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Ag Industry Posted 2020 Estimated Value of $7.35B by Bonnie Coblentz in the Latter Portion of the Year.” Lion for Cotton Lint and Cottonseed

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Ag Industry Posted 2020 Estimated Value of $7.35B by Bonnie Coblentz in the Latter Portion of the Year.” Lion for Cotton Lint and Cottonseed MISSISSIPPI DEPARTMENT OF AGRICULTURE & COMMERCE • ANDY GIPSON, COMMISSIONER VOLUME 93 NUMBER 2 JANUARY 15, 2021 JACKSON, MS Ag Industry Posted 2020 Estimated Value of $7.35B By Bonnie Coblentz in the latter portion of the year.” lion for cotton lint and cottonseed. MSU Extension Service Josh Maples, an agricultural “Cotton prices were not great at economist with the MSU Extension planting, and that led to lower acres,” Mississippi farmers generated an Service, said poultry took a hit from Will Maples said. “Worldwide supply estimated agricultural value of $7.35 COVID-19-related issues and chain disruptions this spring and de- billion in 2020, a 5% increase from dropped 16% in value. But row crops mand concerns due to the COVID-19 2019 that saw soybeans top forestry were strong, posting a combined pandemic and shutdowns suppressed for the No. 2 spot behind poultry. $2.6 billion estimated value. cotton prices at planting, which led The predicted total ag value ex- “This was a turbulent year for all to lower acres. ceeds 2019’s production value of agricultural producers due to the “As the year progressed, though, $7.01 billion, marking the ninth market upheaval caused by the pan- cotton prices recovered as econo- demic,” he said. “Poultry production mies opened back up, and that led consecutive year that agriculture was especially impacted during the to farmers receiving higher returns topped $7 billion in the state. spring by demand disruptions. Row than were expected this spring,” he Keith Coble, head of the Missis- crop markets also faced low prices said. sippi State University Department and uncertainty early in the year be- While the pandemic put a new of Agricultural Economics, said the fore stronger prices in the fall helped twist into ag markets, weather is year did not start out looking good. boost the value of production.” always a factor. Will Maples said the “We did some midyear analysis on Although rebounding markets and wet spring prevented many produc- June 1, and the economic picture for prices helped the year end stronger ers from getting corn planted, which farm products looked pretty bleak,” than expected for some commodi- from April to June was 12% lower in mills were not in operation, timber resulted in lower acreage. Corn’s Coble said. “We went through un- ties, higher than normal govern- 2020 than in 2019, and prices dur- was not being cut and sold, so for- value was down 10% to an estimated precedented losses early to midyear, ment payments of an estimated $930 ing these months were exceptionally estry declined an estimated 2.6% to $387 million. but markets have generally improved million helped make up some of the low.” an overall value of $1.12 billion. Rice was up 44% to an estimated gap caused by early market devasta- While broilers were down, eggs That decline opened the door for value of $138 million. Peanuts post- tion. In 2019, Mississippi growers re- were up 21%. Eggs make up about soybeans to surge into second place ed a 34% estimated increase to $19 ceived $599 million in various forms one-tenth of the overall value of overall with an estimated production million. But, given the small amount of government payments. poultry to Mississippi. Eggs in- value of $1.21 billion in 2020. Soy- of peanut acreage planted annu- Josh Maples said coronavirus re- creased to an estimated value of $260 beans helped propel row crops to an ally in Mississippi, Will Maples said sponse programs made up a signifi- million. overall increase of an estimated 21% a small change adds up to a big per- cant portion of the government pay- “This increase is driven by stron- over 2019 values. centage shift. ments. ger prices, especially during the Will Maples, an Extension row crop Cattle and calves experienced “The Coronavirus Food Assistance spring months,” Josh Maples said. economist, said the crop’s value grew slight growth in 2020 with an es- Programs 1 and 2 were the primary “Eggs faced significant production an estimated 67% over 2019 based timated value of $261 million, up relief programs for farmers who challenges during the COVID-19 mostly on an improved soybean mar- about 5% from 2019 levels. Milk de- faced price declines and additional shutdowns while also experiencing ket. Soybeans also reclaimed acreage clined 1% and hogs 7% in 2020 to marketing costs due to COVID-19,” a sharp demand increase due to gro- lost the previous year. estimated values of $24 million and Josh Maples said. “The other pro- cery store demand. Sharply higher “In 2019, suppressed prices due to $38 million, respectively. grams included the traditional farm prices were the result of supply chal- the U.S.-China trade war and the loss Catfish also faced a turbulent year bill programs like Agriculture Risk lenges at the same time as a demand of exports led to Mississippi growers due to restaurant demand disrup- Coverage, Price Loss Coverage and increase.” planting the lowest number of soy- tions among other factors. Its value conservation programs.” A large part of the supply challenge bean acres since 2005,” he said. “A of production stayed flat in 2020, At an estimated value of $2.16 centered on the different demands of main reason we saw a big increase with an estimated value of $226 mil- billion, poultry continues to be the grocery stores and restaurants, as in acres in 2020 was because we fol- lion. state’s major ag commodity, despite well as the supply chains that exist to lowed a year of record low acres.” Specialty crops remained at 2019 declining from the $2.57 billion val- meet each of these demands. Market factors also helped the in- levels and together brought an es- ue it posted in 2019. “Managing these issues improved, crease. Soybean exports to China in- timated $106 million in production “The estimated 2020 Mississippi and egg prices were much lower in creased in the fall of 2020, which led value to Mississippi. Sweet potatoes broiler value of production is $1.9 May and June than in March and to a jump in prices that translated posted an estimated 1.8% increase billion, which is down 19.5% due pri- April,” he said. into an overall value increase. for a 2020 value of $96.7 million. marily to inventory disruptions dur- Forestry holds the No. 2 ag spot Despite a decline of more than 9% Other crops and their estimated ing the spring and weaker prices,” most years, but COVID-19 caused from 2019 levels, cotton comes in as values are hay, up 3% to $140 mil- Josh Maples said. “The number of many sawmills to scale back pro- the No. 4 agricultural commodity lion, and wheat, down 17% to an es- broiler chicks hatched in Mississippi duction or temporarily close. When with an estimated value of $491 mil- timated $4 million. Page 2 MISSISSIPPI MARKET BULLETIN January 15, 2021 Commissioner’s Policy Corner Mississippi Agriculture Remains Strong in 2020 By Andy Gipson new faces shopping weekly buying care for livestock, rising input costs, Mississippi Commissioner produce, meats and dairy products added expenses for PPE to keep of Agriculture and Commerce from local farmers. In order to con- employees safe. To assist farmers nect consumers to the local farm who incurred additional operating The year 2020 will certainly be a products they so desire, the Missis- expenses due to the COVID-19 pan- year that will not be forgotten. Our sippi Department of Agriculture and demic, the Mississippi Agriculture usual way of life became any any- Commerce (MDAC) developed the Stabilization Act (MASA) provided thing but normal due to the COV- Mississippi Farm Marketplace, an assistance to Mississippi produc- Andy Gipson ID-19 pandemic; however, one thing online platform where farmers list ers from CARES Act funds. MASA remained the same – our farmers their farm products for sale to the had three separate funds within it: Commissioner never stopped farming. They contin- public. Poultry Farmer Stabilization Grant ued working to provide the food, fi- The increased demand for local Fund; Sweet Potato Farm Sustain- Mississippi Department of ber and fuel that we need to survive. products significantly impacted lo- ment Grant Program Fund; and Mis- Andy Gipson Agriculture & Commerce Despite the challenges felt by cal meat processors and livestock sissippi Supplemental CFAP Grant many in 2020, including our farmers producers. The growing demand for Program Fund. Through MASA, Commissioner 121 North Jefferson Street and ranchers, Mississippi agricul- local meats led to processors becom- $7,697,012 was distributed by MDAC Jackson, MS 39201 ture remains strong overall. Accord- ing backlogged and producers being directly to farmers as a reimburse- and trade missions with China, India Phone: 601-359-1100 ing to Mississippi State University, put on waiting lists to get livestock ment for expenses incurred due to and Vietnam to promote Southern the value of agriculture production processed. Some producers were the COVID-19 pandemic. Yellow Pine logs from Mississippi. www.mdac.ms.gov in Mississippi was estimated to be at put on waiting lists that stretched as The Mississippi Department of Ag- Mississippi’s food supply is abun- $7.35 billion. This is up from $7.01 far as nine months. The Mississippi riculture and Commerce is continu- dant, plentiful and safe. We have Ag Museum billion in 2019 and marks nine con- Land, Water and Timber (LWT) Re- ing efforts to expand international our farmers and ranchers to thank 601-432-4500 secutive years of production over $7 sources Board made it a priority to trade and potential new markets for for that.
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