Emerging Issues in Agriculture Agricultural Economics 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 ID: 761463
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Emerging Issues in Agriculture Agricultural Economics
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
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.
Economics of Production Agriculture Issue Rank Labor management and availability 1.9 Variable input prices 4.2 International trade competition 8.1Food safety standards and compliance3.6Direct marketing issues4.8Retailer consolidation and access5.6Land prices and development pressures on ag7.3Distribution cost/availability6.0Concern for lower prices5.2Recession impact on premium/specialty products5.7Uncertainty of government policies regulating production6.1
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.
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.
Economics of Production Agriculture – Price Volatility Cow-calf profitability – Cow-calf operators are in about their 3 rd 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
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.
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