Imagine you scouted one of your fields yesterday and an insect pest reached the threshold number for spraying. Today, you bring the tractor and sprayer to the field to minimize the potential damage to yield that could occur from the insect pest if it was left untreated. This is just one of dozens of operational management decisions and activities you do each day.



Obviously, these operational management decisions are critical for keeping your farm running as efficiently as possible. However, it is just as important for you, as a farm or ranch business manager, to spend time thinking beyond the current growing season and focus on management decisions that may affect your farm in the future. These long-term management decisions are considered strategic management.



Both operational and strategic management are necessary for the success of the farm or ranch business. Operational management is straight forward. If it hasn’t rained, you decide to irrigate. If it is time to apply a mid-season fertilizer, you apply fertilizer. If one of your calves gets sick, you quarantine her from the herd and treat her symptoms. Strategic management involves planning and making decisions for the farm or ranch business that will impact it in the next five years or longer. Strategic management answers the questions: “Where do I want to be?” and “What do I need to do to get there?”



Strategic management is identifying the vision and purpose of your farm or ranch business, setting goals for the near- and long-term, analyzing your farm’s strengths and weaknesses, evaluating opportunities and threats outside of the farm, and making decisions that steer you toward a desired goal or outcome. Those might include:&nbsp;&nbsp;goals for net worth or profit, goals for your operation to reach a certain size, a vision for your ideal way of life, or plans for retirement. The path to those outcomes may include decisions such as expanding the operation by acquiring more land or breeding livestock, adopting new technology, diversifying enterprises, entering new markets, hiring employees, or positioning the farm and the next generation for a successful transition.



In addition to your day-to-day operational management, you should set aside time to think strategically about the future. However, setting aside time when you are busy with operational management is easier said than done. Scheduling a set time to plan strategically is necessary. It will require you to block out several hours of your day a couple of times a month or more depending upon your goals. It may be easier for you to prioritize strategic management if you get away from the farm or ranch. A couple days away will enable you to focus entirely on planning for the future. It would be most beneficial if this occurs after you have compiled your financial data from the most recent year.&nbsp;&nbsp;Be sure to include any important partners or family members who are instrumental to the future of your farm.&nbsp;



&nbsp;There are many resources available to help you with this process. Several Land Grant Universities offer programs in strategic management through their Cooperative Extension Service. There are also numerous podcasts, case studies, and textbooks written on strategic management.&nbsp;<a href="https://www.sare.org/resources/building-a-sustainable-business/">Building a Sustainable Business</a>, is a useful guide to business planning and strategic management from Sustainable Agriculture Research and Education. It is downloadable for free online or available for purchase in print.



Strategic management is critical to the long-term success of your farm or ranch business. It is easy to get caught up in the daily operational management decisions, but when you incorporate strategic management, you will be better prepared for opportunities and challenges that may arise.



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Recommended citation format: Smith, Amanda R. &#8220;<a href="https://southernagtoday.org/2026/06/25/operational-and-strategic-management-for-your-farm-or-ranch-business/">Operational and Strategic Management for Your Farm or Ranch Business.</a>&#8221; Southern Ag Today 6(28.1). July 6, 2026. <a href="https://southernagtoday.org/2026/06/25/operational-and-strategic-management-for-your-farm-or-ranch-business/">Permalink</a>

Operational and Strategic Management for Your Farm or Ranch Business

In planning for the future of your land, conservation easements can be an effective tool for preserving the character and limiting use types. However, conservation easements won’t be right for everyone or in every circumstance. To determine whether a conservation easement is a good fit for your succession plan, consider how these agreements work, the financial implications, and your ultimate goals.



At their core, conservation easements are voluntary, permanent agreements that restrict certain uses of land in order to protect its conservation values. Importantly, landowners retain private ownership of the property and many traditional rights, such as the ability to live on, farm, timber, sell, or transfer the land subject to the specific terms of the easement. However, some property rights such as subdivision or development may be restricted. Conservation easements are individualized and can be tailored to the property’s characteristics, conservation objectives, and the landowner’s preferences.



Landowners should first carefully consider their long-term objectives such as whether the goal is environmental protection, capitalizing on tax incentives, or preservation for future generations and land use types.&nbsp;&nbsp;Factors such as economic impact, permanence, and future land use all play a critical role in this evaluation. When considering the ultimate goal, landowners should take into account how the land is currently being used and how heirs or successors may desire to use it in the future. Current land uses can easily be accounted for in conservation easements so long as they are consistent with conservation values. However, landowners wishing to expand current facilities and improvements for expansion purposes, may run into roadblocks once a conservation easement is in place.



Financial incentives are the carrot of conservation easements and the financial benefits hinge on the property’s valuation. The value of an easement is determined through a “before-and-after” appraisal method. First, the fair market value of the property as-is without a conservation easement is determined and then compared to the anticipated property value after the easement is in place. The difference between these two values represents the easement’s monetary value. This valuation must be supported by market data and considers the property’s “highest and best use,” defined as what is legally permissible, physically possible, financially feasible, and maximally productive. In many states, landowners may receive both state land preservation tax credits and federal income tax deductions. Generally, financial incentives are greatest in areas of high development pressure and/or sensitive environmental or conservation value.



Preparing a conservation easement involves a financial analysis, drafting and approving the easement, addressing any liens on the property, recording the agreement, and subsequently registering for tax credits. Existing lienholders must subordinate to the easement deed. During the process, it is important to consult a team of professionals including appraisers, attorneys, conservation organizations, and financial advisors.



Ultimately, conservation easements are a once-in-a-lifetime decision that permanently governs the future of a property. While protecting natural resources, maintaining working lands, and preserving family or community heritage, landowners retain ownership and are entitled to financial benefits. However, landowners do forego certain property rights pursuant to the terms of the easement. There are no takebacks should a landowner or successor change their mind or wish to utilize the property in a way that the conservation easement prohibits. One of the most common points of contention are limitations on imperviable surfaces. This can mean a limitation on an agricultural producer’s ability to expand operations. While some concerns can be resolved during drafting a conservation easement, they cannot be undone once the conservation easement is in place.&nbsp;



If you are considering placing your land in a conservation easement, consult experienced counsel, read the fine print, and ensure that a conservation easement is the right tool for your specific goals.&nbsp;



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Recommended citation format: Friedel, Jen S. &#8220;<a href="https://southernagtoday.org/2026/06/25/conservation-easements-as-part-of-a-succession-plan/">Conservation Easements as Part of a Succession Plan.</a>&#8221; Southern Ag Today 6(27.5). July 3, 2026. <a href="https://southernagtoday.org/2026/06/25/conservation-easements-as-part-of-a-succession-plan/">Permalink</a>

Conservation Easements as Part of a Succession Plan

Authors: Landyn Young and Luis A. Ribera



The United States-Mexico-Canada Agreement (USMCA) began July 1, 2020. The trade deal was a replacement for the North American Free Trade Agreement (NAFTA) which was done to help create reciprocal trade policies between the partner countries, increase trade and stimulate growth of their economies. While the deal is set to expire, unless an extension occurs, in 2036, the agreement will face review on the first of July. Both Canada and Mexico administrations have expressed their support of the trade agreement while the U.S. administration has expressed its reservations. Regardless of the results, it does not mark a true conclusion unless one member gives a formal intention to withdraw.&nbsp;&nbsp;



In 2019, the final full year of NAFTA, $41.3 billion of agricultural exports left the United States for Canada and Mexico, 29.3 percent of total U.S. agricultural exports (Figure 1). Since USMCA has been signed, annual agricultural exports totaled $59.3 billion in 2025, 34.6 percent of total U.S. agricultural exports. The largest category of products exported to Mexico and Canada since 2021 in terms of volume and value are grains and feeds which has accounted for 34.1 MMT of agricultural exports annually, or $13.9 billion (Figure 2). Grains and feeds ranked second during NAFTA, totaling 25.6 MMT worth $8.91 billion. Prior to USMCA, the largest export category to members in terms of value was animal products at $9.53 billion, estimated at around 3.87 MMT.



Imports from Canada and Mexico under USMCA have averaged 76 MMT annually worth $199 billion (Figure 3). The same timespan during the final years for NAFTA imports averaged 64.3 MMT worth $131 billion. In 2019, agricultural imports under NAFTA were 39.7 percent of total U.S. agricultural imports, while in 2025 they represented 39.1 percent under USMCA. Imports have increased across the board with each product category retaining a similar import share to that in NAFTA (Figure 4). Vegetables continue to hold the highest share of imported agricultural products from Canada and Mexico at 18.2 percent or $14.2 billion annually, as well as totaling 10.7 MMT. Under NAFTA, vegetable imports from the two partners totaled $9.25 billion and 8.6 MMT.&nbsp;&nbsp;Overall, both NAFTA and USMCA have been successful when you look at the overall objectives of the trade agreement, reduce tariff and non-tariff barriers and increase trade among member countries.



Figure 1. U.S. Value of Agricultural Exports, 1990-2025



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="646" height="485" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.27.4-1.png" alt="" class="wp-image-44260"/><figcaption class="wp-element-caption">Source: Global Agricultural Trading System (GATS), USDA/FAS</figcaption></figure>



Figure 2. Comparing NAFTA and USMCA Agricultural Trade, U.S. Export Value



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="737" height="553" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.27.4-2.png" alt="" class="wp-image-44261"/><figcaption class="wp-element-caption">Source: Global Agricultural Trading System (GATS), USDA/FAS Note:comparing 2019 NAFTA and average USMCA</figcaption></figure>







Figure 3. U.S. Value of Agricultural Imports, 1990-2025



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="677" height="508" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.27.4-3.png" alt="" class="wp-image-44262"/><figcaption class="wp-element-caption">Source: Global Agricultural Trading System (GATS), USDA/FAS</figcaption></figure>



Figure 4. Comparing NAFTA and USMCA Agricultural Trade, U.S. Import Value



<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="694" height="521" src="https://sat-wp.afpc.tamu.edu/wp-content/uploads/2026/07/6.27.4-4.png" alt="" class="wp-image-44263"/><figcaption class="wp-element-caption">Source: Global Agricultural Trading System (GATS), USDA/FAS Note: comparing 2019 NAFTA and average USMCA</figcaption></figure>



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Recommended citation format: Young, Landyn, and Luis A. Ribera. &#8220;<a href="https://southernagtoday.org/2026/06/25/from-nafta-to-usmca/">From NAFTA to USMCA</a>.&#8221; Southern Ag Today 6(27.4). July 2, 2026. <a href="https://southernagtoday.org/2026/06/25/from-nafta-to-usmca/">Permalink</a>

From NAFTA to USMCA

The United States Department of Agriculture (USDA) released the annual Acreage report on June 30, 2026. Estimates of acreage planted are largely based on surveys completed between May 28 and June 19, from a sample of approximately 90,300 farm operators. This is the first release of 2026 acreage estimates since the March Prospective Plantings. The total planted acreage for all principal crops is estimated at 309.6 million acres, down 0.1% from the 310 million acres estimated in March.&nbsp;&nbsp;This also represents a 0.6% decrease from the 311.5 million acres planted in 2025.&nbsp;&nbsp;The principal crop acreage for southern states is estimated at 69.4 million acres, down from the 69.6 million acres planted in 2025 and estimated in March for 2026.



While the overall acreage estimates for all principal crops are essentially flat, there are some individual crop specific differences.&nbsp;&nbsp;Table 1 shows the June 2026 Acreage report estimates for corn, wheat, long-grain rice, soybeans, peanuts, and upland cotton in the southern states.&nbsp;&nbsp;Comparisons to the March 2026 Prospective Plantings report and 2025 actual acreage are presented, with percent changes calculated for each.&nbsp;&nbsp;The largest percent deviation from the March intentions was for long-grain rice (down 16%) and peanuts (down 8.6%).&nbsp;&nbsp;Both of those crops also represent large decreases in acreage compared to actual 2025 plantings, with long-grain rice down 35% and peanuts down 21.8%. Decreases in acreage of long-grain rice and peanuts compared to 2025 are estimated across all producing states in the region, with the exception of peanut production in Oklahoma, which is flat.&nbsp;



Upland cotton and soybean acreage in southern states are the two crops presented in Table 1 that are estimated to increase in acreage. Compared to 2025, cotton is up 6.8%, and soybeans are up 10.1%. These acreage estimates are also higher than the reported March planting intentions for these crops. All southern states reported an increase in acreage for cotton compared to 2025, except Arkansas (-9.6%) and Virginia (-17.8%), while only Virginia (-6.7%) has an estimated decrease in soybean acreage. Corn acreage is also expected to be down across the southern states, both compared to 2025 actual acreage and March intentions. Florida and Arkansas are the two southern state exceptions, with corn acreage estimated to be higher by 17.6% and 2.5%, respectively, compared to 2025.



The comparison between reported acreage follows a similar trend nationally, as shown in Table 2. However, percent changes from 2025 actuals show a larger overall percent decrease in corn acreage in southern states compared to the total United States. There is also a larger overall percent increase in soybean acreage in southern states compared to the total United States.



One question in anticipation of this report was how planting estimates would compare to March intentions.&nbsp;&nbsp;In particular, the pre-season survey occurred prior to the conflict in the Middle East and the transportation constraints through the Strait of Hormuz. These issues have raised concerns about higher fertilizer and fuel costs with the potential for farmers to alter planting strategies in response. The June Acreage report is the first acreage check to give an indication of the effects of these global pressures. While individual farmers may have made changes, it appears that, on aggregate, there has been little to no impact on 2026 plantings.&nbsp;&nbsp;The increase in cotton futures market prices and lack of peanut contracts would more likely explain the respective increase in cotton acres and decrease in peanut acres between the March and June reports. Weather is going to be the next big market mover through the summer as refined estimates of acreage are published by the USDA.



Table 1. Southern States Crop Acreage Reported by USDA: June 2026 with Comparison to March 2026 and 2025 Actuals



<figure class="wp-block-table has-small-font-size"><table class="has-fixed-layout"><tbody><tr><td>Crop</td><td class="has-text-align-right" data-align="right">June 2026 Acreage Report</td><td class="has-text-align-right" data-align="right">March 2026 Prospective Plantings</td><td class="has-text-align-right" data-align="right">2025 Actual Acreage</td><td class="has-text-align-right" data-align="right">Percent Change from 2025 Actual</td><td class="has-text-align-right" data-align="right">Percent Change from March 2026</td></tr><tr><td>Corn</td><td class="has-text-align-right" data-align="right">10,200</td><td class="has-text-align-right" data-align="right">10,290</td><td class="has-text-align-right" data-align="right">10,815</td><td class="has-text-align-right" data-align="right">-5.7%</td><td class="has-text-align-right" data-align="right">-0.9%</td></tr><tr><td>Wheat</td><td class="has-text-align-right" data-align="right">11,165</td><td class="has-text-align-right" data-align="right">11,780</td><td class="has-text-align-right" data-align="right">11,495</td><td class="has-text-align-right" data-align="right">-2.9%</td><td class="has-text-align-right" data-align="right">-5.2%</td></tr><tr><td>Rice (Long-grain)</td><td class="has-text-align-right" data-align="right">1,235</td><td class="has-text-align-right" data-align="right">1,470</td><td class="has-text-align-right" data-align="right">1,900</td><td class="has-text-align-right" data-align="right">-35.0%</td><td class="has-text-align-right" data-align="right">-16.0%</td></tr><tr><td>Soybeans</td><td class="has-text-align-right" data-align="right">13,275</td><td class="has-text-align-right" data-align="right">13,225</td><td class="has-text-align-right" data-align="right">12,060</td><td class="has-text-align-right" data-align="right">10.1%</td><td class="has-text-align-right" data-align="right">0.4%</td></tr><tr><td>Peanuts</td><td class="has-text-align-right" data-align="right">1,507</td><td class="has-text-align-right" data-align="right">1,649</td><td class="has-text-align-right" data-align="right">1,926</td><td class="has-text-align-right" data-align="right">-21.8%</td><td class="has-text-align-right" data-align="right">-8.6%</td></tr><tr><td>Cotton (Upland)</td><td class="has-text-align-right" data-align="right">9,130</td><td class="has-text-align-right" data-align="right">8,915</td><td class="has-text-align-right" data-align="right">8,549</td><td class="has-text-align-right" data-align="right">6.8%</td><td class="has-text-align-right" data-align="right">2.4%</td></tr><tr><td>All Principal Crops</td><td class="has-text-align-right" data-align="right">69,448</td><td class="has-text-align-right" data-align="right">69,586</td><td class="has-text-align-right" data-align="right">69,592</td><td class="has-text-align-right" data-align="right">-0.2%</td><td class="has-text-align-right" data-align="right">-0.2%</td></tr></tbody></table><figcaption class="wp-element-caption">Source: USDA Crop Acreage Report, June 30, 2026. Southern states is the sum of acreage reported for Alabama, Arkansas, Florida, Georgia, Kentucky, Louisiana, Mississippi, North Carolina, Oklahoma, South Carolina, Tennessee, Texas, and Virginia. </figcaption></figure>



Table 2. United States Crop Acreage Reported by USDA: June 2026 with Comparison to March 2026 and 2025 Actuals



<figure class="wp-block-table has-small-font-size"><table class="has-fixed-layout"><tbody><tr><td>Crop</td><td class="has-text-align-right" data-align="right">June 2026 Acreage Report</td><td class="has-text-align-right" data-align="right">March 2026 Prospective Plantings</td><td class="has-text-align-right" data-align="right">2025 Actual Acreage</td><td class="has-text-align-right" data-align="right">Percent Change from 2025 Actual</td><td class="has-text-align-right" data-align="right">Percent Change from March 2026</td></tr><tr><td>Corn</td><td class="has-text-align-right" data-align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;95,343&nbsp;</td><td class="has-text-align-right" data-align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;95,338&nbsp;</td><td class="has-text-align-right" data-align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;98,788&nbsp;</td><td class="has-text-align-right" data-align="right">-3.5%</td><td class="has-text-align-right" data-align="right">0.0%</td></tr><tr><td>Wheat</td><td class="has-text-align-right" data-align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;42,740&nbsp;</td><td class="has-text-align-right" data-align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;43,775&nbsp;</td><td class="has-text-align-right" data-align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;45,328&nbsp;</td><td class="has-text-align-right" data-align="right">-5.7%</td><td class="has-text-align-right" data-align="right">-2.4%</td></tr><tr><td>Rice (Long-grain)</td><td class="has-text-align-right" data-align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,395&nbsp;</td><td class="has-text-align-right" data-align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,648&nbsp;</td><td class="has-text-align-right" data-align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2,118&nbsp;</td><td class="has-text-align-right" data-align="right">-34.1%</td><td class="has-text-align-right" data-align="right">-15.4%</td></tr><tr><td>Soybeans</td><td class="has-text-align-right" data-align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;85,365&nbsp;</td><td class="has-text-align-right" data-align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;84,700&nbsp;</td><td class="has-text-align-right" data-align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;81,215&nbsp;</td><td class="has-text-align-right" data-align="right">5.1%</td><td class="has-text-align-right" data-align="right">0.8%</td></tr><tr><td>Peanuts</td><td class="has-text-align-right" data-align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,528&nbsp;</td><td class="has-text-align-right" data-align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,674&nbsp;</td><td class="has-text-align-right" data-align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1,953&nbsp;</td><td class="has-text-align-right" data-align="right">-21.8%</td><td class="has-text-align-right" data-align="right">-8.7%</td></tr><tr><td>Cotton (Upland)</td><td class="has-text-align-right" data-align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,700&nbsp;</td><td class="has-text-align-right" data-align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,510&nbsp;</td><td class="has-text-align-right" data-align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;9,141&nbsp;</td><td class="has-text-align-right" data-align="right">6.1%</td><td class="has-text-align-right" data-align="right">2.0%</td></tr><tr><td>All Principal Crops</td><td class="has-text-align-right" data-align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;309,639&nbsp;</td><td class="has-text-align-right" data-align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;309,951&nbsp;</td><td class="has-text-align-right" data-align="right">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;311,543&nbsp;</td><td class="has-text-align-right" data-align="right">-0.6%</td><td class="has-text-align-right" data-align="right">-0.1%</td></tr></tbody></table><figcaption class="wp-element-caption">Source: USDA Crop Acreage Report, June 30, 2026. Acreage in thousands.  </figcaption></figure>



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Recommended citation format: Rabinowitz, Adam. &#8220;<a href="https://southernagtoday.org/2026/06/25/june-acreage-report-shows-larger-acreage-decline-for-peanuts-and-rice/">June Acreage Report Shows Larger Acreage Decline for Peanuts and Rice.</a>&#8221; Southern Ag Today 6(27.3). July 1, 2026. <a href="https://southernagtoday.org/2026/06/25/june-acreage-report-shows-larger-acreage-decline-for-peanuts-and-rice/">Permalink</a>

June Acreage Report Shows Larger Acreage Decline for Peanuts and Rice

The hog market has a number of interesting contradictions.&nbsp;&nbsp;Amid the factors of profitable production, live and cutout values well below last year, and little growth in production, USDA released its June 1 Hogs and Pigs report last week, and it continued to show a smaller breeding herd.



The breeding herd was estimated to be 5.88 million head, down 1.2 percent compared to last year.&nbsp;&nbsp;That is the smallest herd since 2014 and the 6th&nbsp;consecutive year of declines in the June 1 breeding herd.&nbsp;&nbsp;The number of market hogs was even with last year.&nbsp;&nbsp;The number of pigs per litter over the December 2025-May 2026 time period hit a record high of 11.88.&nbsp;&nbsp;Market hog production has been boosted by pigs per litter, which has offset the decline in the number of sows farrowing.&nbsp;&nbsp;



The lack of growth in the sow herd is interesting given the Iowa State University estimate of farrow to finish hog profits.&nbsp;&nbsp;The April 2026 data was the 24th&nbsp;consecutive month of estimated profits.&nbsp;&nbsp;Normally profits jump start expansion, yet that has not occurred due to a number of headwinds.&nbsp;&nbsp;Expansion often requires new barns, and rising construction costs have likely offset estimated future profits.&nbsp;&nbsp;Animal health and sow mortality have likely constrained expansion.&nbsp;&nbsp;Falling feed costs have been a big reason for profits.&nbsp;&nbsp;High prices boosted profits dramatically in the middle of 2025, but prices have seen little increase in 2026.



Hog prices, as reported by the national weighted average carcass price, peaked last July at $108.79 per cwt.&nbsp;&nbsp;&nbsp;Prices entering July this year were $92 per cwt.&nbsp;&nbsp;The pork cutout value is about 20 percent lower than last year and is also below the 5-year average value.&nbsp;&nbsp;Wholesale prices for hams, bellies, loins, and trimmings are all lower than last year.&nbsp;&nbsp;Only spareribs are higher than last year.&nbsp;&nbsp;The futures market is not indicating higher prices for the rest of the year.&nbsp;&nbsp;Neither pork nor hog prices indicate much potential for herd growth in the coming months.&nbsp;&nbsp;



Happy 250th&nbsp;4th&nbsp;of July to all of you from us livestock economists at SAT!&nbsp;&nbsp;We hope you find something great to put on the grill or smoker and celebrate, looking forward to the next 250.&nbsp;&nbsp;



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Anderson, David. &#8220;<a href="https://southernagtoday.org/2026/06/25/little-growth-in-pork-production-ahead/">Little Growth in Pork Production Ahead.</a>&#8221; Southern Ag Today 6(27.2). June 30, 2026. <a href="https://southernagtoday.org/2026/06/25/little-growth-in-pork-production-ahead/">Permalink</a>

Little Growth in Pork Production Ahead

Authors: Kenny Burdine and Jonathan Shepherd



Strong cattle prices are giving cow-calf producers a rare window to strengthen their financial position. While every operation will respond differently, producers should aim to look back on this period and feel confident about the decisions they make.



In an&nbsp;<a href="https://southernagtoday.org/2025/08/04/cowherd-expansion-is-not-the-only-way-to-capitalize-on-a-strong-calf-market/">article</a>&nbsp;last summer, investments in genetics, facilities, and grazing systems were discussed, as well as paying down debt and improving liquidity. Here, we dive deeper into improving liquidity by focusing specifically on one often-overlooked opportunity: building working capital.



The financial formula for working capital is current assets minus current liabilities. In simple terms, it refers to the amount of readily available assets beyond what is needed for short-term obligations. Current assets include cash and marketable commodities (livestock, grain, etc.) that can be converted to cash quickly. A farm business should always have at least enough current assets to cover current liabilities, and depending on the type of business as much as 2-3 times the current liabilities may be recommended. When the opportunity presents itself, there are substantial benefits to growing working capital beyond just meeting typical current liability needs. A few of these benefits are discussed briefly below.



Self-finance short-term expenses



With stronger working capital, producers can pay cash for expenses instead of relying on operating loans. This reduces interest costs, a valuable advantage in today’s higher-rate environment. The current environment also offers more attractive returns on working capital kept in liquid investments such as money markets and high-yield savings accounts.



Stronger finances improve borrowing power



Building increased working capital can also have financial benefits by improving the financial position of the operation. As working capital increases, the farm’s current ratio (current assets divided by current liabilities) improves. Holding all else constant, this makes the farm more attractive to lenders. An improved financial position can lead to increased borrowing opportunities and more attractive borrowing terms.



A cushion for tough times



Working capital also acts as a built-in risk management tool. By stockpiling some cash reserves during good times, the operation will be in a better position to weather the downtimes. When markets turn or costs rise, a financial cushion allows producers to ride out the downturn without taking on more debt. Just as importantly, it buys time to make thoughtful decisions instead of rushed ones. Time to process and evaluate options can be very important when dealing with financial stress.



Be ready when opportunities appear



Working capital can also improve an operation’s ability to be opportunistic, which can be a key to growth over time. There will be times when ground comes up for sale that has always been wanted, a set of heifers is a good buy, or a piece of equipment is priced below what it is worth. The operations best positioned to take advantage of these opportunities are often those with strong liquidity, as they either have the cash to make the purchase or can quickly secure attractive financing.



Fuel future growth



Working capital also serves as a baseline for long-run investment. A growing cow-calf operation typically sees lower income levels because they are selling fewer females or expanding through the purchase of cows or heifers. Working capital can be a source of funds to offset the reduction in heifer sales or the purchase of additional breeding stock. The same can be said of land acquisition and other investments in facilities and infrastructure. Having a pool of funds to draw from and / or leverage makes long-term investments much easier to approach.



The current cattle market offers opportunities, and how an individual operation chooses to capitalize on them will depend on that operation’s goals. Some may choose to retire, while others may choose to expand. Some may make long-term investments, while others pay down debt. The purpose of this article was simply to focus on the benefits of increased working capital as a financial strategy. By building working capital today, the operation can be more prepared for the uncertainty of tomorrow.&nbsp;



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Burdine, Kenny, and Jonathan Shepherd. &#8220;T<a href="https://southernagtoday.org/2026/06/25/the-current-cattle-market-offers-opportunity-to-build-working-capital/">he Current Cattle Market Offers Opportunity to Build Working Capital</a>.&#8221; Southern Ag Today 6(27.1). June 29, 2026. <a href="https://southernagtoday.org/2026/06/25/the-current-cattle-market-offers-opportunity-to-build-working-capital/">Permalink</a>

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