As your customers prepare for the 2017 season, it is important to understand some of the trends in agriculture among producers from across the country. According to Growing Produce, trends look to remain relatively stable over the coming year, with about half of producers planning to keep similar production and 40% looking to expand production acreage. This should come as good news for agricultural suppliers who are used to the ups and downs of producer supply and demand.
One notable exception is in citrus and grape production, both of which grow in California which is still struggling with its drought. Although California has experienced significant flooding in recent weeks, parts of the state remain very dry, and it will take time to continue to rebuild the water table. Until conditions change in that region, don’t expect producers to take the risk of expansion anytime soon.
Of course, 2017 has a new wrinkle, with one presidential administration leaving office and a new president guiding regulation. While President Trump’s policies are not yet clear, his stance on regulatory reform could have a major impact on farming, as the EPA’s “Waters of the United States” (WOTUS) rule is currently being lobbied for reform.
Staying ahead of trends in production and politics is an excellent way to have more informed conversations with your customers and forecast demand for various products in the coming year. Acadian Industrial Textiles will continue to provide updates on the state of the agriculture industry throughout 2017.