Graziers worry about rising lease rates in the face of stable to decreas- ing cattle prices. Private grazing rates across the Western U.S. climbed more than 5% for the 12 months through January to dollas 14.50/animal unit month (AUM). That's up from last year's 4.5% pace, according to the latest USDA January Cattle Survey. Yet, given the developing profit squeeze caused by steeply rising feed prices and other production costs, market participants say lease rates will eventually have to retreat or atleast flatten if cattle prices don't rise to offset the increased cost structure.
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