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California farmers shifted to groundwater when drought reduced surface water availability

Tuesday, January 2, 2018

Prolonged drought generally results in large reductions in the quantity of surface water delivered, affecting farm production systems that depend heavily on surface water for irrigation. Groundwater may substitute as a source for irrigation water when the availability of surface water declines. For example, although most farmers in California’s main agricultural areas rely on surface water for the largest share of their irrigation needs, many parts of the State have sufficient groundwater reserves to provide a partial buffer against the impacts of drought. However, recurring drought and groundwater “overdraft”—when the amount of water extracted is greater than the amount of water entering the aquifer—have resulted in large declines in aquifer levels in some areas. This chart appears in the June 2017 Amber Waves feature, "Farmers Employ Strategies To Reduce Risk of Drought Damages."

Compliance incentives under the 2014 Farm Act would be lower without link to crop insurance premium subsidy

Wednesday, November 1, 2017

To be eligible for most U.S. farm program benefits, participating farmers must apply soil conservation systems on cropland that is particularly vulnerable to soil erosion. The 2014 Farm Act re-linked crop insurance premium subsidies to this provision, known as Highly Erodible Land Compliance (HELC), for the first time since 1996. These premium subsidies account for a significant share of Compliance incentives—typically between 30 and 40 percent, depending on crop prices. The 2014 Act also included major changes in other Compliance-linked programs, including the elimination of Direct Payments, a large program under the 2008 Farm Act. On individual farms, Compliance-linked benefits could be higher or lower than they would have been under a continuation of the 2008 Act. Under the 2014 Act (blue bars), ERS researchers estimated that less than 10 million acres are on farms that would have experienced a 50-percent or larger decline in Compliance incentives between the two Farm Acts given crop prices similar to 2010 levels. If premium subsidies were not subject to Compliance (green bars), more than 40 million acres of cropland in HEL fields would be on farms where Compliance incentives would decline by 50 percent or more. This chart appears in the July 2017 Amber Waves feature, "Conservation Compliance in the Crop Insurance Era."

Drought is typically the largest single driver of crop disaster assistance and indemnity payments

Tuesday, October 17, 2017

At any given time, some portion of the country faces drought conditions. In recent years, large areas of the United States have experienced prolonged drought, with significant impacts across entire agricultural sectors. A major drought can reduce crop yields, lead farmers to cut back planted or harvested acreage, reduce livestock productivity, and increase costs of production inputs such as animal feed or irrigation water. Since the Dust Bowl in the 1930s, drought has been an important focus of U.S. farm policy. Early Federal policy mitigated farmers’ drought-induced hardships primarily by providing ad hoc disaster assistance in response to a drought. With changes to the Federal crop insurance program in the 1990s, the emphasis of farm programs shifted from ad hoc disaster assistance to risk management, with a greater reliance on crop insurance to compensate farmers for drought losses. As a result, drought has been the largest individual driver of Federal indemnity payments and disaster assistance for over four decades. This chart appears in the June 2017 Amber Waves feature, "Farmers Employ Strategies To Reduce Risk of Drought Damages."

Declines in pollinator forage suitability concentrated in the Midwest

Tuesday, October 3, 2017

About one-third of the world’s food crops depend on pollinators like bees. Managed honeybees in the United States alone provide over $350 million worth of pollination services each year. Pollinators rely on the land to provide forage, the pollen and nectar of flowering plants that pollinators feed on to survive. If forage is inadequate, pollinator health may be poor. ERS developed a forage suitability index (FSI) to examine how broad trends in land use have affected the availability of forage for pollinators. Findings show the national average FSI increased by about 2 percent from 1982 to 2002, due in part to the introduction of USDA’s Conservation Reserve Program (CRP) in 1986. The mix of species farmers agree to plant on CRP land often improves pollinator forage. However, the national average FSI plateaued between 2002 and 2012. The FSI had a greater-than-average decline in North Dakota and South Dakota—the summer foraging grounds for many managed honeybee colonies. Decreases in CRP acreage and increases in soybean acreage, which provide poor forage for pollinators, helped drive this decline. This chart appears in the July 2017 Amber Waves finding, "Declines in Pollinator Forage Suitability Were Concentrated in the Midwest, the Over-Summering Grounds for Many Honeybees."

Conservation Compliance links crop insurance premium subsidies to soil conservation

Friday, September 15, 2017

Most U.S. agricultural programs that provide payments to farmers require participating farmers to apply soil conservation systems on cropland that is particularly vulnerable to soil erosion. ERS research shows that this provision, Highly Erodible Land Compliance (HELC), is effective in reducing soil erosion when the farm program benefits that could be lost due to noncompliance exceed the cost of meeting conservation requirements. Under the 2014 Farm Act, some programs previously linked to HELC were eliminated, while new ones were created. In addition, crop insurance premium subsidies were re-linked to HELC for first time since 1996. Twenty-five million acres of highly erodible cropland are estimated to be in farms with relatively strong Compliance incentives (rightmost bars) under the Act. Without premium subsidies, farms with this level of HELC incentive would include only 14 million acres of highly erodible cropland. By comparison, farms with relatively weak Compliance incentives (the second and third sets of bars) include an estimated 27 million acres of highly erodible cropland. Without premium subsidies, farms with this level of HELC incentive would include an estimated 45 million acres of highly erodible cropland. A version of this chart appears in the ERS report, Conservation Compliance: How Farmer Incentives Are Changing in the Crop Insurance Era, released July 2017.

Conservation Compliance has significantly reduced water erosion on fields designated as highly erodible

Friday, July 28, 2017

Conservation Compliance ties eligibility for most Federal farm program benefits to soil and wetland conservation requirements. Under Highly Erodible Land Conservation (HELC), for example, farmers who grow crops in fields designated as highly erodible land (HEL) must apply an approved conservation system—one or more practices that work together to reduce soil erosion. ERS researchers used a statistical model to compare water (rainfall) erosion on cropland in HEL fields to similar cropland not in HEL fields. Between 1982 and 1997, soil erosion reductions were significantly larger in HEL fields (39 percent, or 6.6 tons per acre) than in those not designated as HEL fields (24 percent, or 3.9 tons per acre). The difference—about 2.7 tons per acre—is statistically different from zero, suggesting that HELC did make a significant difference in soil erosion reduction. During 1997-2012, after the initial implementation of HELC was complete, ERS analysis finds that these soil conservation gains were maintained. This chart appears in the July 2017 Amber Waves feature, "Conservation Compliance in the Crop Insurance Era."

Food system drove decline in U.S. per capita energy use between 2002 and 2007

Monday, July 3, 2017

The U.S. food system uses a substantial share of the national energy budget. In 2012, the food system used 11.9 quadrillion British thermal units (Btu), representing 12.5 percent of the 95.2 quadrillion Btu of total energy used. Not only does the food system use a large share of energy, it can also drive national trends in energy use due to its higher responsiveness to changes in energy prices. Evidence of the food system’s ability to drive energy use is clear when the data are expressed on a per capita basis to remove population-driven changes. Between 2002 and 2007—a period of rising energy prices—nonfood-related energy use increased by 2.5 million Btu per capita, while food-related energy use showed a cumulative per-capita change of -5.3 million Btu, equivalent to each American using about 48 gallons less gasoline over this 5-year period. One reason for the increase in non-food related energy use is that purchases of non-food goods outpaced food purchases during that time. Food-related energy reductions caused national average per capita energy use to decline by 2.7 million Btu between 2002 and 2007. This chart appears in "The Relationship Between Energy Prices and Food-Related Energy Use in the United States" in ERS’s Amber Waves magazine, June 2017.

South American countries often exported their soy products to Asia and European Union

Thursday, June 29, 2017

To meet the increasing demand for agricultural commodities, forestland is frequently converted into crop fields or pasture, especially in developing countries. For example, deforestation in Argentina, Bolivia, Brazil, and Paraguay is linked with the production of soybeans (and beef). However, the majority of soybean production in these countries is consumed elsewhere, especially in China, the rest of Asia, and the European Union. Brazil and Argentina, the largest Latin American producers, exported an average of 67 percent of their soy production outside of South America. By contrast, the United States consumed 50 percent of its production and exported 44 percent of its production outside of North America. The soy product exported varied with the country. For example, Argentina exported about 8 million tons of soybeans and 22 million tons of soybean meal; by comparison, Brazil exported about 43 million tons of soybeans and 13 million tons of soybean meal. This chart appears in the ERS report International Trade and Deforestation: Potential Policy Effects via a Global Economic Model, released April 2017.

Managed honeybee colony numbers increased since 2006 even as colony mortality remained high

Friday, June 23, 2017

About one-third of the world’s food crops depend on pollinators, such as managed honeybees and more than 3,500 species of native bees. These pollinators face a variety of stressors that can impact their health, such as insect pests, pesticide exposure, and habitat changes. Honeybee mortality, as measured by the loss of a honeybee colony, has remained high over the last decade. In 2006-07, approximately 30 percent of honeybee colonies were lost during the over-winter period (October 1 through April 1). The over-winter loss rate has since diminished (22 percent in 2014-15), but over-summer losses have grown. The net result is that about 44 percent of colonies perished in 2015-16, compared with 36 percent in 2010-11. While recent public attention has focused largely on colony mortality trends, overall colony numbers have increased since 2006. This was accomplished with intensified beekeeper management, including splitting colonies, adding new queens, and offering supplemental feeding. This chart is based on the ERS report Land Use, Land Cover, and Pollinator Health: A Review and Trend Analysis, released June 2017.

Households accounted for more than one-third of U.S. food-related energy use in 2012

Tuesday, June 20, 2017

Food-related energy use includes all energy used in the production and preparation of foods and beverages purchased by and for U.S. consumers. In 2012, a total of 11.9 quadrillion British thermal units (qBtu) were used throughout all stages of the food system. At the household level, 3.5 qBtu were used in kitchens and 0.6 qBtu were used for household food-related transportation. This includes energy used directly—to drive to the grocery store and to power refrigerators, stoves, and other kitchen appliances in the home—and indirectly—to build those appliances. The total 4.1 qBtu used by households accounted for over one-third of energy use attributed to the food system. Food and beverage processors, such as meat packers, commercial bakeries, and breweries, used 2.2 qBtu in 2012. Electricity was the most used energy commodity at 6.8 qBtu, or 58 percent of the total. Petroleum products and natural gas contributed similar shares at 20 and 18 percent, respectively, while other energy such as renewables, ranked last in its contribution to food system energy use at 0.5 trillion Btu. This chart appears in "The Relationship Between Energy Prices and Food-Related Energy Use in the United States" in ERS’s Amber Waves magazine, June 2017.

Deforestation due to agriculture in Brazil has generally declined over time

Monday, May 15, 2017

Increasing global population and demand for food have led to rising agricultural production and demand for land for farming purposes. Expanded agricultural land has often come from tropical deforestation in developing countries that have become major exporters of commodities like beef, soybeans, and palm oil. In Brazil, for example, deforestation is linked most closely with the production of beef in the Amazon basin and the Cerrado region. Historically, cattle account for over 80 percent of deforestation in the Amazon and 88 percent in the Cerrado. At its peak in 1995, beef accounted for 3.75 million hectares of deforestation in Brazil, compared to 0.71 million hectares in 2013. Deforestation due to soybean production has generally remained low, particularly in the Amazon. Soybean production has mostly increased by expanding onto previously cleared cropland or pasture, rather than by contributing directly to deforestation. In more recent years, higher yields and policy changes have contributed to a decline in deforestation rates in Brazil. This chart appears in the ERS report International Trade and Deforestation: Potential Policy Effects via a Global Economic Model, released April 2017.

Dedicating land to energy crops (like switchgrass) would shift land use

Thursday, April 20, 2017

Crops dedicated for use in energy production, such as switchgrass, are potential renewable sources for liquid fuels or bioelectricity. Switchgrass is a perennial grass native to most of North America that grows well on rain-fed marginal land. However, markets do not presently exist for large-scale use of this energy resource. An ERS study simulated the agricultural land use impacts of growing enough switchgrass to generate 250 billion kilowatt-hours of electricity annually with a bioelectricity subsidy by 2030—approximately the amount generated by U.S. hydropower today. The introduction of dedicated energy crops on a large scale could affect other agricultural land uses, the prices of other crops, and trade in agricultural products. For example, the simulation predicted that land converted to switchgrass would come mostly from land used for crops like hay and corn. Pasture and forest land use would be affected at about the same level. An increase in U.S. land area for switchgrass would also lead to smaller changes in land use abroad due to agricultural product trade. This chart appears in the April 2017 Amber Waves finding, "Dedicating Agricultural Land to Energy Crops Would Shift Land Use."

The Conservation Reserve Program (CRP) is regionally concentrated

Tuesday, March 28, 2017

As of the end of 2016, the Conservation Reserve Program (CRP) covered about 23.5 million acres of environmentally sensitive land in the United States. With a $1.8 billion annual budget, CRP is currently USDA’s largest conservation program in terms of spending. Farmers who enroll in CRP receive annual rental and other incentive payments for taking eligible land out of production for 10 years or more. Program acreage tends to be concentrated on marginally productive cropland that is susceptible to erosion by wind or rainfall. A large share of CRP land is located in the Plains (from Texas to Montana), where rainfall is limited and much of the land is subject to potentially severe wind erosion. Smaller concentrations of CRP land are found in eastern Washington, southern Iowa, northern Missouri, and the Mississippi Delta. This chart appears in the ERS data product Ag and Food Statistics: Charting the Essentials, updated March 2017.

USDA funds helped livestock operations in the Chesapeake Bay reduce nutrient runoff

Friday, February 17, 2017

Some USDA programs offer financial and technical assistance to farmers who volunteer to implement conservation practices. The Environmental Quality Incentives Program (EQIP) is one such program that provides assistance to livestock producers to improve nutrient management and to reduce manure nutrient runoff. Nationally, 60 percent of EQIP funding is designated for livestock producers. Between 2006 and 2013, EQIP issued 7,452 contracts to producers in Chesapeake Bay counties alone—totaling nearly $243 million (adjusted for inflation). On average, that amounted to 932 contracts and $30 million per year over that period (in 2013 dollars). Each EQIP contract may fund multiple conservation practices. The largest share of spending was for waste-storage facilities, followed by protection of heavy-use areas to reduce sedimentation and nutrient runoff. This chart appears in the ERS report, Comparing Participation in Nutrient Trading by Livestock Operations to Crop Producers in the Chesapeake Bay Watershed, released in September 2016.

Switchgrass potential as an energy crop varies across USDA regions

Thursday, January 5, 2017

Dedicated energy crops, such as switchgrass, are potential renewable feedstocks for liquid fuels or electricity generation. However, markets do not presently exist for large-scale use of this resource. Switchgrass is a perennial grass native to most of North America that grows well on rain-fed marginal land. It has the greatest growth potential in regions where it has a comparative yield advantage relative to other crops. An ERS study simulated the impact on farmland use from growing enough switchgrass to generate 250 TWh of electricity annually by 2030, an amount approximately equal to present U.S. hydroelectricity generation. The study found that such a significant increase in demand for switchgrass would entail shifting land from other crops to switchgrass, and that these effects would vary regionally. In the Appalachian region, for example, the crop most affected is hay, with smaller reductions in corn and soybeans. In the Southeast and Northern Plains, acreage reductions are shared among the crops more uniformly. In total, about 29 million acres of switchgrass may be grown annually in the United States under this scenario, representing 8 percent of cropland. This chart appears in the ERS report Dedicated Energy Crops and Competition for Agricultural Land, released January 2017.

Use of cover crops is more common in the southern and eastern United States

Wednesday, December 14, 2016

Farmers and ranchers use a number of practices to build or restore soil health. One such practice is cover cropping. Farmers plant cover crops or cover crop mixes between plantings of commodity crops (usually in the winter). Reasons for planting cover crops include reducing erosion, preserving soil moisture, and increasing organic matter. Common cover crops include clover, field peas, and annual ryegrass. Cover crops are not harvested and so do not provide revenue for a farmer, although sometimes farms get direct value out of a cover crop through grazing their livestock on the crop. The use of cover cropping is concentrated in the southern and eastern United States. Regional differences in the adoption of cover cropping may be related to differences in climate, regional agricultural markets, and State incentive programs. For example, Maryland has relatively high rates of adoption because of a program that pays farmers to grow cover crops in order to improve water quality in the Chesapeake Bay. This chart appears in the September 2016 Amber Waves feature, “An Economic Perspective on Soil Health.”

Some manure nutrients produced in the Chesapeake Bay watershed can be captured for later use

Friday, September 30, 2016

In 2010, to help meet water quality goals, the U.S. Environmental Protection Agency (EPA) adopted a limit on the amount of pollutants that the Chesapeake Bay can receive. Nitrogen and phosphorus, in particular, can lead to adverse effects on public health, recreation, and ecosystems when present in excess amounts. The EPA estimates that applications of manure contribute 15 percent of nitrogen and 37 percent of phosphorus loadings to the Bay. Furthermore, ERS estimates that animal feeding operations (AFOs), which raise animals in confinement, account for 88 percent of manure nitrogen and 84 percent of manure phosphorus generation in that watershed. ERS also estimates that about a third of nitrogen and half of phosphorus produced at AFOs can be recovered for later use. That adds to about 234 million pounds of nitrogen and 106 million pounds of phosphorus recovered. These nutrients can then be redistributed regionally to fertilize agricultural land, thereby lessening nutrient run-off problems in the Bay. The remaining nutrients cannot be recovered. Both nitrogen and phosphorus may be lost during collection, storage, and transportation; nitrogen may also volatize into the atmosphere. This chart is based on the ERS report Comparing Participation in Nutrient Trading by Livestock Operations to Crop Producers in the Chesapeake Bay Watershed, released in September 2016.

Climate change is projected to cause declines and shifts in fieldcrop acreage across U.S. regions

Friday, September 9, 2016

Climate models predict U.S. agriculture will face changes in local patterns of precipitation and temperature over the next century. These climate changes will affect crop yields, crop-water demand, water-supply availability, farmer livelihoods, and consumer welfare. Using projections of temperature and precipitation under nine different scenarios, ERS research projects that climate change will result in a decline in national fieldcrop acreage in 2080 when measured relative to a scenario that assumes continuation of reference climate conditions (precipitation and temperature patterns averaged over 2001-08). Acreage trends show substantial variability across climate change scenarios and regions. When averaged over all climate scenarios, total acreage in the Mountain States, Pacific, and Southern Plains is projected to expand, while acreage in other regions--most notably the Corn Belt and Northern Plains--declines. Over half of all fieldcrop acreage in the U.S. is found in the Corn Belt and Northern Plains, and projected declines in these regions represent 2.1 percent of their combined acreage. Irrigated acreage for all regions is projected to decline, but in some regions increases in dryland acreage offset irrigated acreage losses. The acreage response reflects projected changes in regional irrigation supply as well as differential yield impacts and shifts in relative profitability across crops and production practices under the climate change scenarios. This chart is from the ERS report Climate Change, Water Scarcity, and Adaptation in the U.S. Fieldcrop Sector, November 2015.

Consumer demand drives growth in the organic food sector

Thursday, September 1, 2016

Organic food sales in the United States have increased from approximately $11 billion in 2004 to an estimated $27 billion in 2012, according to the Nutrition Business Journal.? Organic food products are still gaining ground in conventional supermarkets as well as natural foods markets, and organic sales accounted for more than 3.5 percent of total U.S. food sales in 2012. Markets for organic vegetables, fruits, and herbs have been developing for decades in the United States, and fresh produce is still the top-selling organic category in retail sales. Although the annual growth rate for organic food sales fell from the double-digit range in 2008 as the U.S. economy slowed, its 7.4-percent growth rate in 2012 was more than double the annual growth rate forecast for all food sales in 2012. This chart appears in Agricultural Resources and Environmental Indicators, 2012 Edition, EIB-98, August 2012.

U.S. certified organic acreage rebounded in 2011

Thursday, September 1, 2016

According to new ERS estimates, the U.S. had 3.1 million acres of certified organic cropland in 2011 and 2.3 million acres of certified organic pasture and rangeland, continuing the long-term growth trend in this sector. Certified pasture dipped between 2008 and 2010 as sluggish growth in consumer demand during the recession dampened the short-term outlook for organic producers. However, the growth in certified acreage of pastureland has more than recovered those losses and has reestablished its upward trajectory.? Certified pasture, including rangeland, shows variation from year to year, but certified cropland has been steadily increasing. This chart appears in "Growth Patterns in the U.S. Organic Industry" in the October 2013 Amber Waves and is based on data found in the ERS data product Organic Production, updated September 2013.

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