Authors: Brian E. Mills and Kevin Kim



Farm equipment is a significant investment, second only to land investment for farm operations. Therefore, it is important to understand how equipment prices change over time and how that can impact a farm’s bottom line. Mississippi State University collects equipment price data every year for a large number of tractors, harvesters, implements, etc. (Gregory et al. 2025). Using that data, we can see how equipment prices have changed since 2019 and what impact that would have on costs per acre.&nbsp;



Figure 1 shows the purchase price for a 200-249 horsepower tractor across time. In 2019, the cost of buying this tractor was around $191,000. For 2026, the cost of this same size tractor is now $327,000, an increase of 71% (well above the rate of inflation). Also included in Figure 1 are the costs per acre for that tractor. Costs per acre are based on machine cost calculations that include labor, fuel, interest, taxes, insurance, housing, and depreciation costs. In this case, assuming that the tractor is used over 2,000 acres, the costs per acre for this tractor increased from $27.24/ac up to $41.11/ac. In other words, the same size tractor today is going to cost you $13.86/ac more than it did 7 years ago if your acreage has not changed. A producer would have to use the new tractor over 3,018 acres in order to have the same costs per acre, $27.24/ac, as it did in 2019. These per acre costs do go down on occasion, particularly when fuel prices or interest rates decline.



The purchase price and costs per acre for a cotton picker are shown in Figure 2. From 2019 to 2026, the price of a cotton picker has increased from $777,000 to $1,100,000, a 41% increase, resulting in an increase in costs per acre from $126.35/ac to $189.34/ac for the cotton picker. Lastly, the change in purchase price of a 12-row planter increased from $76,800 in 2019 to $123,600 in 2026, a 61% increase (Figure 3). This results in planter costs per acre increasing from $12.26/ac to $19.76/ac from 2019 to 2026.



Clearly, farm equipment prices have significantly increased and are likely to continue.&nbsp;&nbsp;Additionally, higher purchase costs for equipment can lead to higher financing needs and additional debt being incurred by producers.&nbsp;&nbsp;If producers are not spreading the cost of more expensive equipment across more acres, their costs of production will go up. The trend makes it harder for smaller producers to remain profitable and encourages farms to get larger and larger through economies of scale. Buying used or leasing are options to consider.&nbsp;&nbsp;Of course, some will just keep older equipment longer.&nbsp;&nbsp;Other options include equipment sharing partnerships or doing custom work for others to spread your equipment cost across more acres.&nbsp;



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2560" height="1556" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.13.1-scaled.png" alt="" class="wp-image-43637" srcset="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.13.1-scaled.png 2560w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.13.1-1024x622.png 1024w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.13.1-768x467.png 768w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.13.1-1536x933.png 1536w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.13.1-2048x1245.png 2048w" sizes="auto, (max-width: 2560px) 100vw, 2560px" /></figure>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2560" height="1815" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.13.1-2-scaled.png" alt="" class="wp-image-43638" srcset="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.13.1-2-scaled.png 2560w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.13.1-2-1024x726.png 1024w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.13.1-2-768x545.png 768w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.13.1-2-1536x1089.png 1536w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.13.1-2-2048x1452.png 2048w" sizes="auto, (max-width: 2560px) 100vw, 2560px" /></figure>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2560" height="1743" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.13.1-3-scaled.png" alt="" class="wp-image-43639" srcset="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.13.1-3-scaled.png 2560w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.13.1-3-1024x697.png 1024w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.13.1-3-768x523.png 768w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.13.1-3-1536x1046.png 1536w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.13.1-3-2048x1395.png 2048w" sizes="auto, (max-width: 2560px) 100vw, 2560px" /></figure>



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Mills, Brian E., and Kevin Kim. &#8220;<a href="https://southernagtoday.org/2026/02/05/farm-equipment-prices-continue-to-rise/">Farm Equipment Prices Continue to Rise.</a>&#8221; Southern Ag Today 6(13.1). March 23, 2026. <a href="https://southernagtoday.org/2026/02/05/farm-equipment-prices-continue-to-rise/">Permalink</a>

Farm Equipment Prices Continue to Rise

Authors: Kuan-Ming Huang, Daniel Petrolia, and Zhifeng Gao



Catfish holds a special place in U.S. food culture, especially in the South, where it’s a beloved staple of regional cuisine. The South is also a major producer of farm-raised catfish, with most (96%) production concentrated in Mississippi (60%), Alabama (27%), Texas (5%), and Arkansas (5%) (USDA NASS, 2021). Outside the South, however, catfish is less popular, and its availability is more limited (House et al., 2003; Muhammad &amp; Jones, 2009). This article presents findings from a recent survey of 5,760 primary household grocery shoppers from across the U.S. experienced in buying and preparing fish. We focus on this specific group of shoppers because 63% of seafood by weight is consumed at home (Love et al., 2020). Home-cooked seafood is likely to be bought and prepared by shoppers who have experience purchasing and preparing it.  Thus, understanding these shoppers’ experiences and opinions on catfish is critical for the industry as it seeks to expand the market. We aim to address key questions for catfish farmers and industry stakeholders to refine their marketing strategies: Which consumer segments have never purchased catfish to cook at home? Furthermore, how many of these non-buyers would be willing to buy and try catfish if it were available at their local stores? By understanding where potential resistance exists across regions and sociodemographic groups, the industry can better design strategies to encourage first-time trials in buying and preparing catfish at home. With the right marketing approach, today’s nonbuyers may become tomorrow’s regular catfish home chefs. 



Figure 1: Distribution of Respondents by Demographic Characteristics (n=5,760)



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="993" height="600" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.5-1.png" alt="" class="wp-image-43631" srcset="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.5-1.png 993w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.5-1-768x464.png 768w" sizes="auto, (max-width: 993px) 100vw, 993px" /><figcaption class="wp-element-caption">Source: Survey data collected and compiled by authors  Note: Regional groupings are based on the U.S. Census Bureau definition. Check the following link for more info:  <a href="https://www2.census.gov/geo/pdfs/maps-data/maps/reference/us_regdiv.pdf">https://www2.census.gov/geo/pdfs/maps-data/maps/reference/us_regdiv.pdf</a>  </figcaption></figure>



  From our survey, 24% respondents indicated they never purchased catfish to prepare at home. Figure 2 highlights several notable patterns in the share of respondents who have never purchased catfish to cook at home. Note that these results specifically reflect grocery shopping and home-cooking habits. Women (30%) are nearly twice as likely as men (16%) to report never buying catfish to prepare at home, and this gender gap is statistically significant. This significant gap may suggest that it’s not just a matter of whether one likes catfish. Instead, it is possible that current retail packaging or specific product attributes simply aren&#8217;t hitting the mark for many female shoppers. Differences across age groups are also significant and even more pronounced: more than one-third (37%) of respondents aged 55 and older have never purchased catfish to cook at home, compared with only about 10-14% among younger groups. This is consistent with and partially supported by a Global Seafood Alliance report indicating that younger generations are more likely to cook seafood at home, and to do so more frequently, compared to older generations (Craze &amp; Crocker, 2024). As younger consumers cook more seafood at home, they should have more opportunities to try cooking different types of fish, including catfish. Significant disparities emerged across income levels as well. Only 13% of households earning $100k+ have never bought catfish, whereas more than a quarter of those in lower income brackets report no experience purchasing it for home preparation. Catfish (about $6 &#8211; $10 for a pound of fillets) is an affordable alternative to premium protein options like steak or salmon, but it is still more expensive than budget-friendly proteins like tilapia and chicken. As expected, geographic location significantly influences purchasing history. The South has the highest market penetration, with a never-purchased rate of only 21%, which is statistically lower than the Midwest (26%) and the Northeast (28%). This disparity likely reflects the industry&#8217;s distribution, where catfish is mainly produced, has higher local availability, and holds deep-rooted cultural significance in the South. 



Figure 2: Percentage of Respondents Who Never Purchased Catfish to Cook at Home in Each Sociodemographic Group (n=5,760)



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="993" height="666" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.5-2.png" alt="" class="wp-image-43632" srcset="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.5-2.png 993w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.5-2-768x515.png 768w" sizes="auto, (max-width: 993px) 100vw, 993px" /><figcaption class="wp-element-caption">Source: Survey data collected and compiled by authors </figcaption></figure>



Recognizing that limited availability may be why some respondents have never purchased catfish to cook at home, we asked a follow-up question to respondents who said they have never purchased catfish:&nbsp;Would you be&nbsp;willing to buy and try catfish if it were available in your local stores?&nbsp;Of these 1,375 respondents, 36% said yes they would be willing to buy and try catfish if it were available at their local stores. This suggests that a proportion of non-buyers are not inherently opposed to the product but may rather be constrained by product accessibility. This conclusion is supported by&nbsp;House et al. (2003), who found that the lack of availability is one of the main reasons why non-consumers do not consume catfish.



Taken together, these findings highlight a strong foundation for the industry and point toward exciting avenues for expansion. First, the data underscores a more solid and larger consumer base in the South, compared to other regions. This home-field advantage serves as a powerful model for success that can be leveraged in other markets. The greater number of non-buyers in the Northeast and Midwest should be viewed as an opportunity. As supply chains continue to evolve, these regions represent emerging market opportunities where increased visibility can turn unfamiliarity into new demand. Furthermore, as younger generations prioritize convenience when buying seafood&nbsp;(Craze &amp; Crocker, 2024)&nbsp;and catfish consumers are more likely to eat it in a restaurant than cook at home&nbsp;(House et al., 2003), introducing quick-prep packaging and simplifying the home-preparation experience can allow the industry to empower more households to make catfish a staple in their home-cooked meal rotations. By focusing on these high-potential segments and bridging the geographic gap, the industry is well-positioned to convert curious non-buyers into lifelong customers, ultimately driving long-term growth across the national market.&nbsp;



Reference:



Craze, M., &amp; Crocker, G. (2024). Report: Seafood industry must adapt to younger consumers’ demand for convenience as at-home prepared foods sector booms.&nbsp;Global Seafood Alliance Report.&nbsp;<a href="https://www.globalseafood.org/advocate/report-seafood-industry-must-adapt-to-younger-consumers-demand-for-convenience-as-at-home-prepared-foods-sector-booms/">https://www.globalseafood.org/advocate/report-seafood-industry-must-adapt-to-younger-consumers-demand-for-convenience-as-at-home-prepared-foods-sector-booms/</a>



House, L., Hanson, T., Sureshwaran, S., &amp; Selassie, H. (2003). Opinions of US consumers about farm-raised catfish: Results of a 2000-2001 survey.&nbsp;Mississippi Agricultural &amp; Forestry Experiment Station Bulletin,&nbsp;1134.<a href="https://www.mafes.msstate.edu/publications/bulletins/b1134.pdf">https://www.mafes.msstate.edu/publications/bulletins/b1134.pdf</a>



Love, D. C., Asche, F., Conrad, Z., Young, R., Harding, J., Nussbaumer, E. M., Thorne-Lyman, A. L., &amp; Neff, R. (2020). Food sources and expenditures for seafood in the United States.&nbsp;Nutrients,&nbsp;12(6), 1810.&nbsp;



Muhammad, A., &amp; Jones, K. G. (2009). An assessment of dynamic behavior in the US catfish market: An application of the generalized dynamic Rotterdam model.&nbsp;Journal of Agricultural and Applied Economics,&nbsp;41(3), 745-759.&nbsp;



USDA National Agricultural Statistics Service (NASS). (2021). Catfish Production.&nbsp;Agricultural Statistics Board,&nbsp;1948-271X.&nbsp;<a href="https://www.nass.usda.gov/Publications/Todays_Reports/reports/cfpd0221.pdf">https://www.nass.usda.gov/Publications/Todays_Reports/reports/cfpd0221.pdf</a>



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Huang, Kuan-Ming, Daniel Petrolia, and Zhifeng Gao. &#8220;<a href="https://southernagtoday.org/2026/02/05/in-search-of-tomorrows-catfish-buyers/">In Search of Tomorrow’s Catfish Buyers.</a>&#8221; Southern Ag Today 6(12.5). March 20, 2026. <a href="http://in-search-of-tomorrows-catfish-buyers">Permalink</a>

In Search of Tomorrow’s Catfish Buyers

Authors: Joe Outlaw and Bart Fischer



While pressure for an enhanced crop producer safety net was reduced when Congress passed the One Big Beautiful Bill Act (OBBBA) last summer, there still remains work to be done to pass a new farm bill by September 30th&nbsp;of this year when the current extension of the 2018 Farm Bill expires.&nbsp;&nbsp;Farm Bill 2.0—or the Skinny Farm Bill as some call it—is still important to producers and rural America for what it does beyond commodity programs.&nbsp;&nbsp;&nbsp;Farm Bills are far more than the producer safety net programs contained in Title I.&nbsp;&nbsp;For example, the&nbsp;Farm, Food, and National Security Act of 2026&nbsp;(Farm Bill 2.0) passed out of committee in the House of Representatives on March 5th&nbsp;and contains 12 titles (commodity, conservation, trade, nutrition, credit, rural development, research, extension, and related matters, forestry, energy, horticulture, marketing and regulatory reform, crop insurance, and miscellaneous) and is 802 pages.&nbsp;&nbsp;For comparison purposes, the 2018 Farm Bill also contained 12 titles but was only 529 pages.&nbsp;&nbsp;



The House Committee-passed bill included 181 marker bills that were introduced by Members of Congress. The bill also addresses California’s Prop 12, clarifying that “producers of covered livestock have a Federal right to raise and market their covered livestock in interstate commerce and therefore no State or subdivision thereof may enact or enforce, directly or indirectly, a condition or standard on the production of covered livestock other than for covered livestock physically raised in such State or subdivision.”&nbsp;&nbsp;Among a whole host of other changes, the bill also reauthorizes the Conservation Reserve Program at 27 million acres and increases farm credit borrowing limits—both of which are needed during this downturn in the farm economy.&nbsp;



So, what is next?&nbsp;&nbsp;House Agriculture Committee Chairman GT Thompson is looking to leadership in the House of Representatives to find time on the House calendar to begin considering the bill in hopes of passing it out of the House.&nbsp;&nbsp;Senate Agriculture Committee leadership would need to mark-up their version of Farm Bill 2.0 and then pass it out of committee and the Senate before the two bills could be conferenced to work through any differences.&nbsp;&nbsp;This is the normal process for getting bills passed into law.&nbsp;&nbsp;One thing that surely makes this effort different is the November mid-term election which, as history has shown during the mid-term election year, reduces the amount of legislation that is considered and passed in Congress—generally for political reasons.&nbsp;&nbsp;With that said, the most recent farm bill—the 2018 Farm Bill—was signed into law in December 2018, immediately following the mid-term election during President Trump’s first term.



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Outlaw, Joe, and Bart L. Fischer. &#8220;<a href="https://southernagtoday.org/2026/02/05/prospects-for-farm-bill-2-0-or-the-skinny-farm-bill/">Prospects for Farm Bill 2.0 or the Skinny Farm Bill.</a>&#8221; Southern Ag Today 6(12.4). March 19, 2026. <a href="https://southernagtoday.org/2026/02/05/prospects-for-farm-bill-2-0-or-the-skinny-farm-bill/">Permalink</a>

Prospects for Farm Bill 2.0 or the Skinny Farm Bill

The sale of E15, gasoline with an ethanol content of 15%, is currently restricted during the summer months (June 1-September 15) under rules of the Environmental Protection Agency (EPA).&nbsp;&nbsp;However, emergency waivers allowing for year-round sales of E15 have been enacted every year since 2019, under both the Trump and Biden administrations. A nationwide waiver for 2026 summer month E15 sales has not yet been finalized.&nbsp;



The EPA revised its rules in 2024 allowing for a permanent waiver for E15 to be sold in summer months in Illinois, Iowa, Minnesota, Missouri, Nebraska, Ohio, South Dakota, and Wisconsin, beginning in 2025. Some members of Congress have proposed making year-round sales of E15 permanent nationwide. That work is now in the hands of a Congressional Task Force assigned to study and draft legislation.&nbsp;&nbsp;The February 25 deadline for that legislation to be introduced has passed with no action yet reported.



‘Ethanol and by-products’ is the second highest domestic use category in the supply and demand balance sheet for corn. In the 2005/06 marketing year, USDA reported corn for fuel at 1.6 billion bushels, 14% of that year’s 11 billion bushel corn crop. The current estimate of corn for fuel in 2025/26 is 5.6 billion bushels, about 33% of this year’s production of 17 billion bushels.&nbsp;&nbsp;&nbsp;&nbsp;



But the landscape of corn for fuel is changing.&nbsp;&nbsp;According to projections from the Energy Information Administration (EIA), we have likely seen peak gasoline consumption in the U.S. With increased new car fuel efficiency and a growing number of vehicles on the road that do not use any gasoline at all, the EIA projects gasoline consumption to fall from its peak of 143 billion gallons in 2018, to the current estimate of 135 billion gallons for 2026, down to 111 billion gallons by 2035 (Figure 1).



Figure 1. U.S. Gasoline and Ethanol Consumption, billion gallons



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="992" height="605" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.3-1.png" alt="" class="wp-image-43610" srcset="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.3-1.png 992w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.3-1-768x468.png 768w" sizes="auto, (max-width: 992px) 100vw, 992px" /></figure>



The blending mandate for ethanol is 10%, however, the actual share of ethanol consumption in the U.S. as a share of gasoline consumption is now 10.4%. The EIA report of ethanol use includes net exports.&nbsp;&nbsp;&nbsp;If the ethanol blending rate held steady at&nbsp;&nbsp;10.4%, the projected decrease in gasoline consumption would mean a decline in ethanol fuel consumption from a peak of 14.2 billion gallons in 2025 to 11.5 billion gallons in 2035 (Figure 2).&nbsp;&nbsp;A decline of that magnitude of ethanol fuel would reduce corn use by about 1 billion bushels of corn in 2035 from current levels (at the current conversion rate of 2.93 gallons of ethanol per bushel of corn).&nbsp;



However, in its February 2026 release of “USDA Agricultural Projections to 2035”, the USDA held corn ethanol use steady at 5.6 billion bushels throughout the projected time frame.&nbsp;&nbsp;The report notes the expected decline in U.S. gasoline consumption over the next decade but that increasing ethanol exports will hold corn for fuel use flat. Since 2016, ethanol exports have increased from 1.2 billion gallons (8% of total ethanol production) to 2.2 billion gallons in 2025 (13% of total ethanol production). It is expected that ethanol exports will continue to rise with the increasing blend mandates throughout the world.



What impact could the widespread adoption of E15 have on U.S. ethanol use?&nbsp;



Based on USDA’s long-term projections, we expect corn for fuel and ethanol use (domestic and exports) to hold steady at current levels.&nbsp;&nbsp;Based on EIA’s projections of gasoline use, if the blending rate were to increase by 1% per year from current levels to 15% in five years and hold steady after that, ethanol consumption would increase from around 14 billion gallons to 19 billion gallons in 2030. Thereafter, if the decline in gasoline consumption continued, ethanol use would decline back down to about 18 billion gallons.&nbsp;



To produce the extra ethanol for fuel would require 1 billion bushels over USDA’s current 5.6-billion-bushel baseline by 2028 and over 2 billion bushels in 2030. That increase falls back to 1.7 billion bushels over the current levels in 2035.&nbsp;



Figure 2. Ethanol Consumption and Corn for Fuel, E10 and E15



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Widespread and year-round E15 has the potential to significantly impact ethanol use in the U.S., increasing the share of ethanol in overall motor gasoline consumption. This requires both industry providing supply and consumers providing demand. Legislation allowing year-round sales of E15 would give the fuel industry certainty for investment in production and infrastructure to provide the product. Year-round availability provides consumers with a product that they are more familiar with, has wider availability, and is generally a lower cost (Decision Innovation Solutions, 2026).&nbsp;&nbsp;



The benefit to farmers is the expansion of a key use category for corn. The U.S. corn farmer has shown the capacity to increase production in the face of rising demand. Building this demand base on stability and consistency in the fuel sector provides a foundation for long-term price support and some certainty during a time of uncertain markets.&nbsp;



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References



Decision Innovation Solutions.&nbsp;Cumulative Effect of E15 Sales to Minnesota Consumers, January 2026, accessed March 9, 2026,&nbsp;<a href="https://www.mnbiofuels.org/images/pdfs/Cumulative%20Effects%20of%20E15%20Sales%20to%20Minnesota%20Consumers.pdf">https://www.mnbiofuels.org/images/pdfs/Cumulative%20Effects%20of%20E15%20Sales%20to%20Minnesota%20Consumers.pdf</a>.



Energy Information Administration,&nbsp;Annual Energy Outlook 2025,&nbsp;accessed March 4, 2026,&nbsp;<a href="https://www.eia.gov/outlooks/aeo/">https://www.eia.gov/outlooks/aeo/</a>.



Energy Information Administration.&nbsp;Short-term Energy Outlook,&nbsp;February 10, 2026,&nbsp;<a href="https://www.eia.gov/outlooks/steo/">https://www.eia.gov/outlooks/steo/</a>.



USDA, Office of the Chief Economist. “USDA Agricultural Projections to 2035”, World Outlook Board, OCE-2026-1. February 2026,&nbsp;<a href="https://www.ers.usda.gov/publications/pub-details?pubid=113816">https://www.ers.usda.gov/publications/pub-details?pubid=113816</a>.



USDA, NASS. “Grain Crushings and Co-products Production”, March 2, 2026,&nbsp;<a href="https://esmis.nal.usda.gov/publication/grain-crushings-and-co-products-production">https://esmis.nal.usda.gov/publication/grain-crushings-and-co-products-production</a>.



USDA, NASS. “Grain Crushings and Co-products Production, 2024 Summary”, September 2025,&nbsp;<a href="https://esmis.nal.usda.gov/publication/grain-crushings-and-co-products-production-annual-summary">https://esmis.nal.usda.gov/publication/grain-crushings-and-co-products-production-annual-summary</a>.

Prospective Ethanol Consumption and Corn Use with Year-Round E15

USDA released its annual sheep inventory report at the end of January, along with the cattle inventory report, as discussed in an earlier&nbsp;<a href="https://southernagtoday.org/2026/01/20/two-big-cattle-reports-this-month/">article</a>.&nbsp;&nbsp;The report indicated that the slow decline in sheep numbers continued for another year, but there was some flock growth in a few states.



The ewe flock in the U.S. declined one percent to 2.85 million head, but eight states reported growth.&nbsp;&nbsp;Iowa, Colorado, Indiana, Michigan, Kansas, New York, and West Virginia reported slightly larger ewe flocks, but the biggest growth occurred in Texas, where the ewe flock grew 3.7 percent, or 15,000 head.&nbsp;&nbsp;Texas has seen growing sheep numbers related to grazing solar panel areas and some growth in supplying lamb to non-traditional markets.&nbsp;&nbsp;In the rest of the South, Tennessee and Virginia reported small, 1,000 head declines in their ewe flocks while Kentucky held steady with 42,000 ewes.&nbsp;&nbsp;Texas remained the largest sheep-producing state with 420,000 ewes.



While the ewe flock was smaller, the market lamb inventory on January 1 was 1.2 percent larger than the previous year, suggesting that a few more lambs may go to market in the early part of 2026.&nbsp;&nbsp;Lamb production normally peaks in the Spring, with spring-time holiday-driven demand.&nbsp;&nbsp;With Easter falling on April 5th&nbsp;this year, some movement of lambs to market has already occurred.&nbsp;&nbsp;Lamb and yearling slaughter is up 4.4 percent this year compared to 2025.&nbsp;&nbsp;



Lamb prices have been well above year-ago levels throughout 2026.&nbsp;&nbsp;In San Angelo, Texas, 60-90 pound wool slaughter lambs averaged $414 per cwt in mid-March 2026, while hair sheep of the same weight averaged $423 per cwt.&nbsp;&nbsp;A year ago, prices were averaging about $311 per cwt.&nbsp;&nbsp;The auction market in New Holland, Pennsylvania, is a closely watched market for many producers in the South and is often used to gauge the non-traditional East Coast market.&nbsp;&nbsp;For the week of March 13, 2026, 60-90 pound slaughter lambs averaged $426 per cwt compared to $352 per cwt last year.&nbsp;&nbsp;



Lamb meat prices are also well above last year’s.&nbsp;&nbsp;Leg of lamb at wholesale was reported by USDA to be $5.87 per cwt compared to $5.00 last year at this time.&nbsp;&nbsp;Medium racks were $12.67 per cwt compared to $10.00 per cwt last year.&nbsp;&nbsp;



There is ample evidence of lamb demand growth based on grocery store sales prices and volumes.&nbsp;&nbsp;It appears lamb is sharing in the protein consumption trend along with beef and other meats.&nbsp;&nbsp;That growth may need to continue if prices will be supported at these levels.



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1440" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.2-1.jpeg" alt="" class="wp-image-43600" srcset="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.2-1.jpeg 1920w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.2-1-1024x768.jpeg 1024w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.2-1-768x576.jpeg 768w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.2-1-1536x1152.jpeg 1536w" sizes="auto, (max-width: 1920px) 100vw, 1920px" /></figure>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1440" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.2-2.jpeg" alt="" class="wp-image-43601" srcset="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.2-2.jpeg 1920w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.2-2-1024x768.jpeg 1024w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.2-2-768x576.jpeg 768w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.2-2-1536x1152.jpeg 1536w" sizes="auto, (max-width: 1920px) 100vw, 1920px" /></figure>



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="1920" height="1440" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.2-3.jpeg" alt="" class="wp-image-43602" srcset="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.2-3.jpeg 1920w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.2-3-1024x768.jpeg 1024w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.2-3-768x576.jpeg 768w, https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/03/6.12.2-3-1536x1152.jpeg 1536w" sizes="auto, (max-width: 1920px) 100vw, 1920px" /></figure>



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Anderson, David. &#8220;<a href="https://southernagtoday.org/2026/02/05/a-small-decline-in-sheep-numbers/">A Small Decline in Sheep Numbers</a>.&#8221; Southern Ag Today 6(12.2). March 17, 2026. <a href="https://southernagtoday.org/2026/02/05/a-small-decline-in-sheep-numbers/">Permalink</a>

A Small Decline in Sheep Numbers

Joint business agreements, whether a general partnership, an LLC, or a multi-generational business, all require two or more independently minded farmers to work together. A farmer recently told me that partnerships were “the darndest ship you’ll ever ride on.” I like this quote because it reminds us that partnerships and other jointly held businesses can sail through both smooth and rough “seas.” If you are in the early stages of forming a joint business arrangement, what should you consider before signing the paperwork?&nbsp;&nbsp;



Consideration #1: Is a joint business arrangement the best solution?



In general, a joint business arrangement increases the likelihood of success when potential partners understand the problem for which the arrangement is seen as a possible solution. Sometimes a simple contract, such as a lease agreement, may be the best solution.



Consideration #2: Choosing the right business partners



Even if you are contracting with another farm, your business arrangement will need to rely on good communication and trust.&nbsp;&nbsp;Enforcing a contract in court should be a last resort. Keep in mind the traits you are looking for in a business partner, and make your decision rationally, based on facts, rather than making a hurried decision.&nbsp;



Consideration #3: Pre-evaluate yourself and your prospective business partners



Personal relationships are significant to the success of joint business arrangements. The following questions will help you and your potential partners identify and discuss strengths, weaknesses, and expectations before creating any new business arrangement.&nbsp;&nbsp;



<ul class="wp-block-list">
<li>Do you prefer to work and make decisions with someone else or work alone?</li>



<li>Are you open to change, or would you prefer to “do it like you always have done it?”</li>



<li>Can you make suggestions and recommendations instead of giving orders?</li>



<li>Are you willing to listen to and accept ideas and suggestions from others with less experience, less training, or less education?&nbsp;&nbsp;This is especially important when working with the next generation.</li>



<li>Are you willing to give others credit for things well done and accept responsibility for your own mistakes?</li>



<li>Can you discuss business issues with your potential business partner without getting angry?</li>



<li>Are you willing to attend regular business meetings with your partners?</li>



<li>Are you willing to develop a written business agreement and update it when necessary?</li>
</ul>



Consideration #4: Your Land Grant University Cooperative Extension Service



If you need personal assistance, Cooperative Extension agricultural agents have experience helping farmers discuss the topics mentioned above and can serve as neutral, third-party facilitators in the business agreement process. If you would like to learn more about doing business together and the numerous options available, please visit&nbsp;<a href="https://coopcentersc.org/existing-business/">https://coopcentersc.org/existing-business/</a>&nbsp;&nbsp;to download a free “Doing Business Together” workbook.&nbsp;



For existing businesses, Cooperative Extension has resources and referrals to help resolve conflicts. The current economic headwinds are making for difficult financial times, straining business relationships. It is an important time to work together and keep that business partner “ship” sailing through choppy seas.



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Richards, Steven. &#8220;<a href="https://southernagtoday.org/2026/02/05/before-doing-business-together/">Before Doing Business Together</a>.&#8221; Southern Ag Today 6(12.1). March 16, 2026. <a href="https://southernagtoday.org/2026/02/05/before-doing-business-together/">Permalink</a>

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