The value of Louisiana’s agriculture industry increased by 7.6% to $12.7 billion in 2014, sparked by gains in the forestry, soybean and beef cattle commodities.
“2014 was a year of records in Louisiana—records in terms of acreage harvested, yields, total production and total value,” LSU AgCenter Economist John Westra told the Baton Rouge Press Club this afternoon.
Forestry products accounted for the largest gain in absolute value of any commodity last year, Westra said, up 34% to $3.86 billion in 2014. Market demand, driven by increased housing starts, contributed to the increase, he said.
Higher beef prices also bolstered the cattle and calf sector last year, Westra said, accounting for a 35% increase in value to $895 million last year. And although soybeans brought lower prices at market in 2014, Westra said record high production and yields led to an increase in value of about $250 million over last year’s soybean crop.
Despite 2014’s overall record high numbers, last year wasn’t good for all commodities. Louisiana’s feed grain production—which includes corn, oats and grain sorghum—was down slightly in 2014, and its total value fell by 57% to $396 million, down from $930 million in 2013.
On the bright side, Westra said the state is expected to regain 5% to 10% of acreage for corn production in 2015.
Since 2009, the value of Louisiana’s agriculture industry has increased by 35%, or $4.4 billion, Westra said. While 2014 saw an increase in Louisiana’s agriculture value for the sixth straight year, Westra said he’d be surprised if that trend continues into this year due to expected drops in the value of soybeans and corn.
The prices soybean producers received last year fell from about $14.40 per bushel to $12.42, and they’re expected to decrease in 2015 by another $2 or $3 per bushel, Westra said.
“It’s highly unlikely they [soybeans and corn] are going to be able—even if they have record production—to offset the decline in prices,” Westra said.
The LSU AgCenter has annually reported on the state’s agricultural economy since 1979. See the complete highlights of this year’s report by commodity.
—Kevin Thibodeaux
