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Working with Livestock Industry to Provide Critical Market Intelligence

The Livestock Mandatory Price Reporting (LMR) Program was created to expand pricing information available to the livestock industry.  The data is collected and distributed by USDA’s Agricultural Marketing Service (AMS) through its USDA Market News division to provide market information for cattle, swine, lamb, and livestock products.

LMR encourages competition in the marketplace by vastly improving price and supply data, bringing transparency, breadth and depth to market reporting.  Through LMR, livestock producers and processors, retail food outlets, restaurants, exporters, and many other stakeholders receive critical market intelligence on a daily basis.  Literally thousands of business transactions every day rest on the outcome of LMR data.

A Moment in Time Look at Organic Retail Prices

Consumers can find certified organic products at most grocery stores and demand for organic products continues to increase, with U.S. retail sales valued at more than $43 billion in 2015.  Organic products are grown, raised and produced by over 31,000 certified operations, and many of those operations receive higher prices, or premiums, for their products.

Recently, USDA’s Economic Research Service (ERS) issued a report entitled Changes in Retail Organic Price Premiums from 2004 to 2010.  The report highlights the retail price premium charged for organic foods compared to conventional products.  For the report, ERS used a virtual shopping basket of 17 products and data collected from Nielsen scanners to calculate the organic prices and how they changed from 2004-2010.

Using Market Data to Feed the World

In 2050, there will be about 9 billion people in the world. How do you feed 9 billion people? Clearly, we need more food, greater production, and more efficient processes, but how do we achieve that and how does that translate to success?

The answer may be found through science and data.  USDA works hard to provide good data to decision makers on the farm, in the field, at the lab and in the office place. This data includes economic information that characterizes and evaluates global market performance and keeps food and agricultural systems working smoothly.  Information includes data on crop production, farm income, food and agricultural prices, trade, nutrition, and food security.

USDA Launches a One Stop Shop for its "One Health" Approach to Zoonotic Threats

At USDA, we use a One Health approach that embraces the idea that problems arising at the intersection of the health of humans, animals, and the environment can be solved only through a coordinated multidisciplinary approach.  This approach embraces the idea that a disease problem impacting the health of humans, animals, and the environment only can be solved through improved communication, cooperation, and collaboration across disciplines and institutions.

Because the One Health work that we do spans across many USDA agencies, we are launching a centralized web portal page to better help our stakeholders and the public better access our information.   This page features USDA’s collective body of work on antimicrobial resistance (AMR), avian influenza and swine influenza as well as other One Health resources.

Investigating Retail Price Premiums for Organic Foods

This post is part of the Science Tuesday feature series on the USDA blog. Check back each week as we showcase stories and news from USDA’s rich science and research portfolio.

Consumer demand for organically produced goods has shown double-digit growth during most years since the 1990s, according to industry statistics, providing market incentives for U.S. farmers across a broad range of products. Consumers can now purchase organic food at nearly three out of four conventional grocery stores. These products generally carry a price that reflects the additional costs of producing organic foods and of keeping products segregated throughout the supply chain. The price premiums reflect these costs as well as consumers’ willingness to pay more for organic products.

A new Economic Research Service report provides estimated retail price premiums—and changes in premiums—for 17 commonly purchased organic foods relative to their nonorganic counterparts from 2004 to 2010. We used grocery store purchase data from a large set of nationally representative households. The data included detailed information on each product (degree of processing, flavor, package size, and whether organic), its price, and where it was purchased, allowing us to isolate the organic price premium.

What Explains the Recent Rise in Rural Child Poverty?

During the 1950s and 1960s, the adage “a rising tide lifts all boats” broadly applied to the U.S. economy. As average income grew, the share of the population living in poverty fell rapidly. In the 1970s and 1980s, however, this relationship changed: average income continued to rise, but poverty increased. This means that incomes actually fell for many families in the lower portion of the income distribution. In other words, income inequality increased, and this translated into higher poverty despite a growing economy.

Recent work by USDA’s Economic Research Service (ERS) shows that this dynamic persists, and helps explain trends in poverty among children in rural areas. According to official estimates, the share of rural children living in poverty grew between 2003 and 2007 even as the national economy expanded. Between 2007 and 2010, this share continued to increase, as might be expected given the profound economic recession of 2007-09. But the rural child poverty rate continued to rise through 2012, peaking at 26.7 percent, its highest level since at least 1968 -- despite the resumption of economic growth at the national level. The rate finally began to decline between 2012 and 2014, but the 2014 level was well above that of 2003.

Income Inequality: A Growing Threat to Eliminating Rural Child Poverty

Rural child poverty fell by 3 percentage points from 2012 to 2014. Over the past seven years, USDA and the Obama Administration have taken action to address the root causes and reduce the devastating effects of rural child poverty.  As a record streak of private sector job creation has cut nationwide unemployment in half, to 5 percent, average incomes for rural and urban families alike climbed nearly 6 percent in the last two years of data, returning to 2003 levels.  While we have made important progress in increasing incomes and reducing the rural child poverty rate, it remains unacceptable that 1.5 million children in rural America – 23.7 percent of all rural youth – live in poverty.

Farms that Sell Directly to Consumers May Stay in Business Longer

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.

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

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.

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

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.