Livestock Mandatory Reporting - Bringing Transparency to the Marketplace

From USDA:

Posted by Craig A. Morris, Deputy Administrator of the AMS Livestock, Poultry and Seed Program, on January 20, 2015 at 9:30 AM

The purpose of the program is to provide marketing information for cattle, swine, lamb, and livestock products that can be readily understood and utilized by producers. USDA Photo Courtesy of the National Organic Program.

The Livestock Mandatory Price Reporting (LMR) Program was established to expand pricing information available in the livestock industry. Part of USDA Market News data, the information is distributed by the Agricultural Marketing Service (AMS) and allows analysts to dive in head first and fulfill all of their number crunching ambitions.

The purpose of the program is to provide marketing information for cattle, swine, lamb, and livestock products that can be readily understood and utilized by producers. Livestock Mandatory Reporting encourages competition in the marketplace by vastly improving price and supply data, bringing transparency, breadth and depth to market reporting. The program gets its authority through the Livestock Mandatory Reporting Act of 1999, which must be reauthorized by Congress every five years. The program is up for reauthorization in September 2015.

Thousands of business transactions every day rest on the outcome of Livestock Mandatory Reporting data. From the small farmer looking to market a few head of cattle to the giant packer looking to increase their profits, USDA Market News is an invaluable resource.

Here is a real life example of how it works. Last year was one for the record books. Beef cutout levels climbed at an alarming rate, and it was clear that something unusual was happening.  Cattle were in tight supply, which means trimmings were also in tight supply. In the winter months, ground product and end meats – such as chuck or round roasts – are in demand as consumers prepare hot chili and stews.  In order to meet this demand, packers found themselves grinding primal cuts and selling them as ground beef causing ground beef prices to reach record highs.

Suddenly, it seemed that ground beef was something everyone should have been paying close attention to all along.  You asked, we answered. We now publish a section on the Weekly Cattle and Beef Summary that includes information about the effect of ground beef and trimmings on the National Boxed Beef Comprehensive Cutout. We also expanded the National Weekly Comprehensive Item Summaryto include additional ground beef and trimming pricing information.

In a voluntary reporting situation like we utilized in the past in, which meatpackers voluntarily provided pricing information to AMS, finding the cause of price fluctuations would be much more difficult. The difference with Livestock Mandatory Price Reporting, however, is that by collecting and disseminating such a detailed amount of data, we are able to quickly reveal exact reasons for why changes in the marketplace are taking place.

This year marks the 100^th anniversary of USDA Market News.  Over the years, our reports have evolved but our service and dedication to the agricultural industry remains our focus.  Over the course of 2015, we will continue to provide information about Market News.  The USDA Market News Portal is available at www.marketnews.usda.gov where you can explore all of our Livestock Mandatory Reporting reports.

Livestock Mandatory Reporting vastly improves livestock price and supply data to encourage competition in the marketplace by increasing the amount of information available. The program helps bring transparency, breadth and depth to market reporting.

Broiler Industry Stretches Its Economic Wings in Delaware

From USDA:

Posted by Dale Hawks, Acting Delaware State Statistician, National Agricultural Statistics Service, USDA, on January 8, 2015 at 1:00 PM

Delaware agriculture doesn’t use a smaller state size as an excuse – the state ranks #1 in the value of sales per acre. Check back next week to learn more about another state from the 2012 Census of Agriculture.

The Census of Agriculture is the most complete account of U.S. farms and ranches and the people who operate them. Every Thursday USDA’s National Agricultural Statistics Service will highlight new Census data and the power of the information to shape the future of American agriculture.

The New Year is upon us and we are resuming our Census of Agriculture profile blog series. It’s fitting that Delaware is profiled first in 2015, because Delaware’s nickname is “The First State” because it was the first of the 13 original states to ratify the United States Constitution on December 7, 1787.

Although Delaware is the 2nd smallest state in the nation, its value of agricultural production exceeds that of 10 larger states. According to the 2012 Census of Agriculture, Delaware had 2,451 farms which produced $1.3 billion in agricultural sales. That works out to an average of $520,000 per farm and ranks Delaware #2 in the nation behind California in per farm sales! Delaware ranks #1 nationally in the value of agricultural sales per farmland acre at $2,505 and also for lima bean production.

Agricultural sales in Delaware are skewed towards poultry, specifically meat chickens which are called broilers. Broiler production annually accounts for about 70 percent of Delaware’s value of agricultural production. Delaware produces about 215 million broilers each year which equates to approximately 1.5 billion pounds of chicken. Mrs. Wilmer Steele of Sussex County, Delaware, is often cited as the pioneer of the commercial broiler industry. In 1923, she raised a flock of 500 chicks intended to be sold for meat. Her little business was so profitable that, by 1926, Mrs. Steele was able to build a broiler house with a capacity of 10,000 birds. Sussex County Delaware is today, the largest broiler producing county in the United States. Even Delaware’s annual harvest of over 350,000 acres of corn and soybeans is not enough to feed the state’s broiler population.

Delaware farmers ensure that our state’s residents and beach visitors have access to fresh, locally-grown fruits and vegetables. Annually, more than $4 million in sales are made directly to consumers from our 26 state-sponsored farmers markets and numerous farm-stands. Keeping an eye to the future, 40 percent of Delaware’s total land, or 508,000 acres, are in farms and of those, more than 115,000 acres have been permanently preserved by the state for agricultural-only use.

With history such as Mrs. Steele’s start of the broiler industry, Delaware has a strong agricultural heritage.  Farmland preservation, broiler production and direct-to-consumer marketing give Delaware agriculture a strong future.

Five Cs of Arizona

From USDA:

Posted by Dave DeWalt, Arizona State Statistician, National Agricultural Statistics Service, on December 4, 2014 at 9:30 AM

American Indian operators run more than half of all farms in AZ, according to the 2012 Census of Agriculture. Check back next week for another close-up of another state’s agriculture scene from the 2012 Census.

The Census of Agriculture is the most complete account of U.S. farms and ranches and the people who operate them. Every Thursday USDA’s National Agricultural Statistics Service will highlight new Census data and the power of the information to shape the future of American agriculture.

For decades, school children in Arizona have been taught the five Cs: Copper, Cattle, Cotton, Citrus, and Climate. These five C’s have been the driving force behind Arizona’s economy, and gave economic security to past generations and hope to many generations. However, all that is changing. Arizona, like the rest of the country, is undergoing an economic transformation. Arizona is moving from a mining and agriculturally oriented economy, to a high-technology and service-based economy. This is changing the patterns of where Arizonans live and work.

Three of Arizona’s Cs – cattle, cotton, and citrus – were counted in the most recent Census of Agriculture and the results showed that they are still economically significant. The value of cattle, cotton and citrus production that was sold in 2012 totaled nearly $940 million, excluding the more than $760 million in milk sales. Total market value of all agricultural products sold topped $3.7 billion.

The Ag Census also stayed true to USDA’s focus on new farms. These include minority-operated farms, young farmers new to agriculture, small producers of specialty commodities and organic operations. Historically these types of farms have been undercounted or have been very difficult to count. Arizona has an especially strong connection to these farms as we have the highest number of American Indian farmers in the United States. The total number of American Indian farms in Arizona rose to more than 11,000, which means that as of 2012, American Indian operators run more than half of all farms in our state. These farms cover almost 21 million acres of land, which is nearly 80 percent of all farmland in Arizona.

In our state, as well as in the rest of the United States, the average farmer is getting older.  The average age of farmers and ranchers in Arizona is 61 years old.  The number of young farmers (under 25 years old) rose but still made up less than one percent of all farms.

What else can be said about Arizona agriculture? The agriculture base in the Grand Canyon State is truly unique and ever-changing. However, one thing seems certain to remain the same. Arizona farmers and ranchers will continue to face challenges with water, weather and the economics of farming and ranching and NASS will continue its role in providing quality data to help producers make sound decisions.