Previous Page: Heifer retention?

So aiming for the Choice market is still a viable, if not a moving, target. “If you're trying to capture a premium for the upper two-thirds Choice and there's no label program associated with it, then you may be a little disappointed in the outcome,” Feuz says. “But if you've got a successful branded program that you're involved with, you may still find some opportunities there.”

Opportunities may also exist for cow-calf producers who retain ownership, Rawls says. “People who have cows that are something special in terms of genetics, health program, age and source verification, that's the way to capture that full value. You obviously need to use some sort of price risk management, both on the feed and the cattle, to get that accomplished. But I think the money is out there.”

Age- and source-verified cattle are a good example. Typically, cow-calf producers can't capture the full age and source premium unless they retain ownership, Rawls says, because the age and source premium is usually bundled with other attributes, such as preconditioning, genetics and maybe past feeding history. “The way to get that age and source premium is to own the cattle all the way to the packing plant,” he says.

Don't break out the cap and gown just yet — there's still plenty of economic healing that needs to be done before cattlemen can graduate to better profitability. But the economy will heal and the cattle market will begin to once again react to the fundamentals of supply and demand. Those who are prepared will reap the reward.