US: The State of Agriculture

Can Farmers Build on Last Year’s Bumper Harvest?

Farming is hard work and farmers do not always reap the benefits of their efforts. However, sometimes conditions align just right, temperatures are more moderate and the rain falls when and where it is supposed to and does not overstay its welcome. This past year was just such a year for farmers in many parts of the country. After a year of increased livestock prices and strong agricultural production, the United States’ farm sector made a solid comeback in 2013. Overcoming three consecutive years of slow growth, the industry’s output surged 16.4 percent, while overall real GDP increased just 1.9 percent.

Agriculture grew far more than any other sector in 2013, with the information industry posting the second-fastest growth rate at 3.2 percent. Although the Ag sector grew rapidly, agriculture still accounts for a relatively small portion of the nation’s economy, totaling just 1.6 percent of U.S. GDP and even that proportion is up from recent years. Last year’s boom lifted agriculture output to $269.1 billion and boosted the industry’s share of GDP by 0.4 percentage points.

Much of this agricultural rebound can be attributed to the pickup in production experienced after the drought of 2012. After that disappointing harvest season, key U.S. crops made up for lost ground. Corn continues to be the United States’ leading crop, and in terms of bushels, production increased 29.2 percent over the year. Furthermore, other U.S. agriculture drivers, such as soybeans and cattle, also contributed to the gains for the year.