Agricultural and Resource Economics Professor and Extension Specialist Dr. Nicholas Piggott presented to the House Agriculture Committee on February 13th and March 6th. This comes after his presentation at the Ag. Development Forum on January 31st drew attention to national grain commodity markets and the “feed grain deficit” in North Carolina. Piggott’s comments asserted that:
- World demand for key agricultural products is strong as a result of rising incomes and populations.
- The US Farm Sector Income Statement reveals significant downturn and cost price squeeze.
- Consecutive record US corn and soybean crops have resulted in significantly larger ending stocks.
- We are seeing lower prices but less price volatility.
- Declining feed grain acreage is a concern for the vitality of the NC livestock industry.
- Row crop farmers will respond with additional acres with price incentives which will require improved basis offers.
He also identified two areas he will continue to research in en effort to improve animal agriculture in North Carolina. Those include the effects of increased investments into logistical infrastructure that would potentially lower the costs of importing corn from out-of-state as well as potential capital investment in logistical infrastructure to increase resiliency in the agricultural supply chain during extreme weather events.