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Asking the Right Questions: Fulfilling Your Duty on the Cooperative Board of Directors
You have been elected to the board of directors, and now what? Gaining some confidence as a new director can be as simple as asking important questions. This is a brief dive into your fiduciary duties and role as a director of a cooperative with a focus on the questions you should be asking. But first, what are fiduciary duties?

Fiduciary Duties

In simple terms, a fiduciary is someone who is entrusted to act on behalf of another. As a director of your cooperative, you have been given authority to act on the behalf of cooperative members. There are specific duties associated with this role. Some of them include:

The Duty of Loyalty

Acting in unity with the best interests of the cooperative and its members.

The Duty of Care

Exercising reasonable care, skill, and diligence in carrying out your responsibilities.

The Duty of Good Faith

Acting honestly and fairly in your dealings with the cooperative and its members.

The Duty of Confidentiality

Keeping confidential all information related to the cooperative and not using that information for personal gain.

Your role as a director

Your role as director is to represent the interests of the cooperative members, and to represent the interests of the cooperative itself. As a director, your role is limited to a few general things.
1. Hire and evaluate a manager (and then get out of the way).
2. Establish policies to protect the cooperative, its assets, and its employees.
3. Engage professional services needed by the cooperative such as a lawyer or auditor.
4. Ensure accountability for the proper use of cooperative assets.
5. Provide strategic direction.
Some questions for self-reflection

Let’s consider some questions that might help you stay aligned with your fiduciary and board responsibilities. During board discussions, you might ask yourself:
1. Is this a topic for board discussion, or is it the responsibility of management?
2. How will this decision affect our members?
3. Is this decision fair to all members?
4. Do we fully understand the facts about this issue?
5. Have we verified this information?
6. Is there anything about our decision that might have the appearance of something illegal or unethical?
7. Is this something that should not be discussed outside the boardroom?
Some questions to improve board discussions

The best boards are the ones that engage in a lot of discussion. If your board meetings feel repetitive, or methodical, or if you feel like your board is in a rut, simply approving what is presented, consider asking some of these questions.
1. Does this support the mission of the cooperative?
  1. Why does our cooperative exist?
  2. What does our cooperative do better than competitors?
  3. Why should someone be a member of our cooperative?
2. What are the financial trends of our cooperative, and how do they compare to our industry?
  1. Are we profitable?
  2. Are we efficient?
  3. Are we adding value to member investments?
  4. Are we taking unusual risks (including the status of our accounts receivable)?
  5. Are we replacing and protecting assets?
3. What are the forces that impact profitability in our industry, and how can we counteract them?
  1. How can we avoid price competition with rival firms?
  2. Is it likely that new firms could enter our industry?
  3. Could our core business be replaced by firms or technologies from other industries?
  4. Do our suppliers have power over prices?
  5. Do our buyers have power over prices?
The most common advice that veteran directors offer new directors is to ask lots of questions. It’s natural to feel reluctant to ask questions. Maybe you are embarrassed to ask something simple, or you are afraid to appear inexperienced. But your questions are likely in the minds of others as well. The answers to these questions will generate discussions that strengthen board connections and overcome groupthink. The questions presented here will help new directors to become more confident in their duties, and boards to become more progressive and effective.

Park, John. “Asking the Right Questions: Fulfilling Your Duty on the Cooperative Board of Directors.” Southern Ag Today 5(41.5). October 10, 2025. Permalink
October 10, 2025
Feral Swine Eradication and Control Pilot Program and Crop Insurance Indemnities

Introduction

Wildlife damage to crops has become a growing concern for U.S. agriculture. Crop insurance records show that payments for wildlife-related losses increased from about $15 million in 2012 to nearly $39 million in 2022. Among the different threats, feral swine stand out as one of the most destructive, causing an estimated $800 million in damages each year to crops, livestock, property, and even natural resources such as water quality and wildlife habitat.

Feral swine have spread quickly—moving from fewer than 20 states in the early 1980s to more than 30 states today. Because animals often cross property lines, private control efforts, such as hunting and trapping, have been costly and only partly effective. This has created demand for coordinated public programs that can reduce hog populations and restore damaged farmland.

In response, the 2018 Farm Bill created the Feral Swine Eradication and Control Pilot Program (FSCP) with $75 million in funding to remove feral hogs and restore land. The program began in 2020 in 20 selected counties across 11 southern states and expanded in 2021. These counties were selected based on feral swine presence and notable increases in damages (Figure 1). This article summarizes findings from our recent study (Duncan et al., 2025) that evaluated the impact of the FSCP on crop insurance damages.

Findings

Our analysis of USDA Risk Management Agency data from 2013 to 2022 indicates that the FSCP has had an impact, but the benefits are not spread evenly across all crops. The clearest effect was seen in corn. Counties participating in FSCP showed fewer corn acres receiving wildlife-related insurance payments than similar counties without the program. This pattern is consistent with what producers in the field have reported—that corn losses to feral hogs were noticeably lower in areas where FSCP activities were underway.

For other crops, the story is more mixed. For soybeans, wheat, and peanuts, however, the data looked much the same—whether or not counties participated in FSCP. Cotton did show some reduction in losses in certain years, but the effect was smaller and less consistent than what we observed for corn. These results suggest that while FSCP is helping to address hog damage, especially for corn, it may take more time and continued investment before its benefits can be clearly seen for other crops.

Implications

The finding that corn producers benefited the most from FSCP is not surprising. Corn is one of the crops most heavily targeted by feral hogs, and the program’s design, focused on removal and land restoration, appears to be reducing this pressure. For producers, this means that FSCP can serve as a valuable complement to private control efforts that have often proven costly and only partly effective. The lack of clear effects for other crops should not be taken to mean that the program has no value beyond corn. Rather, it may reflect the fact that FSCP is still in its early stages. The program roll out coincided with COVID-19 disruptions which potentially slowed participation and adoption. It is possible that as the program continues and expands, measurable benefits for soybeans, peanuts, and wheat could become more apparent. Also, we should note that a limitation of this study is that only crop damages that were severe enough to trigger crop insurance payments were included. The crop insurance data does not determine the species causing crop damage. We exclude damages that were not severe enough to trigger a crop insurance payment, as well as benefits to livestock health, property, and the environment.

For policymakers, these results suggest that targeting resources towards corn-producing regions could deliver the greatest near-term return on investment. Continued funding and expansion could strengthen these results and help ensure that the success of the corn program translates more widely throughout US agriculture in the coming years.

Figure 1. Wildlife-related indemnified crop acres by crop, 2013–2022. Soybeans and corn account for the majority of reported losses.

Duncan, H., Boyer, C. N., Park, E., & Smith, S. A. (2025). “Evaluating Feral Swine Eradication and Control Pilot Program Impact on Crop Indemnities.” Applied Economic Perspectives and Policy. https://doi.org/10.1002/aepp.70016

Park, Eunchun, Hence Duncan, Christopher Boyer, and Aaron Smith. “Feral Swine Eradication and Control Pilot Program and Crop Insurance Indemnities.” Southern Ag Today 5(41.4). October 9, 2025. Permalink

October 9, 2025
How Brazil’s Rise in Global Cotton Markets Impacts U.S. Exports

The United States had long been the world’s leading cotton exporter (Figure 1), with 87% of cotton production, on average, destined for export markets over the past decade (2016 – 2025). In 2016, U.S. cotton exports captured 39% of the global market, but this share has steadily declined since the onset of trade disputes with China. By 2023, the U.S. share in the global cotton market had fallen to 26%, its lowest point in over a decade. Although it rebounded slightly to 28% in 2024 and 2025, U.S. cotton has faced rising competitive pressures, particularly from Brazil. Brazil’s ability to double-crop cotton with other crops has driven substantial growth in its cotton production and exports. Consequently, Brazil has rapidly expanded its role in the global cotton market, surpassing U.S. cotton export volumes by 2023 and becoming the world’s leading cotton exporter. This shift is closely tied to China’s strategic diversification away from U.S. cotton, with Chinese investment in Brazilian infrastructure improving logistics, port access, and overall competitiveness.

Cotton prices received by producers across countries vary only slightly, with Brazilian cotton producers typically receiving marginally lower prices than their U.S. counterparts. Although Brazilian cotton producers face higher seasonal costs per acre for fungicides and insecticides due to the tropical climate, these expenses are more than offset by advantages in land, labor, and machinery costs. Consequently, Brazil’s overall production costs per acre for cotton are slightly lower than those of the U.S. producers, reinforcing the former’s competitiveness. Moreover, USDA FAS data indicate that Brazilian cotton yields from 2021 to 2024 averaged 1.8 times that of U.S. yields, resulting in significantly lower costs per pound of cotton produced. Since Brazil’s production costs for cotton remain below market prices, its cotton producers have continued to operate profitably, enabling expanded production. As a result, Brazil’s cotton output has surged, and by 2023, it had surpassed U.S. cotton production, becoming the world’s third-largest cotton producer after China and India. In contrast, U.S. cotton producers have faced production costs exceeding gross revenues, leading to financial losses since 2022 (Liu 2024), coincidental with a severe drought that year in the U.S. Southern Plains.

The global cotton market is undergoing significant shifts, with Brazil emerging as a leading exporter and the United States facing new competitive pressures. Brazil’s ability to expand production efficiently, combined with China’s strategic diversification, has reshaped export patterns and global market shares. For U.S. producers, this evolving landscape underscores the importance of monitoring international market trends, production costs, and trade relationships. While challenges exist, understanding these dynamics can help growers make informed planting, marketing, and risk management decisions, ensuring continued competitiveness in a changing global market.

Figure 1. Top Three Global Cotton Exporters by Country and Year.

Data from the U.S. Department of Agriculture, Foreign Agricultural Service, Production, Supply and Distribution Database.

Liu, Yanguan, Gopinath Munisamy, and John Robinson. “How Brazil’s Rise in Global Cotton Markets Impacts U.S. Exports.” Southern Ag Today 5(41.3). October 8, 2025. Permalink

October 8, 2025
Cull Cow Prices See Just a Little Seasonal Decline

Cull cow prices typically decline this time of the year as beef and dairy cow culling ramp up and the beef market is fully past grilling season.  Cow prices this Fall have shown just a little seasonal decline as tight beef supplies keep prices high.

Southern Plains cow prices at auctions have been about $165 per cwt since mid-year, with a brief dip into the low $150s in the last 2 weeks.  Prices a year ago at this time were under $120 per cwt. and were declining to their Fall lows.  Cutter quality cows have declined from about $137 to about $129 per cwt over the last few weeks, showing a little more seasonal decline.  On the meat side, the boxed cow beef cutout and 90 percent lean boneless beef have shown little seasonal decline and are sitting at record levels.

Total cow slaughter includes dairy and beef cows.  Beef and dairy cow slaughter each exhibit a different seasonality based on production patterns.  Beef cow slaughter hits its peak in the Fall when most culling occurs around the country.  Dairy cow slaughter peaks early in the first quarter of the year but, does increase in the Fall.  The dairy herd has been expanding this year due to profits hitting over 9.5 million head on September 1, 2025, the most since 1993.  As the herd has grown, culling has increased.  For the year, total dairy cow slaughter is almost 19 percent smaller than the same period in 2024.  But, in the last 2 months dairy cow slaughter is equal to last year.  Beef cow slaughter remains well below last year but may begin to pick up seasonally in coming weeks.  In total, cow culling has closed the gap compared to last year in recent weeks but, it has not been enough to weaken prices.

Cull cow prices are going to stay high.  While a little more beef cow culling should occur this Fall even with larger dairy cow culling it won’t be enough to drastically boost supplies.  There is little evidence of consumers switching to competing meats indicating that demand remains quite good.  So, overall, this should be the best Fall cull cow market ever.

Anderson, David. “Cull Cow Prices See Just a Little Seasonal Decline.” Southern Ag Today 5(41.2). October 7, 2025. Permalink

October 7, 2025
Three Considerations When Comparing the Cost of Buying Bred Heifers to the Cost of Developing Them

As we roll through fall, spring-born calves will be weaned and many of those heifer calves will be held for replacement purposes. At the same time, a large number of bred heifers will hit the market and be available for the same purpose. It is not uncommon for someone to comment on how expensive bred heifers are and assume that they can develop their own heifers for much less. While this is true in some cases, I also think it is easy to underestimate some of those costs. The purpose of this article is to briefly highlight three things that are crucial to consider when a cow-calf operator tries to make this comparison. And I would argue these are even more significant given the strength of the current cattle market.

The opportunity cost is the biggest cost

I hope this one is obvious, but the largest cost of developing a heifer is the opportunity cost of that heifer at weaning. High quality weaned heifers, in the 500-600 lb range, are bringing $2,000 and higher across most US markets. Whatever those heifer calves are worth in the marketplace is the first cost of heifer development. By not selling that heifer calf, one is forgoing that income. This cost is huge right now due to the strength of the calf market and higher interest rates, which makes forgoing that income even more significant. While the heifer herself is the easiest opportunity cost to quantify, this applies to all the costs of developing her (feed, pasture, breeding, facilities, labor, etc.).

They won’t all make the cut

After the initial cost of not selling the heifer at weaning, another year of expenses will be incurred to get that heifer to the same stage as those bred heifers on the marketplace. She will be carried through a full winter and summer grazing season and be bred to calve the following year. There are significant costs in doing this, but it is also important to understand that not all those heifers are going to end up being kept for breeding. Some will fail to breed, and others will simply not meet the expectations of the farmer. Heifers not kept for breeding will end up being sold as feeders and likely won’t cover all those expenses. The “loss” on these heifers becomes an additional cost of the heifers that do enter the cow herd as replacements.

Next year’s calf should be very profitable

This is another one that doesn’t get much attention but really matters in a time like the present. It’s easier to think about this one applied to a specific timeline so I will frame it for a heifer born this spring. A heifer calf weaned in the fall 2025, kept for replacement purposes and bred in 2026, won’t wean her first calf until fall of 2027. Conversely, those bred heifers on the market in fall of 2025 should wean their first calf in 2026. While nothing is guaranteed in the cattle markets, fundamentals suggest that 2026 should be a profitable year for cow-calf operations. The potential profit on that calf in 2026 becomes capitalized in the value of those bred heifers in 2025. For this reason, comparing the cost of a bred heifer in fall 2025 to the cost of developing a heifer weaned in fall of 2025, can be misleading.

The purpose of this article was not to suggest that either replacement strategy was best. There is merit in both approaches, and it largely comes down to the goals of the operator. While I am an economist, I also recognize there are a lot of non-economic considerations that come into play. But the economics of the decision is complex, and carefully thinking through all aspects of the decision is likely time well spent.

Burdine, Kenny. “Three Considerations When Comparing the Cost of Buying Bred Heifers to the Cost of Developing Them.” Southern Ag Today 5(41.1). October 6, 2025. Permalink

October 6, 2025