Publications

agricultural outlook

August 2001

Economics Editor: Lewrene K. Glaser

This issue was published in August 2001 by the Market and Trade Economics Division.

Agricultural Outlook is published 10 times per year by the Economic Research Service, U.S. Department of Agriculture. The contents section at the bottom of this page links to each article in Adobe Acrobat PDF format.

Release of summary for the September 2001 issue: August 20, 2001. Release of complete text-only version: August 21.

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In this issue...

U.S. Corn & Wheat Acreage Decline, While Soybean & Cotton Rise—Planted area for eight major U.S. field crops is expected to total 249.9 million acres in 2001, an overall decline of nearly 5 million acres from last year, when prices were higher for most crops at planting time. U.S. farmers—responding to relatively high soybean loan rates, planting delays for corn, and full planting flexibility under the 1996 Farm Act—planted an estimated record soybean area. Higher expected returns and changes in crop insurance are making cotton more attractive than competing crops, while for corn, weaker price expectations and rising input costs may have reduced plantings. Robert A. Skinner (202) 694-5313.

Canada's Subsidized Dairy Exports: The Issue of WTO Compliance—A World Trade Organization (WTO) compliance panel ruled against Canada in July in a dispute over the country's subsidized dairy exports. The ruling represents the third time since May 1999 that the WTO, in response to complaints from the U.S. and New Zealand, has found Canada's dairy export subsidies to be inconsistent with its WTO commitments to hold the volume of subsidized exports to specific levels. Canada has announced its intention to appeal the July decision. John Wainio (202) 694-5210.

U.S. Wheat Supplies To Drop in 2001/02—Despite a strong domestic market for wheat products, U.S. wheat harvested area continues to drop, down more than a third from its 1981 peak. Sharply reduced wheat production in 2001, combined with lower carryin stocks and only slightly higher projected imports, will likely drop total wheat supplies to a 5-year low for the 2001/02 marketing year. Low returns relative to other crops, combined with planting flexibility under current government programs, have led farmers to opt for competing crops. The low returns to wheat are due largely to lackluster export performance. Gary Vocke (202) 694-5285.

How Sweet It Is: Fresh Sweet Corn—Corn-on-the-cob is back. After more than a decade of nibbling, Americans enthusiastically embraced fresh-market sweet corn during the 1990s. U.S. sweet corn demand has trended higher over the past decade, due largely to improved quality, consistency, and marketability. Consumption reached record highs in the 1990s, enticed by new sweeter varieties and value-added packaging. Among the developments supporting further growth in fresh sweet corn consumption will be an increase in off-season demand and the general upward trend in fresh vegetable use. Gary Lucier (202) 694-5253.

Development at & Beyond the Urban Fringe: Impacts on Agriculture—Urbanization and development are affecting the nature of U.S. agriculture, particularly at the urban fringe. Development at and beyond the urban fringe is following two routes: incremental expansion of urban areas, and scattered large-lot residential development in rural areas. These patterns of development are creating conditions in which a variety of metro farm types coexists. To adapt to the rise in land values associated with these growth patterns, and to the increasing contact with new residents, metro-area farmers may have to alter their operations to emphasize higher value products, more intensive production, and urban marketing savvy. Ralph Heimlich (202) 694-5504.

Dissecting the Challenges of Mad Cow & Foot-and-Mouth Disease—Two animal diseases currently affecting European agriculture—foot-and-mouth disease (FMD) and bovine spongiform encephalopathy (BSE or "mad cow disease")—have made headlines throughout the world. Simultaneous occurrence of these diseases in Britain earlier this year caused concern among consumers worldwide. The combined costs to the country's economy have been shared by agriculture, consumers, tourism, and trade. Both diseases affect livestock product prices, availability of goods, and costs of production. Trade is also affected as governments restrict imports from infected countries. Kenneth Mathews, Jr. (202) 694-5183.

This publication is in Adobe Acrobat 3.0 PDF format. You can download and get help using the Adobe Acrobat Reader to view and print this document. Text-only versions of Agricultural Outlook are also available, immediately after publication clearance.