US Grain Production - Summary
1. Total planted acres are slowly declining.
2. The big two - corn and soybeans - are getting bigger in terms
of acres planted and production.
3. Add wheat and hay acres to corn and soybeans, and you have
88% of total planted acres.
4. Increasing production is a function of increasing yields, and
yield gains continue to increase but at a slower rate.

53
Applied Economics 3411/5411, 2018 Lecture Notes
Copyright © 2018 Edward Usset. All rights reserved.
Livestock and dairy production, animal numbers and productivity
:
Beef cow numbers peaked in the mid-1970s at 45 million head. At 31 million head today,
beef cow numbers are down 33% from their high. Productivity in the beef industry is a
function of slaughter weights, and they are growing - up nearly 20% since 1990.
1,100
1,150
1,200
1,250
1,300
1,350
1,400
25,000
27,000
29,000
31,000
33,000
35,000
37,000
lbs./head, live basis
1,000 head
U.S. Beef Cattle and Slaughter Weights, 1990-2017
Beef cows
Cattle slaughter weights at federally
inspected facilities

54
Applied Economics 3411/5411, 2018 Lecture Notes
Copyright © 2018 Edward Usset. All rights reserved.
Unlike beef cows, hogs number have not peaked and continue to grow. Hog productivity, as
measured by the litter rate, also continues to grow. Improving litter rates and a shorter life
cycle give pork a distinctive cost advantage over beef.
7.5
8.0
8.5
9.0
9.5
10.0
10.5
11.0
85
90
95
100
105
110
115
120
125
pigs per litter
million head
U.S. Hogs Slaughtered and Litter Rate, 1990-2017
hogs slaughtered
Pigs/litter

55
Applied Economics 3411/5411, 2018 Lecture Notes
Copyright © 2018 Edward Usset. All rights reserved.
Dairy cow numbers remain steady, but milk production continues to grow, thanks to a
remarkably steady growth in milk production per cow. The average milk cow is producing
55% more milk than just 30 years ago.
Poultry is the fastest growing part of the meat business. Broiler production has increased six-
fold since 1970, and more than doubled since 1990.
Broiler productivity is more difficult to measure, but a comment from Penn State Extension
goes a long way towards explaining the rapid changes occurring in broiler production.
“The modern broiler industry has developed a hybrid that is unlike any other breed.
Today’s
broiler can achieve a 5-pound market weight in five weeks.
Forty years ago, it took 10
weeks to achieve a 4-pound market weight. These advances are the result of scientific
progress in genetic, nutritional, and environmental research.”
12,000
14,000
16,000
18,000
20,000
22,000
24,000
6,000
7,000
8,000
9,000
10,000
11,000
12,000
pounds per head
1,000 head
U.S. Milk Cows and Productivity, 1990-2018
Number of milk cows on Jan 1
Milk production per head

56
Applied Economics 3411/5411, 2018 Lecture Notes
Copyright © 2018 Edward Usset. All rights reserved.
U.S. Livestock and Dairy Production - Summary
1. Beef cow numbers are slowly declining, while hog numbers
continue to increase.
2. Dairy cow numbers are steady but milk production continues
to grow as milk per cow has increased over 50% in the past 3
decades.


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