Some producers in our area are losing hundreds of dollars for every head of cattle they try and sell.
Currently some producers selling cattle are losing 200 dollars a head. Something that could put them out of business if it continues.
Raising cattle can be directly linked to corn prices, because of feed. So most farmers bought when feed prices were high. Now corn has dropped, posing a big problem.
Local Producer, Dale Artho says, "Most of the cattle that have been fed in '08 have been fed at a loss. Especially the last six months."
'09 isn't expect to bring a big change either.
President of Amarillo National Bank, Richard Ware III says, "Everything is slowing and flattening out and whether it's home sales in amarillo or business throughout the panhandle, it's not going to be going up so people need to be ready for that, on the other hand it's not going to be near as bad as it is on Wall Street or the east or west coast."
Artho says the ag industry is preparing to see who will still be around when the dust clears.
"I don't think it's the little farmer that is going to be under as much pressure as it will be the larger farmer, because of the volume of money that it takes to operate a larger enterprise. My guess is that in the next 18 months we will have a real shake out and consolidation in the ag industry."
That could have an impact on your pocketbook at the grocery store.