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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
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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 …
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