GRAIN prices have slipped, machinery sales are slowing and drought continues to bite in parts of the US, but the mood in America's agricultural sector is far from depressed.
In fact, it's seriously bullish if you are a cattle producer.
Americans have re-discovered their hunger for beef, while cheaper grain costs are making the big US lot feeding sector more profitable.
"Beef prices are at record levels," said American Hereford Association regional manager, Levi Landers in Minden, Nebraska, where agriculture employs about 30 per cent of the State's workforce.
"Feeder calves have been making as much as $US3 a pound ($A6.60 a kilogram).
"Prices are now averaging about $US1000 ($1110) a head above last year's levels.
"It's as good as anybody has ever seen."
With Nebraska's 6.2 million-strong herd producing one in every three steaks eaten in the US, Mr Landers said the Great Plains State was making the most of its bounce back from drought which hit hard in 2012 exacerbating a five-year slide in herd numbers in the Midwest and across the country.
Producers were now taking advantage of booming markets and cheaper grain costs to invest in herd rebuilding, better genetics and new cattle handling gear.
Nebraskan producers, who run an average 90 head per farm, estimate breeder cow numbers are up marginally on the back of this year's good seasonal conditions, but consumer demand has kept herd growth in check.
"Demand's very good - we've seen a lift of at least 20 per cent from the consumer level in the past year or so," Mr Landers said.
"Americans are eating more beef and people are feeling more confident about eating out.
Ironically, despite Nebraska being home to America's second biggest cow and calf herd, the nation's second largest beef export economy (worth about $US840m annually), and having the most cattle on feed (2.5m), its livestock sector has given up ground to much more cropping activity in the past decade.
Farmer Steve Kruger from Washington County near Omaha, like many Midwest mixed farmers, said improved corn (maize) yield productivity, including genetically modified (GM) varieties, had helped make cropping margins much more profitable.
His 2200-hectare family farm no longer calved out any cows to supply the feeder market.
Demand for ethanol to meet US renewable fuel mandates had also underpinned a 20pc to 30pc lift in crop earnings in the past decade, particularly corn.
While his wheat yields had not changed much, dryland corn was now typically yielding from 9.2 tonnes a hectare (150 bushels an acre) to 11t/ha (180bu/acre) compared with 4.9t to 6.1t/ha (80-100bu/acre) in good seasons less than 10 years ago.
Although corn prices were now back to about half the $US240/t ($US6/bu) highs common two years ago, soybeans had dropped $US4/bu to $US10 ($US367/t) and wheat was down from $US8/bu to about $US6/bu ($US220/t), he said every acre of ground he farmed this year would be cropped again next summer.
"Overall the mood is pretty good," he said, noting many farmers had made the most of the past few years of strong prices and machinery tax break incentives to buy new gear.
"And it's still expensive to buy land - $9000/acre ($22,000/ha).
"A lot of farms have removed un- wanted sheds and livestock infrastructure to expand planting areas."
The US Department of Agriculture has tipped total farm income will fall 13.8pc from last year's record high to $US113.2 billion.
Yet, while it is the lowest income forecast since 2010, it remains the fifth highest on record and better than earlier USDA estimates thanks to a 15pc jump in livestock producer revenues.
Kirk Shane has 2800ha of pasture country running 800 Angus cows crossed to Simmental bulls and grows lucerne plus 2300ha of row crops in Holt County, Nebraska, one of America's top three beef production counties.
He expected to average $US2100/ head ($2330) for 15-month-old steers this year, after last month selling to a top price of $US1.63/pound (almost $A4/kg).
Andrew Marshall travelled to the US as a guest of Case IH.