By US Department of Agriculture
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Extra resources for Agriculture Fact Book 1999 (Agriculture Factbook, 1999)
Expansion is occurring in large, dry-lot dairy operations that by all indications are among the lowest cost producers. Higher cost producers will have to reduce capacity to bring price and quantity into equilibrium. This process is not unlike what has been occurring in hog production for the last 5 years and what occurred in the broiler industry several decades ago. The contrasting commodity situations yielded some distinctly different regional effects. Leading cattle States, particularly those with cow-calf operations, were the leaders in year-over-year gains in net farm income.
The availability and use of credit plays a significant role in the sustained profitability of farm enterprises. In this regard, a symbiotic relationship exists between agricultural producers and their lenders; the health of one depends on the condition of the other. Loans made to agricultural producers are classified as real estate and non-realestate loans in the farm sector accounts. Real estate loans generally have terms of 10 to 40 years and are ordinarily used to purchase farmland or to make major capital improvements to farm property.
1 percent over the same 10 years. 3 percent. Food prices include payments for both the raw farm product and marketing services. S. farm foods sold in food stores. 8 percent, the farm-retail price spread, consisted of all processing, transportation, wholesaling, and retailing charges incurred after farm products leave the farm. Farm-retail spreads have increased every year for the past 30 years, largely reflecting rising costs of labor, packaging, and other processing and marketing inputs. 7 percent less for the food they produced.
Agriculture Fact Book 1999 (Agriculture Factbook, 1999) by US Department of Agriculture