Journal Article

The farm slump continues

Abstract: The century's final year was one of frustration for U.S. agriculture - certainly not the way the industry had hoped to close the millennium. Farmers took pride> in their productivity, turning out the fourth bin-busting crop in a row and more red meat and poultry than ever before. But the big production collided with a still sluggish world market, holding down farm commodity prices. Still, farm income held up well above the average for the past decade, due to another big financial assistance package from Washington.> The farm slump will likely continue in the year ahead, although prospects for livestock and crop producers diverge widely. Livestock producers could have a very good year, with low feed costs and robust consumer demand boosting profits, but weak crop prices could drag down farm income. The farm export picture is beginning to brighten again, but too gradually to offer much relief in 2000. With exports soft and the nation's granaries still full, weak crop prices could be the norm. As in the last two years, help from Washington may determine whether farm income in 2000 rises or falls.

Keywords: Agricultural productivity; Agricultural prices; Farm income;

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Bibliographic Information

Provider: Federal Reserve Bank of Kansas City

Part of Series: Economic Review

Publication Date: 2000

Volume: 85

Issue: Q I

Pages: 43-55