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Posts tagged: ERS

Farms that Sell Directly to Consumers May Stay in Business Longer

Produce on display at farmers’ market in Washington DC

Produce on display at farmers’ market in Washington DC. Economic Research Service’s Amber Waves magazine reports that farmers who market goods directly to consumers are more likely to remain in business. USDA photo

Opportunities to buy food directly from farmers, in urban and rural areas, have increased considerably in recent years. The number of farms that sold food at roadside stands, farmers’ markets, pick-your-own farms, onfarm stores, and community-supported agricultural arrangements increased 24 percent between 2002 and 2012. Economists at the Economic Research Service (ERS) have found that farmers who market goods directly to consumers are more likely to remain in business than those who market only through traditional channels.

Farmers face many business risks, including fluctuations in prices and yields.  ERS looked at Census of Agriculture data showing that 61 percent of farms with direct-to-consumer (DTC) sales in 2007 were in business under the same operator in 2012, compared with 55 percent of farms without DTC sales. In a comparison of farms across four size categories (defined by annual sales in 2007), farmers with DTC sales had a higher survival rate in each category. The difference in survival rates ranged from 10 percentage points among the smallest farms to about 6 percentage points among the largest. Read more »

Ready to have Market Data as Close as your Smartphone? Here We Go!

MARS logo

MARS allows for more data availability, better analysis, and improved information availability sooner for more agricultural markets in one easy-to-use tool.

Earlier this week, the USDA’s Agricultural Marketing Service (AMS) hosted a webinar on an exciting new initiative to provide unbiased market data to users digitally. Called the Market Analysis & Reporting Services (MARS), this dynamic, innovative technology will assist USDA Market News in collecting and distributing information electronically from remote locations, by combining reporting from all commodity areas (Livestock, Cotton, Specialty Crops, and Dairy) into a single platform.

This modernization effort will improve the transparency, speed, accuracy, and flexibility of this vital service and allow Market News to continue to expand its services to agricultural market participants.  To ensure that our changes meet your needs, we are conducting focus groups and welcome you to participate.  Your input will enable Market News to speed data flow from the agricultural markets, to agency analysts, and to the public, allowing users to create unique content. Read more »

Market News – Indispensable to Producers on Earth, Now Goes to MARS

Joe Gaynor demonstrating the new MARS data platform

Joe Gaynor (left) demonstrates how MARS will improve our services, helping ensure that farmers and ranchers know they're getting a fair price, wholesalers make better decisions about what and how much to buy, and commodity traders buy and sell based on current market information.

Editor’s Note: The free webinar on the Market Analysis and Reporting Services (MARS) has been moved to Thursday, April 14, 2016 at 2 p.m. Eastern.  Sign up using this link:  http://bit.ly/1MxNAWj

For over 100 years, USDA Market News has been an indispensable service, used by agricultural producers of all sizes to get timely, unbiased data from Market News reporters across the country.  Farmers, ranchers, and the entire agricultural supply chain turn to USDA Market News – administered by USDA’s Agricultural Marketing Service (AMS) – for data that serves as the information lifeline for America’s agricultural economy.  Now, Market News is entering a new phase, deploying the Market Analysis & Reporting Services (MARS).  It’s a big step forward for AMS, Market News and for the markets and producers that use our data every day.

MARS was formally unveiled during the recent USDA Agricultural Outlook Forum.  It includes the ability to capture livestock auctions for commodities like feeder cattle and will eventually include more than 600 commodities in real time (where applicable), and moves reporter’s data capture from the paper age to a connected digital age.  That means a reporter at a livestock auction in, for example, Kansas will know in real time what comparable feeder cattle is selling for at an auction in Texas. Read more »

Conservation and Biological Diversity in Organic Production

Rows of crops

Organic practices foster cycling of resources, promote ecological balance, and conserve biodiversity.

The National Organic Program (NOP) – part of the USDA’s Agricultural Marketing Service (AMS) – protects the integrity of certified organic products by developing clear standards, overseeing the certification of organic farms and businesses, and ensuring compliance with the USDA organic regulations.

Organic is a labeling term that means the food or other agricultural product has been produced through approved methods that integrate cultural, biological, and mechanical practices. These practices foster cycling of resources, promote ecological balance, and conserve biodiversity. Certified organic crop and livestock producers manage their farms according to the USDA organic regulations. This means using materials that are approved for use in organic production, and maintaining or improving the natural resources of their operation, including soil and water quality. Read more »

The Surprise in Latest Forecast: Net Farm Income Down; but Farm Businesses and Farm Households Show Improvement

Debt-to-asset ratio and debt-to-equity ratio chart

USDA’s Economic Research Service (ERS) recently released its Farm Income forecast for 2016. This year the debt-to-asset ratio ratio is forecast to be 13.2%, compared to 12.7% in 2015. The same trends hold for debt-to-equity ratios.

USDA’s Economic Research Service (ERS) recently released its Farm Income forecast for 2016.  Net cash income and net farm income (which includes the value and costs of items like depreciation, home consumption of farm goods, and unsold inventory) are both expected to fall slightly compared to 2015, but by much less than last year. Net cash income is expected to fall by 2.5%, or about $2.3 billion, and net farm income by 3%, or about $1.6 billion. Last year net cash income fell by 27% and net farm income by 38%.

A large portion of the forecast decline is from lower livestock receipts, expected to be down by about $7.9 billion. Crop receipts are also forecast to be lower by $1.6 billion. On the other hand, input costs are forecast to be down by $3.8 billion, and government payments are expected to be $3.3 billion higher. Read more »

Consumer Demand Bolstering Organic Production and Markets in the U.S.

Mar-Bil Jersey Farm's red barn

Mar-Bil Jersey Farm has been in Bill Yoder’s extended family since the 1700s and his grandfather built their big red barn nearly 100 years ago. Photo by Keri Pickett Photography.

Organic food sales in the United States have shown double-digit growth during most years since the 1990s, and this trend shows no sign of slowing.  The Nutrition Business Journal reports annual growth in the nation’s organic food sales has generally exceeded 10 percent since the downturn in the American economy in 2008.  U.S. organic food sales approached an estimated $37 billion in 2015, up 12 percent from the previous year.  The country’s top food retailers, including Costco, Kroger, Walmart and Target, have expanded their organic food offerings in recent years, and have announced initiatives which could further boost demand.

Although organic sales have been increasing from a small base, the Organic Trade Association estimates that U.S. organic food purchases accounted for nearly 5 percent of the total food market in 2014.  In addition, U.S. sales of organic personal care products, linens, and other nonfood items were in excess of an estimated $3 billion in 2014.  Certified organic farmland has also expanded, while not as fast as organic sales. Read more »