Hog Producers Face Incentive Challenges Amidst Production Declines

Jul 11, 2023

According to USDA Livestock Analyst Shayle Shagam, the numbers from the latest quarterly USDA Hogs and Pigs report paint a discouraging picture for hog producers. Shagam emphasizes that producers are not showing much interest in expanding production, and instead, there may be declines in hog production in the coming months.

The report reveals a significant drop in farrowings during the March through May quarter, and producers have expressed intentions to further reduce farrowings during the summer and fall quarters. Projections indicate a 4% decrease in hog farrowings for June through August compared to the previous year, followed by a 4.5% decline for September through November.

According to Shagam, the anticipated increase in pigs per litter would most likely be insufficient to compensate for the decrease in farrowings. Due to negative returns and low profitability, hog growers have no motivation to increase production. In fact, for the year, expected returns for average size farrow finish operators in Iowa have been negative.

The bearish market conditions are evident in low hog prices, with prices at the national base lean price benchmark around $58-$59 per hundredweight, significantly lower than the $70 observed in the same period last year. While there has been some recovery in recent weeks, hog prices are still around $10 per hundredweight lower than they were last year.

Hog producers currently face challenges and disincentives to expand production, leading to reduced farrowings and a bearish market outlook for the industry.

Video: Drone Flight & Baling Success at Last!

Drone Flight & Baling Success at Last!

After weeks of rain delays and frustration, we finally have a reason to smile — it’s hay time again at Ewetopia Farms! In today’s episode, we head out to the fields where Arnie is baling hay, and I attempt my second drone flight to capture it all from the air. The drone still had some hiccups, but I managed to get some aerial footage of the baling process.

Back at the farm, the work doesn’t stop. Arnie brings the bales home, and the next critical step begins — wrapping and stacking the bales to make haylage. This process is essential for preserving feed for our sheep and ensures they have nutritious forage in the months ahead.

It’s a good day on the farm — the sun is out, the drone is flying (sort of!), and we’re making progress. Join us for a satisfying and productive day that brings a long-awaited sigh of relief to this year’s challenging hay season.

?? Let us know in the comments: Have you had to deal with weather delays this season?

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