Let’s Talk Ag
By Staci Emm | Editorial
Managing Risk for 2021 Managing risks for the farm and ranch will be a little different from 2020 as the costs of doing business is increasing and markets are unknown. The first and biggest risk for Nevada producers will be the drought that is increasing across the state. There were more drought designations made recently based upon the drought monitor. (http://droughtmonitor. unl.edu/) USDA, Farm Service Agency is currently taking Livestock Feed Program (LFP) applications and is expecting to open their offices by the first of May. They are working virtually, so if you qualify for LFP, I encourage you to inquire about applying for the program. With drought, comes fire danger. This may be another hot summer as temperatures according to the National Oceanic and Atmospheric Administration (NOAA) Climate Prediction Center are showing temperatures above normal. In fact, they are expecting we will be 60% to 70% above normal temperatures. This combined with a below average snowpack and lower reservoir
storage will have an impact on Nevada agriculture. Precipitation is in that Equal Chance (EC) range, so there is no telling what is going to happen. I encourage you to pay attention to the spring/summer storms, and that will determine what environment is out there on the range lands this summer with drought and fire. The drought situations are also combined with an increase in fuel costs, and other supply costs. When fuel goes up, so does everything else. Producers need to prepare for a higher cost of doing business in 2021. While it starts with fuel, it quickly leads into other areas. Hay prices for January were released on February 26, 2021 (USDA, NASS) and reported Nevada was right around $184/ton for all hay. Alfalfa was a dollar higher per ton at $185. For a livestock producer, these hay costs are high. When I look at our Extension “Enterprise Budgets,” we try to keep those hay costs as low as we can as it makes a difference in the producers’ bottom line. Then, we get to livestock prices. But what about prices? Prices are not super high, but they are not super low either. There is a lot that goes into how prices fluctuate. The storms that are hitting Oklahoma and Texas, performance of slaughter houses, the lower
value of the dollar, and that grass available next door to us. I don’t know where we are going to land on prices and they continue to fluctuate as usual. The rumor on the street is that Farm Service Agency will have some type of Coronavirus Food Assistance Program (CFAP) again. Hopefully, we will know in the next couple of months if this is true and what the program looks like for 2021. In addition, the American Rescue Plan was signed into law in March. There are still a lot of unknowns on USDA programs. There is money for states, local governments, tribes and agriculture; specific money for socially disadvantaged producers, USDA food programs, unemployment, education, and even money to expand broadband in rural areas. I am hoping by April we will know exactly what USDA programs are going to be implemented under this new legislation. This environment in 2021 is not new to our ranching and farming community. Producers continually have to make management decisions. Only time will tell what 2021 has to bring each and every one of us.
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800-513-4963 • www.pinenutlivestocksupply.com Complete selection of animal health products, feed, and equipment for beef, dairy, equine, sheep, goat and small animal. Well-trained staff help make the right decision for any size herd. Our Fallon & Gardnerville stores can ship next-day. www.progressiverancher.com
The Progressive Rancher
APRIL 2021 13
