The human race has been using navigation systems since the beginning of time with the navigation system changing as technology changed. For instance, early societies may have used the stars and the moon. At some point, the compass became a tool to assist in navigation. Later, physical maps were produced, and now most people use an electronic navigation system that is part of their automobile or mobile phone. These navigation systems have become easier to use and more precise as technologies have improved. Many readers are now asking themselves what this has to do with cattle production. This is a feasible question, and maybe they have nothing to do with cattle production. However, cattle producers are constantly navigating cattle market prices, input prices, and cattle production decisions.
Navigating cattle markets, input prices, and production decisions can be an overwhelming process for cattle producers as well as other agricultural producers. Over the years, there have been some changes in how producers navigate these obstacles while some of the navigation tools used today are the same as those used many years ago. Producers gather information from universities, private industry, sales representatives, USDA, industry specialists, producer groups, breed associations, many forms of publications, and consultants. This information may come in the form of group meetings, one-on-one interaction, magazines, internet, or phone applications.
Despite there being changes in how information is received, individual producers must still navigate their decision-making process on their own or within the group of people that make decisions for the operation. It is similar to navigating the roadways. Maps remain the primary form of navigating whether it be a foldable map or it is a map in an electronic navigation system. The only thing that has changed is the quantity of information that is used within the system to arrive at the desired destination.
As producers look into the 2022 production year, it is clear the price of fertilizer, herbicide, and feed are going to be higher than in 2021. Similarly, it appears cattle prices will be higher in 2022 than in 2021. However, how producers navigate the production side of cattle production for a profit in 2022 may be much different than how they navigated it for a profit in 2021. It would appear at this time that most cattle producers will apply less fertilizer and herbicide in 2022 and most likely feed less commodity feed to grow animals. These decisions will likely reduce forage production and result in marketing lighter weight cattle in 2022.