Established in 1984 by a grant from the U.S. Congress, the Food and Agricultural Policy Research Institute (FAPRI) is a unique, dual-university research program. With research centers at the Center for Agricultural and Rural Development (CARD) at Iowa State University and the Center for National Food and Agricultural Policy (CNFAP) at the University of Missouri-Columbia, FAPRI uses comprehensive data and computer modeling systems to analyze the complex economic interrelationships of the food and agriculture industry.
FAPRI prepares baseline projections each year for the U.S. agricultural sector and international commodity markets. The multi-year projections are published as FAPRI Outlooks, which provide a starting point for evaluating and comparing scenarios involving macroeconomic, policy, weather, and technology variables. These projections are intended for use by farmers, government agencies and officials, agribusinesses, and others who do medium-range and long-term planning.
FAPRI baseline projections are grounded in a series of assumptions about the general economy, agricultural policies, the weather, and technological change. The projections generally assume that current agricultural policies will remain in force in the United States and other trading nations during the projection period. The projections are also based on average weather conditions and historical rates of technological change.
In estimating the projections, FAPRI begins with a preliminary baseline that is first submitted to a review process before a panel of experts, including employees of several agencies of the U.S. Department of Agriculture, experts from international organizations, individuals throughout the land grant and other university systems, as well as from general extension specialists and industry experts. Their comments and suggestions are taken into consideration in the final baseline, which is used for policy analysis throughout the rest of the year.
FAPRI-Iowa State University maintains the international modeling structure for grains, oilseeds, livestock, dairy, and sugar and U.S. crop insurance model. FAPRI-Missouri maintains the U.S. modeling structure for grains, oilseeds, livestock, and dairy, along with models for the international cotton sector and the European Union.
FAPRI research is enhanced through collaboration with universities across the United States. The participating institutions are University of Arkansas, Texas A&M University, and Arizona State University. (more about collaborating universities)
- To prepare baseline projections for the U.S. agricultural sector and international commodity markets. These multi-year projections are available in print and on the Web.
- To examine the major commodity markets and analyze alternative policies and external factors for implications on production, utilization, farm and retail prices, farm income, trade, and government costs.
- To help determine effective risk management tools for crop and livestock producers, and to analyze how government policy affects risk management strategies.
- To brief staff members of the U.S. Senate and House Agriculture Committees on projections for U.S. and world agricultural markets.
- To disseminate research results through printed reports, staff presentations, and on the Web.
- Evaluates the supply, demand, and policy factors that influence short-term and long-term trade prospects and patterns.
- Increases the public's understanding of agricultural trade-related issues; for example, those involving the European Union, China, and India.
- Provides information for the legislative process regarding U.S. Farm Bills and trade agreements.