Hay Production Economics and Outlook

Slides:

Advertisements

Similar presentations

Dr. Curt Lacy Extension Economist- Livestock EVALUATING NEW HAY ENTERPRISES.

Advertisements

HAY MARKETING TIPS Dr. Curt Lacy Extension Economist-Livestock.

Determining the Required Resources for My Marketing Choice

Livestock Situation and Outlook Dr. Curt Lacy Extension Economist-Livestock.

Dr. Curt Lacy Extension Economist-Livestock. Dr. Curt Lacy Extension Economist-Livestock.

BEEF CATTLE MARKET OUTLOOK AND TRENDS DR. CURT LACY EXTENSION ECONOMIST-LIVESTOCK.

Farmland Values and Leasing Key Questions Chapter 20 §What determines the value of farmland? §What are the advantages and disadvantages of owning vs. leasing?

COST OF DEVELOPING BRED HEIFERS DR. CURT LACY EXTENSION ECONOMIST-LIVESTOCK.

Economics of Producing Cattle on Forage R. Curt Lacy, Ph.D. Extension Economist-Livestock.

Red Meat and Poultry Outlook Curt Lacy Extension Economist-Livestock.

The Financial Condition of Idaho Agriculture: 2004 projections John Hammel, Dean Ben Eborn, Extension Educator Garth Taylor, Extension Economist.

Farm Management Chapter 20 Land  Control and Use.

The University of Tennessee Agricultural Extension Service A Decision Tool for Improved Beef Cattle Production, Management and Marketing System Analysis.

Beef Cow Rental Arrangements For Your Farm AgLease101.org a product of the North Central Farm Management Extension Committee.

Livestock Management and Marketing Considerations in Dealing With Drought Dr. Curt Lacy Extension Economist-Livestock University of Georgia

Beef Cattle Outlook Dr. Curt Lacy Extension Economist-Livestock University of Georgia Florida Cattlemen’s Institute January 26, 2012.

Grazing Economics: Yeah, but will it make money? Dr. Curt Lacy Agricultural Economists University of Georgia.

Hay Marketing Tips Dr. Curt Lacy Extension Economist-Livestock.

Costs, Risks and Wise Spending in the Cow-Calf Enterprise Dr. Curt Lacy Extension Economist-Livestock.

Economics of Hay Production Dr. Curt Lacy Extension Economist-Livestock.

Cow-Calf Outlook and Profitability Kenny Burdine and Greg Halich UK Ag Economics.

Hay and Feedstuffs Outlook Dr. Curt Lacy Extension Economist-Livestock.

2007 Montana Agricultural Outlook George Haynes Vincent Smith David Buschena Department of Agricultural Economic & Economics and MSU Extension.

Outlook and Market Update for 2012 Corn Short Course and Georgia Corn Growers Annual Meeting January 17, 2012 Dr. Nathan B. Smith Extension Economist.

Beef Cattle Situation and Outlook million tons.

Budgets: Uses in Farm Management

Beef Cattle Situation and Outlook Dr. Curt Lacy and Dr. John McKissick Extension Livestock Economists.

Dr. Curt Lacy Extension Economist-Livestock. Dr. Curt Lacy Extension Economist-Livestock.

FORAGE &ECONOMIC CONSIDERATIONS FOR PASTURE-BASED DAIRIES Dr. Curt Lacy, Extension Economist-Livestock University of Georgia.

Hay and Feedstuffs Outlook R. Curt Lacy Extension Economist-Livestock University of Georgia.

Budgeting Tools Enterprise Budgeting Partial Budgeting

Hay Production Economics and Outlook Katelyn McCullock Dairy & Forage Economist Livestock Marketing Information Center.

Costs, Risks and Wise Spending in the Cow-Calf Enterprise Dr. Curt Lacy Extension Economist-Livestock.

Denise Schwab ISU Extension Beef Program Specialist 2013 Beef Production SPA Lab 2013 Beef Production SPA Lab

Kurt M. Guidry Gilbert Durbin Professor LSU AgCenter Department of Agricultural Economics and Agribusiness 2010 LSU AgCenter’s Outlook Conference Outlook.

Budget Analysis Ag Management Chapter 4. Planning a Budget GGood planning = Increased Returns TThe job you do when your budget for your farm or ranch.

Dr. Curt Lacy Extension Economist-Livestock. Sellers – Focused on convenience Marketers – Focused on profits  Produce what the market wants  Market.

GRAZING ECONOMICS: YEAH, BUT WILL IT MAKE MONEY? Dr. Curt Lacy Agricultural Economists University of Georgia.

Costs and Profitability Outlook for 2006 Curt Lacy Extension Economist-Livestock University of Georgia.

How Will Farmers Respond to High Fuel and Fertilizer Prices? Damona Doye Regents Professor and Extension Economist Oklahoma State University.

ECONOMICS OF IMPROVED GRAZING SYSTEMS Dr. Tommie Shepherd, Dr. John McKissick and Dr. Curt Lacy Extension Economist-Livestock University of Georgia.

2014 State Farm Management Non- Math Problems. 7. How many pounds are in a metric ton? A. 2,000.0 B. 2,204.6 C. 3,666.7 D. 4,012.5 E. None of the above.

Supply Decisions. Supply Supply is the ability and willingness to sell (produce) specific quantities of a good at alternative prices in a given time period.

Land Auction: Year 7 §50 parcels available, 100 acres each §Land is identical to present land §Each parcel goes to the highest bidder §Minimum bid is $2,500.

ENTERPRISE BUDGETS Key Questions Chap. 10

Chapter 10: Kay and Edwards

Utilizing Enterprise Budgets in Beef Cattle Operations

Beef Cattle Market Update

Sound Financial Management: Working With Cattlemen

Peanut Outlook Presented at the Southern Agricultural Outlook Conference Atlanta, GA September 27, 2017 Presented by Adam N. Rabinowitz, PhD Assistant.

Economics of Improved Grazing Systems

Chapter 11: Kay and Edwards

Cotton Situation and Outlook

Enterprise Budgets Components and Concepts

Livestock agreements cash lease and share

Farmland Policy and Economics

Feeder cattle Seasonal Price trends

Assistant Professor/Grain Markets Specialist

Maintaining Profitability January 2008

Iowa State University Extension Dr. Robert Wisner: Grain Outlook

Being ready for one before one happens

Credit in Agriculture Business

Credit in Agriculture Business

Unemployment What are the costs of unemployment? Discouraged Workers

Integrated Crop-Livestock Production Systems

Cattle Marketing: Cash Market Basics

Forage Situation and Outlook

Bumpy Ag Markets and How to Survive Them

Agricultural Marketing

Flexible Grazing Land Leases and Considerations

Presentation transcript:

Hay Production Economics and Outlook Dr. Curt Lacy Extension Economist-Livestock

Southeast Beef Cattle Marketing School May 12-14, 2009 May 12 – Mountain Res. Ed. Ctr. – Blairsville May 13 –Lexington/Newnan/Griffin May 14 – Lexington/Newnan/Griffin

Outline Inputs Situation & Outlook Economics

Recent Hay Prices

Recent Hay Prices

U.S. Hay Stocks May 1

Projected Supply, Utilization and Prices for U.S. and Southeastern Hay (million tons) Stocks May 1 21.6 Total Production 148.7 Total Supply 170.3 Disappearance 145.8 Ending Stocks 24.5 Season Average Price $120.00

GA Hay Stocks May 1

GA May 1, Hay Stocks vs. Annual Price

Projected Supply, Utilization and Prices for U. S Projected Supply, Utilization and Prices for U.S. and Georgia Hay – USDA Yields U.S. All Hay (million tons) GA Hay Outlook Stocks May 1 21.6 1.32 Total Production 148.7 1.35 Total Supply 170.3 2.67 Disappearance 145.8 1.20 Ending Stocks 24.5 1.47 Season Average Price $120.00 $70-$90 Good Bermuda hay price

ECONOMICS Hay Economics

Recent Hay Production Costs Calf increase = 15.5% Hay increase = 32.7%

The first step in any successful marketing plan is knowing you cost.

Hay Production Costs 2008 vs. 2009 Calf increase = 15.5% Hay increase = 32.7%

Where does the money go?

Where does the money go?

Where Does the Money Go?

Ways to Reduce Costs Soil tests Alternative fertilizer sources. Pre-pay/pre-price some inputs now. Increase production. Renting vs. purchasing land. Take it easy on the heavy metal. Leasing vs. purchasing equipment. Allocate some equipment to other enterprises. Can you use labor to replace some equipment? Not everything has to be new (used equipment, Ebay, Craigslist). Avoid the “tax-trap.”

Impact of Acreage and Yield on Fixed Costs – Cash Payments Payments on $25,000 over 5 years at 8% EACH $1,000 BORROWED = $250-$275 PER YEAR

Impact of Diesel Prices on Harvesting Costs

Summary 2009 should be a better year for hay producers. Adequate supplies and moisture will likely reduce demand. However, lower input prices should reduce costs enough to improve profits. Producers still need to sharpen their pencils and look for ways to reduce their costs.

QUESTIONS?