Agricultural Production and Prices
Markets for major agricultural commodities are typically analyzed by looking at supply-and-use conditions and implications for prices. From an economic perspective, these factors determine the market equilibrium. In the U.S. agricultural sector, many interactions and relationships exist between and among different commodities. For example, corn production and prices affect feed costs in the livestock sector.
Although prices for agricultural commodities frequently vary from year to year, they have generally moved higher since 2000. In these aggregate measures, inflation adjusted prices for crops were up more than 38 percent above their 2005 levels, while those for livestock rose over 29 percent from 2006 to 2018. Prices for both crops and livestock have fallen since 2014, however, as U.S. and global markets responded to higher prices by increasing production.