Agricultural Economics

 Weak overall economy  affecting demand for most all ag commodities – especially hitting dairy and livestock producers. Equine sales are also down drastically. Domestic and international demand.  Unemployment  Impacts on demand, off-farm job prospects

 Continued focus on business planning, marketing education, new business development  Moneywise - The MONEYWI$E financial management website is a cross disciplinary approach to assist extension clientele in decision-making in today’s economy.  Annie’s Project – Annie’s Project is a risk management education program designed specifically for farmwomen.

IssueRank Labor management and availability 1.9 Variable input prices 4.2 International trade competition 8.1 Food safety standards and compliance 3.6 Direct marketing issues 4.8 Retailer consolidation and access 5.6 Land prices and development pressures on ag 7.3 Distribution cost/availability 6.0 Concern for lower prices 5.2 Recession impact on premium/specialty products 5.7 Uncertainty of government policies regulating production 6.1

 Rising input costs – still an issue, although is has improved. Especially Potash. Greatly affecting production costs on hay, which is hurting cow- calf operators as well.  Price volatility – We just aren’t used to dealing with this much volatility. We need to work with farmers on marketing plans incorporating price risk management - futures markets and livestock and crop price risk insurance.  New Crops and Diversification – Horticulture, switchgrass, organic grains require new cost and market assessments.

 Optimal fertilization rates for corn (possibly wheat): Significant fluctuations in both commodity and N prices have occurred in the last three years making this issue more relevant than in the past.  Labor – Changing H2A program will boost labor costs even more, especially impacting labor intensive enterprises like tobacco, horticulture.

 Cow-calf profitability – Cow-calf operators are in about their 3 rd tough year. Long run planning needed, such as cattle numbers and strategies to survive a brutal phase of the cattle cycle.  Grain price volatility – Continuing impact of ethanol, uncertainty of support programs, political environment, emerging renewable fuels.  Tobacco contract reductions – Structural changes in industry

 Emerging market channels – Auctions, direct markets, thin markets where prices for specialty products are hard to discover. Grapes, nursery, organic, and other high- value attributes especially volatile.

 Sustainability – Economics of alternative production systems for livestock, dairy, grain, horticultural crops.  Animal Welfare  Environmental Stewardship Mandates  Legislative and market mandates for sustainability  Implementation challenges for producers