The USDA is projecting farm sales of horticultural crops to reach $74 billion by 2023, a 1.2% annual increase from $66 billion in 2013. According to the USDA’s latest Agricultural Projections report, fruit and tree nuts are expected to drive this sales growth with a share of 47%. The sales value of vegetables will also see an increase, although only at a growth of 0.2% per year.
As fruit and tree nuts propel sales of horticultural crops, the report also states that production of fruit and tree nuts is expected to increase at an annual rate of 2.2% through 2023. Vegetables will lead the U.S. farm production of horticultural crops to reach 132 billion pounds by 2023, a growth rate of 0.5% annually.
Producer prices for vegetables are expected to rise less than the inflation rate, at only 0.7% per year, due to strong processing vegetable production, according to the report. Fresh fruits are expected to rise by 1.9% annually due to higher citrus prices and slower production growth for vegetables.
Imports will begin to play an increasingly important part of domestic fruit and nuts by 2023 as well. Imports will supply 50% of domestic fruit and nut use and 25% of vegetable use, in terms of farm weight, compared to 42% and 19%, respectively, in 2013. Approximately 27% of fruit and nut production will be exported to foreign markets, up from 23% in 2013, while 20% of vegetable production will be exported, up from 16.7% in 2013.
USDA Agricultural Projections Report
