Saturday, September 4, 2010
Strong Exports Lift Agriculture, A Bright spot in U.S Economy
Even during the time of recession, one sector that is boosting the U.S economy is the Agriculture. With countries like Canada, Mexico, and China on its top export list, U.S will have exported $107.5 billion in agricultural products by the end of the fiscal year. The major reason for the growth in the export has been the reduction of supply in the international agriculture market, which has also caused the prices of the agricultural goods to shoot up. Interestingly, the article also states that prices for agricultural goods will only increase moderately as the the farmer's value added is only a small amount compared to the final price of the goods produced.
Subscribe to:
Post Comments (Atom)
This is so true. I was wondering what effect the Russian wheat export ban is going to have and this is it. Countries with agricultural economies are going to experience less of a shock in current economic times since they are going to make a lot more money exporting their agricultural goods.Also this is an opportunity for the US to subsidize its agricultural sector even further as one of its major competitors, Canada, is experiencing a bad harvest due to unprecedented wet weather and flooding.More benefits to be reaped from this scenario,something that the US needs desperately.
ReplyDeleteWith an increase in exportation of agriculture, there is a glimpse of economic hope in recessionary times. I found it interesting that 75% of agriculture produced is done so by 12% of farms in the US. It is interesting that the "big businesses" are in every sector of the US economy. I also found it interesting that only 11% of an average farmer's income comes from agriculture production.Factors like outside jobs and investment are an integral part of making a living. Even though there is hope for the agricultural sector, the change doesn't seem monumental for most farmers.
ReplyDeleteIf prices are rising and competition is falling, why would farms need *more* subsidies? Wouldn't basic supply and demand dictate that the US could expand its agricultural sector without government support?
ReplyDelete