2013 Price Improvement Still Suggest Red Ink

Farm Journal logo

The United States Department of Agriculture released its September Livestock, Dairy and Poultry Outlook this morning, suggesting corn prices could mitigate and milk prices improve in 2013.

The changes probably aren’t enough to off-set negative cash flow, particularly for dairy farmers who buy most of their feed.

USDA is projecting 2013 corn prices in the $7.20 to $8.60/bu range, down 30¢/bu from August. Soybean meal in the $485 to $515/ton range is projected for 2013, up $25 per ton from last month. The all-milk price is up a nickel, projected to range from $17.85 to $18.85 for 2013.

These prices (and $200 per ton alfalfa) suggest break-even costs will run from $20/cwt to $24/cwt, depending on how much feed must be purchased and how productive a herd is. Based on a University of Nebraska spreadsheet, the $20 breakeven would be for Midwest herds producing 24,000 lb. of milk/cow/year and purchasing all of its feed. The $24/cwt breakeven is for a herd producing 20,000 lb. of milk/cow/year.

The complete September USDA Outlook Report can be read here.

 

 

Latest News

Dairy Finances: Being Prepared For Tough Times Has Big Payback
Dairy Finances: Being Prepared For Tough Times Has Big Payback

If there’s any assurance about the economic picture for the dairy industry and agriculture in general going forward in the next few years, it’s that volatility will be a constant.

Who “Nose” When a Calf is Getting Sick?
Who “Nose” When a Calf is Getting Sick?

If you want to stay ahead of calf health and catch sickness in its earliest stage, University of Minnesota Graduate Student Abbigail Prins offers a handy detection tip.

How To Outline Clear Direction For Each Role On Your Team
How To Outline Clear Direction For Each Role On Your Team

“The single most important tool to predict peak performance is a very well-developed job description,” Dave Mitchell says.

Know Your Business Pressures, Trends And Actions For Big Breakthroughs
Know Your Business Pressures, Trends And Actions For Big Breakthroughs

Mark Faust outlines a simple formula to improve profitability and create more value for you and the customer.

Robotic Technology Helps These Dairies Become Better
Robotic Technology Helps These Dairies Become Better

Smart farming robotic technology is all in the name of cow comfort, efficiency and productivity. 

Milk Prices Continue to Fizzle Out
Milk Prices Continue to Fizzle Out

A wild week in milk markets finished on a fizzle.