Cattle producers see prospects for a better 2009

"Cattle producers hope that 2009 will be a more profitable year than 2008, now that corn prices have dropped closer to historically normal levels and that cattle inventories are now at a 50-year low," Dan Piller of The Des Moines Register. reports from the annual Iowa's Beef Expo. Last year's record-high corn prices likely made cows in 2008 the most expensive ever raised.

In states like Iowa, many farmers switched from raising cattle to corn and soybeans. "The thinning herds reflect the struggles cattle raisers and feeders have fought for years against surpluses, changing dietary tastes and imports," writes Piller. "The most recent whammy has come from high corn prices, fed primarily by the nascent ethanol industry and the entry of speculators into the commodity grain markets."

Despite the economic downturn, cattle producers remain hopeful. They point out that when the economy is down, fewer people eat out, which usually sees a spike in beef sales at supermarkets. (Read more)