FarmPolicy

October 19, 2019

ERS: Crop receipts forecast to fall, livestock receipts could set new records in 2014

ers

From USDA’s Economic Research Service (ERS): “Crop receipts are expected to decline 7 percent in 2014, the second annual decrease following a record high in 2012. Even with record corn production projected, cash receipts for corn are expected to decline by over 20 percent due to a significant decrease (-32 percent) in the annual average corn price. Declines in receipts are also expected for most other major crops including fruits and nuts, wheat, soybeans, and vegetables/melons. A notable exception is cotton, which is projected to recover from a significant decline in 2013. Conversely, record livestock prices are projected to drive a 15.3-percent increase in livestock cash receipts. Despite expected declines in beef production, cattle/calves receipts are expected to set a record in 2014 due to higher prices. Hog production is also expected to decline, but higher expected annual average prices drive the forecast increase in hog cash receipts. Wholesale milk and broiler receipts are expected to benefit from higher production and record annual average prices. See the Farm Income and Wealth Statistics data product for more information on USDA’s 2014 forecast for the farm economy, released on August 26, 2014.”

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Farm Bill; Ag Economy; and, Biotech

Farm Bill

On Friday, Don Wick, of The Red River Farm Network (RRFN), spoke with Secretary of Agriculture Tom Vilsack about Farm Bill issues.

An audio replay of the RRFN discussion can be found here, while an unofficial FarmPolicy.com transcript of the conversation with Don Wick and Sec. Vilsack is available here.

In part, Sec. Vilsack indicated that, “As you know, direct payments, Don, are gone, replaced by a real focus on crop insurance and these new safety net programs, the Agricultural Risk Coverage program and the Price Loss Coverage program. Producers will have, starting Monday, the opportunity to reallocate—I should say the owners of the property have the opportunity to reallocate base acres and to adjust yields, and they’ll have that opportunity from September 29th to February 27, 2015. Starting on November 17, 2014, and continuing at least until March 31st of 2015, they’ll have the opportunity to make the election as to which of these safety net programs is best for their operation.

“To aid them in making that decision between now and the time they make the decision, we are also announcing the availability of an online tool that has been developed by several land grant universities and food policy councils that will allow producers to plug in numbers that are very specific to their own operation.”

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