The annual agricultural Land Values report was released at the beginning of August. The report showed a flat to slightly up trend across the three classes of land values surveyed; farm real estate, crop land, and pasture land.
The cash fed cattle market refused to develop last week with just over 2,600 head being confirmed sold by Thursday afternoon. Analysts expected that prices for the week would be steady to higher than the prior week’s $147-148 live and $232-235 dressed.
Imported food and beverages that were purchased directly by U.S. consumers (such as farm-raised shrimp from Thailand, fresh avocados from Mexico, and wines from Spain) accounted for $186.9 billion—13 percent of this total. The remaining 87 percent ($1.3 trillion) was spent on domestically-produced food and beverages.
The mid-year Cattle Inventory report confirms that herd building is taking place at a meteoric pace… relatively speaking. The total cattle and calf herd was up 2.2 percent as of July 1 compared to July 1 of 2014 with 98.4 million head.
“Seasonal lows are often scored during the second-half of July. Likewise, cash prices have scored their third quarter low during July in 10 of the previous 12 years. The hazard for this type of seasonal recovery to materialize this year is the lack of fed cattle marketings, which is creating a heavily.
Feedlot inventories as of July 1 in feedlots with 1,000-head or greater capacities stood at 10.24 million head, up 1.9 percent compared to July 1, 2014. This is mostly in line with the average pre-report industry projection of a 1.6 percent increase.
The most recent Cold Storage report shows a growing stock of all the major protein in U.S. warehouses. All told, stores of all meat (red meat and poultry) as of June 30 stood at 2.33 billion pounds, up 17 percent from the same time last year. Most of this increase came from increases in stored beef, though all the major proteins saw increases.
Herbicide-tolerant (HT) crops, developed to survive the application of specific herbicides that previously would have destroyed the crop along with the targeted weeds, provide farmers with a broader variety of options for weed control. Insect-resistant crops (Bt) contain a gene from the soil bacterium Bacillus thuringiensis that produces a protein.
Cash cattle trade was slow to develop last week ahead of the release of the monthly Cattle on Feed and bi-annual Cattle Inventory reports. By close of trade on Thursday, over 20,000 head had been confirmed sold with prices ranging from $144-147 live (averaging in the low $145s) and $230-233 dressed (averaging in the upper $231s).
The unique U.S. beef and cattle trade situation that developed in 2014 has continued in 2015. Falling beef production is keeping beef supplies tight and prices near record levels in the U.S. This discourages beef exports and attracts more beef and cattle imports.
The All Fresh retail beef price was $6.114/lb., up $0.059 cents from May and up $0.606/lb. from one year ago. The June retail pork price was $3.703/lb., up $0.007/lb. from last month but $0.413/lb. lower than June of 2014. The retail broiler composite price was $1.
Since USDA’s Agricultural Resource Management Survey began collecting data in 1996, the median income of farm households has risen while real U.S. median household income has remained essentially flat. This may be due to a variety of factors including farm consolidation, increasing commodity prices, and minimal increases in hourly wages for all U.S.
The most recent World Agricultural Supply and Demand Estimates (WASDE) report was a boon to corn farmers and likely left a bitter taste in the mouths of cattle and beef ranchers concerned with the trade situation; corn stocks are down, meaning prices are up, and the U.S.
Cash fed cattle trade was slow to develop last week. By Thursday’s close of trade, not even 2,400 head had been confirmed sold for the week. Analysts expected that general cash trade would be a couple dollars lower than the prior week’s $150 live and $238-242 dressed prices.
Seventy-nine to 86 percent of retirement, off-farm occupation, and lowsales farms are in the “red zone” (farms with an RRA of less than 1 percent), indicating a very low return to farming. The share of farms in the red zone drops rapidly for the remaining family farm types, those with moderate sales and higher.
Accumulating assets is one thing. Converting those assets into a retirement income stream you can’t outlive is another. One way to derive income from your investments is to distribute only the interest and/or dividends the investments generate each year.
Last week was awash in downward markets and concerns of a financial nature. With international financial uncertainties in Asia and Greece, and seasonal beef demand less than what it should or could be, the cattle and beef world did not escape unscathed with futures and beef cutouts plunging.
The JBS acquisition includes two Midwest meat processing plants; one in Ottumwa, IA, and the other at Beardstown, IL. Both plants were acquired by Cargill in 1987, and in 2014 they processed a total of 9.3 million hogs. The purchase also includes five feed mills—two in Missouri, and one each in Arkansas, Iowa and Texas—and four hog farms—two in.
Beef exports moved counter-seasonally lower in May, dropping 14 percent from a year ago to 88,466 metric tons (mt). Export value dipped lower year-over-year for the first time since January, reaching only $556.7 million (down 6 percent). For January through May, exports totaled 430,393 mt, down 10 percent from the same period in 2014.
A difficult question for many agricultural families today is deciding how to leave a fair inheritance for each of their children. It’s common to have one child who has stayed on the place and other children who have pursued different careers. The parents often desire to keep the farm/ranch in the family.