June 12, 2017

Feed Cost Indices for Laying Hens

This article discusses recent trends in feed costs for laying hens. A ration consisting of corn, soybean meal, dry distillers’ grain, soybean oil, and supplements was used to create the feed cost indices. Corn prices represent averages for Indiana as reported by USDA-NASS. Soybean meal and distillers’ grain prices were obtained from Feed Outlook, published monthly by USDA-ERS. Information from Agricultural Prices, a monthly USDA-NASS publication, was used to compute soybean oil and supplement prices. Future prices for corn and soybean meal are used to project feed indices through 2018.

Figures 1 and 2 report monthly corn and soybean meal prices from January 2000 to May 2017. A distinction is made for prices before and after 2007. The period starting in 2007 is often thought to be a new price regime. Corn price averaged $2.18 per bushel from 2000 to 2006, and $4.72 per bushel from 2007 to the current month. Soybean meal price averaged $187 per ton from 2000 to 2006, and $359 per ton from 2007 to the current month. Note that corn price and soybean meal prices are currently below their average prices since 2007.

Figure 1. Monthly Indiana Corn Prices, 2000 to 2017

Figure 1. Monthly Indiana Corn Prices, 2000 to 2017 

Figure 2. Monthly Central Illinois SBM Prices, 2000 to 2017

Figure 2. Monthly Central Illinois SBM Prices, 2000 to 2017

Figure 3 presents monthly feed cost indices for laying hens from January 2000 to May 2017. The latest full year of indices, 2016, has an index of 100 so all indices outside of this year are expressed in relative terms. As with corn and soybean meal prices, a distinction is made for feed cost indices before and after 2007. The average index from 2000 to 2006 was approximately 58 while the average index since the beginning of 2007 was approximately 115. The index for May 2017 was 95 so current feed costs are 5 percent lower than the average for 2016.

Figure 3. Monthly Laying Hen Feed Cost Indices, 2000 to 2017

Figure 3. Monthly Laying Hen Feed Cost Indices, 2000 to 2017

Annual feed cost indices for laying hens are presented in Figure 4. The projections for 2017 and 2018 (red bars) used corn and soybean meal futures prices in mid-June. The projected feed cost indices for 2017 and 2018 are 98 and 102, respectively. This suggests that feed costs through 2018 are expected to be similar to those experienced in 2015. Of course, crop developments this summer could impact these estimates.

Figure 4. Annual Laying Hen Feed Cost Indices, 2000 to 2018

Figure 4. Annual Laying Hen Feed Cost Indices, 2000 to 2018

This article discussed recent trends in feed costs for laying hens. Current projections suggest that feed costs will remain similar to current levels through 2018. Information related to feed costs for other livestock species can be found on the web site for the Center for Commercial Agriculture.

TAGS:

TEAM LINKS:

RELATED RESOURCES

Ag Outlook Webinar

June 12, 2020

Recorded June 12, 2020 | Purdue agricultural economists Michael Langemeier and James Mintert provide an updated ag outlook, which includes information from USDA’s June WASDE report along with updated profitability estimates for corn and soybeans. The webinar also addressed questions regarding eligibility for and assistance provided by USDA’s CFAP program.

READ MORE

Feed Cost Indices for Laying Hens

May 12, 2020

This article discusses recent trends in feed costs for laying hens.  A ration consisting of corn, soybean meal, dry distillers’ grain, soybean oil, and supplements was used to create the feed cost indices.

READ MORE

Update on the Livestock and Meat Situation

April 28, 2020

Recorded April 28, 2020 | Purdue ag economists Jayson Lusk and James Mintert review the shifts in pork and beef production resulting from COVID-19 along with the impact these shifts have had on U.S. wholesale beef and pork prices as well as prices for cattle and hogs.

READ MORE

UPCOMING EVENTS

April Corn & Soybean Outlook Update

Join us Monday, April 12 at 3:30 p.m. EDT for an update on the corn and soybean outlook following release of USDA’s April Crop Production and World Agricultural Supply and Demand Estimates (WASDE) reports. Registration is free but necessary to receive the link to join live or get notice of the webinar recording.

Read More

February Corn & Soybean Outlook Update

February 10, 2021

Recorded February 10, 2021 | Purdue ag economists Michael Langemeier, Nathanael Thompson and James Mintert discuss USDA’s February Crop Production and World Agricultural Supply and Demand (WASDE) reports.

READ MORE

2021 Farm Bill Decisions for Crop Producers

January 21, 2021

Crop producers need to make their 2021 farm program choices at their local Farm Service Agency (FSA) office (or online) by March 15, 2021. Producers have the option of choosing either the Agriculture Risk Coverage (ARC) or the Price Loss Coverage (PLC) program.

READ MORE

Financial Management – Statements & Analysis

October 13, 2020

A series of financial management articles that examine financial statements and financial analysis. Financial management involves the evaluation of liquidity and solvency, financial planning, acquisition and use of financial resources, asset purchases and farm growth, and relationships with agricultural lenders.

READ MORE

Delivered right to your inbox

Don't miss our farm management program and resource updates! Receive our Commercial AGNews monthly newsletter - view the latest email here.