By Andi Anderson
Feed costs for swine operations are projected to decline in the second half of 2025, supported by lower corn and soybean meal prices.
Indiana corn prices averaged $4.27 per bushel in 2024 and rose to $4.58 in early 2025, but projections for the marketing year starting in September expect a decline to $4.20. Historical data suggests a 10% fluctuation around this estimate is possible.
Soybean meal prices have also remained below long-run averages. Futures data indicates both corn and soybean meal will likely continue below average through next year. These trends influence feed cost indices for farrow-to-finish and swine finishing operations.
For farrow-to-finish operations, feed costs in early 2025 averaged a feed cost index of 88.8, compared to the 2024 base index of 100. The full-year projection for 2025 is 92, an 8% decrease from the previous year.
Swine finishing operations show similar patterns. The average index in early 2025 was 90.4, with projections for the year averaging 93—7% lower than in 2024.
Feed costs are highly sensitive to price changes. For swine finishing, each $0.10 increase in corn per bushel raises costs by $0.43 per hundredweight (cwt), while a $10 increase in soybean meal per ton adds $0.38 per cwt. Current costs are about $36 per cwt but could fall to $29 with lower prices or rise to $37 with higher ones.
Overall, current market conditions offer a positive outlook for producers, but weather and global supply will remain key influences on feed costs. Understanding these trends can help farmers make informed financial and production decisions in 2025.
Photo Credit: gettyimages-grafvision
Categories: Indiana, Livestock, Hogs