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LOWER CORN PRICES

Michael Langemeier, agricultural economist at Purdue, said that things have “really turned south for corn.”

“Corn prices have really tumbled,” Langemeier said. “I’m reflecting a drop in corn prices of around 55 cents per bushel, resulting in a drop in crop revenue of about $116 (per acre).

“We do get an increase in government payments, but it’s not near big enough to offset that drop in crop revenue. … The bottom line here, looking at contribution margin/return over variable costs, we’re looking at a drop in net return of close to $80 per acre.”

Declining net return prospects, particularly for corn, will put downward pressure on cash rents and land values, as well. MEAT PROCESSING OUTLOOK

Jayson Lusk, agricultural economist at Purdue, is keeping a close watch on what’s happening in the meat packing sector.

“The reason I think this is an important sector to look at is that a big proportion of our meat processing is concentrated in a handful of processing plants that have a lot of workers,” he said.

“This works well when times are good because we have really large economies of scale that can affordably process meat. But in this time, if you get a few of these plants shut down, it can have some big impacts — especially on the farm side of the market.”

“On the producer side, if we lose that processing

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capacity it has a very negative impact on live animal prices,” Mintert said.

In general, lower incomes lead to lower demand for meat, Lusk said.

Combined with lower demand from restaurants and “food away from home,” livestock farmers face a host of demand-related challenges.

“I think it’s frustrating for producers because they see this margin increase in the prices consumers are paying — it goes up because there’s not as much meat on the market,” Lusk said.

“But prices farmers are facing are falling because there’s not as much demand at the packing levels.”

Learn more and view the complete webinar at: www.ag.purdue.edu/commercialag.

Erica Quinlan can be reached at 800-426-9438, ext. 193, or equinlan@ agrinews-pubs.com. Follow her on Twitter at: @AgNews_Quinlan.

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DENVER, Pa. — USA Gypsum released an ammonia control poultry litter treatment suitable for organic poultry producers following several years of university tests and field trials to confirm performance and best management practices.

Growing poultry to meet standards set by the U.S. Department of Agriculture’s National Organic Program is challenging and common poultry litter amendments used by non-organic farmers to control ammonia and pathogens have been prohibited for organic farms due to their use of synthetic chemicals.

The product, pH Shield, contains natural acidified calcium sulfate, a slightly hydroscopic mineral,

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Unlike synthetic acids, pH Shield is non-corrosive, safe to handle and does not add sodium or heavy metals such as alum. University trials confirm that pH Shield compares favorably in containing ammonia with no adverse effects to the birds.

University research concluded that pH Shield provides ammonia control equivalent to other commercial ammonia control products, can be used in organic poultry production and provides the added benefit of reduced risk of P loss in runoff.

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