What is in this article?:
- Kentucky 2013 farm cash receipts could approach, exceed $6 billion
- Decreases in corn price strengthened feeder cattle market
- Kentucky's 2013 net farm income will be above $1.5 billion, but still well below the $2.1 billion record set in 2005, when lump sum tobacco buyout payments inflated income levels.
- USDA projects U.S. net farm income in 2013 will be a record high of $131 billion, up 15 percent from the previous year and breaking 2011’s record by $13 billion.
STRONG EQUINE, poultry and cattle markets stoked Kentucky's agricultural economy in 2013. Cash receipts could reach or do better than $6 billion for the year.
Decreases in corn price strengthened feeder cattle market
“Major decreases in corn price during 2013 fueled a feeder cattle market that strengthened throughout the year,” he said.
He predicted that the combination of tight supplies and less expensive corn should considerably buttress calf prices by spring, which could reach levels much higher than in spring 2013.
Poultry prices took another jump in 2013 despite more supply reaching the market. Prices increased to around $1 per pound, supported in part by a continued increase in the export market.
Current sales trends in the horticulture industry, which includes the green industry (nursery, greenhouse, floriculture and sod) and produce industry, point toward 2013 gross sales fairly even or slightly ahead of 2012 sales. Woods said the most recent planting intentions data indicates about 13,000 acres of produce crops in the state in 2013, compared to 10,500 acres in 2002.
Home construction and consumer spending drive the green industry, which showed aweak, yet slightly improved marketing season for 2013. Woods expects the industry to show a modest rebound in 2014, as housing starts continue to increase.
The agricultural outlook for 2014 is mixed, with expectations of continued strong prices for livestock, coupled with lower feed costs and strong international demand. Major row crops may be challenged as increasing global supplies and uncertainty over the nation’s energy policy could continue to depress grain prices.
“The equine industry is hoping momentum will continue, and despite all the challenges tobacco faces, the crop value could still remain near its post buyout highs,” Snell said. “So despite lower grain prices, Kentucky ag cash receipts could still be near or exceed $6 billion in 2014, especially since a large percentage of the 2013 corn crop will be sold in 2014.”