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hogs. pork

Pork Industry Faces Tight Margin Year

Pork producers in 2016 are expected to experience another year of tight margins similar to the year just completed. Pork production is expected to rise by about one percent, but beef production will rise by four percent and poultry by about three percent.

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Hog Prices Drop to 6 Year Lows

Live hog prices fell below $40 per hundredweight last week. This means hog prices are at their lowest level since November of 2009 when the U.S. was just beginning to pull off the bottom of the great recession.

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Limited Pork Expansion

The pork industry has largely overcome the impacts of the 2014 PED virus. Pork producers have been disciplined in limiting expansion after record 2014 profits.

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Lower Pork Costs Also Driven by Lower Meal Costs

Soybean meal is an important but an “economically” secondary feed ingredient in hog diets compared to corn. My estimates suggest that soybean meal costs have been about 22 percent of the total costs of raising hogs over the past decade, compared to 32 percent for corn.

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Higher Feed Costs Could Mean Pork Industry Losses

Weather damaged corn and soybean fields are also harmful to hog producers. Rising feed prices mean higher costs of production for the pork industry. Recent higher corn and soybean meal prices have increased anticipated hog costs by about $10 per head.

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Pork Industry Continues to Adjust from PED

The pork industry continues to adjust from the supply shock created by the PED virus last year. Live prices peaked in the summer of 2014 as PED losses mounted and then fell into the late winter of 2015.

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More Hogs than Expected, Mystery Continues

More hogs than expected was the theme of the pork market in the first quarter of 2015. The USDA March Hogs and Pigs report did little to help explain why hog numbers were high, other than to simply admit that hog inventory counts from previous surveys were too low.

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Changing Business Climate for Agriculture and the Outlook for 2015​​​​

Recorded December 5, 2014 | The panelists outline drivers of this changing business climate and discuss strategies farms can put in place to help manage the downturn in crop agriculture and the upswing in animal agriculture.

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Mini-Boom Ahead for the Livestock Industry

The U.S. livestock industry has entered a new era of much higher product prices, lower costs of production, and favorable margins for producers and their input suppliers. This new era is a reversal of what took place starting in about 2007 through mid-2013 when margins were often negative, producer balance sheets were eroding, and lenders anxiety about the health of their livestock accounts was growing continuously.

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Farm Building Rental Rate Survey

Farm buildings and livestock facilities often outlast their owner’s need for them, but can still provide usable service. Farm operators and livestock producers may be able to make use of certain types of farm buildings but are not in a position to invest in new facilities.

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