Farmers Are Losing Faith in the USDA's Numbers

[UpInArms]

America's corn crop didn't just surprise traders last year, it caught the federal agency in charge of counting it off guard, too. The New York Times reports that the Department of Agriculture initially said 86.8 million acres of corn would be harvested in 2025, only to quietly revise that figure multiple times and finally land at 91.3 million acres—about 5% higher, with the figure before the final revision off by an area bigger than Delaware. Former USDA chief economist Seth Meyer calls it "a miss," and it's fueling broader worries about whether the department's closely watched crop reports are still as dependable as markets assume.

The size of the miss, which caused a sharp drop in already low commodity prices, was unprecedented, Reuters reports. It's more common for the department to revise numbers downward by relatively small amounts, reflecting decreases in acreage caused by bad weather. Deep staff cuts, lower farmer response rates to surveys, and political pressure are all colliding with the growing use of remote sensing and AI for production reports, the Times reports. The National Agricultural Statistics Service, which produces the reports, was hit especially hard by DOGE's job cuts last year, losing around 300 of its 800 employees.

A bit more at:


https://www.newser.com/story/388398/corn-undercount-spurs-fears-over-key-usda-farm-data.html