Purdue Agricultural Economics Report
We have reformatted the PAER report. It is now a PDF file that may be downloaded for viewing and printing. (December 2013 PAER Report)
In this Issue:
In this issue we are giving an Economic Outlook for 2014.
Since 2008 the general economy in the U.S. has generally had weak performance and the agricultural economy has driven to record highs. Those trends seem to be reversing in 2014 as the U.S. and world economies move toward better footing, but the agricultural economy begins to slip.
The downward slope to farm income prospects in 2014 is related to closer to normal crop production after multiple short production years for some U.S. crops in 2010, 2011, and 2012. In essence supply has now risen to meet the demand growth surges that occurred from 2006 to 2010. In coming years, normal yields will keep supply in better balance with demand, and crop prices are expected to experience a period of moderation. Also, the rate of growth in the demand for grains has slowed. This is clearly evident in what may be a mature ethanol market with relatively flat corn use for ethanol in the next several years.