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Strong Demand, but Inconsistent Profitability

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Abstract

With the arrival of fall, the leaves change, the temperatures drop, and agricultural producers prepare for the winter ahead. This winter looks to be a reversal of fortunes across the agricultural complex. Over the past few years, crop producers have enjoyed record prices and profits, while livestock producers have suffered from high feed costs and negative returns. Now, several sectors of the livestock industry are looking forward to strong prices and good profitability. Meanwhile, the crop sector is staring at the lowest returns in several years. While there are some key differences in the structure of crop and livestock markets, the one similarity they share right now is strong demand for agricultural products.

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  • Chad Hart & Lee L. Schulz, 2014. "Strong Demand, but Inconsistent Profitability," Center for Agricultural and Rural Development (CARD) Publications apr-fall-2014-4, Center for Agricultural and Rural Development (CARD) at Iowa State University.
    • Handle: RePEc:ias:cpaper:apr-fall-2014-4
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    File URL: https://www.card.iastate.edu/ag_policy_review/article/?a=27
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    File URL: https://www.card.iastate.edu/ag_policy_review/pdf/fall-2014.pdf
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    References listed on IDEAS

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    1. Alejandro Plastina & Chad Hart, 2014. "Price Expectations and Risk Profiles Drive Commodity Program Choices," Center for Agricultural and Rural Development (CARD) Publications apr-fall-2014-5, Center for Agricultural and Rural Development (CARD) at Iowa State University.
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