Ag Industry Trends & Outlooks

Farm Credit East's 2023 Northeast Dairy Farm Summary and 2024 Mid-Year Outlook contains data and analysis from the prior year and forward-looking discussion and analysis from Corey Geiger, Lead Economist for Dairy at Farm Credit East's funding bank, CoBank. 

There have been a number of structural shifts in our industry that appear to have some staying power. It’s important to gain a better understanding of these changes to implement on-farm strategies to capitalize on the market opportunities.

The United States is the world’s largest agricultural exporter and has been for decades. However, as a wealthy country with a population of more than 340 million people with appetites for a broad range of agricultural products - we are also one of the world’s top agricultural importers. American Farm Bureau Economist, Betty Resnick examines historical trade data, and insight on forecasted trends.

The dairy industry is inherently unpredictable, with market fluctuations, weather conditions, and production variables all contributing to an unstable income landscape for dairy farmers. Dairy Revenue Protection (DRP) is a valuable tool to mitigate these risks and provide a more stable financial footing.

After a rapid rise in 2021 and 2022, the Farm Credit East Production Cost Index has plateaued after relatively modest increases over the previous decade.  This index tracks farm production costs on a relative basis, weighted towards costs that affect Northeast producers most. Major components of the index include labor, energy, family living expenses, crop inputs, as well as costs like animal feed and other dairy-related expenses, given that sector’s prominence in our region.