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Analysts see continued difficulty for hog farmersDES MOINES, Iowa (AP)--Farm analysts are saying hog farmers will continue to struggle with profitability as the prices they get for their hogs remain low and grain costs to feed the animals remains high. "We're looking at big-time red ink," said John Lawrence, Iowa State University Extension economist. "There will be some producers who will opt out of hog production," particularly those farmers who are diversified in crops and who can sell their corn and soybeans at today's high prices. Lawrence said Iowa hog producers can expect more losses for the rest of this year and the first quarter of 2009. He said Iowa hog producers have lost money on each hog sold for five straight months. He said recent reports released by the U.S. Department of Agriculture indicate farmers are likely to slow their hog production. "People are hitting the brakes pretty hard," Lawrence said. "The trajectory is for hog production to drop." James Mintert, a Kansas State University professor, said large supplies of competing meats such as beef and poultry will continue to depress hog prices. The USDA is scheduled to release a report Monday on how many acres of corn, soybeans and other grains farmers expect to plant this year. That report, he said, could cause higher livestock feed prices yet, if it shows increased exports of grain due to the cheap U.S. dollar. The higher foreign demand will serve to drive corn and soybean prices even higher, which translates to higher costs for farmers who feed grain to livestock. He added that the high demand for grain and the already high prices could be a very bad situation if the U.S. has a poor crop season. "If we see some adverse weather conditions this summer, we could be setting ourselves up for a train wreck," Mintert said. "If we have any kind of crop production trouble this summer and a significant yield downturn, then you create an explosive situation for grain prices this summer." 4/14/08 Date: 4/9/08
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