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The Midwest Cattleman · October 1, 2020 · P3

October 1, 2020 Volume 26 No. 9

2020 FALL CATTLE MARKET OUTLOOK: UP TO $14 BILLION IN ROUND TWO CFAP
HOPEFUL BUT BE PREPARED TO FARMERS, RANCHERS AND GROWERS
By Jason Bradley, Agricultural Economics Consultant By Sonja Begemann
I feel like I can safely say that the markets Last week President Trump along with USDA Secretary
in 2020 have been a little off. It’s like we’ve Sonny Perdue announced a second round of Coronavirus Food
been on an insane roller coaster ride, with cat- Assistance Program (CFAP) will be distributed. Farmers im-
tle prices going up and down, bouncing around pacted by economic fallout from COVID-19 will be eligible to
all over the place, leaving us with no option receive funds from the up to $14 billion allocated for assis-
but to hold tight while we ride the markets tance.
out. The October feeder cattle contract has Signup for CFAP 2 began September 21, 2020 and continues
traded as high as $157 in January and as low through Dec. 11, 2020. Funds are being made available from
as $113 in April. That’s a $350 per head swing in the span of the Commodity Credit Cor-
about 12 weeks. Definitely poration (CCC) Charter Act
not what we’re used to. and CARES Act to support
PRICES ARE LOOKING row crop, livestock, special-
HOPEFUL ty crop, dairy, aquaculture
However, where does and other commodities.
that leave us today? As If you’re interested in
of this writing, Aug. 12, applying for CFAP 2, do so
at your local Farm Service
2020, that same October
contract was traded at Agency (FSA) county office.
USDA said it incorporat-
$150, which shows some
good news and optimism ed improvements in this
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HOURS-OF-SERVICE WAIVER EXTENDED
COVID-19 COMES WITH SILVER LININGS COVID-19 emergency declaration extended through year’s end
FOR THE BEEF INDUSTRY

By Jager Robinson The Federal Motor
As the COVID-19 Carrier Safety Ad-
an-
ministration
pandemic reached nounced it is extend-
its fifth full month ing its COVID-19
of activity in the emergency declara-
U.S. over the sum- tion, which suspends
mer, several agri- hours of service reg-
cultural economists ulations for certain
have gathered haulers, through Dec.
enough data to look 31.
at full trends of the The declaration
globe’s largest glob- was issued following President Trump’s declaration of nation-
al pandemic since al emergency in March. It has been extended several times
1918. and was most recently set to expire Sept. 14. The suspension
Jayson Lusk, the head of the Department of Agricultural of Parts 390 through 399 of the Federal Motor Carrier Safety
Economics at Purdue University, was the first speaker part Regulations applies to the transportation of the following:
of the Pasture to Plate webinar series put on by the South
Dakota Farm Bureau. Lusk covered the cattle and beef sup- continued on page 14
ply chain over the three-month period of rapid growth and
decline. Coming Sales-38
“There has been a lot of confusion on the causes and driv-
ers of the disruptors we’ve seen,” he said. Life is Simple-5
The cattle market demand and supply shocks could be out- Market Report-8
lined by several major events, starting with the closure of the Agribusiness
country. As restaurants closed, demand for beef plummeted. Directory-36
At the same time, demand for grocery store meat skyrocket-

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