The U.S. Food & Fiber Industry

Preview:

DESCRIPTION

The U.S. Food & Fiber Industry. Linkages to the Farm Business Sector Spring 2010. The Farm Business Sector. Farm Business Sector. General Economic Influences. Farm Business Sector. General Economic Influences. Farm Business Sector. Impacts of Macro economic Policy. Interest rates - PowerPoint PPT Presentation

Citation preview

The U.S. Food & Fiber Industry

Linkages to the Farm Business Sector

Spring 2010

The Farm Business Sector

Farm Business Sector

Farm Business Sector

General Economic Influences

Farm Business Sector

Farm Business Sector

General Economic Influences

Farm Business Sector

Farm Business Sector

Impacts of Macro economic Policy

Interest rates InflationEconomic

growthUnemploymentBudget deficitsNational debtExchange ratesTrade balance

General Economic Influences

Farm Business Sector

Farm Business Sector

Impacts of International Trade

Comparative advantage

Trade deficitTrade

agreementsWTO rulings Importance to

agricultureEnergy related

issues

General Economic Influences

Farm Business Sector

Farm Business Sector

Impacts of Domestic Economy

Consumer spending is 66-70% of GDP

Income affects the demand for food and fiber

Energy and and other prices

PopulationTastes and

preferences

Food And Fiber System

Farm Business Sector

Farm Business Sector

Food And Fiber System

Farm Business Sector

Farm Business Sector

Impacts of Farm Input Supply Sector

Source of new technology and productivity

Increased consolidation of suppliers

Price setters to farmers

Firms have become more diversified in recent years

Food And Fiber System

Farm Business Sector

Farm Business Sector

Food And Fiber System

Farm Business Sector

Farm Business Sector

Impacts of Processing and Manufacturing Sector

Add value to raw farm products

Price setters to farmers

Contracts with farmers

Narrow profit margins

Compete for shelf space

Food And Fiber System

Farm Business Sector

Farm Business Sector

Food And Fiber System

Farm Business Sector

Farm Business Sector

Impacts of Wholesale and Retail Trade

Interface with consumers

Price setters to consumers

Just in time inventories

Changing structure over time.

Food safetyPackaging

trends

Unique Policy Influences

Farm Business Sector

Farm Business Sector

Unique Policy Influences

Farm Business Sector

Farm Business Sector

Impacts of Farm Policy

Commodity policy sets rules for farm subsidies

Price and income important historically

Storage of surplus production

Unique Policy Influences

Farm Business Sector

Farm Business Sector

Unique Policy Influences

Farm Business Sector

Farm Business Sector

Impacts of Environmental Policy

Conservation programs

Chemical application regulations

Water pollution

Air pollutionGlobal

warming concerns

Important Market Linkages

Farm Business Sector

Farm Business Sector

Important Market Linkages

Farm Business Sector

Farm Business Sector

Impacts of Farm Credit Markets

Indicators of financial stress

Cost and availability of farm operating and mortgage loans

Subsidized credit programs

Financial crisis in the 1980’s

Important Market Linkages

Farm Business Sector

Farm Business Sector

Farm Business Sector

Farm Business Sector

Important Market Linkages

Farm Business Sector

Farm Business Sector

Farm Business Sector

Farm Business Sector

Impacts of Labor Markets

Cost and availability of hired farm labor

Importance of off-farm employment to farm operator families.

Impact on consumption

Who is this man?

His first days on the job back in 2006…

He had little to smile about last year…

What job stress will do to you …

Let’s Get Started

Recommended