CLICK HERE TO VIEW CURRENT ISSUE

Stay Informed
with these

Services
Agri Marketing Update
e-newsletter sent each Monday and Thursday
Agri Marketing
Text Alerts

Big news as it breaks
@AgriMarketing on Twitter
Farm Show Guide
Marketing Services Guide
Books:

National Agri-Marketing Association
NAMA Website
Upcoming Events
Chapters
Agri-Marketing Conf
Best of NAMA 2024












USDA: BEEF CATTLE PRODUCERS FACE HIGHER INPUT COSTS, WITH FEED PRICES UP 16 %
Source: USDA news release

Annual U.S. retail prices for beef and veal are projected to rise 6 to 7 percent in 2022 relative to 2021. In May 2022, the farmer's share of the retail value of beef also increased year over year, but rising input costs, especially for cattle feed, may limit farmers' ability to benefit from higher cattle prices. Based on the USDA, Economic Research Service (ERS) commodity cost and return estimates, feed expenses are the largest operating cost for cow-calf producers, comprising 75 percent of these costs in 2021.

Prices for beef cattle feed were up 16 percent in May 2022 relative to May 2021. High fertilizer prices have contributed to increased feed costs while drought conditions have squeezed feed grain and hay supplies.

The 2021/22 season-average farm price (SAFP) for corn-the primary grain fed to cattle-is currently projected at $5.95 per bushel, the highest SAFP since the 2012/13 marketing year. Like corn, the SAFPs for other feed grains including sorghum, oats, and barley are projected to increase in 2021/22 relative to 2020/21.

The SAFP for hay, an important supplement to cattle grazing, is estimated to be 16 percent higher in 2021/22 compared to the average price over the preceding 9 years. As of August 9, 2022, it was estimated that 46 percent of hay is growing in areas experiencing drought. In addition to rising feed costs, elevated diesel fuel and farm labor costs have also put pressure on farmer margins.



Search News & Articles














Proudly associated with:
SIIA AM&P Canadian Agri-food Marketers Alliance National Agri-Marketing Association
Agricultural Relations Council National Association of Farm Broadcasters Agricultural Communicators Network Livestock Publications Council
All content © 2024, Henderson Communications LLC. | User Agreement