In December 2019, the Amarillo Chamber of Commerce released the 5th Edition of ‘The Impact of Agribusiness in the High Plains Trade Area’, authored by Texas A&M AgriLife Extension and WTAMU faculty. Today in High Plains Ag Week we include the second in a series of discussions on the material in that publication; the impact of crops on the High Plains Trade Area economy. You can find digital copies of the publication on the homepage of amarillo.tamu.edu, and printed copies at the Amarillo Texas A&M AgriLife Research & Extension Center.
Registration for Texas A&M AgriLife Events and Upcoming Deadlines:
January 5-11 – The Executive Program for Agricultural Producers (Register Here)
January 29 – End of Comment Period for USDA Hemp Interim Rule
February 6-7, 2020 – Developing this Year’s Marketing Plan for Feed Grains and Cotton, Amarillo AgriLife Research & Extension Center; Preregister at https://agriliferegister.tamu.edu/Grain
The Impact of Crops in the High Plains Trade Area
The Impact of Agribusiness in the High Plains Trade Area (IAB) is a publication released every five years coinciding with the Census of Ag produced by USDA. The publication documents and measures the impact that agriculture has in a 26-county area spanning from the southern border of Parmer to Childress counties up through the entirety of the Texas Panhandle. The area covers approximately 16.5 million acres, of which 14.8 million (90%) are dedicated to agriculture.
The temperate climate, flat ground, and healthy soil make the Texas High Plains an ideal region for producing crops. Producers in the region grow a wide variety of field crops; corn, cotton, wheat, sorghum, vegetables, triticale, hay, ensilage, and peanuts to name a few. The impact of these crops on the local economy has always been significant, however the crop-mix for the region changes over time. Figure 1 shows the mix of cash receipts from crops in the High Plains Trade area from 2013-2017. On average, total crop cash receipts for the period were $1.58 billion.
Figure 1. Cash Receipts by Crop, High Plains Trade Area
As producers learn to grow more with less water, the mix of crops grown has changed. While corn maintained its position as the highest total value crop produced in the region, ensilage, hay, and cotton all grew by 44.8%, 25.7%, and 16.9%, respectively. In fact, the High Plains Trade Area was responsible for 68.9% of the ensilage, 44.5% of the corn, 29.3% of the wheat, 13.1% of the cotton, 14.3% of the sorghum, and 10% of the hay produced in the state from 2013-2017.
Annual average cash receipts from crops produced were, in order of greatest to least, corn ($551 mil.), cotton ($335 mil.), ensilage ($200 mil.), wheat ($147 mil.), hay ($158 mil.), sorghum ($101 mil.), and other crops which include products like soybeans, alfalfa, and peanuts ($85 mil.). Cash receipts from crops do not just mean money in producers pockets. As producers spend that money on inputs, groceries, and at local vendors, the dollars’ impacts grow. The total $1.58 billion in cash receipts from crops had a regional economic impact of $2.8 billion, and a total statewide economic impact of $3.6 billion.
This week’s chart challenge is crop-based. The bar chart series below represents cash receipts from one of the crops produced in the High Plains Trade Area from 2013-2018.
Summer Crops Marketing & Outlook – January 10 – Pampa, TX
Crop Profitability Analyzer & Farm Bill Decision Aid Tutorial – January 14 – Perryton, TX
Top of Texas Ag Conference – Janaury 15, Pampa, TX
Southeast Panhandle Crops Conference – January 15 – Memphis, TX
Hale/Swisher Crops Conference – January 23 – Plainview, TX
Caprock Conference – January 24 – Muncy, TX
Feed Grains & Cotton Marketing Workshop – February 6-7 – Amarillo, TX