Regional Economics Information

Email
Print Friendly
A A A

Data & Analysis

Agriculture - May 2009

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

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

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

Agriculture

May 2009

Above-normal rainfall soaked most District farm areas, producing floods in Alabama and damaging some corn and cotton crops. Because fields were too wet, growers in Alabama, Georgia, and Tennessee sharply reduced fieldwork in early May. However, dry conditions still prevailed in areas of Florida, with soil moisture conditions requiring supplemental irrigation to citrus-producing areas.

Poultry
Cotton
Citrus
Peanuts

Poultry
Weak domestic and global demand is having a negative effect on the outlook for the District's poultry industry. Total production in 2009 is forecast to be 4 percent lower than in 2008. However, a regional poultry producer reports being encouraged by the rising demand for chicken from grocery stores, which is offsetting weak sales to restaurants. On the global front, broiler exports are up on a year-over-year basis from the first quarter of 2008 despite a decrease in shipments to Russia, the United States' largest market. Lower prices for leg quarters have recently boosted chicken exports to Mexico, China, and a number of smaller markets.

Cotton
Lower demand from domestic and global textile mills continues to dominate the uncertain market conditions for cotton in 2009. The USDA recently estimated that global cotton acreage and production are likely to decline for the third consecutive crop year. The United States is the world's leading cotton exporter, and its export volume will once again depend on a recovery of China's cotton consumption and, to a lesser extent, the recovery of other major import destinations such as Pakistan, Bangladesh, and Turkey.

Citrus
Despite challenges from greening disease, Florida's 2008–2009 orange production level was unchanged from estimates made in late 2008. In recent years, the citrus industry has survived canker disease, freezes, hurricanes, and even cheap orange juice imports from Brazil. However, state officials are currently very concerned about the advances of greening disease in Polk County, the state's largest growing area. This fatal bacterial disease could have an adverse impact on an industry that contributes almost 9 billion dollars a year to the state's economy.

Peanuts
The recent salmonella outbreak had a significantly negative effect on the peanut industry in Georgia, the nation's top peanut-producing state. According to state officials, peanut butter sales have plunged dramatically since September 2008, rising for the first time in March 2009. District growers are hoping that a continued rebound in demand in coming months will restore production. Peanut acreage in 2009 is down 27 percent, with Georgia and Alabama posting the largest drops; some growers reportedly switched to corn and soybeans to avoid the troubling market outlook for peanuts.


Archives