Let’s Talk Ag “Heat Heat Heat”

Heat, Heat and Heat

Risk management decisions are becoming more important than ever as temperatures and drought situations increase in the West.

e current drought monitor has the drought increasing at D4 further into Nevada, and current pasture and range conditions are the worst they have been since 2012-2013. Currently, this is leading to large sales of livestock with producers deferring income due to drought, according to a recent report from Washington State University. While they are predicting an explosive female cattle market in the future, the questions become how to survive the right here and right now. Below is a map of the drought outlook on June 15, 2021. It is not easy to report that most producers are seeing an increase in their input costs, especially related to fuel and hay. ere is a little bit of light in that the packers are starting to make money after COVID, and the value of the dollar is down. e USDA, Farm Service Agency Livestock Feed Program (LFP) is still taking applications and producers need to apply if they are purchasing hay. e 2021 payment rate is $31.18 per head per month. e fact sheet to the program is located at the following link: https://www.fsa.usda.gov/Assets/USDA-

FSA-Public/usdafi les/FactSheets/livestock_forage_program_lfp-fact_sheet.pdf

Overall, fi re is the most concerning. ere have been horrible pictures from Arizona. e heat and the afternoon winds do not help this situation. Producers are encouraged to continue to sign up for programs that assist with feed costs and water hauling, livestock wells, facilitating conservation practices, and the support programs hit by fi re. ere is also the RMA Pasture, Rangeland and Forage program that assists in drought situations. All this support is to assist ranches through diffi cult times. I can’t remember being over 100 degrees in early June. I expect this heat in July into August, but not this early. is combined with afternoon winds does not make life easy. I hope that every producer is doing okay and can survive the conditions.