1/ Fiscal years, October-September. 2/ - Forecast. A revised forecast will be issued on February 27, 1990.

A higher

Data are expressed in indexed (1985 - 100) units per dollar.

value means the dollar has appreciated. Currencies adjeuated to factor out inflation. 1/ Value of U.S. dollar according to U.S. Federal Reserve System. P - Preliminary. F Forecast.

CROPS OVERVIEW

* Federal programs idled about 60 million acres in 1989, well below the 1988 record of nearly 78 million. Although much less land was idled under annual programs, long-term Conservation Reserve Program enrollment grew to nearly 30 million acres. Acreage planted in 1989 increased 12 million acres above the reduced level of 1987. With smaller set-asides for wheat, cotton, and rice, planting of major crops is expected to increase in 1990.

* Nationally, 1989 weather returned to near the long-term temperature and precipitation averages, although there was great seasonal and regional variability.

* Corn yields in 1989 rose sharply above the 1988 drought level of 85 bushels per acre to 116 bushels, but were still slightly below trend. Soybean yields also responded to better weather conditions, returning to trend yields of more than 32 bushels per acre.

* The Great Plains 1989 hard red winter wheat crop was stressed early by unseasonable warmth and widespread dryness followed by a February cold snap. Late spring rains led to yield losses in the southern and western Plains. * Soil moisture continued short in 1989 over much of the Great Plains and western Great Lakes, delaying planting of corn and soybeans until after a soaking mid-May rainfall: Well-spaced, timely summer rainfall allowed crop yields to rebound in spite of the persistence of limited soil moisture supplies.

* Heavier than normal winter and early season rainfall from the Delta into the eastern Corn Belt and over much of the southeast delayed and reduced some 1989 spring planting of corn, soybeans and cotton. Spring wheat areas experienced short soil moisture, but the crop developed well until a July 4th heat wave caught the crop in the sensitive flowering stage, causing rapid loss in yield potential.

* The 1990 winter wheat crop is in good to fair condition except in parts of the Great Plains. This fall, dryness centered in Nebraska persisted and expanded throughout the Great Plains. Although moisture conditions have improved in the central and southern Great Plains, overall subsoil moisture is still limited over much of the winter wheat area, and timely spring rains are needed. Recent rains benefited Pacific Northwest and California crops.

* In mid-February, the outlook for 1990 spring crop planting was mixed. Dryness still is a concern over the western Corn Belt. While recent precipitation brought some improvement, timely spring and summer rains will be needed for planting and crop development. The Florida Peninsula has been dry since the destructive December freeze, forcing heavy irrigation of citrus and vegetables. The freeze also damaged Gulf Coast sugar and Texas citrus crops. Snow pack is below normal in much of the West and Southwest and reservoir levels are well below normal after three years of sub-normal precipitation. Soil moisture is adequate to surplus from the eastern Corn Belt into the Southeast and the Delta.

* U.S. crop production recovered in 1989/90 from the drought-reduced levels of the previous season. However, with total supplies below consumption, stocks of most crops will fall. Projected grain inventories of 62 million tons would be less than one-third the level of three years before. Cotton stocks are dropping to the lowest level since 1983/84. Soybean stocks, however, may about double from last season's low level.

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U.S. Crop Acreage Planted, Harvested, and Placed in Conserving Uses

1/ Includes corn, sorghum, oats, barley, wheat, rice, rye, soybeans, flaxseed, peanuts, sunflower, cotton, all hay, dry edible peas and beans, lentils, potatoes, sweetpotatoes, tobacco, sugarcane, and sugarbeets. Harvested acreages for winter wheat, rye, all hay, tobacco, and sugarcane are used in computing total planted acreage. Sources: NASS and ASCS, USDA.