Net Return Prospects for Cattle Finishing in the Second Half of 2018
After large losses in 2015 and 2016, cattle finishing net returns averaged approximately $110 per head in 2017. Net returns were much tighter in the first half of 2018. Current…
Prospects for Swine Finishing Costs in 2018
Hurt notes in a recent article that a new threat to profit margins for swine producers is being driven by dry weather in Argentina pushing up feed costs, particularly those…
Weekly Outlook
Cattle Feeding Returns Improving
Cattle feeding profitability has been on a roller coaster ride the last couple of years. Estimated cattle feeding returns calculated each month by Iowa State Extension provide insight into the…
Red Ink Reappears in the Cattle Finishing Sector
Cattle finishing net returns were positive from December 2016 through August 2017. Moreover, net returns were above $300 per head during March, April, and May. During the period from December…
Gardner Policy Series
Comparing Economies of Size: Milk vs. Field Crops
The farmdoc daily article of May 25, 2017 explored the substantial economies of size in producing milk and its relevance to U.S. dairy policy. A follow-on question of interest is,…
Cattle Finishing Net Returns in 2017 – A Bit Different from a Year Ago
With the exception of May 2016, monthly fed cattle net returns were negative from December 2014 through November 2016. As noted here, prospects for 2017 appear much brighter. This article…
Costs and Returns for Illinois Beef Producers in 2015
Total economic costs in 2015 for Illinois beef feeding enterprises exceeded total returns by $45.29 per 100 pounds of beef produced on farms enrolled in Illinois Farm Business Farm Management.…
Negative Economic Profit Margins for Dairy Producers in 2015, Likely to Continue Negative Trend in 2016
Lower milk prices resulted in negative economic returns for Illinois dairy producers in 2015, according to figures summarized by University of Illinois agricultural economists in cooperation with the Illinois Farm…
Impact of Corn and Soybean Meal Prices on Swine Finishing Feed Cost
The recent volatility in the corn and soybean markets has increased the uncertainty related to expected swine finishing feed cost. Since planting there have been wide swings in corn and…
What Lies Ahead for Swine Feed Costs?
The recent volatility in the corn and soybean markets increases the uncertainty related to swine feed costs and margins. This article documents the impact of corn and soybean meal prices…
When Will Cattle Finishing Be Profitable Again?
Monthly fed cattle net returns have been negative since December 2014. A few months ago, it appeared that we would climb above breakeven this spring. However, that was before the…
Weekly Outlook
Fewer Hogs and Higher Prices
The nation's pork producers have indicated to USDA that they are not expanding the breeding herd and, in fact, intend to reduce farrowings this spring and summer. This means pork…
Profit Margins for Dairy Producers Turn Positive in 2014, Likely to Return to Negative Trend in 2015
Higher milk prices and lower feed costs resulted in positive economic returns for Illinois dairy producers in 2014, according to figures summarized by University of Illinois agricultural economists in cooperation…
Feed Cost Indices for Swine Enterprises
A recent farmdoc daily article discusses the importance of lower soybean meal costs on pork costs. This article documents the impact of lower corn and soybean meal prices on feed…
What Happens When Food Marketers Require Restrictive Farming Practices?
Food characteristics that matter to some intermediary buyers or consumers now include specifics of the production process (e.g., use of chemicals, geographic location of the farm, or treatment of farm…
Will Cooler Heads Prevail?
On May 29, the World Trade Organization (WTO) announced its latest decision against the U.S. in a long-running dispute with Canada and Mexico over country of origin labeling (COOL). The…
Costs and Returns for Illinois Beef Producers in 2013
Total economic costs in 2013 for Illinois beef feeding enterprises exceeded total returns by $15.60 per 100 pounds of beef produced on beef feeding farms enrolled in Illinois Farm Business…
Is the Corn Belt Farm Economy too Specialized?
Economic cycles often provide benefits to some and harm others. For example, rising grain prices are simultaneously celebrated by crop producers who enjoy increased revenues and vilified by livestock producers…
Profit Margins for Dairy Producers Continue Negative Trend in 2013, Likely to Turn Positive in 2014
Higher milk prices were not enough to offset higher costs resulting in total economic costs exceeding returns for Illinois dairy producers in 2013, according to figures summarized by University of…
2014 Farm Bill: The Margin Protection Program Dashboard MPP-Dairy
The 2014 Farm Bill provides the most comprehensive reform to the U.S. federal dairy farm safety net seen in decades. In place of milk price and revenue support programs the…
2014 Farm Bill: Key Factors to Consider with a California Federal Milk Marketing Order
Across the U.S, with California as a major exception, the USDA Federal Milk Marketing Order program (FMMO) ensures that participating dairy farmers receive a uniform price for their milk based…
The Dairy Safety Net Debate Part III: The Compromise Dairy Safety Net Solution
In our previous farmdoc daily posts "The Dairy Safety Net Debate of 2013: Parts I and II", we offered an independent analysis of the dairy margin protection programs put forth…
The Dairy Safety Net Debate of 2013 Part II: Questions and Answers
In Tuesday's post we made the argument that an insurance-style target index-deficiency payment program without premium oversight from USDA's Risk Management Agency may result in farmers using the insurance program…
The Dairy Safety Net Debate of 2013 Part I: Questions and Answers
In a previous farmdoc daily post we suggested that a compromise solution to the ongoing U.S. House and Senate debate over the form and substance of a new dairy safety…
The Land of “MILC and Honey”
The hardships experienced across the dairy sector in 2009, where U.S. dairy farmers rapidly liquidated more than 250,000 dairy cows from the national herd, brought about a consensus among dairy…