Agricultural Terms & Glossary

Weekly federal map rating drought from D0 (dry) to D4 (exceptional).

The U.S. Drought Monitor is a weekly map published by NOAA, USDA, and the National Drought Mitigation Center. It classifies drought intensity from D0 through D4 based on precipitation, soil moisture, streamflow, and other indicators. County drought ratings directly determine eligibility for federal disaster programs like LFP.

• D0Abnormally Dry: short-term dryness; no LFP trigger
• D1Moderate Drought: some crop/pasture damage; no LFP trigger
• D2Severe Drought: crop/pasture losses likely; may trigger LFP (1 month)
• D3Extreme Drought: major losses, water shortages; may trigger LFP (3 months)
• D4Exceptional Drought: widespread emergency; may trigger LFP (4+ months)

Livestock Forage Program — may provide payments when drought cuts grazing.

The Livestock Forage Program (LFP) can provide payments to eligible livestock producers who have grazing losses due to drought or fire on federally managed land. Payment amounts depend on drought severity and duration as measured by the Drought Monitor. Producers typically apply at their local FSA office within 30 days of the county drought designation.

Emergency Livestock Assistance — may cover losses not handled by other programs.

The Emergency Livestock Assistance Program (ELAP) can provide payments for livestock losses from weather events or disease that are not covered by LFP or LIP. This may include above-normal hauling costs for water or feed during drought, grazing losses from wildfire on non-federal land, and other eligible expenses. Producers file a notice of loss with FSA.

Livestock Indemnity Program — may compensate for livestock deaths from disasters.

The Livestock Indemnity Program (LIP) can provide payments to eligible producers for livestock deaths caused by eligible weather events, disease, or attacks by federally reintroduced animals. Payments are based on a percentage of the animal's fair market value. Producers must file a notice of loss with their local FSA office within 30 days.

Contracts to buy or sell a commodity at a set price on a future date.

Futures contracts are standardized agreements traded on exchanges like the CME to buy or sell a commodity at a specific price and date. They let producers lock in prices months ahead of actual sale. Cattle futures (feeder and live) are the main benchmarks ranchers watch to gauge where the market is heading.

The price paid for cattle in today's spot market, not futures.

Cash cattle (also called the cash market or spot market) refers to negotiated trade where cattle change hands at current market prices. This is distinct from futures, which are forward-looking contracts. The cash price reflects what buyers and sellers agree to right now, and regional cash trade is reported daily by USDA.

The difference between the local cash price and the futures price.

Basis is the gap between what your local market is paying (cash) and the corresponding futures contract price. A strong basis means the local price is closer to or above futures; a weak basis means the local price is well below. Tracking basis helps you decide when to sell and whether to hedge with futures.

Wholesale beef prices — what packers get for processed cuts.

Boxed beef cutout values are USDA-reported wholesale prices for beef after slaughter and fabrication into primal cuts. The cutout is broken into Choice and Select grades. Rising boxed beef values generally support stronger cattle prices because packers can afford to pay more for live animals.

Price gap between USDA Choice and Select beef — reflects quality premium.

Choice and Select are USDA beef quality grades based on marbling. Choice has more marbling and commands a higher price. The spread between them reflects the market premium for quality. A wide spread (say $20+/cwt) means strong demand for higher-quality beef; a narrow spread means quality is less differentiated in the market.

Young cattle (600-900 lbs) heading to a feedlot to be finished.

Feeder cattle are weaned calves or yearlings, typically 600 to 900 pounds, that move from ranch to feedlot for finishing on grain. Feeder cattle futures trade on the CME and are a key benchmark for cow-calf producers. Feeder prices are sensitive to both fed cattle values and feed costs.

Finished cattle (~1,200-1,400 lbs) ready for harvest.

Live cattle are fed cattle that have reached market weight, typically 1,200 to 1,400 pounds. Live cattle futures on the CME are the primary benchmark for finished cattle prices. What live cattle bring ultimately ripples back to feeder and calf prices.

Your total cost of production per cwt — the price you need to avoid a loss.

Break-even is the sale price per hundredweight at which your total production costs are covered and you neither make nor lose money. It includes feed, pasture, vet, interest, overhead, and all other costs divided by the expected sale weight. Knowing your break-even lets you make informed marketing decisions.

Average date of last spring frost or first fall frost for your area.

Frost dates are historical averages showing when your area typically sees its last freezing temperature in spring and first freeze in fall. The growing season falls between these dates. Actual frost can vary significantly year to year, but the averages help with planting, calving, and turnout decisions.

Growing Degree Days — accumulated heat units that track crop and forage development.

Growing Degree Days (GDD) measure the accumulated warmth above a base temperature (usually 50°F for most grasses) over the growing season. Each day's GDD equals the average temperature minus the base, with negative values set to zero. More GDD means faster plant development. Comparing current GDD to normal tells you if the season is running ahead or behind.

Cubic feet per second — measures streamflow volume for water supply.

Cubic feet per second (CFS) is the standard measurement for streamflow. It tells you how much water is passing a point in the stream each second. Higher CFS means more water for irrigation and stock water. USGS publishes real-time CFS data for gauging stations across the country.

USDA weekly rating of pasture/rangeland quality (% rated good to excellent).

USDA's National Agricultural Statistics Service rates pasture and rangeland condition weekly during the growing season. Ratings range from very poor to excellent. The percentage rated good to excellent is the standard benchmark. Low ratings can signal the need to reduce stocking rates or arrange supplemental feed.

Vegetation Health Index — satellite-based score from 0 (stressed) to 100 (healthy).

The Vegetation Health Index (VHI) combines satellite measurements of greenness and land surface temperature into a single 0-to-100 score. Lower values indicate vegetation stress from drought, heat, or other factors. VHI is published weekly by NOAA and is useful for spotting developing forage problems before they are obvious on the ground.

• 0-10Extreme stress: vegetation severely damaged
• 10-20Severe stress: significant damage likely
• 20-40Moderate stress: below-normal conditions
• 40-60Fair: near-normal vegetation health
• 60-100Good to excellent: healthy vegetation

Satellite greenness score from 0 (bare ground) to 1 (dense green vegetation).

Normalized Difference Vegetation Index (NDVI) measures how green and actively growing vegetation is, using satellite imagery. Values range from 0 (bare soil, rock, water) to 1 (dense, healthy vegetation). Typical rangeland in good condition runs 0.3 to 0.6. Comparing current NDVI to the historical average for the same week shows whether conditions are better or worse than normal.

Vegetation Condition Index — current greenness compared to the historical range.

The Vegetation Condition Index (VCI) compares current NDVI to the historical minimum and maximum for the same location and time of year, on a 0-to-100 scale. A VCI of 50 means conditions are right at the midpoint of the historical range. Values below 35 may indicate drought stress.

Temperature Condition Index — current land temperature vs. historical range.

The Temperature Condition Index (TCI) compares current land surface temperature to the historical range for the same location and time of year, on a 0-to-100 scale. Low TCI values indicate thermal stress from excessive heat. Combined with VCI, it forms the basis of the Vegetation Health Index (VHI).

Highly Erodible Land — a soil designation that affects USDA program eligibility.

Highly Erodible Land (HEL) is a NRCS soil classification for land that is especially prone to erosion. If your operation includes HEL, you may need an approved conservation plan to stay eligible for most USDA programs including crop insurance, CRP, and EQIP. Your local NRCS office can tell you if any of your fields are classified as HEL.

NRCS soil rating (Class I-VIII) — lower number means fewer farming limitations.

Land Capability Class is a NRCS rating system that groups soils from Class I (fewest limitations for farming) through Class VIII (unsuitable for cultivation). Classes I through IV are generally considered suitable for cropland. Classes V through VIII have increasing limitations and are better suited for pasture, range, or woodland. This classification can affect rental rates, CRP eligibility, and conservation planning.

• IFew limitations, wide range of crops
• IIModerate limitations, some conservation needed
• IIISevere limitations, careful management required
• IVVery severe limitations, limited crop choice
• VNot suited for cultivation, pasture/range/timber
• VISevere limitations, grazing and forestry use
• VIIVery severe limitations, careful grazing management
• VIIIUnsuitable for farming, wildlife/recreation only

USDA's monthly supply-and-demand report — moves grain and livestock markets.

The World Agricultural Supply and Demand Estimates (WASDE) is published monthly by USDA, usually around the 10th-12th. It forecasts production, consumption, trade, and ending stocks for major commodities worldwide. WASDE releases regularly move commodity futures because they update the market's baseline supply and demand picture.

Monthly USDA report on feedlot inventory, placements, and marketings.

The Cattle on Feed report is published monthly by USDA NASS, usually on or near the third Friday. It covers feedlot inventory (cattle currently being finished), placements (new cattle entering feedlots), and marketings (cattle sold for harvest). The report is a key driver of cattle futures — placements above expectations tend to pressure prices, while lower placements can be bullish.

Weekly USDA report on planting, development, and condition of major crops.

The Crop Progress report is published weekly by USDA NASS during the growing season, typically on Monday afternoons. It tracks planting progress, crop development stages, and condition ratings (very poor to excellent) for major crops and pasture/rangeland by state. It's one of the main pulse checks on how the season is going.

Pasture, Rangeland, Forage insurance — rainfall index policy for grazing land.

Pasture, Rangeland, Forage (PRF) is a federally subsidized rainfall index insurance product. It can pay an indemnity when rainfall in your selected grid and time intervals falls below a threshold you choose. There is no individual loss adjustment — payments are based solely on the rainfall index for your area. Sign-up deadline is typically December 1 for the following year.

NRCS cost-share program that can help pay for conservation practices.

The Environmental Quality Incentives Program (EQIP) provides financial and technical assistance through NRCS to help producers implement conservation practices. EQIP may cover up to 75% of costs (higher rates for beginning and historically underserved producers). Common practices include fencing, water development, brush management, and prescribed grazing plans.

Conservation Stewardship Program — annual payments for conservation you're already doing.

The Conservation Stewardship Program (CSP) provides annual payments to producers who maintain and improve existing conservation practices. Unlike EQIP, which helps you adopt new practices, CSP can reward you for stewardship activities already in place and for adopting enhancements. Contracts are typically five years.

Conservation Reserve Program — annual rent for retiring sensitive land from production.

The Conservation Reserve Program (CRP) provides annual rental payments to producers who voluntarily retire environmentally sensitive cropland or marginal pasture from production by planting permanent cover. Contracts run 10 to 15 years. CRP can also include cost-share for establishing the cover. Emergency haying and grazing may be authorized during drought.

Commodity safety net — can pay when crop prices or revenues drop below a reference level.

Agriculture Risk Coverage (ARC) and Price Loss Coverage (PLC) are USDA safety-net programs for covered commodities. PLC may make payments when the national market price falls below a reference price. ARC may pay when county revenue drops below a guarantee based on recent history. Producers elect ARC or PLC by crop, and the election applies for the duration of the farm bill.

The percentage of expected yield or revenue your crop insurance will cover.

Coverage level is the percentage of your guaranteed yield or revenue that your insurance policy will protect. Common levels range from 50% to 85% (some products up to 90%). Higher coverage costs more in premium but provides a larger safety net. For example, at 75% coverage, your indemnity trigger is 75% of your expected yield or revenue.

Actual Production History — your farm's yield record that sets insurance guarantees.

Actual Production History (APH) is the yield record your crop insurance guarantee is based on. It is typically an average of your farm's actual yields over the past 4 to 10 years. Higher APH means a higher guarantee and potentially larger indemnity payments. Keeping accurate production records is essential for maintaining a strong APH.

Hundredweight — 100 pounds. Standard unit for cattle pricing.

Hundredweight (cwt) equals 100 pounds and is the standard pricing unit for cattle. When cattle are quoted at $190/cwt, that means $1.90 per pound of live weight. A 1,350-pound steer at $190/cwt would gross $2,565.

Bushel — standard volume measure for grain (varies by crop).

A bushel (bu) is the standard unit for pricing and measuring grain. The weight per bushel varies by crop: corn is 56 pounds, wheat is 60 pounds, soybeans are 60 pounds, and oats are 32 pounds. When corn is quoted at $4.50/bu, that means $4.50 per 56 pounds.

Dollars per gallon — standard pricing for diesel and other fuels.

Dollars per gallon ($/gal) is the standard retail fuel pricing unit. For ranch budgeting, diesel is usually the most tracked fuel cost because it powers tractors, trucks, and equipment. USDA publishes weekly regional diesel prices that Pulse tracks alongside your other input costs.