Costly outlook for swine feed costs in 2022
A swine lending specialist wonders how high feed costs might go.
Kent Bang with Compeer Financial says 2022 market dynamics make risk management difficult for pork producers.
“Because costs are escalating and there are supply chain interruptions that we’re really not totally understanding as of this point.”
He tells Brownfield corn, a major component of hog diets, will be pressured by dramatically higher input costs.
“If we continue to have escalating prices and supply chain issues, we may see some switch to soybeans. Which, when those planting intentions come to fruition, we could see some really volatile corn markets into the next year.”
Michael Langemeier with the Purdue Center for Commercial Agriculture expects feed costs for farrow-to-finish operations to be about 33 percent higher in 2022.