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Beef: High Prices Cure High Prices

The adage that the cure for high prices is “High Prices” is evident this year in beef markets. Finished cattle prices reached record highs around $170 in late 2014 and early spring of 2015.

Feeding Cost of Gain and Net Returns for Cattle Finishing

Fed cattle prices have declined sharply since early September. This article discusses trends in feeding cost of gain and net returns for cattle finished in Kansas, with emphasis on the extremely large losses currently facing the industry.

Benchmarking Machinery Investment and Cost

The continued increase in size of tractors, combines, and other machinery has enabled farms to operate more acres and reduce labor use per acre. However, this increase in machinery size also makes it increasingly important to evaluate the efficient use of machinery.

Crop ​Outlook for 2015-2016​​

Recorded September 14, 2015 | Outlook for corn and soybeans following USDA’s Sept. 2015 Crop Production & Supply/Demand Reports. Features review of factors influencing prices and provides marketing & management recommendations. Program features Purdue Economists Chris Hurt, Corinne Alexander & James Mintert.

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.

Buying (Selling) Inputs in the Current Business Climate

Grain farmers are facing significantly lower prices and incomes in 2015 compared to previous years which have resulted in intense pressure to lower costs by aggressive negotiation on land rents and purchased inputs. Much of this negotiation has focused on price–farmers are asking/expecting price reductions, but suppliers of fertilizer seed and chemicals in particular are hesitant to adjust prices down.

Agricultural Productivity Growth and Regulation

This paper uses measures of regulation from the Mercatus Center at George Mason University and the Weidenbaum Center at Washington University at St. Louis to examine the impact of regulation by these agencies on state-level agricultural productivity.

Becoming a “Best in Class” Farm

Corn Belt agriculture is in the midst of transitioning from one of the most profitable periods on record to what could be an extended period of tight margins for most corn and soybean operations. Now that the 2015 planting season is drawing to a close, you should take time to reevaluate your farming operation and consider how you can make sure your farm is strategically positioned to be a “best in class” operation in the years ahead. Doing so will help ensure that your farm will thrive, not just survive, in an era of tight operating margins.

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.

Beef Herd Expanding Quickly, But Will It Continue?

The nation’s beef cow herd has started down the path of the largest expansion in 25 years. The last major expansion was from 1990 to 1995 when the herd grew by ten percent.