February 25, 2008

ISSUE 1207

USDA ECONOMIST OFFERS AG PREDICTIONS FOR 2008

USDA's Annual Outlook Forum kicked off Feb. 21 near Washington, DC., where Joe Glauber, USDA's top economist, spoke about prospects for U.S. agriculture in 2008.

Among his predictions, Glauber said he expects wheat production to increase worldwide in response to high demand, energy demand to drive corn use, and continued challenges for livestock and poultry producers due to high feed prices and other variables. Glauber also predicted that food prices would increase 3 to 4 percent this year and that U.S. agricultural exports would reach a record high.

Also at the forum, USDA Sec. Ed Schafer said in the keynote address that he was optimistic that if the Senate, the House and the White House can agree on a framework for a farm bill that does not include new tax revenue and cuts farm subsidies, a new farm bill can be completed by the March 15 deadline.

Tom Stenzel, president and CEO of United Fresh Fruit & Vegetable Association, served as a panelist and spoke on the topic of farm bill opportunities for the specialty crop industry and the work of the Specialty Crop Farm Bill Alliance.

In the past, remarks made at the Outlook Forum have affected agricultural markets. This year's forum is themed "Energizing Rural America in the Global Marketplace."

Additional information and webcasts of presentations are available at http://www.usda.gov/oce/forum/.