Editor's Pick 2016: Best of Charts of Note

This chart gallery is a collection of the best Charts of Note from 2016. These charts were selected by ERS editors as those worthy of a second read because they provide context for the year’s headlines or share key insights from ERS research.


Editor's Pick 2016: U.S. net farm income forecast to decline for third consecutive year in 2016

Friday, December 23, 2016

Net cash farm income and net farm income are two popular, but distinct, measures of farm sector profitability. The first measure tracks cash receipts and cash expenses, while the second also includes noncash transactions, including implicit rents, changes in inventories, capital replacement costs, and others. Following several years of high income, both measures have trended downward since 2013. ERS forecasts that net cash farm and net farm income for 2016 will be $90.9 billion and $54.8 billion, respectively, or $81.1 billion and $48.9 billion, respectively, in inflation-adjusted dollars. These amounts are below their respective 10-year average, in both nominal and inflation-adjusted terms. Before recent dips, the 10-year averages for both income measures have largely trended upward. Over the 2010 to 2013 period, surging crop and animal (including animal-product) cash receipts led net cash farm income and net farm income higher. Prices are expected to have declined for a broad set of agricultural commodities in 2015, and fall further in 2016. Production expenses are forecast to contract in 2016, but not enough to offset the commodity price declines. Find additional information and analysis in ERS’ Farm Sector Income and Finances topic page, released February 9, 2016.

Editor's Pick 2016: Ten percent of all land in farms is expected to be transferred during 2015-19

Friday, December 23, 2016

The relatively advanced age of the U.S. farming population—about a third of principal farm operators in 2014 were at least age 65 compared with 12 percent of self-employed workers in nonagricultural businesses—has sparked interest in the manner in which land will be transferred to other landowners, including the next generation of farm operators. Farmland owners planned to transfer 93 million acres in the next 5 years (2015-19)--10 percent of all land in farms--through a variety of means. Landowners anticipated selling 3.8 percent of all farmland, with just 2.3 percent planned to be sold to non-relatives. A larger share of land (6.5 percent) is expected to be transferred through trusts, gifts, and wills. The share of farmland available for purchase by non-relatives during 2015-19 will likely rise above 2.3 percent as some individuals (or entities) that inherit land may choose to sell it. And, those who inherit land but don’t sell it may decide to rent it out to farm operators. In 2014, 39 percent of all farmland was rented and 61 percent was owned by farm operators. This chart comes from the ERS report U.S. Farmland Ownership, Tenure, and Transfer, released on August 25, 2016.

Editor's Pick 2016: Three post-farm industry groups account for about 61 cents of the U.S. food dollar

Friday, December 23, 2016

In 2014, total food-away-from-home expenditures of U.S. consumers, businesses, and government entities surpassed at-home food sales for the first time. This outcome is reflected in the 32.7-cent foodservices share of the U.S. food dollar claimed by restaurants and other eating-out places—its highest level during 1993 to 2014. It is also reflected in the 12.9-cent retail-trade share claimed by grocery stores and other food retailers, which is at its lowest level since 2002. ERS uses input-output analysis to calculate the value added, or cost contributions, from 12 industry groups in the food supply chain. Annual shifts in food dollar shares between industry groups occur for a variety of reasons, ranging from the mix of foods that consumers purchase to relative input costs. A growing share of the food dollar has gone to farm producers, up 1.7 cents since 2009 to 10.4 cents in 2014, while food processing’s share is down 2.1 cents since 2009. This chart is available for years 1993 to 2014 and can be found in ERS’s Food Dollar Series data product, updated on March 30, 2016.