A Perfect Storm: The Dynamics Confronting U.S. Agribusiness
Abstract
Linked by a series of converging forces, the long-standing imperatives of sustaining and safeguarding people have become more closely coupled than at any time in history. The U.S. agribusiness industry, a vast and technologically-advanced enterprise, is the secret behind America's ability to feed its own people, and indeed much of the world. Across the U.S., agriculture-related businesses generate more than 13 percent of U.S. Gross Domestic Product (GDP) and employ more than 18 percent of its workforce. Moreover, American agriculture plays a pivotal role in global security, exporting about 30% of its production and providing the basis for food aid around the world. Thus far, American consumers have been largely insulated from the food crises and resulting political unrest that are sweeping aside governments and causing riots around the globe: as a percentage of income, Americans still pay less for their food than the citizens of most other countries. However, a series of converging forces have led to sharp increases in domestic commodity and food prices and continue to apply cost pressures across the agricultural value chain. Those forces include increased global demand, changing diets, pressures on the basics of production (land, water, and fuel), climate change, and security and food safety concerns. Additionally, several U.S. policies are notable for their own distorting impacts on domestic and international markets -- namely, the U.S. farm, ethanol, and food aid policies. These policies, along with other dynamics beginning to affect America's food industry, demand prudent steps by U.S. leaders in order to secure recent economic gains and avoid the food-related catastrophes plaguing other countries. Both the U.S. political system and the nature of the industry itself, with millions of disparate members, regulators, and consumers, guarantee that developing new and effective policies will be challenging.
Document Details
- Document Type
- Technical Report
- Publication Date
- Jan 01, 2008
- Accession Number
- ADA487530
Entities
Organizations
- Dwight D. Eisenhower School for National Security and Resource Strategy