January 22, 2020

Development, Doha and EU Farm Policy

Categories: Doha / Trade /EU

Additional news regarding development, the Doha Round of W.T.O. trade talks and EU Farm Policy, is now available at the German Marshall Fund’s Trade & Development webpage.

Just click here for complete details.


Production Costs

I. Production Costs
II. Prospects for Farm Policy Reform
III. Ethanol / Prices
IV. Focus on Livestock
V. Food Safety
VI. Brazil

I. Production Costs

On Friday, the U.S. Department Agriculture’s Economic Research Service (E.R.S.) released a “Cost-of-Production Forecast for U.S. major field crops 2006-2008F” (Excel spreadsheet).

Photo by U.S.D.A.

A summary of the cost-of-production estimates indicated that, “In addition to the time series of historical cost and return accounts, cost-of-production forecasts for major field crops are available for the current year. The forecasts are developed as a part of the USDA Baseline projections to help develop projected net returns for major field crops. These long-term baseline projections provide a starting point for discussion of alternative outcomes for the agricultural sector under expected or proposed future policies. Cost-of-production is only forecast at the national level and would differ considerably among regions, individual farmers, and by size of operation.”

Although the market prices of some program crops, particularly corn, have risen sharply over the past three months, many producers remain concerned about their net income. Higher market prices are certainly welcome, but if production costs increase at a similar rate as revenue, net income in some circumstances could stagnate.