Costs and returns calculated for beef producers in 2022

Editor’s note: The following was written by Bradley Zwilling with Illinois FBFM Association and University of Illinois, for the farmdoc daily website May 19.

Total economic returns in 2022 for Illinois beef feeding enterprises exceeded total costs by $25.41 per 100 pounds of beef produced in preliminary findings for farms enrolled in Illinois Farm Business Farm Management.

The 2022 returns were higher than the 2021 total returns above feed costs of 19 cents per 100 pounds produced. Total returns have exceeded total economic costs in four out of the last 10 years.

The 2022 level of return above all costs was $26.66 per 100 pounds beef produced above the average return above all costs for the 2013 through 2022 period.

The 2026 USDA November crop report was “friendly” corn and soybean neutral/bearish wheat mad may have stopped the fund bleeding for now. China extends tariff truce for 2-months why not 1 year? Wants 30-30 initiative completed ASAP.  USDA Baseline Projections see more 2027 wheat and soybean acres less corn. The last 30-days has been dry for Brazil but monsoonal rains over the next 7-10 days an anchor on soybean futures. New highs in U.S. $ Index & new lows in the CDN $. There were no break throughs in the peace talks with Ukraine-Russian war in Abu Dhabi. The Godfather of AI Jensen Huang resins at NVDA as CEO over the spy scandal + CFTC.