The Ag Economists’ Monthly Monitor unveils helpful insights on the state of U.S. agriculture. Economists forecast a downward trend in the financial health of the sector, driven by high production costs, global competition, and more. With wide-ranging views on 2023 crop yields and commodity prices, the survey reveals a mixed outlook on livestock and a watchful eye on potential recession threats:

“Main Takeaways from the June Survey
Highlights from the first Ag Economists’ Monthly Monitor include:

• The perceived financial health of U.S. agriculture is trending lower and is expected to continue to decline over the next 12 months.
• Production costs, global competition, geopolitical risks, drought and demand headwinds are among the main drivers.
• The majority of agricultural economists expect farm income to drift lower, with some expecting levels to land closer to the five-year average in 2024.
• High production expenses are the biggest obstacle in 2023.
• 2023 crop yield estimates vary widely among the economists surveyed.
• Economists expect crop prices to drift lower in 2023 and 2024.
• Beef cow supplies are forecast to continue to decline this year.

A Current and Future Snapshot of the Agriculture Economy

The monitor shows the perceived financial health of U.S. agriculture has moved slightly lower over the past year, and economists expect that trend to continue over the next 12 months.”

To learn more: Read the full article by Tyne Morgan

“Focusing on the six freedoms of a cow proves to be beneficial for increasing your dairy’s return on investment (ROI). The six freedoms of a cow outlined by a dairy farming training organization are space, rest, water, air, light and feed. These freedoms have aligned benchmarking goals to help producers realize higher returns on current and future farm investments.”

“In the U.S., a dairy cow on average stays in the herd for 2.8 lactations. This means many cows are culled before they reach their highest and most productive lactation, typically achieved during the fifth or sixth lactation. Reasons for culling include reproduction, mobility and illness. Also bringing down the average is a longer-term trend for promoting genetic superiority, which involved incorporating younger animals into herds faster. Slowing this trend down are higher rearing costs for replacements and economics.”

Read the full article by Amelie Mainville with Progressive Dairy

Alfalfa is known for its high nutritional value, and that makes it a valued forage source. However, alfalfa is often hindered nutritionally because of the indigestible lignin components in the cell wall. Using technology to improve fiber digestibility in alfalfa can provide opportunities to improve feeding flexibility and enhance animal performance. Importantly, high-quality alfalfa can be used to improve cow efficiency, production, and enhance an operation’s economic value.

Alfalfa has a number of beneficial nutritional characteristics that make it a high-quality feedstuff for dairy cows. Alfalfa is sometimes overlooked or left out of the diet because of its high expense relative to other forages. This includes its high establishment and harvest costs. This situation has led to less overall alfalfa production in the United States in the last 20 years. Incomplete fiber digestion reduces animal performance by limiting intake, and that also cascades to more manure production. When that takes place, a dairy farm’s profit potential also drops.

Read the full article by Hannah Wilson and Kenneth Kalscheur with Hoard’s Dairyman