Agricultural Resource Management Survey (ARMS): Phase 2 Uses and Importance William D. McBride Leader, USDA Commodity Costs and Returns Estimation Project 2015 Phase 2 Regional Training Workshops 1
Data Collection in the 2015 ARMS Phase III Phase I Farm Costs and Returns Screening sample Phase II Oats Production Practices & Costs Hog Costs and Returns Oats Costs and Returns Cotton Production Practices & Costs Cotton Costs and Returns 2
Objectives of this Presentation To describe the primary uses of the ARMS phase 2 data To show you where your can find the published ARMS phase 2 data To indicate the benefits that the ARMS phase 2 data provide to farmers 3
How are ARMS Phase 2 data used? 1 Crop Cost and Return Estimates 2 Crop Chemical Use Estimates 3 Crop Production Practice Estimates 4 Crop Production Research 4
1 Crop Cost and Return (CAR) Estimates Agricultural and Consumer Protection Act of 1973 The Secretary of Agriculture shall conduct a cost of production study of the wheat, feed grain, cotton, and dairy commodities under the various production practices and establish a current national weighted average cost of production. This study shall be updated annually and shall include all typical variable costs, including interest costs, a return on fixed costs, and a return for management. 5
Overview of the CAR Estimation Project Accounts for 12 commodities annually from 1975 Based on data from ARMS commodity surveys Commodity surveys conducted every 4-8 years on a rotating basis Estimates between surveys are updates based on annual price, acreage, and production changes Methods recommended by the American Agricultural Economics Association 6
ARMS Data for CAR Estimates Crop commodities Rice 2013 Peanuts 2013 Soybeans 2012 Grain sorghum 2011 Barley 2011 Corn 2010 Wheat 2009 Cotton 2007 Oats 2005 Mandated Estimates Livestock commodities Cow-calf 2008 Dairy 2010 Hogs 2009 Upcoming surveys Oats 2015 Cotton 2015 Hogs 2015 Corn 2016 Dairy 2016 Wheat 2017 7
CAR Estimates Disseminated on the ERS site Cost and return estimates are in Excel spreadsheets for the most recent 2 years and the historical series 8
2 Crop Chemical Use Estimates Food Quality Protection Act of 1996 NASS data on pesticide use describes at the state level commodity acreages and active ingredient (ai), chemical use (percent crop treated, average ai applied/acre/treatment, average number of treatments, average ai applied/acre/crop year, total ai applied). These data play a key role in EPA's pesticide risk and pesticide benefit assessments. 9
Overview of Chemical Use Estimation Chemical quantities estimated from ARMS individual fertilizer and pesticide applications Pest Management practices are reported in ARMS Chemical use and practice data are collected on a rotating basis by commodity Chemical use and practice data are collected for a variety of crop and livestock commodities 10
Chem Use Estimates Disseminated on Quickstats NASS agricultural chemical use data are published to the Quick Stats database 11
Chem Use Estimates Disseminated on Quickstats Estimates summarized for all surveyed States and for each State separately 12
3 Crop Production Practice Estimates ARMS Tailored Reports allow the public user to view and download a variety of statistics in two areas Farm Structure and Finance Structure and financial status and performance of U.S. farm operators, their households, and farm business Crop Production Practices Status and trends in crop production practices for several field crops. 13
Crop Practices Disseminated on the ERS site Users can generate tailored reports of several crop production practices 14
Crop Practices Disseminated on the ERS site Tailored reports of crop production practices can be summarized by 2 groups 15
Crop Practices Disseminated on the ERS site Example showing crop residue management practices by region and production system 16
4 Crop Production Research Linking the phase 2 crop production data with the phase 3 farm financial data enhances research opportunities using the ARMS Research opportunities include areas such as: -Production Structure and Structural Change -Impacts of Technology and Practice Adoption -Government Program Participation 17
Characteristics and Production Costs -Summary of the ARMS commodity survey data -Data summaries by: -Low vs High Cost -Size of operation -Region -Compares summaries with prior ARMS data 18
Adoption of Genetically Engineered Crops -ARMS measures adoption of genetically engineered crops since introduced in 1996 -Uses economic model to estimate impact of adoption on yields, pesticide use, and profits 19
Glyphosate Resistance Management -ARMS data examine growing problem with herbicide-tolerant weeds in corn and soybeans -Greater problem in soybean production -More cost-effective to manage resistance than to ignore resistance 20
Precision Agriculture Adoption -ARMS shows yield monitors are most adopted for corn and soybeans -Oftentimes this information is not used to full potential -The adoption of farm equipment guidance systems is growing 21
Profit Potential of Organic Field Crop Production -ARMS examines profit potential of organic compared with conventional production -Organic field crops yield less, cost more to produce, but price premiums generate higher profits 22
Why respond to the ARMS phase 2? ARMS informs legislators, agribusinesses, farm groups, USDA leaders, consultants, and farmers about the costs and input use of U.S. production agriculture ARMS informs the EPA with unbiased information about actual farm chemical use ARMS is the Voice of U.S. farmers the opportunity to inform and educate legislators and their staff, who often know little about production agriculture ARMS is the Science-Based Information needed as a balance with agenda-driven information 23
Information about ARMS Phase 2 Commodity CAR data product: www.ers.usda.gov/data-products/commoditycosts-and-returns.aspx Chemical Use data product: www.nass.usda.gov/statistics_by_subject/en vironmental/index.asp ARMS tailored reports: www.ers.usda.gov/data-products/arms-farmfinancial-and-crop-production-practices.aspx ERS ARMS publications: www.ers.usda.gov/publications.aspx E-mail: wmcbride@ers.usda.gov 24