Cattle industry takes a hit
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Things at J Bar Angus aren't exactly business as usual.
Water tanks on the 1,500 acres of land are running low, while hay trucks are constantly coming through. And cattle isn't selling for what it once did.
"People don't want to pay nothing for replacement cattle and it's just been really rough," J Bar Angus' Mark Janak said. "Hard to make ends meet, actually."
Texas' drought and the economy have meant trying times for the cattle industry.
Janak, who maintains about 300 head of cattle in Hallettsville, said his biggest issues have been the lack or rain and hay.
He recently spread fertilizer on his land, he said. That way, if the area gets rain, he might grow some grass.
The feedlot industry is cattle's hardest-hit segment, said Dave Scott, president of the Texas & Southwestern Cattle Raisers Association.
Producers feed these animals a concentrated ration - mostly corn - and corn prices are up, he said.
Ranchers are purchasing the animals at about $1 a pound and it costs about the same to feed them, he said. When they only sell for 88 cents a pound, the numbers just don't add up.
"It's making the cost of production too high to let them make any money," he said.
J Bar Angus also sells bulls, which aren't selling for what they once did, Janak said.
The quality of the animals might be the same as last year but the animals are selling for between 15 and 20 percent less.
"What's bad about that is you've got high-end food costs and you expect to get what you've gotten in the past," he said. "It's really quite a bit less and that makes the margin real tight."
When it comes to the drought, the Victoria region is probably the driest part of the state, Scott said. Since continuing to feed the cattle isn't cost-effective, people in the area keep selling their cattle off.
Scott said that's the best advice he can give.
Ranchers are advised to cull their least productive cows and set a timeframe. If it doesn't rain by the set date, then cull some more.
Ranchers may get down to where they don't have any cattle left, he said, but at least they will have money when it's over. And that can always buy more cattle.
Fortunately, Janak sold about 50 head of cattle last year. That kept him in line so he isn't overstocked now, he said, and can hold on to them.
Victoria isn't the only region affected by drought.
All but a small portion of East Texas remain in drought conditions, according to a National Oceanic and Atmospheric Administration report issued last week.
Times may be tough now, but Scott said people don't get by in the cattle business without being a bit optimistic. Look on the bright side.
"We're one day closer to rain," he said with a chuckle.
TEXAS DROUGHT, BY THE NUMBERS
100 percent: The amount of the state categorized as experiencing abnormal to exceptional drought conditions as of March 3.
$569 million: The drought's economic impact on livestock between November and March 1.
$829 million: Loss ...
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TEXAS DROUGHT, BY THE NUMBERS
100 percent: The amount of the state categorized as experiencing abnormal to exceptional drought conditions as of March 3.
$569 million: The drought's economic impact on livestock between November and March 1.
$829 million: Loss brought by the current drought when you calculate in 2008's winter months.
More than 60 percent: Percentage of Texas' beef cows located in counties experiencing severe to exceptional drought.
Source: "Drought Impact on Agriculture Approaches $1 billion Early in 2009" study by the Texas AgriLife Extension Agency
