Louisiana’s ag economy drops more than $1 billion

Louisiana agriculture contributed $8.3 billion to the state’s economy in 2009 – the lowest amount since 2002 and down from $9.5 billion in 2008, according to the latest figures compiled by the LSU AgCenter in its annual Ag Summary. Partly to blame, says LSU AgCenter economist John Westra, is a 25% drop in each of the state’s two biggest industries – forestry and poultry. Forestry went from $3.3 billion to $2.5 billion, and poultry went from $1.2 billion down to $884 million in 2009. “The recession and the housing market collapse in many regions of the country were the biggest factors that hurt the forestry industry,” Westra says. “There’s an excess stock of housing available, which has depressed the home construction business and demand for lumber products.” Two paper mills in the state have closed in the past two years, causing a drop in demand for paper and wood products. Westra isn’t predicting a rebound for the forestry industry in 2010. The good news: Sugarcane rose 25% from 2008, thanks to higher sugar prices from changes in U.S. sugar policy and decreased production worldwide. Near-record yields helped the rice industry rebound from flooding and saltwater intrusion problems caused by hurricanes from a few years back. Rice brought in $519 million, down 6% from 2008 – mostly due to lower prices. Soybeans were up 9% to $369 million. For the full report, click here.