Greater availability of forage and feed will bring significant relief in feed prices in the near term, said Wilson Gray, University of Idaho extension livestock economists.
Feed prices will moderate in the short term and decrease even further with another good crop year, he said.
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Little or no profits in the milk-production sector in the second half of 2012 and strong cull prices drove dairy cow slaughter to its highest level in 26 years.
With feed grain prices coming down and U.S. exports strong, economists with the University of Wisconsin are projecting good times ahead for dairymen — if they can keep a handle on milk production.
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Years of drought are reshaping the U.S. beef industry with feedlots and a major meatpacking plant closing because there are too few cattle left in the United States to support them.
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Net farm income for 2013 is forecast at $128.2 billion, according to the USDA.
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Tight supplies of feeder cattle and record-high feed costs combined last year to turn the bottom line red for many feedlot owners, and industry insiders say they don’t see any immediate relief ahead.
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The U.S. cattle supply is shrinking as a result of high feed costs and serious financial losses in the feedlot sector, the latest USDA cattle on feed report confirms.
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Idaho Dairymen's Association is exploring every option for improving the economic position of producers after four of the most volatile years in recent history.
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Harvested canola acreage jumped dramatically this fall throughout the Pacific Northwest, doubling in Idaho, according to USDA. Canola is used as a high-protein feed that bolsters milk production of dairy cows, a biofuel and a culinary oil.
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Sugar beet growers should reap a slight benefit from high cattle feed prices, according to officials with Amalgamated Sugar. Amalgamated sells the byproduct of sugar production for feed — either as a pressed, wet pulp for local use or a dried product that's shipped as far away as the Pacific Rim.
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U.S. farm policy could revert to decades-old legislation next month if the current farm bill is not extended or replaced, but experts say the complexity and expense of this outcome make its implementation unlikely.
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Secretary of Agriculture Tom Vilsack says the federal Renewable Fuel Standard, which faces growing opposition among livestock groups, has several upsides. Critics say it has driven up the cost of livestock feed.
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Waiving the Renewable Fuel Standard could reduce corn prices by as much as $1.30 a bushel or not at all, according to an analysis by the Farm Foundation and economists at Purdue University.
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The market impact of USDA's plan to buy $170 million worth of meat to "relieve pressure" on drought-stricken livestock producers will likely be minor and short-lived, economists say. And it won't impact high feed costs that are keeping many producers from making a profit.
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