FAPRI-MU examines the economic implications of alternative U.S. agricultural, food, and farm policy options and the impacts of external events such as WTO agreements and policy changes in the EU, Japan, and other trading partners. We also assess the economic impacts of other factors, such as weather effects on yields or varying petroleum prices.
Economic impacts are measured in terms of market prices and quantities of major U.S. agricultural commodities and their products. We also estimate the effects on farm income, consumer food and fuel expenses, and government costs.
Agricultural Outlook: Each year, FAPRI-MU and its collaborators prepare a baseline projection for the U.S. and world agricultural sectors for all major grains, oilseeds, biofuels, livestock, and dairy commodities.
Analysis for Congress: FAPRI-MU fills frequent requests from the U.S. Congress by examining particular policy issues. Analysis has focused on topics ranging from modifications of U.S. commodity programs to changes in world trading rules. Congress routinely utilizes FAPRI-MU analysis when debating agricultural policy issues.
Analysis for Public Agencies: FAPRI-MU has conducted analysis for or present results directly to various agencies at the U.S. Department of Agriculture, the U.S. Environmental Protection Agency, and several other federal Departments, as well as state government officials.
FAPRI-MU continually works to improve the tools it uses. Product markets are represented using structural economic models. Models represent the supplies and demands for each commodity, and interactions among commodity markets such as competition for area or in feed markets. International markets are represented using additional models that represent the domestic markets of many key producing and consuming countries for each commodity, or using trade equations that reduce model complexity. The FAPRI-MU staff update data and improve models several times each year based on expert assessment or statistical methods.