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The Economics Behind the Headlines: May 2004

ERS reports and studies can provide context to breaking stories on food, agriculture, natural resources, and rural development.

In the News

USDA Forecasts Record Farm Exports at $61.5 Billion (Wires, 5/25/04)

From ERS

U.S. Agricultural Exports Forecast at a Record $61.5 billion in Fiscal Year 2004. Export growth in fiscal 2004 reflects higher volumes and higher unit values for feedgrains, rice, cotton, beef, and many horticultural products. The improved outlook is due to favorable exchange rates, strong global economic growth, reduced competition for wheat, corn and cotton markets, and China's robust demand for oilseeds and cotton. On the other hand, a smaller U.S. soybean crop and BSE-related bans on U.S. beef exports are factors restraining export expansion.


In the News

GAO Calls for Examination of Drugs in Animals (Reuters, 5/24/04)

From ERS

Antimicrobial Drug Use and Veterinary Costs in U.S. Livestock Production. Feeding low levels of antimicrobial drugs to livestock affects food safety, human health, and livestock production costs and returns. This report examines the economics of antimicrobial resistance in livestock and the economic implications of banning the use of growth-enhancing antimicrobial drugs in livestock production.


In the News

USDA Approves $2.7 Million For Mississippi Water Projects (AP, 5/20/04)

From ERS

Economic Impact of Rural Water and Sewer Facilities (pdf). Rural areas and small towns can derive significant economic benefits from building new water and wastewater plants that assure an adequate supply of clean water. An ERS analysis of data from the U.S. Department of Commerce's Economic Development Administration found that rural communities derived sizeable economic benefits from water and sewer projects, including an increase in available jobs, more private investments, and a rise in property tax base.


In the News

Guidelines on Organic Labeling Repealed (N.Y. Times 5/27/04)

From ERS

Recent Growth Patterns in the U.S. Organic Foods Market. As U.S. consumer interest in organic foods continues to gather momentum, many firms are specializing in growing, processing, and marketing an ever-widening array of organic products. This report provides economic research on recent growth patterns in the U.S. organic sector, describes the marketing channels for major organic commodity groups, and summarizes USDA research, regulatory, and other ongoing programs on organic agriculture.


In the News

Soaring Energy Prices Hinder Strong U.S. Farm Economy (Reuters, 5/24/04)

From ERS

Characteristics and Production Costs. These reports examine how production costs vary among producers of different commodities, including details on production practices and input use as well as farm operator and structural characteristics.


In the News

USDA sets meeting on CRP's future (Reuters, 5/15/04)

From ERS

ERS report looks at land retirement. The Conservation Reserve Program (CRP) remains the largest U.S. agricultural land conservation program. Re-authorized by the 1996 Farm Act at a time when commodity prices were high, consideration was given to early release of some contracts, and more careful targeting of enrolled acreage to maximize environmental benefits. The emphasis on targeting for environmental benefits continues, as the criteria for enrollment have evolved and other forms of targeting, such as the continuous CRP signup and Conservation Reserve Enhancement Program, have emerged.


In the News

ITC says milk protein imports have little impact on farm prices (AP 5/18)

From ERS

Livestock, Dairy and Poultry Outlook looks at Milk prices (pdf). Milk Prices to Moderate in 2005. With milk production likely to stay below a year earlier through most of 2004, the key to how long dairy prices stay high will be the strength of demand recovery. Restaurant demand came back after more than two years of sluggishness, joining the earlier recovery in retail and (to a lesser extent) food processor use. Cheese demand was so brisk that cheese production not only pulled very large amounts of milk from other uses, but also apparently used so much nonfat dry milk that the seemingly endless surplus of skim solids virtually disappeared.


In the News

WHO presents global plan to fight obesity (USA Today, 5/18)

From ERS

The Economics of Obesity. Although high health, social, and economic costs are known to be associated with obesity, the underlying causes of weight gain are less understood. At a basic level, weight gain and obesity are the result of individual choices. Consequently, economics, as a discipline that studies how individuals use limited resources to attain alternative ends, can provide unique insight into the actions and forces that cause individuals to gain excessive weight. In April 2003, ERS and the University of Chicago's Irving B. Harris Graduate School of Public Policy Studies and the George J. Stigler Center for the Study of the Economy and the State hosted a workshop on the Economics of Obesity. The purpose was to provide an overview of leading health economics research on the causes and consequences of rising obesity in the United States.


In the News

Rural areas seek economic, government solutions (Kansas City Star 5/18)

From ERS

Farm Policy, Farm Households, and the Rural Economy. ERS research explores how investments in rural people, businesses, and communities affect the capacity of rural economies to prosper in a changing global marketplace. Equally important are efforts to enhance the quality of life for the Nation's small farmers who are increasingly dependent on these rural economies for their employment and economic support.


In the News

U.S. Trade Representative Optimistic About EU Export Goal (Reuters, 5/3/04)

From ERS

The European Union Adds 10 New Members. On May 1, 2004, 10 countries joined the European Union (EU)—eight of the formerly Communist Central and East European (CEE) countries (Czech Republic, Hungary, Poland, Slovakia, Slovenia, Latvia, Lithuania, and Estonia) plus Cyprus and Malta. This is the largest expansion in the history of the EU and will bring profound changes to Europe. The EU-15 already had a larger value of agricultural production than the United States. The EU-25 will be an even larger presence on the global agricultural market. Expansion increased the EU’s population by 28 percent larger and it arable acreage by nearly 40 percent. Grain area in the 10 candidate countries totaled 16 million hectares in 2000, nearly half the grain area in the EU-15.


In the News

USDA May Give Incentives for Soil and Water Stewardship (Reuters, 5/1/04)

From ERS

Emphasis Shifts in U.S. Agri-Environmental Policy. Recognizing the negative impact that some farming practices can have on our Nation's natural resources, policymakers have been devoting more attention and funding to agri-environmental policies and programs. Until 2002, the bulk of conservation funds went toward land retirement. The new Farm Act authorizes increases in conservation funding, with about two-thirds of the new funds going to programs emphasizing conservation on working lands.


In the News

Tourism May Boost Investment in Cuban Fruit (Reuters, 5/3/04)

From ERS

Cuba's Tropical Fruit Industry. Cuba's tropical fruit industry primarily caters to domestic markets with fresh fruits that are Cuban diet staples. Plantains and bananas account for over 70 percent of production. Tropical fruit production fell with Cuba's collapsing economy in the early 1990s. With ideal climate and land resources, production potential remains high. Production and demand will both recover and grow as Cuba's economy recovers. If commercial relationships with the United States were restored, Cuba could initially look to U.S. sources for quality tropical fruits for Cuba's growing tourist market. Eventually, as Cuba's economy and its tropical fruit sector recover, the United States could provide new market opportunities for an increasingly competitive Cuban tropical fruit sector.

 

For more information, contact: Mary Reardon

Web administration: webadmin@ers.usda.gov

Updated date: March 7, 2006