Economics

COVID-19 Impact on Ohio’s Beef Industry

By: Garth Ruff, OSU Extension Henry County

COVID-19 has had profound impacts on our food and livestock production systems here in the U.S. With regards to the beef industry the impact has been felt locally and throughout the country. Locally here in Ohio, with the JBS plant in Souderton closed, and reduced packing capacity in other regional packing plants, the local cash market for fed cattle has been greatly diminished. For the past two weeks, auction markets in the state have asked cattle feeders to hold off on bringing fed cattle to market due to packing plant closures and overall lack of packer demand.

Like most of agriculture, timing is critical for the livestock production supply chain to flow as it is designed. What is the impact of holding market ready cattle in local feedlots? Economically, cash flow concerns for small to medium size cattle feeders may arise as packing capacity remains limited. Immediate impacts for cattle feeders include increasing days on feed, selling heavier and potentially higher yield grade cattle once the market returns. Most packing plants have discount schedules of Yield Grade 4 and 5 cattle in addition to carcass weight specifications. Continue reading COVID-19 Impact on Ohio’s Beef Industry →

Net Farm Income Expected to Drop 12% This Year, USDA Says

By: Tony Dreibus, Successful Farming

Net farm income, a gauge of profits, is expected to drop 12% year-over-year in 2018 amid low crop prices and rising expenses, the U.S. Department of Agriculture (USDA) said in a report on Friday.

Profits are pegged at $66.3 billion this year, down from $75.4 billion in 2017, according to the USDA’s Economic Research Service (ERS). Adjusted for inflation, the decline will be 14%. Continue reading Net Farm Income Expected to Drop 12% This Year, USDA Says →

The Farm Economy: How Bad Is It?

By: Brent Gloy, Agricultural Economic Insights

Maybe it’s just me, but it seems that there have been a large number of recent articles in the press about the negative situation in the farm economy (for example 1, 2, 3, 4, 5 you get the idea).  This was further driven home when a friend recently called to ask just how bad economic conditions are on the farm. I thought it might be a good time to provide some analysis of the current situation.  Continue reading The Farm Economy: How Bad Is It? →

Balance Quality, Quantity to Help Your Hay Crop ‘Catch Up’

By: Vermeer’s Makin Hay Editors

Severe blizzards, drought and rangeland fires were major storylines for hay and forage producers and cattlemen in the months leading up to spring 2018, when alfalfa and other forage crops started their growth cycles for the year.

Those challenging conditions led to shortages of necessary feed sources for many livestock producers, causing them to purchase more hay than normal or seek alternative stocks to get their herds through the winter. That caused a spike in prices, with some types of hay selling for almost twice the normal price in late winter and early spring. Continue reading Balance Quality, Quantity to Help Your Hay Crop ‘Catch Up’ →

Omnibus Bill Includes 199A “Grain Glitch” Change

By: Anna Lisa-Laca, Farm Journal

The omnibus spending bill before Congress this week does include a change to Section 199A of the President’s Tax Cuts and Jobs Act.

The hotly debated 199A provision gives farmers a financial incentive to sell to cooperatives instead of private companies. Continue reading Omnibus Bill Includes 199A “Grain Glitch” Change →

Management Implications from the Scientific Journals

by: Brian E. Roe, Van Buren Professor, AED Economics, Ohio State University Leader, Ohio State Food Waste Collaborative

Sometimes good management advice is difficult to parse from cutting edge academic research.  Below I share a few articles I’ve run across from my reading of the journals that might have some ready implications for managers across the state Continue reading Management Implications from the Scientific Journals →

Western Ohio Cropland Values and Cash Rents 2016-17

by: Barry Ward, Leader, Production Business Management & Director, OSU Income Tax Schools OSU Extension

Ohio cropland values and cash rental rates are projected to decrease in 2017. According to the Western Ohio Cropland Values and Cash Rents Survey, bare cropland values in western Ohio are expected to decrease from 4.4 to 8.2 percent in 2017 depending on the region and land class. Cash rents are expected to decline from 1.4 percent to 4.2 percent depending on the region and land class. Continue reading Western Ohio Cropland Values and Cash Rents 2016-17 →