Resources available for navigating market challenges

AMES — New information and decision tools are available in the August edition of Ag Decision Maker to help farmers and livestock producers make informed marketing decisions for their yields and herds.

As harvest approaches, understanding cattle marketing tools and basis is especially important, as crop yields directly affect feed availability and prices. By incorporating these resources, producers can better navigate market conditions and make more confident, risk-aware marketing choices.

According to a recent Ag Decision Maker article by Chad Hart, extension economist at Iowa State University, the USDA projects the largest corn crop on record (16.7 billion bushels), while soybean total production is expected to dip, primarily due to reduced acreage.

Record corn production also means lower prices.

“The 2025 crop prices have now sunk well below break-even for both crops. The potential size of the 2025 crops limits any upside potential, especially for corn,” Hart said.

For the 2025 season, Hart advised that crop marketing strategies should prioritize risk management. Corn faces oversupply, while soybeans show relative strength.

“The upcoming marketing year will be more about limiting losses than capturing profits. However, if crop usage can continue to build, this year’s hardships could set up better times ahead,” he said.

Cattle

Current cattle market conditions are prompting decisions that may affect both short-term cash flow and long-term herd size and quality.

Two decision tools are available for producers to aid in decisions regarding the sale and repurchase of cattle:

Cow Sell Calculator — Compares opportunities for marketing cattle now versus holding them and incurring additional costs for later markets. It estimates the value needed to justify waiting for later markets.

Cow Repurchase Calculator — Estimates costs saved and interest earned on sale proceeds between the sale and repurchase dates. It helps producers calculate cash available for replacement animals, emphasizing the importance of disciplined cash management.

Understanding cattle basis — the difference between the current cash price and futures price — is another key marketing consideration.

Basis reflects how strong or weak the local market is compared to the broader futures market and is driven by factors such as local feed prices, regional demand, transportation costs and cattle quality.

According to the cattle basis information file found in the August edition of Ag Decision Maker, local basis is the best indicator of local demand and should guide the timing of sales and contracts.

“Pricing focus should be placed on the area or region where the cattle will be marketed. The more pricing information that is obtained for the area where the cattle are sold, the more confident and, hopefully, profitable the decisions will be,” the report says.

Looking Ahead

With record crop production pushing crop prices below break-even and potential opportunities emerging in cattle markets, producers face decisions that impact both short-term profits and long-term sustainability. New and updated resources from Ag Decision Maker can help farmers gain the insight needed to manage risk, protect cash flow and position their operations for stronger opportunities ahead.

Upcoming Farm Management Marketing Programs in September will also provide a chance for producers to improve their understanding of production costs, risk protection and marketing strategies.