NWFCS: Feed The Will Determine Livestock Producer Success

As we launch our six part Northwest Farm Credit Services Quarterly Commodity Snapshot series, we start with the livestock sector. Bill Perry, Vice President at NWFCS says cow/calf producers that adjust to available feed resources will see slightly profitable returns.

“Producers with the ability to hedge lower feed costs or secure feed at a cost only slightly above historical averages will remain profitable. Drought-related insurance payments from Pasture, Rangeland, Forage and Livestock Risk Protection programs are expected to provide supplemental margin.”

When it comes to dairy producers, Perry says the outlook is not as rosy, with unprofitable returns expected.

“Hay prices are up 30%-35% and grain corn and corn silage prices are up 20%-25% year over year. This could increase the cost of production by as much as $2 per cwt without a corresponding increase in milk price. The Farm Service Agency’s Dairy Margin Converge program will soften the blow to small dairies but is only supplemental for large dairies.”

Join us Friday as fisheries and forestry products take center stage.

If you have a story idea for the PNW Ag Network, call (509) 547-1618, or e-mail gvaagen@cherrycreekmedia.com