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LIVESTOCK

KANSAS AGRICULTURAL STATISTICS
Kansas Department of Agriculture
PO Box 3534
Topeka, KS 66601-3534
Phone: 785-233-2230

Released: August 16, 2002
Volume 02, No. 8

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                                  Text Box

                                INCLUDED IN
                                THIS ISSUE:

                               CATTLE ON FEED

                                 FARM LABOR

                                   MARKET
                                IMPLICATIONS
  ------------------------------------------------------------------------
                           KANSAS CATTLE ON FEED

The number of cattle on feed on August 1, 2002, in Kansas feedlots with
1,000 head or more capacity totaled 2.14 million head (see table 1), down
12 percent from a year ago and 1 percent below the number on hand July 1,
2002. Placements during July totaled 510,000 head, down 11 percent from a
year ago but 34 percent above June placements of 380,000 head. Marketings
during July totaled 520,000 head, up 7 percent from July 2001 and 8 percent
over June 2002. Other disappearance was 10,000 head, down 5,000 head from a
year ago but unchanged from the previous month. The percent of July
placements by weight was: under 600 pounds, 14 percent; 600-699 pounds, 22
percent; 700-799 pounds, 39 percent; and 800 pounds or heavier, 25 percent.

                            U.S. CATTLE ON FEED

Cattle and calves on feed for slaughter market in the United States in
feedlots with capacity of 1,000 or more head totaled 10.09 million head on
August 1, 2002. The inventory was 7 percent below August 1, 2001 and 1
percent below August 1, 2000. Placements in feedlots during July totaled
1.84 million, 7 percent below 2001 and 4 percent below 2000. Net placements
were 1.80 million. During July, placements of cattle and calves weighing
less than 600 pounds were 369,000, 600-699 pounds were 365,000, 700-799
pounds were 591,000, and 800 pounds and greater were 515,000. Marketings of
fed cattle during July totaled 2.19 million, 7 percent above 2001 and 5
percent above 2000. Other disappearance totaled 45,000 head during July, 24
percent below 2001 but 2 percent above 2000.

Cattle on feed August 1, 2002 in the historic 7 States for feedlots with
capacity of 1,000 or more head totaled 8.75 million, down 7 percent from
the previous year and 1 percent below August 1, 2000. Placements in
feedlots during July totaled 1.62 million, 6 percent below 2001 and 3
percent below 2000. Marketings during July totaled 1.89 million, 7 percent
above 2001 and 6 percent above 2000. Other disappearance during July was
36,000 head, 29 percent below 2001 and 3 percent below 2000.

Table 1 --CATTLE ON FEED, PLACEMENTS, MARKETINGS, AND OTHER DISAPPEARANCE,
1,000+ Head Capacity Feedlots, Selected States and United States, August 1,
2001-2002

           Number on Feed 1/         July         July          Other
                   August 1       Placements  Marketings    Disappearance
 State July 1                                              During July 2/
        2002   2001   2002   % of 2001  2002  2001  2002   2001    2002
                             2001

        -----1,000 Head----- (%)    -------------------------------1,000
                                    Head-------------------------------

 AZ       291    297    285   96    44    26    36    31       2        1
 CA       485    475    485  102    56    59    48    56       3        3
 CO     1,030  1,060    990   93   195   190   240   225       5        5
 ID       300    310    285   92    60    52    69    66       1        1
 IA       350    325    320   98    35    44    54    72       1        2
 KS     2,160  2,420  2,140   88   570   510   485   520      15       10
 NE     1,890  1,810  1,790   99   320   400   400   495      10        5
 NM       101    101    109  108    13    18     9     9       1        1
 OK       325    390    310   79    68    60    66    74       2        1
 SD       175    154    160  104    14    18    34    30       1        3
 TX     2,850  3,000  2,740   91   510   390   495   490      15       10
 WA       180    229    165   72    61    39    58    53       1        1
 Other    350    320    310   97    40    34    53    72       2        2
   7-St 9,056  9,387  8,750   93  1,730 1,619 1,758 1,889     51       36
    3/
  U.S.  10,487 10,891 10,089  93  1,986 1,840 2,047 2,193     59       45

1/ Being fattened for slaughter market on grain or other concentrates to
grade select or better. 2/ Includes death losses, movement from feedlots to
pastures and shipments to other feedlots. 3/ Arizona, California, Colorado,
Iowa, Kansas, Nebraska, and Texas.

Table 2- -CATTLE ON FEED: NUMBER PLACED ON FEED BY WEIGHT GROUP
1,000+ Head Capacity Feedlots, Selected States and United States, July
2001-2002

                                    Placed in July
    State     Under 600    600-699    700-799    800 Plus      Total
              2001  2002 2001  2002  2001  2002 2001  2002  2001   2002
                --------------------------------------------1,000 Head
                     --------------------------------------------
 CO             30    28   46    37    67    65   52    60    195    190
 KS             85    70  160   110   210   200  115   130    570    510
 NE             39    36   58    83   109   121  114   160    320    400
 TX            190   120  120    85   140   125   60    60    510    390
 Other States  125   115   60    50    80    80  126   105    391    350
 US            469   369  444   365   606   591  467   515  1,986  1,840

              U.S. WORKERS DOWN 12 PERCENT; WAGES UP 4 PERCENT

There were 1.21 million hired workers on the Nation's farms and ranches
during the week of July 7-13, 2002, down 12 percent from a year ago. There
were 966,000 workers hired directly by farm operators. Agricultural service
employees on farms and ranches made up the remaining 240,000 workers. Farm
operators paid their hired workers an average wage of $8.60 per hour during
the July 2002 survey week, up 31 cents from a year earlier. Field workers
received an average of $7.91 per hour, up 21 cents from last July.
Livestock workers earned $8.37 per hour, compared with $7.89 a year
earlier. The Field and Livestock workers combined wage was up 27 cents from
last year.

 Table 3 --FARM LABOR, NORTHERN PLAINS, for survey week July 7-13, 2002
 1/
                Hired                   Wages by Type of Work
                  Expected to  Hours                               Wage
   Year           be Employed  Worked                              Rates
    &     Number   150   149     by                     Field &     for
  Month     of    Days   Days  Hired  Field Livestock  Livestock    all
          Workers  or     or  Workers                              Hired
                                                                 Workers
                  More  Less
          - - - - - 1,000 - -          - - - - - Dollars per Hour - - - -
                - - -          Hours                   -
 2002
 January      28    25     3   38 .5  8 .34     8 .41     8 .39     9 .00
 6-12
 April        37    29     8   46 .0  8 .48     8 .06     8 .31     9 .22
 7-13
 July         39    28    11   41 .8  8 .32     8 .57     8 .41     8 .72
 7-13
 2001
 July         38    28    10   41 .7  7 .96     7 .98
 8-14                                                     7 .97     8 .24
 October      41    26    15   41 .0  8 .37     8 .46
 8-14                                                     8 .40     8 .68

1/ Northern Plains Region includes Kansas, Nebraska, North Dakota, and
South Dakota.

MARKET IMPLICATIONS - Provided by Jim Mintert, Extension Ag Economist at
KSU - Research & Extension Service

Cattle feeders continue to lose money. Losses accruing to a standardized
monthly yearling feeding program averaged $80 per head from May 2001
through August 2002. And losses this summer likely ranged from about $50 to
$90 per head for many cattle feeders. These dismal returns continue to
discourage cattle feeders from placing cattle on feed. Today's Cattle On
Feed report indicated net placements of cattle on feed (U.S.) during July
fell 7% below a year ago and were 4% smaller than July's five-year average.
This was the fourth month in a row that placements of cattle on feed fell
below 2001's.

Placements on feed were smaller across all weight groups, except among
cattle weighing 800 pounds and over. Placements of cattle on feed in this
heaviest weight group were actually 10% larger than last year and less than
1% below the July five-year average. Placements of cattle weighing from 700
to 799 pounds were smaller than last year, but only by 2.5%. The bulk of
the placement decline was focused on cattle weighing less than 700 pounds.
Rising feed grain costs will continue to discourage placement of
light-weight cattle on feed.

The decline in placements, and rise in marketings during July combined to
push the August 1 on feed inventory 7% below a year ago. This compares to
year-to-year reductions of 5% and 2%, on July 1 and June 1, respectively.

Cattle slaughter could be slowing down, although weights remain heavy.
Weekly slaughter during the first half of August was just 2% larger than
last year, down from an increase of about 4% during July. Weights remain
very heavy, as steer weights averaged 3.5% above last year the last week of
July. Even as slaughter slows down, beef production will remain above last
year because of the affect of heavy weights.

Cash prices this fall are expected to strengthen as smaller placements of
cattle on feed lead to smaller slaughter. Year over year percentage
increases in weights will also decline this fall, but weights will probably
remain heavier than last year. Even so, beef production should fall below
the preceding year sometime this fall and remain below the prior year
during the first half of 2003. The reduction in beef supplies should lead
to higher prices, although large competing meat supplies will be a problem
through year end. Look for a fall quarter slaughter cattle cash price
average in the high $60's. Cash prices have a good chance of averaging
above $70 this winter. A return to a more typical winter weather pattern
this year could push this winter's slaughter cattle cash price average into
the mid-$70's.

Dave Ranek & Dan Kolterman, Agricultural Statisticians
Eldon J. Thiessen, State Statistician
Eddie Wells, Deputy State Statistician

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