What Is the Corn-Hog Ratio?
The corn-hog ratio is a calculation for understanding the industrial choice in raising livestock, used to get to the bottom of the profitability of raising hogs versus emerging and selling corn feed. This can be a comparison that takes the price of a hog and divides it by way of the cost of the corn needed to care for the hog.
Key Takeaways
- The corn-hog ratio is used to get to the bottom of the profitability of raising livestock.
- The ratio is achieved by way of calculating the price of a hog divided by way of the cost of the corn needed to feed it.
- The corn-hog ratio may be used to lend a hand farmers get to the bottom of the cost of a crop of corn as compared to the cost of a hog, which they will have to feed with the equivalent crop of corn.
- If corn is made up our minds to be additional valuable than the hog, the farmer would advertise the corn and cut back their livestock inventory.
- If hogs are additional valuable than the corn, the farmer will use the corn as feed, thus selling a lot much less corn on the market.
Understanding the Corn-Hog Ratio
The corn-hog ratio is used to get to the bottom of the profitability of raising livestock, hogs in particular. The calculation for the corn-hog ratio is the price of one hundredweight (cwt) of include residing, on-the-hoof hogs divided by way of the cost of a bushel of corn. The ratio is used to lend a hand farmers get to the bottom of the cost of a crop of corn as compared to the cost of a hog, which they will have to feed with the equivalent crop of corn.
As an example, if the price of a hog is $50/cwt and the cost of a bushel of corn is $4, the corn-hog ratio can also be $50 / $4 = 12.5.
Pigs have the easiest feed conversion price, because of this the amount required to put across them to harvest weight isn’t as much as any other livestock animal.
Corn is used in this feed ratio because of it is a primary type of feed used in raising livestock. Estimations show feed corn makes up between 65% and 70% of hog’s nutrition. Many farmers who broaden feed corn would possibly simply each advertise the corn itself as a commodity or feed it to their hogs and then advertise the hogs.Â
If corn is made up our minds to be additional valuable than the hog, the farmer would advertise the corn and cut back their livestock inventory. If hogs are additional valuable than the corn, the farmer will use the corn as feed, thus selling a lot much less corn on the market. The profitability ratio is made up our minds to be successful above 1:12. Anything below that is considered to be unprofitable.
Stylish Application of the Corn-Hog Ratio
Throughout the stylish generation, many farmers do not broaden the feed corn required for their livestock. With sophisticated era and the large availability of delivery and provide, most farmers now make a choice to have their feed dropped at the farm. The corn-hog ratio is still a reliable solution to get to the bottom of whether or not or no longer or now not red meat farming will likely be successful for the three hundred and sixty five days.
A mathematical ratio can’t account for some events. In 2014, a virulent disease swept all through the piglet population, causing huge loss of inventory. The ones numbers altered the meat predictions for that three hundred and sixty five days as a result of the fear of a subsequent red meat shortage. Then again, the ratio remains the benchmark for farmers taking a look to decide whether or not or to not prolong their live hog inventories or to cull it.
What Is a Simple Definition of the Corn-Hog Ratio?
The corn-hog ratio is a ratio and is used to get to the bottom of the profitability of raising livestock. It is most many times used for pigs (hogs).
What Happens to Hog Prices if Corn Prices Transfer Up?
If corn prices move up, hog prices will upward push as neatly. This follows commonplace business practices where if the price of manufacturing will build up, the price will build up lockstep for the end client.
How Many Bushels of Corn Does It Take to Elevate a Hog to Market Weight?
It takes reasonably more than 10 bushels of corn to put across a hog to market weight. It is worth noting that the corn can now and again be cut back with other components as a way to drop the total worth.
The Bottom Line
The corn-hog ratio is not only used to get to the bottom of the cost of raising a hog to market weight, on the other hand can be used to direct those raising livestock within the match that they are going to have to advertise the hogs, or advertise the corn while lowering their amount of livestock. Sure events can affect this ratio, harking back to sickness or rising corn costs. Finally of the day, the farmer will need to decide which product they are going to advertise in all places that cycle.
