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Corn, Soybean and Livestock Outlooks

Record yields for staple crops in the United States and globally in recent years seem to contradict fears that agriculture will be negatively affected by increasing climate temperatures. So says James Taylor, senior fellow for the Heartland Institute and managing editor of Environment and Climate News. Taylor spoke during an issues conference at the American Farm Bureau Federation’s Annual Meeting.

According to Taylor, – since 2007 we’ve seen record yields in production per acre in edible beans, cotton, alfalfa, sweet potatoes, canola, corn, hops, rice, wheat and more. This is a long-term trend, and it applies globally, too, as global grain harvests have nearly tripled since 1961. Taylor added – climate is not the only factor, but even if we accept global warming as a problem, it’s clearly not inhibiting crop production.

Dr. James Mintert, professor of Ag Economics and assistant director of Extension at Purdue University, said consumers should expect little relief in the price of a T-bone steak.  That’s because cattle producers continue to decrease their herds because of soaring feed prices and a weak economy. He blames high demand for ethanol that has forced the price of corn to nearly double in the past few years, driving livestock production costs up and putting cattle producers in the red.

A saving grace for the beef industry is the export market, which has rebounded from the lows in 2004 when a case of bovine spongiform encephalopathy was discovered in a U.S. cow. The United States is now a net beef exporter. Mintert said, – that has really helped hold down the number of pounds we put in front of consumers.

The pork industry, on the other hand, is much healthier, as production has increased 30 percent during the last 20 years in the United States and Canada. Pork producers face the same challenges as beef concerning feed costs, and like beef producers, are putting fewer pounds of pork on consumer plates. The difference is pork exports. Today, almost one pound of pork in four goes to the export market.

 

 

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