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Agricultural Policy Review

Article Title

Ag Supplies for 2015

Abstract

Markets are the mechanism that balance supply and demand for products. Over the course of the past year, we have discussed the demand patterns for agricultural products in the US and the factors that influence that demand. Now it’s time to look at the other half of the marketplace: agricultural product supplies. During the past couple of years, crop and livestock supplies have been moving in opposite directions. Crop supplies have grown as farmers have brought more land into corn and soybean production and weather conditions allowed record yields. Meanwhile, livestock supplies have shrunk as livestock producers reduced herds to control costs. However, changes are expected as we look forward. Stronger livestock prices have created incentives for increased livestock productions, and weaker crop prices normally spur a reduction in plantings.