WLJ - Cattle and Beef Markets https://wlj.net/articles.sec-14-1-cattle-and-beef-markets.html Tue, 21 Feb 17 00:00:00 -0700 en hourly 1 A whole lotta’ nuthin’ in cattle markets https://wlj.net/article-14-a-whole-lotta%25E2%2580%2599-nuthin%25E2%2580%2599-in-cattle-markets.html A whole lotta’ nuthin’ in cattle markets
The cash fed cattle markets last week were something of a blast from the (recent) past. Counter to recent trends, almost no trade had occurred by the end of Thursday. Wednesday saw barely a third of the offering 4,800+ head offering at the Fed Catltle Exchange sell....]]>
Data suggests 2016 meat trade will rebound to 2014 levels https://wlj.net/article-14-data-suggests-2016-meat-trade-will-rebound-to-2014-levels.html Data suggests 2016 meat trade will rebound to 2014 levels
currency relative to competitors in late 2014 into 2015. A stronger U.S. currency can make exports appear more expensive and imports cheaper. Additionally, the U.S. poultry market was heavily impacted by a highly pathogenic avian influenza (HPAI) outbreak that led to sweeping trade restrictions....]]>
U.S. farm sector’s net farm income will decline in 2017 https://wlj.net/article-14-us-farm-sector%25E2%2580%2599s-net-farm-income-will-decline-in-2017.html U.S. farm sector’s net farm income will decline in 2017
The expected decline in 2017 net farm income is driven by a forecast reduction in the value of production. Crop value of production is forecast down $9.2 billion (4.9 percent), while the value of production of animal/animal products is forecast to decline by less than $1 billion (0....]]>
Beef replacement heifers and herd expansion https://wlj.net/article-14-beef-replacement-heifers-and-herd-expansion.html Beef replacement heifers and herd expansion
The beef cow herd has expanded a total of 7.3 percent since the recent low on Jan. 1, 2014 (Table1). The inventory of beef replacement heifers relative to the beef cow inventory is the best indication of future beef herd expansion. The Jan. 1, 2017 ratio of replacement heifers to the cow herd was 20....]]>
Energy use in food system declined from 2002 to 2012 https://wlj.net/article-14-energy-use-in-food-system-declined-from-2002-to-2012.html Energy use in food system declined from 2002 to 2012
In the years leading up to 2002, electricity prices paid by U.S. processing plants, grocery stores, restaurants, and other food system participants—including consumers for their kitchen appliances—were trending downward. As a result, between 1998 and 2002 the U....]]>
Cash cattle regain some ground https://wlj.net/article-14-cash-cattle-regain-some-ground.html Cash cattle regain some ground
By last Thursday, over 82,600 head of cattle had been confirmed sold on the cash fed market. Prices had improved somewhat since the prior week, with live cattle selling between $118-20 (compared to $116-119) and $189-191 dressed, which was mostly steady with the prior week.


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Oklahoma leads top 10 states in U.S. beef cow herd expansion https://wlj.net/article-14-oklahoma-leads-top-10-states-in-us-beef-cow-herd-expansion.html Oklahoma leads top 10 states in U.S. beef cow herd expansion
The U.S. beef cow herd expanded 3.5 percent in 2016 to a Jan. 1, 2017 level of 31.2 million head, up 1.04 million from one year ago. This follows USDA National Agricultural Statistics Service revisions that showed the Jan. 1, 2016 beef cow herd inventory at 30....]]>
Cattle, beef markets balk at bear attack from Cattle on Feed report https://wlj.net/article-14-cattle-beef-markets-balk-at-bear-attack-from-cattle-on-feed-report.html Cattle, beef markets balk at bear attack from Cattle on Feed report
The cattle and beef markets continue to work in opposite directions. Beef continues its slow climb upwards, while cash fed and feeder cattle—along with their futures market analogs—plummeted after the details of the most recent Cattle on Feed report came out.


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California ag real estate is a good investment https://wlj.net/article-14-california-ag-real-estate-is-a-good-investment.html California ag real estate is a good investment
Striking while the iron is hot is an adage alluding to the trade of a blacksmith who must shape iron while it is hot and pliable; if he delays the opportunity is lost. Acting decisively to take advantage of opportunities when they arise also holds true in the real estate business.


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Does center-pivot system qualify for depreciation deduction? https://wlj.net/article-14-does-center-pivot-system-qualify-for-depreciation-deduction.html Does center-pivot system qualify for depreciation deduction?
A key rule for all depreciation deductions (Section 179, 50 percent bonus and starting the seven- or 15-year depreciation on the balance) is that the deductions can only be commenced when the property is placed in service....]]>
Border tax with Mexico, other countries raises questions for ag trade https://wlj.net/article-14-border-tax-with-mexico-other-countries-raises-questions-for-ag-trade.html Border tax with Mexico, other countries raises questions for ag trade
“If you tax that $50 billion at 20 percent of imports— which is, by the way, a practice that 160 other countries do—right now our country’s policy is to tax exports and let imports flow freely in, which is ridiculous. By doing that we can do $10 billion a year and easily pay for a wall just through mechanism alone....]]>
Buyers are looking, but inventory is lacking in Pacific Northwest https://wlj.net/article-14-buyers-are-looking-but-inventory-is-lacking-in-pacific-northwest.html Buyers are looking, but inventory is lacking in Pacific Northwest
When it comes to the Far West real estate market, the Pacific Northwest deserves some individualized attention. It is an area bound by massive foggy forests and the Cascade Mountain range on the coastal side and the Bitterroot and Rocky Mountain ranges on the other side....]]>
Farmers earned a bigger bite of fresh vegetable spending https://wlj.net/article-14-farmers-earned-a-bigger-bite-of-fresh-vegetable-spending.html Farmers earned a bigger bite of fresh vegetable spending
In 2015, the basket’s annual farm value rose by 11 percent to $62.12, while its annual retail value rose by 1.6 percent to $225.80, causing farm share for the basket of fresh vegetables to increase from 25 to 28 percent....]]>
Cattle on Feed report shows placements sharply higher https://wlj.net/article-14-cattle-on-feed-report-shows-placements-sharply-higher.html Cattle on Feed report shows placements sharply higher
Market analysts expected placements to be up 8.8 percent, so the reported value came in well above already high expectations. All weight classes saw an increase in placements, with cattle larger than 800 pounds seeing a 4.5 percent year-over-year increase while cattle between 600- 699 pounds saw a 26....]]>
Nearly 40 percent of farms run by multiple operators https://wlj.net/article-14-nearly-40-percent-of-farms-run-by-multiple-operators.html Nearly 40 percent of farms run by multiple operators
Commercial-sized farms often require more management and labor than an individual can provide. Additional operators can offer these and other resources, such as capital or farmland. Having a secondary operator may also provide a successor when an older principal operator phases out of farming....]]>
Holes in rural insurance, ag grapples with health care tab https://wlj.net/article-14-holes-in-rural-insurance-ag-grapples-with-health-care-tab.html Holes in rural insurance, ag grapples with health care tab
During year-end meetings with farm clients, Minneapolis, MN-based consultant Rod Mauszycki, heard farmers pose a question the veteran tax adviser had never heard before, “What’s the penalty for not carrying health insurance next year?” “Many farm......]]>
Rural counties depend on different industries https://wlj.net/article-14-rural-counties-depend-on-different-industries.html Rural counties depend on different industries
Local economies and employment levels are more sensitive to economic trends that have a pronounced effect on their leading industries. For example, trends in agricultural prices have a disproportionate impact in farming-dependent counties, which accounted for nearly 20 percent of all rural counties and 6 percent of the rural population in 2015.


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Points of leverage for cattle operations https://wlj.net/article-14-points-of-leverage-for-cattle-operations.html Points of leverage for cattle operations
High points of leverage in a cattle production system are places where strategic inputs of time and resources potentially have impacts that are beneficial and significantly greater than the cost. The challenge is that the areas of highest leverage may not be the most obvious....]]>
2017 world beef trade: a look at major global exporters https://wlj.net/article-14-2017-world-beef-trade-a-look-at-major-global-exporters.html 2017 world beef trade: a look at major global exporters
Global beef exports are expected to increase yearover-year in 2017 with growth in several major beef exporting countries supported by growing production in most cases. However, the situations vary among beef exporting countries and market conditions will keep international markets dynamic for the foreseeable future....]]>
U.S. beef trade: past, present and future https://wlj.net/article-14-us-beef-trade-past-present-and-future.html U.S. beef trade: past, present and future
“We’re going to have to move that production through the chain to keep the producer profitable, and I’m just not sure that we’re going to get that done on the domestic side. So exports are going to become more and more critical to our industry and to our profitability.


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Markets head up for everyone but packers https://wlj.net/article-14-markets-head-up-for-everyone-but-packers.html Markets head up for everyone but packers
After the prior week’s weak showing in the cash fed cattle market, both in terms of volume and prices, last week saw the cash fed trade completed mostly by Thursday with over 92,500 head confirmed sold at $120-123 live, a $1-4 increase. Dressed cattle sold $191-196, up $1-8 compared to the prior week.


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Trading with China: current and future problems https://wlj.net/article-14-trading-with-china-current-and-future-problems.html Trading with China: current and future problems
The ongoing issue of China and its failure to live up to its World Trade Organization (WTO) responsibilities was the focus of a recent report from the office of the U.S. Trade Representative (USTR). While the report noted some hopeful progress in some areas of U.


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Wholesale price of Choice beef is falling faster than retail https://wlj.net/article-14-wholesale-price-of-choice-beef-is-falling-faster-than-retail.html Wholesale price of Choice beef is falling faster than retail
Wholesale prices increased from roughly $3 per pound to nearly $4 per pound by mid-2015. As wholesale prices rose, retail prices followed, moving from just over $5 per pound in January 2014 to a peak of $6.41 in June 2015. Both prices decreased in 2016, with the wholesale price falling below $3 in late 2016.


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Beef price outlook at long-term normal https://wlj.net/article-14-beef-price-outlook-at-long-term-normal.html Beef price outlook at long-term normal
cow numbers,” he said. However, he admitted he thought there would be more cows reported in the U.S. herd. One reason is continued holding back of more heifers. Brown had already explained that there is a mountain of meat— pork, chicken and beef—facing U.S....]]>
It's time to gear up for major tax reform in 2017 https://wlj.net/article-14-its-time-to-gear-up-for-major-tax-reform-in-2017.html It's time to gear up for major tax reform in 2017
While we generally have tax legislation every year or so, it’s rarely transformational to the system. The 1969 and 1986 Tax Reform Acts were two blockbusters, changing rates significantly and influencing business structures. It looks as if 2017 could bring another seismic rewrite of our federal tax system....]]>
Non-operators more likely to inherit the farmland https://wlj.net/article-14-non-operators-more-likely-to-inherit-the-farmland.html Non-operators more likely to inherit the farmland
Land may be acquired in a number of ways, including sales, gifts and inheritances. Arms-length purchases from nonrelatives are a traditional method for acquiring land, particularly for those without family or personal connections to agricultural landowners....]]>
Beef exports strong as pork exports set new record https://wlj.net/article-14-beef-exports-strong-as-pork-exports-set-new-record.html Beef exports strong as pork exports set new record
U.S. red meat exports continued to build momentum in November, highlighted by a new monthly volume record for pork exports. Both pork and beef exports exceeded year-ago levels by more than 20 percent in both volume and value, according to statistics released by US- DA and compiled by the U....]]>
How is land inside an LLC taxed at death? https://wlj.net/article-14-how-is-land-inside-an-llc-taxed-at-death.html How is land inside an LLC taxed at death?
We have a Limited Liability Company (LLC) that contains all of our farms and one of my stock accounts. We formed it many years ago to protect the land from potential bad decisions our two children might make during their formative years....]]>
Retail beef prices continue adjusting down in 2017 https://wlj.net/article-14-retail-beef-prices-continue-adjusting-down-in-2017.html Retail beef prices continue adjusting down in 2017
Retail beef prices will continue adjusting down in 2017 due to retail market dynamics and continued growth in domestic beef consumption this year. The most recent All Fresh retail beef prices in November were $554.20/cwt., down 7.5 percent from one year earlier....]]>
Soft markets on working ranch land make for buyer opportunities https://wlj.net/article-14-soft-markets-on-working-ranch-land-make-for-buyer-opportunities.html Soft markets on working ranch land make for buyer opportunities
According to USDA data from the National Agricultural Statistics Service, average pastureland values in the southwestern states of Arizona, New Mexico, Texas and Oklahoma ranged from $350- 1,600 per acre, these being among the lowest levels seen in the country.


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