Annual U.S. retail costs for beef and veal are projected to rise 6 to 7 % in 2022 relative to 2021. In Could 2022, the farmer’s share of the retail worth of beef additionally elevated 12 months over 12 months, however rising enter prices, particularly for cattle feed, could restrict farmers’ means to learn from increased cattle costs.
Primarily based on the USDA, Financial Analysis Service (ERS) commodity price and return estimates, feed bills are the biggest working price for cow-calf producers, comprising 75 % of those prices in 2021. Costs for beef cattle feed have been up 16 % in Could 2022 relative to Could 2021. Excessive fertilizer costs have contributed to elevated feed prices whereas drought circumstances have squeezed feed grain and hay provides.
The 2021/22 season-average farm worth (SAFP) for corn—the first grain fed to cattle—is presently projected at $5.95 per bushel, the best SAFP because the 2012/13 advertising and marketing 12 months. Like corn, the SAFPs for different feed grains together with sorghum, oats, and barley are projected to extend in 2021/22 relative to 2020/21.
The SAFP for hay, an necessary complement to cattle grazing, is estimated to be 16 % increased in 2021/22 in comparison with the typical worth over the previous 9 years. As of August 9, 2022, it was estimated that 46 % of hay is rising in areas experiencing drought. Along with rising feed prices, elevated diesel gasoline and farm labor prices have additionally put strain on farmer margins.
This chart seems within the ERS Livestock, Dairy, and Poultry Outlook, July 2022.
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