WASHINGTON—Over the next decade, U.S. farmers are expected to provide food and grains to meet increasing global demand.

According to the U.S. Department of Agriculture’s long-term agricultural projections for 2012 to 2022, developments in global agriculture reflect steady world economic growth and continued demand for food and biofuels.

That demand will support increases in consumption, trade and prices, the report said. As a result, farm cash receipts and the value of U.S. agricultural exports are expected to grow after 2015.

“This continued trend in the growth of exports will strengthen the opportunity for Virginia farmers’ long-term economic stability,” said Tony Banks, Virginia Farm Bureau Federation commodity marketing specialist.

The report, which was released Feb. 11, provides projections for the farm sector based on a continuation of current farm policy. Its predictions cover agricultural commodities, ag trade and aggregate indicators of the sector such as farm income and food prices.

“It’s fun to look at these projections, but the real value for producers is to look at this information and form a long-term plan based on it,” said Jonah Bowles, VFBF agricultural market analyst. “If the projections are correct, are you ready for them?”

According to the report, red meat and poultry production in the United States is expected to fall this year in response to high feed costs, reduced returns and drought over the past two years. But meat production after 2013 is expected to increase.

U.S. retail food price increases are expected to average less than the overall rate of inflation from 2014 to 2022, reflecting higher livestock production that limits the price consumers pay for meat.

Other projections indicated that population gains in developing countries—along with higher incomes, increased urbanization and expansion of the middle class—are particularly important for growth in global food demand.

“While it’s true that an expanding middle-class in the global economy will continue to support increased demand and prices, even minor dietary improvements among the world’s poor will lead to an increased demand for grains and protein,” Banks noted.

The report projected that continued expansion of biofuels will add to world demand for agricultural products. And after declining in 2013, crude oil prices are expected to increase over the next decade as global economic activity improves, the report said. However, crude oil price increases will raise production costs in the agricultural sector.

“Crude oil prices have increased for years, and it’s not a surprise to farmers; they’ll continue to live with it,” Bowles said.

The 10-year projections also said that following reductions from record levels reached in 2011, the values of U.S. agricultural exports and net farm income should rise through the rest of the decade.

Contact Banks at 804-290-1114, Bowles at 804-290-1117 or Paul Westcott, USDA Economic Research Service, at westcott@ers.usda.gov.