -0500

The exact location and intensity of summer thunderstorms is somewhat unpredictable. Don’t allow the frequency of storm watches lull you into complacency. Severe weather – such as a tornado – can form quickly and turn deadly in just moments.

Running stockers as a drought strategy

Mon, 13 Feb 2023 00:00:00 -0500

When a dry spell arrives, producers scramble to make the best decisions for grazing pastures, buying hay and caring for livestock. Running stockers as a drought safety valve could be a smart idea.

Developing a hedging mentality for your ranch

rossabronson@gmail.com — Thu, 02 Feb 2023 13:48:08 -0500

Traditional hedging through the futures markets has long been a part of agriculture. However, many producers aren’t comfortable with or able to put it into practice.

Stocker cattle: Flashbacks to the good ol' days

agriff14@utk.edu — Mon, 16 Jan 2023 16:06:59 -0500

The biggest lesson one can learn from the previous cycle is that producers do not control the daily, weekly or monthly cash price, but they do control the marketing decisions of their cattle.

Consider PRF insurance as a risk management strategy

abby@agproud.com — Fri, 16 Sep 2022 12:51:45 -0400

In a webinar hosted by NCBA, James Mitchell, assistant professor of agricultural economics and agribusiness and extension livestock economist at the University of Arkansas, discussed how producers can use Pasture, Rangeland and Forage (PRF) Insurance as a risk management strategy for their operation.

How to top the sale: Blending marketing and risk management strategies

abby@agproud.com — Thu, 01 Sep 2022 17:16:30 -0400

In a webinar hosted by NCBA, Elliott Dennis, assistant professor of livestock marketing and risk management at the University of Nebraska – Lincoln, discussed how to top the cattle market by effectively marketing and managing price risk.

What is Livestock Risk Protection?

jimbo@compassagsolutions.com — Mon, 29 Aug 2022 13:10:05 -0400

Fewer than 80,000 head of feeder cattle were price protected in the year before the 2020 overhaul of the Livestock Risk Protection (LRP) program. This year, on an annualized basis, approximately 4.5 million head of feeder cattle LRP will be purchased.

8 tips for winterizing your ranch

janelle.hulme@arrowquip.com — Thu, 02 Dec 2021 17:36:48 -0500

With winter quickly approaching, preparing your ranch’s cattle-handling equipment, buildings and machinery becomes time-sensitive. It’s critical that livestock are handled safely and that handlers remain productive even when Mother Nature drops the temperature.

Decision tips for cattle producers during drought

jill.peine@ridleyinc.com — Fri, 23 Apr 2021 14:00:01 -0400

The U.S. Drought Monitor map continues to feature a lot of undesirable colors. Widespread drought conditions continue across many parts of the U.S., and experts are predicting these conditions are not going away any time soon.

Creating an emergency plan as defense in a natural disaster

cassidy@agproud.com — Mon, 25 Jan 2021 15:00:01 -0500

For those in the beef industry, the question is not “if” you’ll be impacted by a weather-related event but “when.”

‘We’re from the government, and we’re here to help’

stephanie@bradleyfryercounsel.com — Mon, 25 Jan 2021 15:00:01 -0500

When you hear the words “We’re from the government, and we’re here to help,” it may not seem very comforting.

4 basic risk management strategies to consider after an uncertain year

fjabello@tamu.edu — Thu, 24 Dec 2020 15:00:01 -0500

The ongoing health crisis has generated additional losses to cow-calf producers already suffering multiple years of low margins due to market prices below the average total economic cost of production.

Crisis leadership – some lessons learned

don@dontyler.com — Thu, 24 Sep 2020 14:00:01 -0400

You’ve led and managed your business through uncharted waters for the last several months. This is a good time to document the lessons you’ve learned during this unprecedented season in your business.

Facing drought risks on your ranch

Fri, 21 Aug 2020 07:05:00 -0400

Facing The Risk Of Drought – Head-On.

As we write this article, many ranchers - especially those in the western states - are facing drought conditions. Or at least drier than usual conditions. What this means, unfortunately, is an increase in cost-to-feed - because of the shortage of forages. The cost of hay and straw soars due to supply and demand. As a result, immense pressure is on ranchers that don’t have enough pasture to support their cow herd.

Building resilience in agriculture to withstand difficult times

bvanderley2@unl.edu — Fri, 24 Jul 2020 14:00:01 -0400

As you read this article, we will all be just past the midyear mark for 2020. While I usually save most of my “year-end” reflection for the end of the year, there seems to be plenty of things to reflect on just in the first half of this year.

4 ways to minimize risk in such a risky business

cassidy@agproud.com — Mon, 20 Jul 2020 16:10:29 -0400

Risk. Some people thrive on it, while others struggle with it.

Improved decision-making brings a bright future

rmills@uidaho.edu — Wed, 24 Jun 2020 14:00:01 -0400

The year 2020 has proven, once again, that much of what happens in life is unpredictable and uncontrollable. Global and domestic markets have been disrupted and commodity prices increasingly volatilized.