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WPEC-TV CBS12 News :: News - Treasure Coast News - Local ranchers hit by midwest drought, reeling from price drop for beef

Local ranchers hit by midwest drought, reeling from price drop for beef

GLADES COUNTY, Fla. -- From rising gas prices, to rising food costs. One of the largest industries in the state is being hit hard by rising corn prices...the cattle industry.

Rick Hartman/Old River Cattle Company: We're at the old River Cattle Company and we've been shipping calves this morning. Our mother cows have a calf in the fall, and we raise them up to 600 pounds and then they're sold to the feed lots out west. The main thing affecting us is the drought in the Midwest is really hurting prices.

Rancher Rick Hartman says for the third year a Midwest drought is causing corn prices to sky-high.

Rick Hartman/Old River Cattle Company: Their inputs have gone from $5 a bushel to $8 a bushel, we hit an all-time high on corn yesterday and probably did it again today, didn't we?

And cows eat corn.

Rick Hartman/Old River Cattle Company: Costs more to feed them.

Which makes cattle prices for ranchers plummet.

Rick Hartman/Old River Cattle Company: Because of the drought, $105,000 less money. That's a lot of money, a lot of money anyway you shake it.

Just because corn prices drop.

Reed Hartman/Cowboy: It does not make it any easier.

Rick Hartman/Old River Cattle Company: You don't see very many cowmen or farmers go to Las Vegas because every morning we get up and gamble.

Beef is a one-billion dollar industry in Florida. Providing a half million jobs.

Reed Hartman/Cowboy: If it were to drop another 20-30 cents, it would effect our business dramatically, I would say.

It's not just cattle ranchers taking a hit. Soon it will affect all of us.

Rick Hartman/Old River Cattle Company: There's already ethanol plants shutting down in the Midwest because the price of corn is too high. The price of oil will go up which means gas will go up.

Higher gas means higher food prices. The Old River Cattle Company will see another year.

Rick Hartman/Old River Cattle Company: We still ride horses, we still use dogs, we still use whips, we still use ropes, we still use cowboy hats, but its not unusual to see a cowboy riding off checking his iPhone for the weather or the markets.

[But they're keeping a close eye on the market.

With corn prices hitting yet another record high this week, ranchers say its only a matter of time before meat prices nationwide skyrocket.

Corn prices hit another record high today. Industry experts say everything from food to fuel prices will soon creep up as well, unless ethanol is removed or reduced from our gasoline supplies during this drought.Local ranchers hit by midwest drought, reeling from price drop for beef

Monday, July 23 2012, 10:58 AM EDT

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