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Wisconsin Community Banker
March/April 2014
The bottom line? Farmers are making money, have good
incomes, and are using their income to retire debt.
Dairy
Forecasts for dairy remain rooted in the market fun-
damentals, according to Mark Stephenson, director of the
Center for Dairy Profitability. Fluid milk on a per capita
basis has declined but total sales are stable due to popula-
tion growth and changes in breakfast habits. Consumers
have shifted from cold cereal to yogurt with a preference
for Greek yogurt. Cheese has been the real driver behind
increased demand for dairy and is now up to 30 pounds per
capita per year.
Not only is domestic consumption for all types of dairy
products up, the U.S. is feeding the world—exporting more
and importing less. Wisconsin has done especially well in
milk production when compared with the drought-stricken
West and the Southwest.
Livestock and Poultry
Meat production in 2013 was flat and will be lower in
2014, predicted Brenda Boetel, an agricultural economist
and extension agent at UW-River Falls. Total U.S. meat pro-
duction was 93.3 billion pounds in 2013, declining from a
high of 93.9 billion pounds in 2008.
Broiler production was up—chicken farmers hit a new
record in 2013 and Boetel expects an additional 3 percent
rise in 2014. Turkeys are down, and pork production is flat,
while beef production is down 1 percent. “Retail meat prices
will be higher in 2014,” Boetel predicted.
Corn and Soybeans
A late, wet spring in 2013 meant high prices for corn and
soybeans. Boetel expects to see big increases for corn this
year. “The U.S. will regain its spot as the leading exporter of
corn in 2014.”
Last year Wisconsin planted 1.6 million acres of soybeans
and harvested 1.55 million, with a yield of 43.3 bushels per
acre. But the supply of beans is high with bean production
in Brazil and Argentina impacting U.S. exports.
There will likely be large stocks of corn and beans for
2014. “Producer commitments for rent and inputs require
$4.60 per bushel for corn and $11.13 per bushel for beans,”
Boetel said. She advised farmers to be careful about carry-
ing and storing corn and beans into the summer. “Look for
marketing opportunities now.”
Potatoes and Cranberries
Potato production was down between 2012 and 2013.
Last season was late in planting but long in growing. Wis-
consin farmers planted 63,000 acres and yielded 27.4 mil-
lion cwt (hundredweight). The improved market for fresh
potatoes produced higher returns for growers.
For the 19
th
year, Wisconsin was the top producing state
for cranberries at 5.5 million barrels. Prices remain sup-
pressed due to the large supply and steady demand.
Other trends: consumption of canned vegetables—peas,
green beans, and sauerkraut—is down while cut-and-peel
carrots are one of the fastest growing fresh produce items.
Farmers can expect to see increasing competition from
fresh market vegetable farms and urban food systems.
