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FAPRI 2009

U.S. AND WORLD AGRICULTURAL OUTLOOK

January 2009

FAPRI Staff Report 09-FSR 1

ISSN 1534-4533

Food and Agricultural Policy Research Institute

Iowa State University

University of Missouri-Columbia

Ames, Iowa

U.S.A.

Iowa State University

University of Missouri-Columbia

Miguel Carriquiry

Julian Binfield

Fengxia Dong

D. Scott Brown

Xiaodong Du

Scott Gerlt

Amani Elobeid

Daniel Madison

Jacinto Fabiosa

Seth Meyer

Chad Hart

William H. Meyers

Dermot J. Hayes

Wyatt Thompson

Karen Kovarik

Patrick Westhoff

Simla Tokgoz

Lori Wilcox

Eric Wailes (University of Arkansas)

Abner W. Womack

Ed Chavez (University of Arkansas)

 

Published by the Food and Agricultural Policy Research Institute, Iowa State University and the University of Missouri-Columbia, 2009.

Material in this publication is based upon work supported by the Cooperative State Research Education and Extension Service, U.S. Department of Agriculture, under Agreement No. 2008-34149-19141.

Any opinions, findings, conclusions, or recommendations expressed in this publication are those of the authors and do not necessarily reflect the view of the U.S. Department of Agriculture.

Permission is granted to reproduce this information with appropriate attribution to the authors and the Food and Agricultural Policy Research Institute.

Iowa State University does not discriminate on the basis of race, color, age, religion, national origin, sexual orientation, gender identity, sex, marital status, disability, or status as a U.S. Veteran. Inquiries can be directed to the Director of Equal Opportunity and Diversity, 3680 Beardshear Hall, 515-294-7612.

Contents

 

Figures List............................................................................................................................

iv

Tables List .............................................................................................................................

vi

Abbreviations and Acronyms................................................................................................

xv

Marketing Year Definitions ..................................................................................................

xvi

Executive Summary ...............................................................................................................

1

Overview of the 2009 U.S. and World Outlook.....................................................................

3

Charts and Price Projections .................................................................................................

13

Baseline Assumptions ...........................................................................................................

49

World Macroeconomic Assumptions................................................................................

50

U.S. Program Provisions...................................................................................................

56

World Agricultural Policy Assumptions ...........................................................................

58

U.S. Crops .............................................................................................................................

69

U.S. Wheat........................................................................................................................

70

U.S. Rice...........................................................................................................................

72

U.S. Corn ..........................................................................................................................

76

U.S. Ethanol and Biofuel Policy Provisions.....................................................................

78

U.S. Corn Products ...........................................................................................................

80

U.S. Corn Processing........................................................................................................

82

U.S. Sorghum....................................................................................................................

84

U.S. Barley........................................................................................................................

86

U.S. Oats...........................................................................................................................

88

U.S. Hay............................................................................................................................

90

U.S. Soybeans and Soybean Products ..............................................................................

92

U.S. Biodiesel ...................................................................................................................

96

U.S. Sunflower Seed and Sunflower Seed Products .........................................................

98

U.S. Canola Seed and Canola Seed Products .................................................................

102

U.S. Peanuts and Peanut Products ..................................................................................

105

U.S. Upland Cotton and Cottonseed Products................................................................

108

U.S. Sugar.......................................................................................................................

112

U.S. Livestock and Dairy ....................................................................................................

115

U.S. Beef.........................................................................................................................

116

U.S. Pork.........................................................................................................................

118

U.S. Poultry.....................................................................................................................

120

U.S. Dairy .......................................................................................................................

124

U.S. State-Level Dairy Supply .......................................................................................

126

U.S. Dairy Products ........................................................................................................

130

U.S. Aggregate Measures....................................................................................................

133

U.S. Land Use.................................................................................................................

134

U.S. Food Prices and Expenditures ................................................................................

136

iv

U.S. Government Costs ..................................................................................................

138

U.S. Cash Receipts from Farm Marketings ....................................................................

140

U.S. Farm Production Expenses .....................................................................................

142

U.S. Prices Paid by Farmers ...........................................................................................

144

U.S. Net Farm Income ....................................................................................................

146

U.S. Crop Insurance........................................................................................................

148

World Wheat........................................................................................................................

151

World Rice...........................................................................................................................

165

World Coarse Grains ...........................................................................................................

181

World Oilseeds and Products ..............................................................................................

219

World Soybeans and Soybean Products..........................................................................

220

World Rapeseed and Rapeseed Products ........................................................................

238

World Sunflower Seed and Sunflower Seed Products ....................................................

252

World Palm Oil and Palm Kernel Products ....................................................................

263

World Peanuts and Peanut Products ...............................................................................

270

World Cotton .......................................................................................................................

283

World Sugar.........................................................................................................................

295

World Biofuels ....................................................................................................................

315

World Ethanol .................................................................................................................

316

World Biodiesel ..............................................................................................................

317

World Meat..........................................................................................................................

323

World Beef and Veal .......................................................................................................

324

World Pork......................................................................................................................

326

World Poultry..................................................................................................................

328

World Dairy Products..........................................................................................................

359

World Butter and Cheese ................................................................................................

360

World Milk Powder.........................................................................................................

363

Figures

 

Average Annual GDP Growth, 2008-2018............................................................................

14

Average Annual Exchange Rate Growth, 2008-2018 ...........................................................

14

U.S. Biofuel Use Mandates...................................................................................................

15

U.S. Conservation Reserve Program Area ............................................................................

15

v

U.S. Crop Planted Area .........................................................................................................

16

U.S. Crop Exports .................................................................................................................

16

U.S. Crop Prices....................................................................................................................

17

U.S. Feed and Residual Disappearance.................................................................................

17

U.S. Biofuel Production ........................................................................................................

18

U.S. Farm-Level Prices Paid Indices ....................................................................................

18

U.S. Cattle and Barrow and Gilt Prices.................................................................................

19

U.S. Poultry Wholesale Prices ..............................................................................................

19

U.S. Livestock Production ....................................................................................................

20

U.S. Meat Net Exports ..........................................................................................................

20

U.S. Milk Production ............................................................................................................

21

U.S. Milk Prices ....................................................................................................................

21

U.S. Land Use .......................................................................................................................

22

Mandatory U.S. Government Outlays, Fiscal Year...............................................................

22

U.S. Farm Income .................................................................................................................

23

U.S. Consumer Price Index for Food ....................................................................................

23

World Wheat Stocks-to-Use Ratio Versus Price ...................................................................

24

World Wheat Net Trade and U.S. Market Share ...................................................................

24

World Rice Stocks-to-Use Ratio Versus Price ......................................................................

25

World Rice Net Exports .......................................................................................................

25

World Coarse Grain Supply and Utilization .........................................................................

26

World Corn Stocks-to-Use Ratio Versus Price......................................................................

26

World Corn Net Trade and U.S. Market Share .....................................................................

27

World Barley and Sorghum Net Trade and Prices ................................................................

27

World Soybean Area Harvested and Price ............................................................................

28

World Soybean Net Trade .....................................................................................................

28

World Soybean Crush ...........................................................................................................

29

World Soybean Meal Net Trade ...........................................................................................

29

World Soybean Oil Net Trade ...............................................................................................

30

Soybean Oil Per Capita Consumption in Selected Countries ...............................................

30

World Rapeseed Area Harvested and Price...........................................................................

31

World Rapeseed Net Trade....................................................................................................

31

World Rapeseed Meal Net Trade ..........................................................................................

32

World Rapeseed Oil Net Trade..............................................................................................

32

World Sunflower Area Harvested and Price..........................................................................

33

World Sunflower Net Trade...................................................................................................

33

vi

World Sunflower Meal Net Trade .........................................................................................

34

World Sunflower Oil Net Trade ............................................................................................

34

World Palm Oil Net Trade and Price.....................................................................................

35

World Peanut Area Harvested and Price ...............................................................................

35

World Cotton Consumption ..................................................................................................

36

World Cotton Stocks-to-Use Ratio Versus Price...................................................................

36

Major Sugar Net Exporters and World Raw Sugar Price......................................................

37

Major Sugar Net Importers ...................................................................................................

37

World Ethanol Price and Net Trade.......................................................................................

38

World Biodiesel Price and Net Trade....................................................................................

38

World Meat Production and Trade ........................................................................................

39

Per Capita Meat Consumption .............................................................................................

39

Major Beef Importing Countries ..........................................................................................

40

Beef Export Market Share ....................................................................................................

40

Major Pork Importing Countries...........................................................................................

41

Pork Export Market Share.....................................................................................................

41

Major Broiler Importing Countries .......................................................................................

42

Broiler Export Market Share.................................................................................................

42

Butter Net Exports for Selected Countries ...........................................................................

43

Cheese Net Exports for Selected Countries ..........................................................................

43

NFD Trade for Selected Countries .......................................................................................

44

WMP Trade for Selected Countries.......................................................................................

44

Tables

 

Commodity Price Projections ...............................................................................................

45

Real GDP Growth Projections ..............................................................................................

51

GDP Deflator Growth Projections.........................................................................................

52

Exchange Rate Growth Projections ......................................................................................

53

Population Growth Projections .............................................................................................

54

U.S. Program Provisions .......................................................................................................

57

Agricultural Policy Assumptions for Crops ..........................................................................

59

Agricultural Policy Assumptions for Biofuels ......................................................................

63

Agricultural Policy Assumptions for Livestock and Dairy Products ....................................

64

Other Agricultural Policy Assumptions ................................................................................

68

U.S. Wheat Supply and Utilization .......................................................................................

71

U.S. Rice Supply and Utilization ..........................................................................................

73

vii

U.S. Long-Grain Rice Supply and Utilization ......................................................................

74

U.S. Mediumand Short-Grain Rice Supply and Utilization ...............................................

75

U.S. Corn Supply and Utilization .........................................................................................

77

U.S. Ethanol Supply and Utilization .....................................................................................

79

U.S. Biofuel Policy Provisions..............................................................................................

79

U.S. Corn Products Supply and Utilization ..........................................................................

81

U.S. Corn Processing ............................................................................................................

83

U.S. Sorghum Supply and Utilization...................................................................................

85

U.S. Barley Supply and Utilization.......................................................................................

87

U.S. Oat Supply and Utilization............................................................................................

89

U.S. Hay Supply and Utilization...........................................................................................

91

U.S. Soybean Supply and Utilization....................................................................................

93

U.S. Soybean Meal Supply and Utilization ..........................................................................

94

U.S. Soybean Oil Supply and Utilization..............................................................................

95

U.S. Biodiesel Sector ............................................................................................................

97

U.S. Vegetable Oil Consumption ..........................................................................................

97

U.S. Sunflower Seed Supply and Utilization ........................................................................

99

U.S. Sunflower Meal Supply and Utilization......................................................................

100

U.S. Sunflower Oil Supply and Utilization.........................................................................

101

U.S. Canola Seed Supply and Utilization ...........................................................................

103

U.S. Canola Meal Supply and Utilization...........................................................................

104

U.S. Canola Oil Supply and Utilization ..............................................................................

104

U.S. Peanut Supply and Utilization.....................................................................................

106

U.S. Peanut Meal Supply and Utilization ...........................................................................

107

U.S. Peanut Oil Supply and Utilization ..............................................................................

107

U.S. Upland Cotton Supply and Utilization........................................................................

109

U.S. Cottonseed Supply and Utilization .............................................................................

110

U.S. Cottonseed Meal Supply and Utilization ....................................................................

111

U.S. Cottonseed Oil Supply and Utilization .......................................................................

111

U.S. Sugar Crop Production................................................................................................

113

U.S. Sugar Supply and Utilization ......................................................................................

113

U.S. Beef Supply and Utilization........................................................................................

117

U.S. Pork Supply and Utilization........................................................................................

119

U.S. Broiler Supply and Utilization ....................................................................................

121

U.S. Turkey Supply and Utilization ....................................................................................

122

U.S. Egg Supply and Utilization .........................................................................................

123

U.S. Milk Component Supply and Utilization ....................................................................

125

U.S. Dairy Cows by State ...................................................................................................

127

U.S. Milk Production by State ............................................................................................

128

U.S. All-Milk Prices by State..............................................................................................

129

U.S. Dairy Product Supply and Utilization.........................................................................

131

U.S. Land Use for Major Crops ..........................................................................................

135

U.S. Consumer Price Indexes for Food...............................................................................

137

viii

U.S. Per Capita Consumer Expenditures for Food .............................................................

137

U.S. Net Government Outlays ............................................................................................

139

U.S. Cash Receipts from Farming.......................................................................................

141

U.S. Farm Production Expenses..........................................................................................

143

U.S. Indices of Prices Paid by Farmers...............................................................................

145

U.S. Indices of Prices Paid by Farmers (percent change) ...................................................

145

U.S. Farm Income Statistics................................................................................................

147

U.S. Crop Insurance ............................................................................................................

149

Wheat Trade ........................................................................................................................

153

World Wheat Supply and Utilization ..................................................................................

154

U.S. Wheat Supply and Utilization .....................................................................................

154

Algerian Wheat Supply and Utilization ..............................................................................

155

Argentine Wheat Supply and Utilization ............................................................................

155

Australian Wheat Supply and Utilization............................................................................

155

Brazilian Wheat Supply and Utilization..............................................................................

156

Canadian Wheat Supply and Utilization ............................................................................

156

Chinese Wheat Supply and Utilization ...............................................................................

157

Egyptian Wheat Supply and Utilization .............................................................................

157

European Union Wheat Supply and Utilization .................................................................

157

Indian Wheat Supply and Utilization .................................................................................

158

Iranian Wheat Supply and Utilization ................................................................................

158

Japanese Wheat Supply and Utilization .............................................................................

158

Mexican Wheat Supply and Utilization .............................................................................

159

Moroccan Wheat Supply and Utilization ...........................................................................

159

Other African/Middle Eastern Wheat Supply and Utilization ...........................................

159

Other Asian Wheat Supply and Utilization ........................................................................

160

Other CIS Wheat Supply and Utilization............................................................................

160

Other Eastern European Wheat Supply and Utilization .....................................................

160

Other Latin American Wheat Supply and Utilization ........................................................

161

Pakistani Wheat Supply and Utilization .............................................................................

161

Russian Wheat Supply and Utilization ...............................................................................

161

South Korean Wheat Supply and Utilization .....................................................................

162

Taiwanese Wheat Supply and Utilization ..........................................................................

162

Tunisian Wheat Supply and Utilization .............................................................................

162

Ukrainian Wheat Supply and Utilization ............................................................................

163

Rest-of-World Wheat Supply and Utilization ....................................................................

163

Per Capita Wheat Consumption of Selected Countries.......................................................

164

Rice Trade ...........................................................................................................................

167

World Rice Supply and Utilization ....................................................................................

168

U.S. Rice Supply and Utilization .......................................................................................

168

Argentine Rice Supply and Utilization ..............................................................................

169

Australian Rice Supply and Utilization ..............................................................................

169

Bangladeshi Rice Supply and Utilization ..........................................................................

169

ix

Brazilian Rice Supply and Utilization ................................................................................

170

Canadian Rice Supply and Utilization ...............................................................................

170

Chinese Rice Supply and Utilization ..................................................................................

170

Egyptian Rice Supply and Utilization ................................................................................

171

European Union Rice Supply and Utilization ....................................................................

171

Chinese - Hong Kong Rice Supply and Utilization ...........................................................

171

Indian Rice Supply and Utilization ....................................................................................

172

Indonesian Rice Supply and Utilization .............................................................................

172

Iranian Rice Supply and Utilization ...................................................................................

172

Iraqi Rice Supply and Utilization .......................................................................................

173

Ivory Coast Rice Supply and Utilization ...........................................................................

173

Japanese Rice Supply and Utilization ................................................................................

173

Malaysian Rice Supply and Utilization ..............................................................................

174

Mexican Rice Supply and Utilization ................................................................................

174

Myanmarian Rice Supply and Utilization ..........................................................................

174

Nigerian Rice Supply and Utilization ................................................................................

175

Pakistani Rice Supply and Utilization ................................................................................

175

Philippine Rice Supply and Utilization ..............................................................................

175

Saudi Arabian Rice Supply and Utilization .......................................................................

176

South African Rice Supply and Utilization ........................................................................

176

South Korean Rice Supply and Utilization ........................................................................

176

Taiwanese Rice Supply and Utilization .............................................................................

177

Thai Rice Supply and Utilization .......................................................................................

177

Turkish Rice Supply and Utilization ..................................................................................

177

Uruguayan Rice Supply and Utilization ............................................................................

178

Vietnamese Rice Supply and Utilization ............................................................................

178

Rest-of-World Rice Supply and Utilization .......................................................................

178

Per Capita Rice Consumption of Selected Countries..........................................................

179

Corn Trade...........................................................................................................................

183

Barley Trade ........................................................................................................................

184

Sorghum Trade ....................................................................................................................

185

World Corn Supply and Utilization.....................................................................................

186

World Barley Supply and Utilization ..................................................................................

186

World Sorghum Supply and Utilization ..............................................................................

187

U.S. Coarse Grain Supply and Utilization ..........................................................................

188

Algerian Coarse Grain Supply and Utilization ...................................................................

190

Argentine Coarse Grain Supply and Utilization .................................................................

191

Australian Coarse Grain Supply and Utilization.................................................................

192

Brazilian Coarse Grain Supply and Utilization...................................................................

193

Canadian Coarse Grain Supply and Utilization ..................................................................

194

Chinese Coarse Grain Supply and Utilization ....................................................................

195

Egyptian Coarse Grain Supply and Utilization...................................................................

195

European Union Coarse Grain Supply and Utilization .......................................................

196

Indian Coarse Grain Supply and Utilization .......................................................................

197

x

Indonesian Coarse Grain Supply and Utilization................................................................

197

Israeli Coarse Grain Supply and Utilization .......................................................................

198

Japanese Coarse Grain Supply and Utilization ...................................................................

199

Malaysian Coarse Grain Supply and Utilization.................................................................

199

Mexican Coarse Grain Supply and Utilization ...................................................................

200

Nigerian Coarse Grain Supply and Utilization ...................................................................

201

Other African Coarse Grain Supply and Utilization ...........................................................

201

Other Asian Coarse Grain Supply and Utilization ..............................................................

202

Other Eastern European Coarse Grain Supply and Utilization...........................................

203

Other CIS Coarse Grain Supply and Utilization .................................................................

204

Other Latin American Coarse Grain Supply and Utilization ..............................................

205

Other Middle Eastern Coarse Grain Supply and Utilization...............................................

206

Pakistani Coarse Grain Supply and Utilization...................................................................

207

Philippine Coarse Grain Supply and Utilization.................................................................

208

Russian Coarse Grain Supply and Utilization.....................................................................

208

Saudi Arabian Coarse Grain Supply and Utilization...........................................................

209

South African Coarse Grain Supply and Utilization ...........................................................

210

South Korean Coarse Grain Supply and Utilization ...........................................................

211

Taiwanese Coarse Grain Supply and Utilization.................................................................

211

Thai Coarse Grain Supply and Utilization ..........................................................................

212

Ukrainian Coarse Grain Supply and Utilization .................................................................

212

Vietnamese Coarse Grain Supply and Utilization...............................................................

213

Rest-of-World Coarse Grain Supply and Utilization ..........................................................

214

Per Capita Grain Consumption of Selected Countries .......................................................

215

Soybean Trade.....................................................................................................................

221

Soybean Meal Trade............................................................................................................

222

Soybean Oil Trade...............................................................................................................

222

World Soybean Sector Supply and Utilization....................................................................

223

U.S. Soybean Sector Supply and Utilization ......................................................................

224

Argentine Soybean Sector Supply and Utilization..............................................................

225

Brazilian Soybean Sector Supply and Utilization...............................................................

226

Canadian Soybean Sector Supply and Utilization ..............................................................

227

Chinese Soybean Sector Supply and Utilization.................................................................

228

European Union Soybean Sector Supply and Utilization ...................................................

229

Indian Soybean Sector Supply and Utilization ...................................................................

230

Japanese Soybean Sector Supply and Utilization ...............................................................

231

Mexican Soybean Sector Supply and Utilization................................................................

232

Other CIS Soybean Sector Supply and Utilization .............................................................

233

Paraguyan Soybean Sector Supply and Utilization.............................................................

234

South Korean Soybean Sector Supply and Utilization .......................................................

235

Taiwanese Soybean Sector Supply and Utilization.............................................................

236

Rest-of-World Soybean Sector Supply and Utilization.......................................................

237

Rapeseed Trade ...................................................................................................................

239

Rapeseed Meal Trade ..........................................................................................................

239

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