Producers Gain Tools to Manage Record Crops and Cattle Markets

By Andi Anderson

Farmers and livestock producers are navigating one of the toughest marketing years in recent memory. To support their decisions, Iowa State University’s August edition of Ag Decision Maker has released new resources and tools.

Record crop yields are adding pressure to markets. USDA projects the largest corn crop ever at 16.7 billion bushels, while soybean production is expected to decline slightly due to reduced acreage.

This record corn harvest is driving prices below breakeven. Extension economist Chad Hart noted that corn markets face oversupply, while soybeans show relative strength. “The upcoming marketing year will be more about limiting losses than capturing profits,” Hart explained.

The report stresses that marketing strategies should prioritize risk management and cash flow protection. For cattle producers, current market conditions are also prompting difficult choices about herd management and marketing timing.

Two decision tools can help guide these decisions. The Cow Sell Calculator compares the financial benefits of selling cattle now versus holding them, while the Cow Repurchase Calculator estimates potential savings and cash flow management when planning herd replacement. Both tools emphasize disciplined, informed financial choices.

Cattle basis is another important factor for producers. Basis, the difference between cash and futures prices, reflects local demand, feed costs, and transportation conditions.

The report advises producers to focus on local market signals when setting sales or contracts. “Pricing focus should be placed on the area or region where the cattle will be marketed,” the report explains.

Looking ahead, producers face both challenges and opportunities. While crop prices remain low, building demand could improve conditions in the future. Upcoming Farm Management Marketing Programs in September will also help producers improve their understanding of costs, risk strategies, and marketing.

With updated resources, decision tools, and educational programs, Ag Decision Maker aims to equip producers with the knowledge needed to manage today’s pressures and prepare for stronger markets ahead.

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