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US Corn, Soybeans, and Wheat in World Perspective: Importance of the US Cropped Acre Constraint

By Carl Zulauf, Agricultural Economist - The Ohio State University & Krista Swanson, University of Illinois ACES
link to farmdoc Daily article

Wide-spread concern exists over the large decline in US share of world corn, soybean, and wheat exports (see Figure 1). Moreover, quantity of corn and wheat exports have never consistently exceeded their early 1980 levels (see Figure 2). Tariff wars have heightened the concern. Long term impact of the tariff wars is a concern, but this article argues that graphs such as Figures 1 and 2 exaggerate the decline in US agriculture’s international standing and mask key relationships that frame private and public decisions. Data cited in this article come from PSD (Production, Supply, and Demand website).







Reasons for Exaggeration Growth in domestic US use is ignored. US consumption of meat, livestock products, and especially biofuels has grown, displacing exports, everything else remaining the same. Zulauf estimates US corn exports are 1.4 billion bushels smaller than if US corn market trends of 1984–2004 had continued to hold (farmdoc daily, 11/20/2019).

US policy changes are ignored. In particular, CRP (Conservation Reserve Program, which was authorized in 1985, pays for taking environmentally sensitive cropland out of production. Fewer cropped acres mean prices are higher than they would otherwise be. Higher prices reduce demand for exports more than domestic demand, resulting in fewer exports or slower growth in exports.
Broader markets in which a crop exists are ignored. Corn is a feed grain, soybean is an oilseed, and wheat is a food grain. Corn and soybeans are preferred among these crops around the world. However, their share of harvested feed grain-food grain-oilseed acres has increased more in the US (from 50% in 1972–1976 to 71% in 2015–2019 vs. 15% to 29% for rest of the world). Faster growth in preferred crops imparts an advantage to the US.

Conclusion

A more encompassing and likely more accurate measure of US agriculture’s international role is its share of aggregate world feed grain-food grain-oilseed production.
US share of world feed grain-food grain-oilseed production has declined, but by much less: from 19.3% in 1972–1976 to 16.2% in 2015–2019 (see Figure 3 and Data Note). This conclusion also holds for relative share decline. Relative decline in US share of world corn exports is –52%. It is calculated as percent change in 2015–2019 share from the 1972–1976 share, specifically [1 – (34.9% / 72.8%)] (percent values from Figure 1). Relative decline in US export share is –62% for soybeans and –69% for wheat. In contrast, relative decline in US share of world feed grain-food grain-oilseed production is only –16% (1 – (16.2% / 19.3%).




Closer Look

Because magnitude of a share matters, it is important to examine a share over its range of values (0% to 100%), as Figure 3 does. But, such a graph can mask important smaller, shorter-run changes. Figure 4, a smaller magnitude picture, clearly reveals 2 periods of decline. The first peak-to-trough is from 1982 (20.9%) to 1991 (16.3%). It closely follows the 1973–1980 crop prosperity period. The second peak-to-trough is from 2007 (17.6%) to 2015 (15.9%). It largely overlaps the 2007–2013 crop prosperity period. However, declines in 2018 and 2019 beg a question, “Have the tariff wars undone a possible stabilization in US share following large price declines since 2012?” Between the two declines, US share partially recovered, likely due in part to the large reduction in US prices due to policy changes enacted in the 1985 farm bill.




Role of US Acres Since the early 1980s, all growth in cumulative US production of feed grains, food grains, and oilseeds has come from yield as harvested acres declined by 26 million (see Figure 5). Since 2000, harvested acres have essentially not changed in the US while increasing by 301 million in the rest of the world. The constraint on US acres reflects both bioclimatic factors and public policy. It seems unlikely to change in the near future. The constraint means, if US domestic consumption grows faster than US yield, prices will increase, giving rest of the world an incentive to bring acres into production. This scenario played out as the US expanded its biofuel markets since 2000.




Summary Thoughts

A widely-expressed concern is the decline in US share of world corn, soybean, and wheat exports.
This decline however exaggerates the decline in US agriculture’s international standing. It also masks key relationships that frame private and public decisions.

A more accurate perspective is US share of world feed grain-food grain-oilseed production. This share has declined but by much less than US share of world corn, soybean, or wheat exports.
The decline occurred in two periods: 1982–1991 and 2007–2013. The second decline has, so far, been much less than the first. But, declines in 2018 and 2019 prompt the question, “Is the second decline resuming, especially in light of the tariff wars?”
A key feature of contemporary US agriculture is a constraint on cropped acres. Given this constraint, growing US demand faster than yield means most of the benefits accrue to the rest of the world as they bring more acres into production. Such has occurred since 2000 as the US expanded its biofuels markets.

The US cropland constraint prompts the following policy questions / issues. Given this constraint,
  • What is the appropriate role and funding for export promotion programs?
  • What should US biofuels policy be, in particular the size of mandated markets?
  • What should be the size and goal of US conservation land retirement programs?
  • What is the appropriate role and funding for public agricultural research?
These issues span multiple titles in the farm bill, suggesting the US cropped acres constraint could be a foundation theme directing debate over the next farm bill.

MFP Impact on 2019 through 2023 Incomes and Financial Positions

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Market Facilitation Program (MFP) payments in 2019 of $50 per acre will reduce financial erosion on farms. Still, incomes for 2019 are projected to be over $100,000 lower than 2018 incomes.

Bad Weather Rising

An agricultural economist at the University of Illinois is looking for a long-term recovery in the commodity markets. Commodity prices have been low since 2014, but the price of farmland has remained fairly strong. This is an indication thinks University of Illinois’ Scott Irwin that those buying farmland believe his contrarian view that prices will recover say to $4.00 for corn, $10.75 for soybeans, and $4.75 for all wheat. That’s at least one way to reconcile the firmness of land values. These long-run investors, whether they be farmers or outside investors, are looking for higher averages to restore profitability.

Irwin says there are two reasons for commodity prices to increase. One of them is slow. It’s the return of better economic conditions across the planet. The other he says is fast and violent, “I think it will be a series, in a fairly short period of time, of really poor weather that will be the big event that pulls us out.”

The ag economist is looking for the return of a more normal frequency of bad weather in the United States. Noting that the last twenty-plus years have been the best series in terms of corn belt weather since 1895.

Corn, Soybeans, and Wheat Acres in Illinois



Between 1996 and 2017, the sum of acres planted to corn, soybeans, and wheat have varied within a tight band for the state of Illinois. It has ranged from 22.0 million to 22.7 million acres for the three crops. Over this period acreage planted to wheat has been small and declining. It has decreased from 1.7 million in 1996 to just half-a-million in 2017. University of Illinois Agricultural Economist Gary Schnitkey says most of the acreage switches in the state have been between corn and soybeans.



These are the historical facts for Illinois. In 1998, corn and soybean acres were each at 10.6 million. With some yearly variations, corn acres then increased and soybean acres generally decreased from 1998 to 2012. In 2012, 12.8 million acres of corn were planted and 9.0 million acres of soybeans. Since then, corn acres have decreased and soybean acres have increased. Corn acres declined from 12.8 million in 2012 to 11.2 million in 2016. Soybean increased from 9.0 million to that same 11.2 million over the same period.

IFES 2017: Crop and Livestock Price Prospects for 2018

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by Todd Hubbs, Commodity Markets Specialist - University of Illinois

CROPS

Crop prices will remain below the high levels seen in the early part of this decade due to large global inventories. Global economic growth continues to build on the momentum seen over the last year. Growth in China and emerging market in Asia is projected to remain strong throughout 2018. The prospects of improved growth support commodity demand, but the significant changes to trade policy could mitigate some of this demand growth in export markets. Lower prices are expected to continue in 2018 barring a shortfall in one of the major production regions. The following price outlook analysis assumes a good 2018 growing season.

Corn prices continue to struggle with large crops and five consecutive years of growth in ending stocks. Domestic corn demand continues to see moderate growth in corn used for ethanol which has been supported by record levels of ethanol exports. Growth in livestock production and low corn prices provide support for increased feed usage during the 2017–18 marketing year. The potential for greater than 5.5 billion bushels in feed and residual use would be the largest amount since 2007–08. Corn exports currently lag the pace of last marketing year’s 2.29 billion bushels and are projected at 1.95 billion bushels by the end of the current year. Planted acreage of corn is expected to increase slightly in 2018 to 90.8 million acres. Assuming a trend yield near 172.3 bushels would result in a 2018 crop near 14.4 billion bushels. A projected total use of 14.5 billion bushels would result in the 2018–19 marketing year ending stocks near 2.44 billion bushels, a slight decrease from 2017–18 projections. Prices are expected to average near $3.30 during the current year and near $3.40 during the 2018–19 marketing year if production develops as expected.

Soybean prices remain strong relative to corn and wheat prices. U.S. soybean ending stocks continue a five-year pattern of growth with 2016–17 ending stocks ending at 301 million bushels. The lower than initially projected ending stocks benefited from very strong export numbers driven by continued growth in exports to China. Soybean exports are projected to exceed 2.2 billion bushels during this marketing year, up from last marketing year’s 2.174 billion bushels. Expanded soybean acreage and a 49.5 bushel yield for the 2017 crop are expected to increase 2017–18 marketing year ending stocks to 480 million bushels. Planted acreage of soybeans is expected to increase moderately to 90.6 million acres in 2018 due to the low prices of corn and wheat and the lower cost of producing soybeans relative to corn. A yield near 48.5 bushels would result in a 2018 crop about 52 million bushels smaller than the 2017 crop. With total use projected at 4.32 billion bushels, a further increase in U.S. stocks is expected by the end of the 2017–18 marketing year. Prices are expected to average near $9.20 during the current year and near $8.80 during the 2018–19 marketing year if world production develops as expected.

U.S. wheat acreage is expected to continue declining. Planted acreage decreased to 46.01 million acres in 2017. U.S. wheat production decreased by 508 million bushels in 2017 with average yield down by 6.3 bushels per acre. Soft red winter wheat production decreased to 202 million acres on 230,000 fewer acres nationally. Soft red winter wheat production is down 49 percent from 2010–2017 in Illinois. During the same period, wheat acreage in Illinois declined by 450,000 acres. World wheat production in 2017–18 is expected to decline slightly from the record levels of 2016–17. Foreign wheat production is expected to increase for the fifth consecutive year. U.S. stocks of wheat in all classes are projected to decline to 935 million bushels after hitting 1.18 billion bushels in 2016–17. U.S. soft red winter wheat ending stocks are expected to grow by 7 million bushels in 2017–18. The average price received for the 2017 crop is expected to be near $4.60. The Illinois price at harvest is expected to be near $4.75.

LIVESTOCK

Livestock markets continue to respond to the growing demand for meat globally and lower feed costs. Prices in the livestock sector look to level out after declining from the highs seen in 2014 and the subsequent supply response. Production levels are expected to increase in 2018.

U.S. beef production is expected to increase 4.6 percent in 2018 on higher levels of feedlot placements in last half of 2017 and the beginning of 2018. Beef production is forecast at 27.6 billion pounds in 2018, up 1.2 billion pounds over 2017. Beef export markets continue to exemplify U.S. competitiveness in foreign markets. Exports are projected at 2.97 billion pounds, up from 2.85 billion in 2017. Recent strength in export markets has been driven by strong demand from Japan. Domestic per capita beef consumption is projected to increase in 2018 to 59.2 pounds, up 1.9 pounds from 2017. Strong demand in 2017 moved cattle through feedlots at a rapid pace. Fed cattle prices look to move lower in the first half of 2018 on large supplies. Fed cattle prices average near $122 in 2017 but look to average near $117 in 2018. Feeder steer prices averaged $145 in 2017 and are projected to be around $142 in 2018.

U.S. pork production is projected to increase in 2018 to 26.9 billion pounds, up 1.2 billion pounds from 2017. Delays in hog slaughter levels in the fourth quarter of 2017 are projected to push first quarter pork production in 2018 up 4.7 percent of 2017 levels. Pork exports in 2018 are expected to increase from the 5.6 billion pounds exported in 2017 to 5.9 billion pounds. While increased exports to Mexico helped to support the export pace thus far in 2017, lower export levels to Japan and China is currently a drag on pork exports. Domestic pork supplies in 2018 are forecast at 52.1 pounds per capita, up from 50.4 in 2017. The average hog price is expected to decrease to $45.00 in 2018, down from $49.01 in 2017

U.S. Crop Acreage Still Moving to Soybean

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Todd Gleason reports on the move away from wheat and towards soybeans.

Corn is king in the United States. Soybean has been on a swift move upward. And wheat acreage has been on the decline for about 40 years. About half-way through those 4 decades two important things happened. Congress passed the 1996 farm bill - often called Freedom to Farm because it eliminated the last vestiges of supply controls for program crops and Monsanto introduced Round-Up Ready soybeans, that was 1995. The latter made it a whole lot easier to raise beans and the former, says University of Illinois Agricultural Economist Gary Schnitkey, let farmers react to the market.



From 1996 to 2012 U.S. farmers increased soybean acreage by 20 percent, corn acreage was up a bit more, but not much, and wheat acreage plummeted 36 percent. Schnitkey says much of the change can be explained by just looking at the relative profitability of the crops. Corn and soybeans are more profitable than wheat. Most would likely say the reason wheat acreage has declined in the U.S. is because of the ethanol build-out. It is, but it’s also not says Schnitkey, "You can attribute that to a number of factors. Probably the bigger one is that corn has increased its yields at a pace relatively faster than wheat. This has caused the relative profitability of corn to be higher than wheat and corn has taken over the feed grain market.
This has caused the relative profitability of corn to be higher than wheat and corn has taken over the feed grain market.
Wheat is/was the primary feed grain for much of the world. In the United States corn is fed to livestock and used to make ethanol. It is best managed when rotated with other crops, the most profitable of which is soybean.

This past year U.S. farmers planted about 90 million acres of corn and 90 million acres of soybeans. It is a new trend, says the University of Illinois ag economist, driven by continued strong export growth for soybean. The United States is projected to export over 50 percent of the soybean crop this marketing year.

Soybean acreage has substantially gained on corn acreage since 2012. While last year the acreage planted was equal, U.S. farmers actually harvested about 6 million more of the soybean acres than they did of corn. So, by harvested acreage soybeans are the number one crop in the United States and it’s not that first time that has happened. The soybean was king in 2015 as well.

Comparison of 2016 ARC-CO and PLC Payments


link to full farmdocDaily article

The United States Department of Agriculture will issue farm safety net payments this month. Todd Gleason has more on the payments for this year, and projections for next year with University of Illinois Agricultural Economist Gary Schnitkey. You may listen to that conversation.



Schnitkey, his University of Illinois colleagues Nick Paulson & Jonathan Coppess, and Ohio State’s Carl Zulauf also explored how the 2016 ARC County payments would compare to those from its counterpart USDA safety net program, PLC. This exploration is a head to head look at how each program performed.

Check the farmdocDaily website for full details at www.farmdocdaily.illinois.edu.

The four academics compared PLC and ARC-CO payment levels per base acre in 2016. They looked at corn and wheat and then did a simple calculation for each to illustrate which USDA farm safety net program made the largest payments for 2016. They calculated by county, for the whole of the United States, the average county-wide ARC payment and then subtracted from it the calculated average county-wide PLC payment. The differences where mapped.

2016 Corn Payments | ARC-CO minus PLC

For corn, it shows ARC-CO payments per base acre exceed those from PLC in most of the counties in the western, Great Plains, and southeastern regions of the US. In more than 60% of counties where the ARC and PLC programs are available for corn base, the ARC-CO payment is at least $10 per base acre larger than the average PLC payment. The ARC-CO payment per base acre is more than $20 larger than the average PLC payment per base acre in more than 50% of counties.

The exception to this is in the Midwest. Many counties in Illinois, Iowa, Missouri, Wisconsin, Minnesota, and North Dakota would receive larger payments from PLC for the 2016 corn crop. Despite low prices, high yields in this region had an offsetting effect on ARC-CO payments. Average PLC payments exceed ARC-CO payments for corn by more than $10 per base acre in 27% of counties across the United States, and by more than $20 per base acre in 17% of counties. Most of those counties are in the corn belt.

This is not an unexpected outcome as ARC was projected to make much larger payments in the first years of the program, and then to taper off with PLC expected to make larger payments in the closing years of the current farm bill. It did this more evenly across the United States for the 2016 wheat base.

The vast majority of counties trigger larger PLC payments per base acre for 2016 wheat. The average PLC payment is more than $10 larger than the ARC-CO payment in nearly 92% of counties with ARC and PLC programs for wheat base. The average PLC payment is more than $20 per base acre larger than the ARC-CO payment in more than 57% of the counties. This large payment difference of more than $20 per base acre captures the main wheat producing areas of the country.

2016 Wheat Payments | ARC-CO minus PLC

Again, while low wheat prices had the effect of triggering PLC and ARC-CO payments, most wheat producing areas experienced high yield levels, offsetting the price effect for ARC-CO payments. Less than 1% of counties triggered an ARC-CO payment per wheat base acre larger than the average PLC payment.

In summary, the farmdoc team finds low commodity price levels led to PLC payments being triggered for a number of program crops in 2016, including corn and wheat. Their models show the size of PLC payments per base acre vary regionally by the size of PLC program yields for those crops, with larger payments being triggered in areas with larger program yields. This includes the Midwest region for corn, and the Midwest, Great Plains, and Western regions for wheat.

Feeding Wheat Co-Products to Pigs

Research from the University of Illinois is helping to determine the quality of protein in wheat middlings and red dog. Both are co-products of the wheat milling process. Each can be fed to pigs and other livestock.

There is information about the digestibility of crude protein in some wheat co-products produced in Canada and China, says University of Illinois Animal Scientist Hans Stein, but only very limited information about the nutritional value of wheat middlings and red dog produced in the United States.

Stein and U of I researcher Gloria Casas fed wheat middlings from 8 different states and red dog from Iowa to growing pigs. Despite the variety in the wheat middlings sources the concentration of crude protein were generally consistent. However, they did find some variation in the digestibility of the amino acids.

The red dog contained slightly less crude protein than wheat middlings.

Stein says the results of this study provide guidance to producers who hope to incorporate wheat co-products into diets fed to pigs. The paper appears in the June 2017 issue of the Journal of Animal Science. The National Pork Board provided funding for the study.

UPDATED | HRW Condition in Kansas with @KSUWheat

The hard red winter wheat crop in Kansas has been under serious stress this spring. It’s been frozen, covered with snow, drown, and riddled with disease. Still, as Todd Gleason discovers, it may not be as bad off as conditions suggest.

The Condition of Kansas Wheat | an interview with Romulo Lollato

The Wheat Quality Tour has predicted a very good Kansas crop. However, as you’ll hear, the numbers produced are likely only good for the day they were released. Todd Gleason has more on how the hard red winter wheat crop may deteriorate.

Estimated 2016 ARC-CO Payments

by Gary Schnitkey, Agricultural Economist - University of Illinois

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On February 23rd, the National Agricultural Statistical Service (NASS) released county yields for the 2016 crop year. With these yield estimates, fairly accurate estimates of 2016 Agricultural Risk Coverage at the county level (ARC-Co) can be obtained. We present maps showing estimated payments per base acre for corn, soybeans, and wheat. Also shown are maps giving 2016 county yields relative to benchmark yields. A table showing estimated payments per county in Illinois also is presented.



Procedures Payments for 2016 are still estimates and will vary from those presented here for the following reasons:

• Farm Service Agency (FSA) uses different yields than NASS when calculating ARC-CO payments. Where NASS data is available, the NASS yield generally will be higher than those used by FSA. As a result, estimated payments should be viewed as conservative.

• Market Year Average (MYA) prices are not known because the marketing year does not end until August for corn and soybeans and May for Wheat. MYA estimates used in these projections are $3.50 per bushel for corn, $9.60 per bushel for soybean, and $3.85 per bushel for wheat. Ending MYA prices are likely to vary from these estimates.

• Sequestration amounts may differ from those used here. The ARC-CO payments estimated here use the 6.8% sequestration reduction applied to the 2014 and 2015 payments. The sequestration amount may differ from the 6.8% estimate.





Global Trade of Agricultural Commodities Expected to Grow

China purchases two-thirds of the soybeans traded on the planet.

Over the next ten years, USDA expects global soybean trade to increase by 25% and that Chinese purchases will account for 85% of the increase. The numbers were presented at the Agricultural Outlook Forum in Washington D.C., (today, Thursday, Feb 23, 2017) by USDA Chief Economist Rob Johannson. He says the projections are based on the assumption the number of middle-class households in China will double to nearly 250 million by the year 2024, “Those households will start demanding more meat, protein, and processed foods in their diet. And looking to other potential markets that could provide significant new demands for food commodities, we note that the number of middle-class households in India is expected to triple by 2024.”

Johannson says the United States has not had nearly as much success in opening new markets in India as it has in China. He thinks poultry, eggs, fruit, and milk have the greatest potential. The estimated annual growth in poultry meat, he explains, could exceed eight percent. That kind of livestock trade across the planet the Chief Economist explains will require grain and oilseed farmers to expand acreage, "Based on projected yield growth, the world will need to allocate about 50 million more acres of corn, wheat, and soybeans at U.S. productivity growth levels to meet the increase in trade demand.

The United States says Johannson is expected to remain the world’s largest exporter of corn over the next ten years with the U.S. share between 38 and 39 percent. Brazil is expected to remain the world’s largest soybean exporter with its share of exports growing to over 50 percent by the year 2026.

Allendale Releases 2016 Acreage Survey



Allendale, Inc. estimates US grain and oilseed producers will increase corn and wheat acres, while lowering the number of acres sown to soybean. All three survey totals are higher than USDA’s Agricultural Outlook Forum estimates. 
Corn planting intentions of 90.431 million acres would be the sixth largest acreage of the past ten years. Allendale’s production estimate would imply a production increase of 31 million over last year’s record.
Soybean planting intentions are seen at 82.575 million acres, the third largest ever. Allendale’s production estimate would be 207 million under last year’s record level due to a return back from record 2015 yields.
Wheat acreage is estimated at 51.769 million acres. This would be the smallest acreage since 1970. Allendale’s production estimate is 53 million under last year’s level.

The results are based on the firm’s 27th annual Producer Acreage Survey. Submissions were made directly by producers in 25 states by phone and online from February 26, 2016 to March 11, 2016.
The United States Department of Agriculture is now surveying some 80,000 producers on their cropping intentions for the year. USDA's 2016 Prospective Plantings report is due March 31st.

WASDE a Shade Friendly

USDA’s March World Agricultural Supply and Demand Estimates report didn’t really change much, still that seems a shade friendlier than before to University of Illinois Agricultural Economist Darrel Good.

Tillage Practices Vary Across the United States

USDA ERS, Washington, D.C. -

 

No-till and strip-till are two of many tillage methods farmers use to plant crops. In a no-till system, farmers plant directly into the undisturbed residue of the previous crop without tillage, except for nutrient injection; in a strip-till system, only a narrow strip is tilled where row crops are planted. These tillage practices contribute to improving soil health, and reduce net greenhouse gas emissions. During 2010-11, about 23 percent of land in corn, cotton, soybeans, and wheat was on a farm where no-till/strip-till was used on every acre (full adopters). Another 33 percent of acreage in these crops was located on farms where a mix of no-till, strip-till, and other tillage practices were used on only some acres (partial adopters). In the Prairie Gateway, Northern Great Plains, and Heartland regions—which account for 72 percent of corn, soybean, wheat, and cotton acreage—more than half of these crop acres were on farms that used no-till/strip-till to some extent. Partial adopters have the equipment and expertise, at least for some crops, to use no-till/strip-till; these farmers may be well positioned to expand these practices to a larger share of cropland acreage. This chart is from the ERS report, Conservation-Practice Adoption Rates Vary Widely by Crop and Region, December 2015. 

Transitioning to Organic Grains Production

Wheat Consumption Tracks USA Eating Habits

The following chart and commentary are posted to a USDA ERS website. Essentially it tracks how many pounds of wheat flour the average U.S. citizen has consumed per year since 1964. The ERS commentary on the reasons for the increase in consumption through the mid-1990's and sudden drop near the turn of the century reflect the eating habits of a couple generations of Americans. 

Wheat consumption stable among U.S. consumers in recent years.

Per capita wheat flour consumption has been relatively stable in recent years, and is estimated in 2014 at 135 pounds per person, unchanged from 2013 but down 3 pounds from the recent peak in 2007. The 2014 estimate is down 11 pounds from the 2000 level when flour use started dropping sharply, partially due to increased consumer interest in low-carbohydrate diets. From the turn of the 20th century until about 1970, U.S. per capita wheat use generally declined, as strenuous physical labor became less common and diets became more diversified. However, from the early 1970s until the late 1990s, wheat consumption trended upward, reflecting growth in the foodservice industry and away-from-home eating, greater use and availability of prepared foods for home consumption, and promotion by industry organizations of the benefits of wheat flour and pasta product consumption. During this time, the domestic wheat market expanded on both rising per capita food use and a growing U.S. population.  Relatively stable per capita flour use in more recent years means that expansion of the domestic market for U.S. wheat is largely limited to the growth of the U.S. population. This chart is based on the April 2015 Wheat Outlook report.

How USDA NASS Counts Acres

USDA has just wrapped up its survey of more than 80,000 U.S. farmers. The agency uses the information to develop the March 31st acreage forecast.

In the spring USDA’s National Agricultural Statistics Service division contacts farmers in hopes of learning how much of each crop they expect to plant. The agency contacts farmers across the United States. Corn and soybean farmers are of particular interest. This year more than 4000 Kansas farmers were tapped, along with around 3700 in Nebraska and about 3000 in each of the Dakotas, Iowa, and Illinois. Another 2000 farmers each were contacted in Indiana and Ohio.

Quote Summary - Our goal is to make sure we are measuring small, medium, and large farms. So, we use what’s called a stratified sample.

That’s NASS Illinois State Statistician Mark Schleusener.

Quote Summary - That is a fancy way of saying for the biggest farms, we are going to talk to all of them; for the large, but not biggest we will talk with one out of three of those and for the medium, maybe one out of ten; and for the smaller farms we might measure one out of twenty-five of those.

Each farmer surveyed is asked how many acres they operate. How much of that land they intend to plant to corn or soybeans, and how much might already be in wheat. They’re also asked about oats, sorghum, and hay. The response rate goal, and usually achievement, is an amazing eighty percent.

Quote Summary - Yes, our goal is an 80% response rate on all surveys and we use several methods of data collection. Every producer in the sample receives a letter with a planting intentions questionnaire. The letter also has instructions for reporting to a secure internet website. These are both inexpensive ways of gathering data. The people that do not respond will be called. If this doesn’t work then someone will make a farm visit for a face to face. Both these methods are more effective, in general, but also are more expensive.

The biggest problem NASS faces when taking the acreage survey is that farmers usually haven’t yet made all their planting decisions. The agency knows this and is satisfied with best estimates. The individual reports are confidential by law and the data collected is exempt from legal processes.

The data can be aggregated at the county, state, and national level. Computers flag any large acreage changes at the individual level so that an analyst can check for a data entry error or make a follow up call. The state statisticians review the total number of crop acres for any major changes - total crop acres generally remain constant - and then submit the estimates in an encrypted file to USDA NASS in Washington, D.C. There more analysis is done and the final report is produced for release March 31.

Ag Census Mapping Tool Makes Data Visual

Every five years the United States Department of Agriculture takes a census. USDA NASS collects all kinds of data about farm production in the U.S.A. The agency has developed a tool to map this data. It is a way to visualize agricultural production, income, wealth distribution, management type, and the demographics of farmers. These three maps show the primary growing regions for corn, soybean, and wheat. The darkest green areas represent acres where the cropland is at least 45 percent sown to the crop listed. The corn belt is easy to see, and not that much of a surprise. However, the primary soybean growing regions of the nation are bit more diverse than you might expect and seem to follow the Mississippi Valley watershed from New Orleans to St. Louis, along the Ohio River Valley and the mighty Missouri River.

USDA says ARC/PLC Sign Up Winter 2015

Friday the United States Department of Agriculture Farm Service Agency made a series of announcements related to the new farm programs' signup period. Farmers will make final irrevocable decisions between the ARC & PLC programs sometime after January 1, 2015.

timeline posted to USDA FSA website August 1, 2014
Letters are in the mail this month notifying farm operators of current base acres and yields, along with 2009-2012 planting histories. The letter asks these numbers be confirmed or updated as the first part of the sign up process. 

Online tools are under development at the University of Illinois to aid producers throughout the nation. Those tools may be ready by the official end of summer (September 22, 2014), but have not yet been released.

The following note was posted the USDA FSA website August 1, 2014;

WASHINGTON, Aug. 1, 2014 — U.S. Department of Agriculture (USDA) Farm Service Agency (FSA) Administrator Juan M. Garcia announced today that farmers should start receiving notices updating them on their current base acres, yields and 2009-2012 planting history. The written updates are an important part of preparing agricultural producers for the new safety net programs established by the 2014 Farm Bill.

“We’re sending these reports to make sure that farmers and ranchers have key information as they make critical decisions about programs that impact their livelihood,” said Garcia. “It’s important that producers take a few minutes to cross check the information they receive with their own farm records. If the information is correct, no further action is needed at this time. But if our letter is incomplete or incorrect, producers need to contact their local FSA county office as soon as possible.”

Verifying the accuracy of data on a farm’s acreage history is an important step for producers enrolling in the upcoming Agriculture Risk Coverage (ARC) program and the Price Loss Coverage (PLC) program. Later this summer, farmers and ranchers will have an opportunity to update their crop yield information and reallocate base acres.

“We’re working hard to prepare and educate farmers on the new programs created by the 2014 Farm Bill,” added Garcia. “I encourage producers to bring their USDA notice to any scheduled appointments with the local FSA county office. This will help ensure they have the information they need with them to discuss the available program options.”

By mid-winter all producers on a farm will be required to make a one-time, unanimous and irrevocable election between price protection and county revenue protection or individual revenue protection for 2014-2018 crop years. Producers can expect to sign contracts for ARC or PLC for the 2014 and 2015 crop years in early 2015.

Covered commodities include barley, canola, large and small chickpeas, corn, crambe, flaxseed, grain sorghum, lentils, mustard seed, oats, peanuts, dry peas, rapeseed, long grain rice, medium grain rice (includes short grain rice and temperate japonica rice), safflower seed, sesame, soybeans, sunflower seed, and wheat. Upland cotton is no longer a covered commodity.