Agriculture: Backbone of Louisiana’s Economy
This publication presents the value of Louisiana agriculture in 2011. Agents and
specialists of the LSU AgCenter’s Louisiana Cooperative Extension Service, as well
as other public and private agencies, compiled the data. Their analysis focuses
on the animal, forestry, fisheries, plant and wildlife commodities that comprise
our vital agricultural industry. Agricultural and natural resource industries contribute
significantly to our state’s economy and carry with them the potential for increased
economic benefits and job creation through value-added processing in urban and rural
communities throughout Louisiana.
During the 2011 production year, growing conditions were about as diverse as any
producers had experienced before. Early in the growing season, many areas of the
state were dealing with flooding and excess moisture associated with flooding along
the Mississippi River, including the Morganza Spillway that the U.S. Army Corp of
Engineers opened during the spring. During part of the same growing season, however,
producers in some of the flooded areas and other areas of the state also experienced
drought conditions that persisted for much of the growing and harvest seasons. The
dry conditions hampered producers for most of the year and caused reduced yields
and increased production costs. But, on a somewhat positive note, those dry conditions
continued into late summer and fall and created nearly ideal harvest conditions
for most commodities. This helped increase harvest efficiency and reduce harvest
costs for most producers.
While early flooding certainly affected the crops of many producers, the drought
conditions that persisted for much of the year had the biggest effect on the state’s
agricultural industry. As with most instances of adverse weather conditions, yield
and production reductions were experienced. But the biggest consequences of the
2011 drought were increased production costs. Although increased irrigation helped
to limit the effects on yields, it sharply increased production costs, particularly
as fuel and other energy costs increased through the summer. In addition, a lack
of forage forced many cattle producers to sell cattle at reduced weights or increase
their production costs by increasing feed purchased to supplement low forage levels.
Unfortunately, since grain prices were at record highs throughout most of 2011,
this was not a financially viable option for some livestock producers. In extreme
cases, producers were forced to liquidate portions of their cow herd.
Despite the difficult production environment, the total gross farm-gate value for
the agricultural industry was $6.1 billion in 2011, up by more then 10 percent from
the previous year. Plant enterprises experienced the largest increase – with farmgate
values increasing from $3.3 billion in 2010 to $3.8 billion in 2011, a 17 percent
increase. Stronger commodity prices and larger acreage for many commodities helped
to offset any yield reductions that resulted from drought conditions. In fact, due
to increased irrigation and optimal harvest conditions, the majority of the plant
enterprises reported yields for 2011 that were at or above the 2010 levels. The
only major plant enterprises that had significant yield reductions or declines in
total production in 2011 were hay, corn, soybeans and grain sorghum. In each instance,
however, increased acreage in 2011 offset the adverse effects from reduced yield
on gross farm-gate value. Of the plant enterprises, only rice and forestry had significant
gross farm-gate reductions from 2010. The reduction in rice was primarily a function
of significantly lower acreage planted in 2011, while the reduction in forestry
was a function of lower production in response to continued pressure on prices related
to the slowdown in the economy.
The gross farm-gate values of both the animal enterprises and fisheries and wildlife
enterprises were mostly unchanged in 2011, with each experiencing less than a 1
percent change from 2010 values. Increases in beef cattle and dairy were mostly
offset by decreases in horses and poultry. So animal enterprises were up less than
1 percent to $1.69 billion in 2011. Increased cattle sales due to drought conditions
and significantly sharper prices for cattle and milk helped pushed gross farm gate
value for both above 2010 levels. Reductions in total poultry production in response
to slightly weaker prices in 2011 left poultry’s gross farm value slightly lower
than 2010 levels. For fisheries and wildlife commodities, reductions in marine fisheries
based on lower landings helped to offset the continued expansion of the aquaculture
sector and, in particular, crawfish production. The total gross farm-gate value
for the fisheries and wildlife enterprises was reported at $569 million, down less
than 1 percent from the previous year.
With the increased production experienced in many of the agricultural sectors in
2011, “value added” activities associated with agricultural production also increased
in 2011. When those commodities were cleaned, processed and packaged, the value
added brought in another $4.6 billion, up by 3.5 percent from 2010. Taken together
with farm-gate values, value-added activities helped to generate a $10.7 billion
contribution to the Louisiana economy in 2011. This represents a 7 percent increase
from 2010 levels and shows that the agricultural industry continues to be a significant
contributor to the state’s economy even in years when drought and other adverse
conditions create hardships for agricultural producers. Cutting-edge research programs
and extension education and outreach efforts remain critical to sustaining these
significant economic benefits.
Many Louisiana communities depend on agriculture, forestry, fisheries and wildlife
for local jobs and their economic well-being. The heart of agronomic agriculture
is found in northeastern, southwestern and south central Louisiana. Forestry production
occurs mostly in the state’s hill parishes, and fisheries production takes place
mostly along the coast, although aquacultural production of catfish is located mainly
in the northeast Louisiana delta area.
For those who work in it day in and day out, agriculture, forestry and fisheries
are far more than a business, a major job contributor and an economic engine. It
truly is a way of life. Families have lived on many of these farms, forestlands
or fishing villages for generations – following a preferred way of life even though
it means hard work, many hours and high risks that sometimes still result in low
incomes.
Each new production season has risks associated with commodity prices, trade agreements
and higher input costs, as well as uncertainty related to the weather. These conditions
make the discovery and adoption of new agricultural technology developed by the
LSU AgCenter more important than ever to our state’s producers.
Agriculture is a highly sophisticated segment of the national and world economy
and it becomes increasingly more so every year. That is the reason we at the LSU
AgCenter continue to support agriculture and consumers with factual information
provided by a well-trained faculty of extension agents, specialists and research
scientists.
Those of us in the LSU AgCenter (with its major branches of the Louisiana Cooperative
Extension Service and the Louisiana Agricultural Experiment Station) are proud to
be part of Louisiana’s agricultural and natural resource industries, and we are
committed to serving those industries and the citizens across the state of Louisiana
in the years ahead.
Sincerely,
Paul D. Coreil
Vice Chancellor, LSU Agricultural Center, and
Director, Louisiana Cooperative Extension Service