Category / Farming

by Hoosier Econ

Rise of the Pork

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Hoosier Ag reporter Cayla McLeland is reporting pork will be on the rise in the near future for the consumer.

Purdue Extension Ag Economist, Dr. Chris Hurt, says expansion could reach seven percent higher by the end of this year.

“Breeding herd has grown by over 212,000 animals over the last year and that’s mostly in the center of the country. The western corn belt breeding herd increased by 105,000 head with Missouri rising by 55,000 animals. Iowa by 40,000 and Minnesota by 10,000 head. The second-largest growth region was down in the southern plains and they’re still recovering, of course, from the long-term drought. Both Texas and Oklahoma have added 20,000 animals to the breeding herd over the last year.”

Consumers faced higher prices a few years back due to farmers thinning herds from the drought and the the PED virus hitting hard last winter.

Read the rest of the article here.

by Hoosier Econ

How Much Champagne is Drank on New Year’s Eve

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According to the Wine Institute, Americans will consume Continue reading →

by Hoosier Econ

Farmers Buying Most of the Farmland for Sale in 2014

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Stumbled upon some interesting data about buyers of farmland while researching farmland value. This comes from AgriNews:

One thing they have noticed, Aupperle said, is that more farmers are purchasing the land. During the first nine months of the year, 71 percent of the land was purchased by farmers or their families.

“Farming community has really stepped up, while outside investors seem to be waiting to see if a correction comes,” Aupperle said. “The farming community has a lot of money from remaining steady for two years and when investors come back, an upward trend should continue.

by Hoosier Econ

2014 Corn & Soybean Yields Explode

corn harvest
Harvest season is wrapping up across the nation. Here is some Indiana and national stats gathered up from various sources around the internet:

Corn for grain production will set a new record in 2014 at 14.5 billion bushels on fewer acres planted compared to 2013. World corn production is also setting new records.

Soybean farmers are now expected to harvest 3.96 billion bushels, up 31 million bushels from the October estimate. Fifteen states including Indiana, Missouri and South Dakota are expected to report records for the amount of soybeans grown per acre with the average yield at 47.5 bushels per acre. Area for harvest in the United States is forecast at a record 83.4 million acres, unchanged from last month.

(Indiana) Corn yield was unchanged from last month’s projection of 186 bushels per acre. This will be a record corn yield for Indiana if realized. Corn for grain harvested acres was 5.75 million acres. Total production is still expected to weigh in at a record-breaking 1.07 billion bushels. Soybean yield at 54.0 bushels per acre was unchanged from last month’s forecast. This yield if realized will be a record for soybean yield in Indiana. The soybean harvest is anticipated to rake in 296 million bushels, which would make 2014 a record production year.

H/T Hoosieragtoday.com for recent numbers

by Hoosier Econ

Thanksgiving Turkey Price is Rising

turkey

EconomicPolicyJournal.com is reporting inflation now hitting turkey:

In the week ending last Friday, an 8 to 16 pound hen sold at wholesale for about $1.19 a pound and a 16 to 24 pound tom sold for about $1.17 a pound. Both price are sharply higher than the $1.03 average for hens and $1.04 average for toms in 2013. Last week. the price for fresh turkey was $1.44 a pound according to the USDA.

by Hoosier Econ

Inflation Watch: McDonald’s Prices Up 3% Year To Date

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Bloomberg is out with a write up showing McDonald’s is facing rising costs which means prices have had to be raised. McDonald’s is a good inflation watch company since millions of people visit it everyday.

While the company still offers several items for $1, its menu is quietly getting more expensive. McDonald’s said its prices were up about 3 percent through the end of June compared with 12 months earlier. That’s more than the 2.5 percent gain in prices for food Americans purchased away from their homes in the year through August, according to the Bureau of Labor Statistics.

Prices being raised across the country are not done yet.

U.S. restaurants plan to boost prices 2 percent during the next six months, more than the 1.7 percent average increase from the prior 12 months, according to an October survey by restaurant researcher MillerPulse in Atlanta.

This follows the trend repeated often on this blog. Costs of goods are rising, yet many so called “experts” are saying inflation is tamed or barely nudging up. My most recent post, Consumer Price Index Shows Inflation on Many Items shows beef is up double digits. Do not think McDonald’s is the only restaurant in the burger chain feeling it. In September I showed Five Guys Burgers are also raising prices (Inflation Hits Five Guys Burgers)

by Hoosier Econ

Consumer Price Index Shows Inflation on Many Items

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Consumer Price Index numbers were released Wednesday. Buried in the report were serious rises in year to date price increases. Here is list of price increases in the last 12 months:

Milk 8.7%
U.S. meat 13% (beef and veal prices up 18% and pork prices up 11.4%)
Butter 24%
Clothing 3.7%
Women’s Outerwear 11%
Children’s Footwear 7.8%
Prescription Drugs 3.8%
Lodging Away From Home 5%

Here is the complete article showing prices increases and decreases.

by Hoosier Econ

$385 Steak Now in New York City

Empire Steak House Offer Kobe Beef

Empire Steak House, owned and operated by the Sinanaj brothers, announced it will offer the hardest-to-find steaks in United States – imported certified Japanese Kobe tenderloin and ribeye. A choice of an 8-ounce tenderloin or 10-12 ounce ribeye will be priced at $385 and $375, respectively.
Kobe beef is a cut of meat from a special breed of wagyu cattle, called Kuroge. It is the only beef with unsaturated fat, which is filled with Omega-3 and Omega-5. Fed with rice straw that fortifies the cow’s stomach, soy, wheat, beef, and other secret ingredients in Japan, these cows are 30 percent larger than U.S. cows before slaughtering at 30 to 34 months of age, rather than the typical 18 to 20 months of age in the U.S.

Read the rest here

by Hoosier Econ

Ham Prices to Increase & Beef Herds at Record Lows

beef
Local Indiana butchers have been informed pork prices will increase by Christmas. Ham will be up by almost $1/lb. More data has come out supporting the jump in price on beef. Beef herds at their lowest in decades going below 30 million. That is a 11.8% decline since 2007.

by Hoosier Econ

NASDAQ & Producer/Consumer Price Index News

Here is some economic news I’ve picked up over several days pertaining to the stock market and prices on goods around the country.

About 47 percent of stocks in the Nasdaq Composite Index are down at least 20 percent from their peak in the last 12 months while more than 40 percent have fallen that much in the Russell 2000 Index and the Bloomberg IPO Index.

Here is a breakdown of Producer Prices

The Bureau of Labor Statistics reports that for the 12 months through August, producer prices increased 1.8 percent after rising 1.7 percent in July.

Prices for services related to securities brokerage and dealing fell 4.5 percent in August.

Gasoline index fell 1.4 percent.

Prices for utility natural gas, chicken eggs, diesel fuel, electric power, and raw cotton also moved lower.

The index for potatoes surged 28.0 percent.

Prices for pharmaceutical preparations and jet fuel also advanced.

Consumer Price Index showed decreases and increases as well. I highlighted the bigger jump in food prices jumping with inflation.

Over the last 12 months, the all items index increased 1.7 percent. The energy index fell 2.6 percent, with the gasoline index declining 4.1 percent and the indexes for natural gas
and fuel oil also decreasing.

Food index rose 0.2 percent in August after increasing 0.4 percent in July. The food at home index was also up 0.2 percent. The index for meats, poultry, fish, and eggs rose 1.5 percent in August, the largest increase among the groups. The index for beef and veal rose 4.2 percent, its largest increase since November 2003. The index
for dairy and related products rose 0.6 percent, and the cereals and bakery products index advanced 0.2 percent.

Over the last 12 months, the food at home index has risen 2.9 percent, with the index for meats, poultry, fish and eggs up 8.8 percent.

And finally, picked up an explanation on gas prices stabilizing or decreasing here lately.

The fall in the gasoline index can best be understood in terms of the increased oil productivity in the U.S. OPEC production continues to hover between 36mbd and 38mbd. BUT, non-OPEC output rose to a record 54.8mbd during July. Contributing to that record high is US oil field production, which is soaring and reached almost 9.0mbd in early September. The US is now exporting 3.7mbd of crude oil and petroleum products.

Hat Tip many sources