This article was first published in Beef Magazine.

Nebraska’s farm income is projected near $7.8 billion in 2023, according to a new report from the Rural and Farm Finance Policy Analysis Center (RaFF) at the University of Missouri, produced in conjunction with the Center for Agricultural Profitability at the University of Nebraska-Lincoln. 

The report, “Fall 2023 Nebraska Farm Income Outlook,” indicates that Nebraska’s stronger 2023 farm income projection is driven largely by higher livestock prices and recovery in ending year inventories and values.

After about 5 years of fall cover crop grazing, one thing became apparent: the amount of grazing achieved when we gave cattle access to the whole field from the start did not appear to be determined by the amount of forage that was in the field. This was because the weather seemed to determine how much trampling loss occurred. In wet years, we harvested less than 15% of the forage, and on average, we captured about 30%.

The trend in cattle prices over the last year has been dramatically toward the upside. Prices have risen higher and faster than many market analysts thought possible for 2023. These changes in market value are having an impact on beef cow share and cash lease agreements in determining what is “fair” to both cow owners and those who are leasing the cows.

For a cow owner, the following are the four major drivers that determine what is "fair" in terms of a cash lease or percentage of the calf crop the cow owner should receive. Those factors are: