44 NEBRASKA CATTLEMAN August 2025 BQA CONTINUED FROM PAGE 42 MARKETS CONTINUED FROM PAGE 40 • Negative Basis: Consider LRP or packer contracts to lock in value without the basis risk. • Neutral/Par Basis: All tools are on the table – evaluate based on seasonality, cash flow and emotions. 2. HAVE A MARKET OPINION (SEASONALITY) No one can predict the market perfectly, but operating without an opinion is riskier than having one. • Expecting higher prices? Choose put options or LRP. These act as price insurance – you set a floor while keeping upside open. The cost is fixed (premium paid), but you can sleep at night knowing your downside is covered. • Worried about downside? Look at selling futures or packer contracts. These don’t cost up front and lock in prices dollar-for-dollar – but they cap your upside potential. 3. WEIGH CASH FLOW AND EMOTIONS This is where many operations struggle – because the decision isn’t always black and white. • Cash availability: Can your operation handle margin calls or pay premiums for options? If not, LRP or packer contracts may be the better fit – no upfront cash requirement. • Emotional discipline: Can you stomach being capped out of the market during a rally? What percentage of your cattle are you comfortable locking in? If you’re not willing to be capped, buying puts or LRP may offer the emotional flexibility you need. FINAL THOUGHTS The decisions you make at the peak of the cycle will echo through the next decade of your operation. Don’t let optimism turn into complacency. Take time to evaluate your risk, resources and readiness. The market may continue higher, but eventually, the cycle will turn. Where will you stand when it does? ~NC~ Disclaimer: Commodity futures trading involves significant risk and is not suitable for all investors. The value of futures and options contracts may fluctuate, and investors may lose more than their original investment. Past performance is not necessarily indicative of future results. Any information contained herein is for informational purposes only and should not be construed as investment advice or a solicitation to buy or sell any commodity, futures or options contract. Always consult with a licensed financial or commodities professional before making trading decisions. ally or when major changes occur in the operation. Contract templates can be found at bqa.org under the Templates and Assessments tab. A licensed veterinarian may prescribe ELDU when an animal’s health is at risk or when failure to treat could lead to suffering or death. However, medications cannot be used off-label for non-therapeutic purposes. Additionally, ELDU is only permitted when no suitable FDA-approved drug is readily available for the intended use and extra-label use of drugs in animal feed is strictly prohibited. When a veterinarian prescribes a medication extra-label, there is zero tolerance for drug residues – any detectable amount found in edible tissue would be a violation. Therefore, it is the responsibility of the veterinarian to establish an appropriate withdrawal time, based on scientific data. Licensed veterinarians may contact the Food Animal Reside Avoidance Databank (FARAD) for questions regarding extra label drug use. All medications, including those used extra-label, need to be documented in an appropriate recordkeeping system. Proper records lower the risk of drug residues and ensure food safety. Documentation should include which animals were treated, what medication was used and how it was given, and when the withdrawal time ends. This will aid the producer in marketing decisions and help prevent illegal drug residues in the food supply. BQA guidelines recommend records be kept for at least two years. There are several classes of medications that can never be used extra-label. Drugs with prohibited extra-label use in feedlot cattle include fluoroquinolones (Baytril, Advocin), phenylbutazone in female dairy cattle greater than 20 months old and extra-label dose, duration, frequency and route of administration of cephalosporins (Excede, Excenel, Naxcel). Extra-label drug use plays an important role in veterinary medicine, especially when timely, effective treatment is essential. When guided by a valid VCPR, careful diagnosis and strong recordkeeping, ELDU can be used responsibly and in alignment with BQA principles. Working closely with a herd veterinarian ensures that animal health and food safety remain top priorities, all while maintaining consumer confidence in high quality, nutritious beef. To learn more about Nebraska BQA, visit bqa.unl.edu or contact us at NebraskaBQA@unl.edu or (308) 633-0158. ~NC~ To find past issues of the magazine go to https://necattle.memberclicks.net/ magazine-archive ELDU plays an important role in veterinary medicine, especially when timely, effective treatment is essential.
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