The value of Nebraska’s 2017 corn crop is $5.55 billion and the soybean crop is $2.95 billion according to recent USDA National Agricultural Statistics Service (USDA-NASS) estimates. The corn production value is third-highest in the nation, falling behind Iowa at $9 billion and Illinois at $7.7 billion, and the soybean crop value is the fifth-largest. The figure below shows the values of Nebraska’s corn and soybean crops since 2010. The 2017 corn crop value is lower compared to 2016, but the soybean crop value is slightly higher. The corn crop value exceeded $9 billion in 2011, but has since fallen to where it has been around $6 billion or less in recent years. On the other hand, the value of the soybean crop has consistently hovered around $3 billion through the years. The drop in corn prices and acres in production are both reflected in the lower crop values for corn. Soybean prices have also come down, but increases in acres and higher yields have mitigated the effects on overall crop value. Continue reading →
The U.S. trade deficit with the rest of the world has been getting a lot of attention lately. In January, the deficit was estimated to be $56.6 billion, the highest level in nearly a decade. President Trump believes the trade deficit is bad and argues the U.S. is losing to other countries with which it trades. Accordingly, he believes the U.S. must renegotiate trade agreements and enact tariffs on imported goods to rectify the large deficits. The President’s arguments raise two questions: Are trade deficits inherently bad? And, is the U.S. losing to the rest of the world by having such large trade deficits? Continue reading →
A contemplated change in how the Renewable Fuel Standard (RFS) is implemented could cost Nebraska corn producers $421 million. A policy brief by the Iowa State University, Center for Agriculture and Rural Development (CARD), suggests the policy change, a cap on the prices of Renewable Identification Numbers (RINs), could result in a price loss for corn of 25 cents per bushel. A 25-cent loss in price would equate to a loss in the value of Nebraska’s corn crop of $421 million, or 7.6 percent, based on the 2017 estimated crop value of $5.5 billion.
When you think of cattle what do you think of? Most might say something along the lines of steak or hamburger, but have you ever thought about the everyday products that may use some other less obvious parts of the beef animal? By-products are secondary items that are produced in addition to the main product. For as long as humans have used animals as a food source, their by-products have been just as important. For cattle-the obvious main product is meat, but cattle provide numerous byproducts that we use daily. Through manufacturing processes, parts of the animals such as the hide, bones, hair, and fatty acids can be made into important industrial, household and health products. In fact, 99% of the beef animal is utilized!
The other day I decided to treat myself to a large bowl of ice cream. I was feeling like it needed a little extra something, so I decided to add some chocolate syrup and whipped cream. When I looked at the can of whipped cream, I had somewhat of an epiphany when I saw a bold label that said, “No Artificial Growth Hormones.” I stared at the label as an agriculturalist and an advocate for the industry and began to understand why there is such a distrust between consumers and producers.
“The Big Mac and the Dollar” may read a bit like the title of a children’s fairy tale (i.e. Jack and the Beanstalk), but it isn’t. Instead, it’s an agricultural economist’s not-so-clever way of introducing a discussion on the value of the dollar. Nebraska agriculture relies on exports, and the value of the dollar is a key determinant in determining the competitiveness of Nebraska agricultural products in international markets.
Nebraska crop producers received $646 million in Price Loss Coverage (PLC) and Agriculture Risk Coverage—County (ARC-CO) payments last fall for the 2016 crop year. In total, the USDA distributed $6.9 billion in payments to participating producers under these two programs.