The number of rice farms in the United States has been on a continuous decline over the past two decade but the size of farms planting rice has continued to grow. Despite declining rice acreage, rice productivity has increased as producers have adopted new technologies and cultivation practices.
Farms growing rice changed significantly over the past two decades in terms of operation size and the ways in which rice is produced. As the total number of farms growing rice declined (from 9,627 in 1997 to 5,591 in 2012), total U.S. planted rice acres also dropped at an annual average rate of about 0.75 percent between 1995 and 2017. U.S. farms growing rice expanded that acreage more than 50 percent between 2000 and 2013 to an average of 600 acres per farm. Farm size increased most in the South where larger farms were able to take advantage of size economies. The most significant change in rice production technologies from 2000 to 2013 was the introduction and adoption of new rice seed varieties. Southern rice producers increasingly planted hybrid and non-genetically modified herbicide-tolerant seed. Precision farming technologies also proliferated, especially the use of yield monitors and guidance systems for tractors and other self-propelled machines. The adoption of new technologies in rice farming pushed per-acre production costs higher, but rice yields also increased, offsetting much of the higher costs. U.S. rice production saw an estimated productivity gain of 29 percent from 2000 to 2013, about 2.2 percent annually. Structural and productivity changes on U.S. farms growing rice benefited U.S. domestic rice consumers by helping to keep prices low and enhanced the competitiveness of U.S. rice producers in global markets.
Organic crop acres in the United States more than doubled between 2002 and 2011 as acreage increased from 1.3 to over 3 million acres. While acreage for some major field crops increased substantially during this period, growth was more modest or had stalled for others. This study examines the profitability of corn, wheat, and soybean production using national survey data and finds that significant economic returns are possible from organic production of these crops. The main reason for higher per-bushel returns to organic production is the price premiums paid for organic crops. Despite potentially higher returns, the adoption of organic field crop production has been slow and is challenging due to such factors as achieving effective weed control and the processes involved with organic certification.
Farmers use antibiotics to treat, prevent, and control animal diseases and increase the productivity of animals and operations. However, there is concern that routine antibiotic use in livestock will contribute to antimicrobial-resistant pathogens, with repercussions for human and animal health. Given these concerns, pressure to limit antibiotic uses for purposes other than disease treatment is mounting. Changes in use will lead to a series of adjustments in animal agriculture as producers change production practices, with potential repercussions for prices and volumes in livestock markets. This report addresses the following questions: How widely are antibiotics used in the livestock industries? How could the current structure of the livestock industry influence the effects of restrictions on certain uses of antibiotics? How might the restriction of antibiotics affect production and costs at the animal and farm levels? How might those impacts affect production and prices in markets?
Amber Waves Home All Articles About Amber Waves Share or Save This Article Statistic: Crops July 05, 2016 PRINT PDF EMAIL Production, Transportation, and Policy Factors Determine U.S. Export Competitiveness in World Corn and Soybean Markets by Birgit Meade and William D McBride You are here: Home / Amber Waves / Production, Transportation, and Policy Factors Determine U.S. Export Competitiveness in World Corn and Soybean Markets Stay Connected United States Department of Agriculture Economic Research Service
Most research about the economics of organic field crop production evaluates variable costs using data from long-term experimental trial results, while little information is available about the relative economic costs and returns of organic production on commercial farms. This study uses data from targeted surveys of organic corn, wheat, and soybean production in an observational analysis of cost-of-production differences between conventional and organic cropping systems. Findings of this research suggest that significant economic returns are possible from organic crop production. Unlike long-term experimental trials—where returns are often the result of obtaining similar conventional and organic yields with lower organic production cost—this study finds the main reason for higher per-bushel returns to organic production to be the price premiums received for organic crops. Despite potentially higher returns, adoption of organic field crop production has been slow and challenging because of such factors as achieving effective weed control and acceptable yields, and organic certification costs and procedures.
This report explores export competitiveness of soybeans and corn in Argentina, Brazil, and the United States by comparing farm-level production costs, the cost of internal transportation and handling, and the cost of shipping to a common export destination. In addition, prices received by farmers and average yields for each crop in each country are analyzed to calculate producer returns. Errata: This report was revised in July 2016 by correcting table 5, which now corresponds with the text. The table includes two Brazilian regions for each commodity, additional rows that show two components of the farm price, and the correct transportation costs for Brazil.
U.S. crop acres under USDA certified organic systems have grown rapidly since the National Organic Program (NOP) was implemented in 2002. Organic crop acreage increased from about 1.3 million to almost 3.1 million acres between 2002 and 2011. While acreage for some major field crops increased substantially, growth was modest for others. Among three major field crops—corn, soybeans, and wheat—certified organic production of corn increased the most. Certified organic wheat acres were the highest, but declined after PRINT PDF EMAIL
A substantial share of U.S. hog producers incorporate antimicrobial drugs into their livestock's feed or water at sub-therapeutic levels to promote feed efficiency and weight gain. Recently, in response to concerns that the overuse of antibiotics in livestock could promote the development of antimicrobial drug-resistant bacteria, the U.S. Food and Drug Administration adopted a strategy to phase out the use of antibiotics for production purposes. This study uses a stochastic frontier model and data from the 2009 USDA Agricultural Resource Management Survey of feeder-to-finish hog producers to estimate the potential effects on hog output and output variability resulting from a ban on antibiotics used for growth promotion. We use propensity score nearest neighbor matching to create a balanced sample of sub-therapeutic antibiotic (STA) users and nonusers. We estimate the frontier model for the pooled sample and separately for users and non-users-which allows for a flexible interaction between STA use and the production technology. Point estimates for the matched sample indicate that STA use has a small positive effect on productivity and production risk, increasing output by 1.0-1.3% and reducing the standard deviation of unexplained output by 1.4%. The results indicate that improvements in productivity resulted exclusively from technological improvement rather than from an increase in technical efficiency.
U.S. hog farms declined in number by more than 70 percent over the past two decades while hog inventories remained stable. The result has been an industry with larger hog enterprises, increased specialization in a single phase of production, greater reliance on purchased feed rather than feed grown on the farm, and an increased reliance on formal contracts—connecting farmers, hog owners, and packers—to coordinate production. This structural change contributed to substantial productivity gains for hog farms, likely benefiting U.S. consumers in terms of lower pork prices and enhancing the competitive position of U.S. producers in international markets – though larger hog farms may increase environmental risks by concentrating production in areas with limited land avail- able for manure application. With most hogs now grown on very large operations and with productivity-enhancing technologies widespread, the slowdown in hog farm productivity growth after 2004 suggests that the era of dramatic productivity gains will likely remain unmatched, absent significant technological innovation.
Organic production has expanded rapidly in the US over the last decade, particularly for specialty crops. In 2005, USDA's Economic Research Service (ERS) and National Agricultural Statistics (NASS) began to include targeted sub-samples of organic producers in its major annual economic survey, the Agricultural Resource Management Survey (ARMS). In this article we use data from the 2006 ARMS to examine the characteristics of producers adopting the organic production approach to soybean production, and contrast these with conventional producers. Organic soybean producers were younger, had less acreage, were less likely to work off-farm, and were more often located in northern states than conventional soybean producers. Also, differences in the costs of production for each system are derived. Results indicate that the average costs for producing soybeans were higher for producers using the organic approach in 2006 after accounting for the influence of other factors on production costs, sample selection bias, and organic transition costs, but were covered by the higher premiums that year. However, the organic price premium for soybeans has narrowed since 2006, and reduced the economic incentive for converting to or maintaining an organic system.
Results from long-term experimental trials suggest that similar yields and lower costs are possible from organic compared with conventional field crop production, but there is little information about the relative costs and returns on commercial farms. This study examines the structure and profitability of field corn production using a nationwide survey of corn producers for 2010 that includes a targeted sample of organic growers. Propensity score matching was used to develop a sample of similar conventional and organic farms based on farm and operator characteristics. Treatment-effect models were estimated using the matched sample to isolate the effect of choosing the organic approach on various levels of corn production costs. The procedure accounts for the impact of both observable and unobservable variables on corn production costs.
Adoption of genetically engineered crops with traits for pest management has risen dramatically since their commercial introduction in the mid-1990's. The farm-level impacts of such crops on pesticide use, yields, and net returns vary with the crop and technology examined. Adoption of herbicide-tolerant cotton led to significant increase in yields and net returns, but was not associated with significant changes in herbicide use. On the other hand, increase in adoption of herbicide-tolerant soybeans led to small but significant increases in yields, no changes in net returns, and significant decreases in herbicide use. Adoption of Bt cotton in the Southeast significantly increased yields and net returns and significantly reduced insecticide use.