The latest quarterly report reveals promising news for the swine industry, as hog profits have returned following a challenging period in late 2022 and 2023. During the downturn, producers reduced their breeding herds as margins turned negative. However, feeder pig prices have now risen above the 5-year average, and farrow-to-finish operations are back to positive returns, driven by lower feed costs. This marks a key recovery for hog producers, though caution is advised as market dynamics remain sensitive to feed prices and economic shifts.
Farm Credit System Shows Modest Growth Despite Sector Pressures
In parallel, the Farm Credit System (FCS) has reported modest growth in the first half of 2024, with total assets reaching $514.1 billion. Loan volume has also increased, and overall credit quality remains favorable. However, several agricultural sectors, including swine, continue to face stress. The sharp drop in 2024 net farm income and rising production costs have pressured many producers, with some relying heavily on operating lines to sustain operations.
Looking ahead to 2025, economic uncertainty and external challenges, such as avian influenza and global tensions, may affect both the agricultural sector and the FCS.
For more details, you can view the full report here
