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Data & Analysis

Agriculture - January 2009

Data Sources on the Web
U.S. Department of Agriculture (USDA)
U.S. Drought Monitor
 
Excel logo Data
Prices Received by Farmers—Poultry
Prices Received by Farmers-Poultry
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Source: USDA

Excel logo Data
Prices Received by Farmers—Cotton
Prices Received by Farmers-Cotton
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Source: USDA

Excel logo Data
Prices Received by Farmers—Oranges
Prices Received by Farmers-Citrus
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Source: USDA
Data and Analysis

Agriculture

January 2009

Temperatures and rainfall varied across the District, with most areas benefiting from recent wet weather. December rainfall eased long-term drought conditions across the Southeast, and soil moisture ratings improved in parts of Alabama, Georgia, and Tennessee. However, abnormally dry to moderate drought conditions persisted in central Florida, according to the U.S. Drought Monitor.

Poultry
Cotton
Citrus

Poultry
Weak domestic and global demand in late 2008 lowered the near-term outlook for the poultry sector. Cutbacks in production and earnings were reported in late 2008 by major poultry processing firms troubled by lower domestic demand and uncertain global demand. A major regional producer filed for Chapter 11 bankruptcy in early December. Another major poultry producer recently reported losses due to lower demand from the restaurant sector and lower export shipments to customers who had trouble obtaining credit.

Cotton
Cotton prices have declined steadily since mid-2008 as production by China, India, and other global producers has increased faster than demand. Because 75 percent of U.S. cotton production is exported, the near-term outlook for District producers is uncertain. Even with production costs moderating, the weak price outlook will likely affect the financial positions of some cotton growers.

Citrus
Florida's orange crop estimates for December were 5 percent lower than 2007's output. Lower production estimates were welcomed by industry contacts who were concerned with the higher costs associated with disease controls and fertilizer prices. For 2009, growers will be challenged by large orange juice inventories and weaker consumer demand.


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