1 / 9

Emerging Issues in Agriculture

Agricultural Economics. Emerging Issues in Agriculture. Macroeconomic Conditions. Weak overall economy affecting demand for most all ag commodities – especially hitting dairy and livestock producers.  Equine sales are also down drastically.  Domestic and international demand. Unemployment

dyani
Download Presentation

Emerging Issues in Agriculture

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Agricultural Economics Emerging Issues in Agriculture

  2. Macroeconomic Conditions • Weak overall economy • affecting demand for most all ag commodities – especially hitting dairy and livestock producers.  Equine sales are also down drastically.  Domestic and international demand. • Unemployment • Impacts on demand, off-farm job prospects

  3. Macroeconomic Conditions • Continued focus on business planning, marketing education, new business development • Moneywise -    The MONEYWI$E financial management website is a cross disciplinary approach to assist extension clientele in decision-making in today’s economy. • Annie’s Project – Annie’s Project is a risk management education program designed specifically for farmwomen.

  4. Economics of Production Agriculture

  5. Economics of Production Agriculture • Rising input costs – still an issue, although is has improved.  Especially Potash.  Greatly affecting production costs on hay, which is hurting cow-calf operators as well. • Price volatility – We just aren’t used to dealing with this much volatility.  We need to work with farmers on marketing plans incorporating price risk management - futures markets and livestock and crop price risk insurance. • New Crops and Diversification – Horticulture, switchgrass, organic grains require new cost and market assessments.

  6. Economics of Production Agriculture – Rising Input Costs • Optimal fertilization rates for corn (possibly wheat): Significant fluctuations in both commodity and N prices have occurred in the last three years making this issue more relevant than in the past.  • Labor – Changing H2A program will boost labor costs even more, especially impacting labor intensive enterprises like tobacco, horticulture.

  7. Economics of Production Agriculture – Price Volatility • Cow-calf profitability – Cow-calf operators are in about their 3rd tough year. Long run planning needed, such as cattle numbers and strategies to survive a brutal phase of the cattle cycle. • Grain price volatility – Continuing impact of ethanol, uncertainty of support programs, political environment, emerging renewable fuels. • Tobacco contract reductions – Structural changes in industry

  8. Economics of Production Agriculture – New Crops and Diversification • Emerging market channels – Auctions, direct markets, thin markets where prices for specialty products are hard to discover. Grapes, nursery, organic, and other high-value attributes especially volatile.

  9. Economics of Production Agriculture – New Crops and Diversification • Sustainability – Economics of alternative production systems for livestock, dairy, grain, horticultural crops. • Animal Welfare • Environmental Stewardship Mandates • Legislative and market mandates for sustainability • Implementation challenges for producers

More Related