Mississippi State, Mississippi
December 14, 2006
Flooded markets and dry fields
were leading causes of an estimated 11 percent decline in
Mississippi’s farm value of production for 2006.
John Anderson, agricultural economist with
Mississippi State University’s
Extension Service, is predicting a total agricultural value of
$5.8 billion, which includes a 29 percent decline in government
payments. Mississippi’s total farm-gate value in 2005 was $6.5
billion.
“Given the level of adversity in production this season, it is
not surprising that estimates of the state’s value of
agricultural production are down,” Anderson said.
Mississippi’s strongest commodities are not row crops and even
those felt the pinch. Fueled by international fears of avian
flu, poultry, the state’s No. 1 crop, is expected to decline 10
percent to a total value just under $2 billion.
“We’ve got clean chickens, but when avian flu concerns started
hitting real big, a lot of countries began cutting off all
imports of poultry,” said Tim Chamblee, Extension poultry
specialist. “The world market was very cautious as that was
coming into wide attention.”
At No. 2, forestry still faces a timber market flooded by
hurricane-damaged trees. Marc Measells, a research and Extension
associate with MSU’s Department of Forestry, said forestry is
expected to post a value near $1.3 billion, almost 10 percent
below 2005’s value.
“The decreased value for 2006 is a result of the decline in
prices for all hardwood and pulpwood,” Measells said. “As a
result of the massive Hurricane Katrina recovery efforts, the
standing and delivered timber prices fell significantly across
the state in 2006.”
In this land where cotton is king,
Mississippi fields suffered from a drought during most of the
growing season, and most yields were dependant on sporadic
showers and irrigation.
“The irrigated cotton really brought our yield up this year,”
said Tom Barber, Extension cotton specialist. “Unfortunately,
the effect of low cotton prices and high input costs will
probably drive next years acreage to the lowest levels in
years.”
Anderson said the state’s No. 3 crop should yield a value near
$583 million, a $50 million increase over 2005.
“Cotton yields ended up better than expected at 853 pounds per
acre, but there is so much cotton available on the market that
prices have been down,” he said. “Other row crops, especially
corn and soybean, did not perform as well. Their yields were
similar to the 2000 levels, which was the last year Mississippi
had a significant drought.”
Anderson is estimating the value of soybeans at $246
million, down 28 percent from 2005. Corn’s value should be near
$94 million, down 7 percent.
“The state’s beef and dairy producers suffered from poor pasture
conditions and a lack of affordable alternative feedstuffs,” he
said. “Although cattle prices remain historically high, the
market has declined from 2005, especially at the end of the
year. The contrast of the slightly smaller 2006 calf crop and
heavy culling in response to limited forage makes it hard to
forecast cattle’s value.”
Anderson said the dairy industry experienced another difficult
year on the heels of Hurricane Katrina’s damage.
“With lower milk prices compared to 2005 and production down
significantly, the value of dairy in the state is expected to be
down by as much as 25 percent from the previous year,” he said.
Hay, the commodity that livestock
depend on, was hit hard by the 2006 drought. The economist
predicted the value of hay production in Mississippi to be down
by about 35 percent from 2005.
The wheat crop was one of the few bright spots for
agriculture. Anderson estimated wheat’s value at $17 million, up
63 percent.
“Wheat growers increased acreage, posted outstanding yields and
enjoyed higher market prices,” he said. “Growers planted 73,000
acres, up by 8,000 acres from the previous year. They set a new
yield record of
59 bushels per acre, a 9 bushel increase from 2005.”
2006 marks the first year the U.S. Department of Agriculture is
reporting peanut acreage and yields for Mississippi.
Acreage in the state increased significantly since the ending of
the quota system in 2002. While the 3,000-pounds-per-acre yields
were less than the 3,200 pounds they reached in 2005, prices
were steady, and acreage expanded to increase the value about 3
percent from $7.6 million to $7.8 million in 2006.
Other crop value estimates and their percentage change from 2005
include: catfish at $273 million, up 2 percent;
rice at $118 million, down 7
percent; horticultural crops at $85 million, up 7 percent;
sweet potatoes at $74 million, up 19 percent; hogs at $62
million, up 11 percent; and grain
sorghum at $2 million, down 36 percent. The total
government payments were $610 million, down 29 percent.
By Linda Breazeale |