84 



4 

 are bright spots. Mexico is generally expected to continue to 

 grow quickly in response to its liberalization efforts, leading 

 relatively strong overall Latin American growth. Developing 

 country growth in Asia is also expected to be strong. These 

 developing country improvements will help our agricultural 

 exports. 

 Commodity Developments 



An overall picture of the farm economy suggests that 

 production and demand in the major crop and livestock markets 

 have been in approximate balance since 1990. Large, burdensome 

 domestic supplies have been avoided. Overall crop production was 

 up 10 percent in 1992 due to excellent weather and record corn, 

 soybean, grain sorghum, barley, and oat yields. Wheat, rice, and 

 cotton yields were also high. Consequently, the current stock 

 levels of major crops are up somewhat from the lower levels of a 

 year or two ago. Even so, they are on par with longer term, 

 average levels. 



In the livestock sector, total U.S. meat and poultry 

 production is expected to grow about 3 percent in 1993, following 

 a 4% percent rise in 1992. The improving economy is expected to 

 increase meat demand, and expanded meat exports are also likely 

 to offset part of the supply increase. Exports rose 18 percent 

 in 1992 and another increase is expected in 1993. The larger 

 meat production and fairly stable prices coupled with low feed 

 costs translate into generally favorable news for livestock 

 producers. 



