Status of Wisconsin Agriculture 2010 - Agricultural & Applied ...

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3.00% 2.50% 2.00% 1.50% 1.00% 0.50% 0.00% of the U.S. soybean crop. Its share has been pretty consistent over the last decade. Harvest prices for the 2009 soybean crop have averaged about 9 cents per bushel higher than in 2008 (based on national averages). Looking forward, the futures market is offering attractive returns to storage through March, and some basis improvement should be expected for Wisconsin producers. As with corn, significant price volatility is expected, so that those who are riskaverse may want to lock in storage returns for at least a portion of the crop being carried forward. The possible returns to storing soybeans into the late spring or summer do not look as attractive as those for corn. Wisconsin’s Soybean Crop as a Percent of U.S. Crop 1991 1993 1995 1997 1999 2001 2003 2005 2007 2009 Summary Recent experience suggests that we have entered an era where average prices for both corn and soybeans will exceed those paid in the late 1980’s, the 1990’s, and the first half of the 2000s. However, along with the higher prices has come increased price volatility. This suggests two things: 1) Government programs do not provide as high a level of risk protection at current prices as they once did, and 2) risk management strategies outside the government programs will become increasingly important in determining an individual producer’s bottom line. 28 STATUS OF WISCONSIN AGRICULTURE 2010—CURRENT OUTLOOK: CORN AND SOYBEANS
Fruits and Vegetables A.J. Bussan* (608) 262-3519 Synopsis Although Wisconsin cranberry production decreased 11 percent in 2009, prices remained strong, supported by strong demand for cranberry products here and abroad. The potato market has weakened. A combination of increased planting and higher yields across the country led to a larger volume of stored potatoes going into 2010 than 2009. Consumption was down for the fall quarter of 2009 due to 5 percent reduction in frozen processed potato consumption nationally. Openmarket potato prices in the fall of 2009 were only about 30 percent of 2008 prices. Contract prices for processed vegetables remain strong. Wholesale *A.J. Bussan is an associate professor, Department of Horticulture, UW- Madison and vegetable crop production system specialist, Cooperative Extension, UW-Extension Value—$Million prices for canned and frozen sweet corn, green peas, green beans, carrots, and beets for 2008 and 2009 are up nearly 30 percent compared to 2007 and earlier. Wisconsin, Minnesota, and Illinois remain the nation’s largest concentrated production of canned and frozen vegetables. Wisconsin currently ranks 2nd nationally in production of vegetables (excluding tomatoes) for processing. Fruit Crops Apples The USDA forecast for Wisconsin’s 2009 apple crop is 58.5 million pounds, up 3 percent from the previous year’s crop. Dry conditions, especially in the northern two-thirds of the state, may have limited fruit size, but yields should be better than last year. Scab was an issue in some orchards. The U.S. apple crop is expected to increase 4 percent over last year. Tart Cherries Wisconsin tart cherry production had only one direction to go. After Wisconsin Cranberries: Season-Average Grower Price and Total Crop Value 280 240 200 160 120 80 40 0 Season-Average Price (Right Axis) an almost complete loss in 2008, the 2009 crop was forecast at 8.3 million pounds, which is within 20 percent of 2007 volume. The tart cherry crop was reportedly delayed due to cool and wet weather through much of the early part of the season. Cranberries USDA forecasts that Wisconsin’s 2009 cranberry crop will be 4 million barrels (1 barrel = 100 pounds). This is down from 2008’s record of 4.5 million barrels, but it would be the second largest crop on record for Wisconsin. The lower production was mainly due to marshes recovering from the huge 2008 crop. Cool weather in late spring and summer may also have reduced berry size. The unusually cool nights forced growers to frost-protect into early summer and again in early fall. Nevertheless, Wisconsin continues to lead the nation in cranberry production and once again will produce over half of the U.S. crop in 2009. Wisconsin cranberry growers received an average price of $55.40 per barrel in 2008, and the price is Crop Value (Left Axis) 0 1972 1976 1980 1984 1988 1992 1996 2000 2004 2008 STATUS OF WISCONSIN AGRICULTURE 2010—CURRENT OUTLOOK: FRUITS AND VEGETABLES 29 70 60 50 40 30 20 10 Price—$/Barrel
Page 1 and 2: S TAT U S O F Wisconsin Agriculture
Page 3 and 4: Preface Status of Wisconsin Agricul
Page 5 and 6: export markets, which left more mil
Page 7 and 8: Wisconsin Farm Income After two con
Page 9 and 10: $Billion 70 60 50 40 30 20 10 Asset
Page 11 and 12: Percent 40 36 32 28 24 20 16 12 8 4
Page 13 and 14: The General Economy and Agricultura
Page 15 and 16: Allocation of Funds from the Fiscal
Page 17 and 18: ments and expand hiring until they
Page 19 and 20: 2009 in light of the global recessi
Page 21 and 22: What farmers pay for fertilizer and
Page 23 and 24: Dairy Bob Cropp (262-9483) Review o
Page 25 and 26: mated at 189.2 billion pounds, down
Page 27 and 28: may do better. As of October 2009,
Page 29 and 30: The main pressures on the supply si
Page 31 and 32: Corn and Soybeans Randy Fortenbery
Page 33: Beginning stocks (stocks as of Sept
Page 37 and 38: Introduction III. Framing the Finan
Page 39 and 40: price could not cover estimated fee
Page 41 and 42: orders (FMMOs), the Upper Midwest o
Page 43 and 44: Major U.S. Export Crops, 2007-08 Cr
Page 45 and 46: Economic Impact of Wisconsin Agricu
Page 47 and 48: impact experienced by producers who
Page 49 and 50: Lenders are very nervous about the
Page 51 and 52: farmers and other industry particip
Page 53 and 54: dairy products, and perhaps one of
Page 55 and 56: 7. Foreign Tax Credit Carryovers. A

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