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Data & Analysis

Agriculture - March 2009

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

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Prices Received by Farmers—Cotton
Prices Received by Farmers-Cotton
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Source: USDA

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

Agriculture

March 2009

Weather conditions in the District were abnormally dry with periods of colder-than-normal weather that fortunately caused only limited crop damage. Drought conditions still prevailed in areas of Alabama, Florida, and Georgia. According to the U.S. Drought Monitor, most of Florida reported moderate to severe drought conditions. Similarly, despite a rainy February, low moisture persisted in most farm areas of Georgia.

Poultry
Cotton
Citrus
Peanuts

Poultry
Weak domestic and global demand continues to trouble the near-term outlook for the District's poultry industry. Lower consumption at the end of 2008 has led to cutbacks in production and earnings for major poultry-processing firms. According to USDA projections, broiler exports for 2009 are estimated to be 13 percent lower than last year. Much of the drop in global demand resulted from weak economic growth and a reduction in the import quota for Russia, the United States' largest export market for leg quarters.

Cotton
Global market conditions for cotton in early 2009 continued to worsen, led by lower textile mill use and higher international production. Cotton prices will remain soft as the ongoing economic and financial crisis is likely to limit demand for cotton goods for the remainder of 2009. The USDA's most recent estimate is not encouraging; it shows domestic and foreign mill use declining from a year earlier. The National Cotton Council estimates that cotton acreage in 2009 will be 14 percent lower than last year, with acreage in Georgia and Alabama down by 17 and 33 percent, respectively.

Citrus
Florida's orange crop was adversely affected by below-freezing temperatures in February. The USDA recently reduced its 2009 forecast for the Valencia crop by 3 percent because of large inventories and sluggish consumer demand.

Peanuts
The recent salmonella outbreak had a significantly negative effect on the local peanut industry. The severe drop in consumption and uncertain outlook threaten the economies of several rural communities where major production facilities are located.


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