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New nongeneric human drug approvals have increased while new animal drug approvals declined

Monday, June 3, 2019

The human and animal pharmaceutical industries are closely linked, with similar research processes and business structures. However, although animal pharma is a large global presence ($23.9 billion in sales in 2014), human pharma is 42 times larger (nearly $1 trillion in sales in 2014). Because the human pharma market is more lucrative, many drugs are originally explored for use in humans. Human drug innovations historically also have been a source of new products in animal pharma. Conversely, trends in the numbers of new drug approvals in the United States for humans versus animals have diverged over time. Between 1971 and 2015, the number of new nongeneric drug approvals for animal use dropped from 154 to 30 annually, while those for human use climbed from 136 to 392 annually. The higher number of approvals for human drugs reflects the larger size of the human pharma market. This divergence in the numbers of drug approvals may also be driven by changes in the focus of human medicine, which increasingly demands palliative care drugs that have fewer applications in the animal pharmaceutical market. This chart appears in the ERS report, The U.S. and EU Animal Pharmaceutical Industries in the Age of Antibiotic Resistance, released May 30, 2019. See also the Amber Waves article “Developing Alternatives to Antibiotics Used in Food Animal Production,” published in May 2019.

GPS guidance systems are used on about half of planted acres for major crops

Friday, May 17, 2019

Guidance systems use global positioning system (GPS) coordinates to automatically steer farm equipment like combines, tractors, and self-propelled sprayers. This helps reduce operator fatigue and pinpoint precise field locations within a few inches. Freed from steering, operators can access timely coordinates from a screen, monitor other equipment systems more closely, and correct problems more quickly. In addition, guidance systems reduce costs by improving the precision of sprays and the seeding of field crop rows. The ends of rows, in particular, benefit from more accurate application of inputs. Manually reversing farm machinery to return in the opposite direction in adjacent rows on a field can cause overlaps and missed spots for applied inputs. Guidance systems can also help extend working hours for field operations during time-sensitive production periods because guided machinery works well in the floodlit dark. Out of all precision agriculture technologies, guidance systems had the highest adoption rates—used on 67 percent of corn planted acres (in 2016), 57 percent of spring wheat (2009), 53 percent of rice (2013), 49 percent of peanuts (2013), and 45 percent of soybeans (2012). This chart appears in the May 2019 ERS report, Agricultural Resources and Environmental Indicators, 2019.

Prevalence of USDA Environmental Quality Incentives Program contracts for conservation tillage varies by region

Wednesday, September 12, 2018

USDA offers financial assistance to farmers for implementing a wide range of conservation practices through its Environmental Quality Incentives Program (EQIP). Conservation tillage practices—including no-till, strip-till row crop planting, and mulch till—can improve soil health, reduce erosion, and reduce nutrient pollution to lakes, streams, and rivers. Farmers practicing no-till plant crops without using any sort of plow to turn residue from the prior crop into the soil. Strip tillage disturbs only the soil within the planting row, while mulch tillage minimizes soil disturbance and distributes crop residue. Between 2011 and 2016, the prevalence of EQIP contracts that included conservation tillage practices (as defined in the note) varied regionally. For example, the share was relatively high in North Dakota and northern Iowa, but much lower in neighboring counties in South Dakota. These variations may be due to underlying differences in regional adoption patterns, as well as differences in State and local funding priorities through EQIP. This chart updates data found in the April 2013 ERS report, “The Role of Conservation Programs in Drought Risk Adaptation.”

Conservation program spending levels off but continues shift to Working Land Programs

Friday, May 4, 2018

USDA agricultural conservation programs provide technical and financial assistance to farmers who adopt and maintain practices that conserve resources or enhance environmental quality. Although USDA implements more than a dozen individual conservation programs, nearly all assistance is channeled through six: the Conservation Reserve Program (CRP), Environmental Quality Incentives Program (EQIP), Conservation Stewardship Program (CSP), Conservation Technical Assistance (CTA), Agricultural Conservation Easement Program (ACEP), and the Resource Conservation Partnership Program (RCPP). EQIP, CSP, and CTA are often referred to as “Working Land Programs” because they focus primarily on supporting conservation on land in agricultural production (crops or grazing). The 2014 Farm Act continued to emphasize working land conservation. Between 2012 and 2017, combined funding for Working Land Programs accounted for more than 50 percent of spending in USDA conservation programs. This emphasis reflects a long-term trend—begun under the 2002 Farm Act—that increased annual spending in Working Land Programs. In 2017 dollars (to adjust for inflation), this spending increased from roughly $1 billion under the 1996 Farm Act to more than $3 billion under the 2014 Act. This chart updates data found in the May 2014 Amber Waves feature, "2014 Farm Act Continues Most Previous Trends In Conservation."

USDA’s Environmental Quality Incentives Program continues expansion of financial assistance for cover crops

Monday, April 23, 2018

USDA offers financial assistance to farmers for implementing a wide range of conservation practices through the Environmental Quality Incentives Programs (EQIP). Two of the most popular EQIP practices for addressing soil-related resource concerns are no-till (or strip-till row crop planting) and cover crops. Farmers practicing no-till plant crops without using any sort of plow to turn residue from the prior crop into the soil. Cover crops (such as clover, field peas, and annual ryegrass) are typically grown over the winter, between plantings of commodity crops. Planting a cover crop can improve soil health, reduce erosion, and reduce nutrient pollution to lakes, streams, and rivers. Between 2005 and 2016, USDA funding for cover crops in EQIP increased from about $5 million to more than $90 million in nominal terms. Over this same period, funding for no-till declined, in part due to increasing adoption of no-till by farmers even without payment. The larger total annual obligations for cover crops in more recent years partly reflects the higher per-acre costs of implementing cover crops. This may include seed costs and the cost of removing the cover crop. This chart updates data found in the September 2016 Amber Waves feature, “An Economic Perspective on Soil Health.”

Wetland Compliance incentives are strong in Montana, North Dakota, South Dakota, Minnesota, and Iowa

Tuesday, February 27, 2018

Wetlands provide a wide range of ecosystem services in all parts of the United States. For most U.S. agricultural programs, farmers who receive benefits must refrain from draining wetlands on their farm. The 2014 Farm Act re-linked crop insurance premium subsidies to this provision, known as Wetland Compliance (WC), for the first time since 1996. ERS researchers examined the effect of premium subsidies on farmer’s compliance incentives under the 2014 Farm Act. (Because of data limitations, ERS researchers focused on States that include the Prairie Pothole region: Montana, North Dakota, South Dakota, Minnesota, and Iowa, where wetland habitat is critical to ducks and other migratory birds.) In Prairie Pothole States, WC incentives are strong. When the compliance incentive includes premium subsidies, an estimated 75 percent (2.6 million acres) of potentially convertible wetland is on farms where Compliance incentives (farm program benefits) are clearly large enough to offset revenue lost by not draining these lands for crop production. Severing the link between WC and crop insurance premium subsidies (while continuing the link between Compliance and other 2014 Farm Act programs) would reduce the number of potentially convertible wetlands with strong protection by 15 percent (from 2.6 to 2.2 million acres). This chart appears in the July 2017 report, Conservation Compliance: How Farmer Incentives Are Changing in the Crop Insurance Era.

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."

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.

Forest and grassland pasture and range accounted for 57 percent of U.S. land use in 2012

Tuesday, August 29, 2017

The ERS Major Land Uses (MLU) series is the longest running, most comprehensive accounting of all major uses of public and private land in the United States. The series was started in 1945, and has since been published about every 5 years using the latest data from the National Agricultural Statistics Service’s Census of Agriculture. In the 2012 MLU data (the latest available), grassland pasture and range was the most common land use in the United States, representing 29 percent of U.S. land. The second most common was forest-use—land capable of producing timber or covered by forest and used for grazing—at 28 percent. The distribution of land use varies substantially across the country, based on factors such as soil, climate, and Federal and local policies and programs. Cropland is concentrated in the Corn Belt and Northern Plains regions, where several States (including Iowa, Kansas, and Illinois) have more than half of their land base devoted to cropland. Grassland pasture and range accounted for a large share of land in the Mountain (60 percent) and Southern Plains (59 percent) regions. The share of forest-use land was highest along the eastern seaboard in the Southeast (62 percent), Northeast (59 percent), Delta States (58 percent), and Appalachia (57 percent) regions. This chart appears in the ERS report Major Uses of Land in the United States, 2012, released August 2017.

Almond producers accounted for 80 percent—over $280 million—of pollination service fees in 2016

Monday, August 7, 2017

Farmers growing crops that depend on pollination can rely on wild pollinators in the area or pay beekeepers to provide honeybees or other managed bees, such as the blue orchard bee. In 2016, U.S. farmers paid $354 million for pollination services. Producers of almonds alone accounted for 80 percent of that amount—over $280 million. By comparison, producers of apples and blueberries paid about $10 million each. Pollination services helped support the production of these crops—which, in 2016, had a total production value of about $5.2 billion for almonds, $3.5 billion for apples, and $720 million for blueberries. Between 2007 and 2016, the production value of almonds grew by 85 percent in real terms, while the production value of both apples and blueberries grew by about 15 percent. Over the same period, the number of honey-producing colonies grew by 14 percent. This chart uses data found in the ERS report Land Use, Land Cover, and Pollinator Health: A Review and Trend Analysis, released June 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."

Precision agriculture technologies adopted at different rates on soybean farms

Thursday, March 30, 2017

Precision agriculture (PA) delivers localized crop production management through a number of different technologies, including guidance systems, and variable rate technology (VRT). These technologies require a significant investment of capital and time, but may offer cost savings and higher yields through more precise management of agricultural inputs like pesticides and fertilizers. For example, VRT adapts machinery and field operation equipment—such as sprayers and seeders—to automatically control input flow rates for precise field locations. Guidance systems, on the other hand, use GPS to automatically steer farm equipment—such as combines and tractors—helping reduce operator fatigue. In 2012 (the most recent data available), yield monitors and guidance systems had the highest rate of adoption on soybean farms: 51 and 34 percent, respectively. For all PA technologies, the percent of soybean cropland acres was higher than the percent of farms—showing that larger farms have higher adoption rates for these technologies. Soybeans are the second most planted crop in the United States, after corn. Farms often rotate soybeans annually with corn, so PA adoption rates for these two major crops were relatively similar. This chart appears in the ERS report Farm Profits and Adoption of Precision Agriculture, released October 2016.

2016 estimates of cropland harvested return to 2014 levels, highest since 1997

Wednesday, February 1, 2017

The ERS Major Land Uses (MLU) series estimates land in various uses, including the acres devoted to crop production in a given year. These acres, collectively referred to as “cropland used for crops,” include acres of cropland harvested, acres on which crops failed, and cultivated summer fallow. At 318 million acres, cropland harvested in 2016 is estimated to have increased by 2 million acres from the previous year—returning to levels in 2014 and matching the highest cropland harvested area since 1997 (321 million acres). The area that was double cropped (two or more crops harvested) declined by 1 million acres, while land that experienced crop failure held constant at 7 million acres in 2016—remaining well below its 20-year average of 10 million acres. Cultivated summer fallow, which primarily occurs as part of wheat rotations in the semiarid West, continued its long-term decline and reached its lowest level (12 million acres) since the start of the MLU series. The larger historical fluctuations seen in cropland used for crops are largely attributable to Federal cropland acreage reduction programs, such as the Conservation Reserve Program (CRP). Initiated in 1985, the CRP pays farmers to keep idle environmentally sensitive land that could otherwise be used in crop production. This chart uses historical data from the ERS MLU series, recently updated to include 2016 estimates.

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.”

Variable rate technology used on about a fifth of planted acres for several major crops

Monday, December 12, 2016

Precision agriculture delivers localized crop production management through a number of different technologies. One of them, variable rate technology (VRT), adapts machinery and field operation equipment—such as sprayers and seeders—to automatically control input flow rates. Farmers can even use VRT to plant different types of seeds at different locations with a single pass of the tractor. However, installing and maintaining equipment with VRT capabilities comes at a relatively high cost. Empirical estimates showed that, in 2010, VRT still improved profits on corn farms by about 1 percent. Between 2010 and 2013, VRT adoption also reached about 20 percent of planted acres in corn, soybean, rice, and peanut production. This chart appears in the ERS report Farm Profits and Adoption of Precision Agriculture, released October 18, 2016.

On-farm renewable energy production varies regionally

Friday, October 28, 2016

Since the early 2000s, farms have increased renewable energy production with technologies like solar panels, wind turbines, and methane digesters. From 2007 to 2012, the number of farms generating on-farm renewable energy more than doubled to nearly 58,000—or 2.7 percent of U.S. farms. This does not include the roughly 16,600 farms that leased wind rights to others or that produced ethanol and biodiesel on the farm. Adoption of on-farm renewable energy systems varies across the country but it is concentrated in the Western United States, Illinois, and New England. In these regions, about two in five farm businesses produce renewable energy in some counties. The Southeastern States, which have fewer subsidies and programs supporting renewable power, had low adoption rates. This chart appears in the August 2016 ERS report Trends in U.S. Agriculture’s Consumption and Production of Energy: Renewable Power, Shale Energy, and Cellulosic Biomass.

To promote soil health, USDA’s funding for cover crops increased ten-fold between 2005 and 2013

Tuesday, October 25, 2016

Farmers can receive Federal financial assistance for implementing a wide range of conservation practices from the Natural Resources Conservation Service’s Environmental Quality Incentives Program (EQIP). Adopting no-till and planting cover crops are two common agricultural practices that can improve soil health. Farmers receiving payments for no-till agree to plant crops without using any sort of plow to turn residue from the prior crop into the soil. Those receiving payments for cover crops plant certain crops (such as clover, field peas, and annual ryegrass) or a mixture of crops to maintain cover and add organic matter. Cover crops are usually grown over the winter, between plantings of commodity crops. From 2005 to 2013, USDA funding for cover crops in EQIP increased ten-fold—from about $5 million to more than $50 million in nominal terms. Over this same period, funding for no-till adoption declined. This shift in focus can be attributed to a variety of factors, such as increasing adoption of no-till by farmers even without payment and improving availability of cover crop seeds and educational materials. This chart appears in the September 2016 Amber Waves feature, “An Economic Perspective on Soil Health.”

Guidance systems are used on about half of planted acres for several major crops

Wednesday, October 19, 2016

Guidance systems use global positioning system (GPS) coordinates to automatically steer farm equipment like combines, tractors, and self-propelled sprayers. Guidance systems help reduce operator fatigue and pinpoint precise field locations, within a few inches. Freed from steering, operators can access timely coordinates from a screen, monitor other equipment systems more closely, and correct problems more quickly. Guidance systems also reduce costs by improving the precision of sprays and the seeding of field crop rows. Between 2010 and 2013, these systems were adopted on 45 to 55 percent of planted acres for several major crops, including rice, peanuts, and corn. Once adopted for a particular crop, the use of guidance systems tends to be rapidly adopted by other crop farmers. The ease-of-use and functionality of these systems has also increased along with adoption rates. This chart appears in the ERS report Farm Profits and Adoption of Precision Agriculture , released October 18, 2016.

Share of electricity expenses vary by farm size and principal commodity

Friday, October 14, 2016

Farms rely on electricity to power many essential systems, including irrigation, ventilation, and heating and cooling. Sometimes, due to seasonal demand, farms pay high prices for electricity. How much farms spend on electricity as a percentage of total expenses in a given year varies with farm size and principal commodity. In 2014, the highest share of electricity expenses by commodity were on farms concentrating on the production of peanuts (5.5 percent). By farm size, small poultry producers had the highest share of electricity expenses, 12.8 percent—about 8 times more than large poultry producers. With the exception of peanut producers, large farms had the lowest shares of electricity expenditure among all farm sizes. Large peanut producers likely had a higher share of electricity expenses compared to small producers because irrigation and on-farm drying of harvested peanuts were more economical on large farms. This chart appears in the August 2016 ERS report Trends in U.S. Agriculture’s Consumption and Production of Energy: Renewable Power, Shale Energy, and Cellulosic Biomass.

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.

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