Crop Insurance Today May 2015 - (Page 10)

Table 1. Crop Yields and Production 2013 2014 % CROP 2013 YIELD 2014 YIELD PRODUCTION PRODUCTION CHANGE Bu./Harv. Ac. Bu./Harv. Ac. Mil. Bu. Mil. Bu. Corn 158.1 171.1 13,829 14,216 2.8 Barley 71.3 72.4 217 177 -18.4 Grain Sorghum 59.6 67.6 392 433 10.3 Soybeans 44.0 47.8 3,358 3,969 18.2 All Wheat 47.1 43.7 2,135 2,026 -5.1 Winter Wheat 47.3 42.6 1,543 1,378 -10.7 Other Spring 47.1 46.7 534 595 -11.4 Lbs./Harv. Ac. Upland Cotton 802 Lbs./Harv. Ac. Rice Lbs./Harv. Ac. 1,000 Bales 1,000 Bales 781 12,275 15,496 -26.2 Lbs./Harv. Ac. 1,000 Cwt. 1,000 Cwt. 7,694 7,572 189,953 221,035 -16.4 Source: NASS Crop Production Annual Summary, January 2015 U.S. production of principal fresh vegetables was down a little over one percent in 2014, reflecting less acreage. Interestingly, in California, which accounts for a little over half of all U.S. vegetable production, acreage fell 3.4 percent but production was about the same as in 2013. The largest production drops in 2014 were in Florida and Texas and reflected lower planted area. Production of principal processing vegetables in 2014 was up 12 percent from 2013. Tomatoes, sweet corn, and snap beans account for 93 percent of the total. California leads the nation with 74 percent of the processing vegetable production. In 2014, California processing acreage planted was up 10 percent and production was up 15 percent. Despite the drought, strong prices for some vegetables, such as tomatoes, increased acre- age. Many producers relied on well water for irrigation, which, over time, could increase soil salinity problems. Citrus production is mostly in California and Florida and was down 15 percent during the 2013-14 year compared with the year earlier. California citrus is mostly fresh, and despite a modest drop in production, value was up 33 percent. Florida citrus is mostly for processing and both production and value fell in 2014. U.S. production of noncitrus fruit and nuts was down three percent in 2014 compared with a year earlier. In California, grape production was down 11 percent, with growers reporting hail and drought as contributing factors. [Information sources for this section include: NOAA National Climatic Data Center, Figure 8. World Grain & Oilseeds Production, Use & Stocks Stks/Use Bil. Tons 60% 2.4 2.2 2.0 40% 1.8 1.6 1.4 20% 1.2 1.0 0.8 10 MAY2015 4 201 2 201 0 201 8 200 6 200 4 200 0 2 200 8 200 6 199 4 199 199 2 199 199 0 0% State of the Climate: National Overview for Annual 2014, published online December 2014, retrieved on February 24, 2015 from http:// www.ncdc.noaa.gov/sotc/national/2014/13; from USDA NASS, Quick Stats available at www.nass.usda.gov/Quick_Stats/index.php and the following annual reports: Crop Production 2014 Summary, January 2015, Vegetables Annual Summary, January 2015, Citrus Fruits 2014 Summary, September 2014 and Noncitrus Fruits and Nuts 2014 Preliminary Summary, January 2015; Center for Watershed Sciences, University of California, Davis, UC Agricultural Issues Center, ERA Economics, Economic Analysis of the 2014 Drought for California Agriculture, Davis, California, July 23, 2014.] Commodity Market Developments The adequate rainfall and moderate temperatures over much of the Central United States in 2014 produced record-high production of corn and soybeans as well as production increases for many other crops (Figure 8). Following on the heels of the sharp rebound in global production in 2013, the large crops in 2014 continued the downward trend in crop prices initiated a year earlier. Global grain and oilseed production increased by a whopping 10 percent in 2013, compared with a robust increase in global domestic use estimated at over five percent. That imbalance started the accumulation of global carryover stocks. In 2014, production was up a slight 1.5 percent, but still sufficient to exceed total use, which is expected to grow by 2.6 percent, about the long-term average. As a result, global carryover stocks are expected to be up estimated 10 percent by the end of the 2014/15 marketing year. Global wheat production increased modestly in 2014, led by an increase in EU production, and exceeded global use, resulting in a small expected increase in global wheat stocks. Similarly, global coarse grain stocks are estimated to increase again as global production exceeds last year's high level, as production decreases in Brazil, Australia, Argentina and Canada are offset by the record U.S. coarse grain production. The most prominent imbalance between global production and use is in oilseeds markets, where the large 2014 U.S. and Brazilian soybean crops are expected to cause a 35 percent increase in global soybean stocks. The story of http://www.ncdc.noaa.gov/sotc/national/2014/13 http://www.ncdc.noaa.gov/sotc/national/2014/13 http://www.nass.usda.gov/Quick_Stats/index.php

Crop Insurance Today May 2015

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