Agriculture Industry Forecast

November 28, 2011
Industry Intelligence from First Research, a division of Hoover's (a D&B company)
First Research forecasts are based on INFORUM forecasts that are licensed from the Interindustry Economic Research Fund, Inc. (IERF) in College Park, MD. INFORUM's "interindustry-macro" approach to modeling the economy captures the links between industries and the aggregate economy.

Agriculture Support Activities Growth Troughs
The output of US agriculture and forestry support activities is forecast to grow at an annual compounded rate of 3 percent between 2011 and 2016. Data Published: October 2011.

First Research Industry Growth Rating

The First Research Industry Growth Rating reflects the expected industry growth relative to other industries, based on INFORUM's forecasted average annual growth for the combined years of 2010 and 2011. INFORUM forecasts were prepared by the Interindustry Economic Research Fund, Inc.

Demand: Driven by agricultural production
Need efficient use of labor
Risk: Lower government support of farms cuts outsource spending

QUARTERLY INDUSTRY UPDATe

Unfavorable Weather Reduces Harvests - Harsh weather across much of the US has disturbed planting and harvesting, creating challenges for both farmers and support services. Rains and floods along the Mississippi River and drought in the Southwest have created difficult growing conditions in 2011. As a result, many crop harvests are not as hearty as they are normally, which indicates reduced demand for support services. The National Weather Service predicts that La Niña could lead to similar weather patterns -- above-median precipitation in the Midwest and drought in the Southwest -- in 2012. If adverse weather patterns persist, farmers may need to reconsider their crop selections, and some crops could shift geographically, according to Farm Journal. Providers of farm support services may need to adjust service offerings based on changing crop mixes and geographic demand.