For centuries, the US agricultural sector has been an essential part of American life providing a vital source of food both for domestic consumption as well as export. As a pivotal part of the North American economy, the US farming industries play an important and responsible role in delivering diverse and abundant supplies of food, preserving local economics and providing a livelihood to millions of people.
To understand the current state of the US agricultural sector, and its many intertwined features, this article will attempt to explore and examine the multiple aspects of US agriculture and farming industries.
The US agricultural industry is a complex and sophisticated sector, spanning across the entire country. Broken down into a few broad categories, it encompasses (1) crop production, (2) animal production, and (3) forestry, fisheries and related activities.
At present, the US agricultural industry comprises a total of 2.1 million farms occupying more than 900 million acres across the US. All told, the agricultural industry is estimated to represent a combined value of $1.03 trillion, making it one of the country’s largest and most significant economic contributors.
These figures are made possible by the production of both crops and livestock, leading to an annual output worth $165.9 billion.
Crop Production
Crop production is the largest and most diverse sub sector under US agriculture and farming industries, and is estimated to account for $124.8 billion of total output per year. The top 10 American crops that generate the most output are as follows:
- Soybeans: $43.8 billion
- Corn: $37.4 billion
- Wheat: $10.4 billion
- Cotton: $7.2 billion
- Sorghum: $3.6 billion
- Alfalfa: $2.6 billion
- Rice: $2.3 billion
- Hay: $1.6 billion
- Peanuts: $1.5 billion
- Barley: $1.2 billion
Animals Production
Animals production, another core piece of the US agricultural industry account for approximately 15% of total output, with total sales of $25.1 billion in 2015. The main animals production is livestock and poultry, which includes the following sub-categories:
- Dairy: $18.8 billion
- Beef cattle and calves: $15.6 billion
- Hogs: $5.5 billion
- Sheep, Goats and Lamb: $860 million
- Poultry and eggs: $37.7 billion
- Aquaculture: $1.2 billion
Forests, Fisheries and Related Activities
Under the forestry division of the US agricultural industry, forestry covers 856 million acres of land, with timber and timber products estimated to have an economic value of $20 billion.
In terms of fisheries, reports indicate that the total value of exports in 2015 reached a record-high of $5.3 billion. Consisting mainly of aquaculture species such as shrimp, salmon, oyster, and crab, the sector is well-positioned for further growth and expansion.
Agricultural Support Services
Agricultural support services play a pivotal role in the US agricultural industry in both upholding production standards and providing assistance to farmers and ranchers. This includes services such as crop planting and harvesting, livestock transport, agricultural chemicals and clinical services, seed production and irrigation. Additionally, US agricultural support services also incorporates a number of programs such as insurance coverage and research, in order to better secure consistent production and quality of farming commodities.
US Agricultural Trade
US agricultural exports totaled $139.9 billion in 2017, while imports totaled $118.5 billion in the same year. As the largest agricultural exporter globally, the US is a significant player in international markets. In the latest statistics released, the top five agricultural export products in 2017 include:
- Soybeans: $21.6 billion
- Pork: $6.3 billion
- Beef: $6.2 billion
- Prepared foods: $5.6 billion
- Farm-origin processed foods: $4.7 billion
Likewise, the top five agricultural products imported from other countries in 2017 are as follows:
- Mango: $228 million
- Avocados: $3.3 billion
- Apples: $2 billion
- Grapes: $1.9 billion
- Tangerines: $1.8 billion
Current Challenges and Issues Facing US Agriculture and Farming Industries
The US agricultural industry is facing a wide range of challenges, some of which being (1) access to affordable labor, (2) struggling prices for commodities, (3) soil erosion, (4) water scarcity, and (5) climate change.
Access to Affordable Labor
In the past decade, labor availability has become a pressing issue for US farmers often having to rely on foreign labor to fulfill their farming needs such as in the picking of certain crops. Depletion in the rural labor pool has been a problem in many parts of the US as a lack of local job opportunities have pushed young residents towards settling in cities. Other factors such as a tight immigration policy, increasing labor costs and aging populations have all added to the difficulty of finding a dependable source of labor for US farmers.
Struggling Prices for Commodities
Crop prices have been hard hit in the past years due to an escalating global trade war in 2017 that has resulted in decreased exports and overseas market access. For instance, US soybean exports to China, one of their major trading partners, decreased dramatically, lowering prices to its lowest point in 10 years.
Soil Erosion
Since the turn of the 21st century, soil erosion is one of the key sustainability issues in US agriculture and farming. Covering approximately 38 million acres of US farmland, soil erosion and degradation has caused annual crop losses and financial losses amounting to several billion dollars.
Water Scarcity
Water is a limited natural resource, yet a key factor in the success of US agriculture and farming. Across the country, unsustainable water usage has drastically reduced the quality and quantity of water that would be otherwise available to farmers. As the Earth’s population continues to grow and water demand increases, the need for water management is becoming all the more important.
Climate Change
Extreme weather events and changing climate have rapidly become some of the major challenges confronting US agricultural and farming industries. With rising temperatures expected to cause longer and harsher droughts, alongside an increased vulnerability to floods, US farmers are left to contend with extreme weather conditions and their associated financial losses.
The US agricultural and farming industries offer an important and necessary position in the American economy, and wider North American region, providing the necessary supplies of food and commodities for local consumption and export.
For the sector to remain competitive and take on the challenges of a rapidly shifting global marketplace, farmers and companies must continuously invest, innovate and react to the growing point of concerns.
Fortunately, technological advancements such as drones, plant genetics, soil mapping and other precision agriculture techniques are providing farmers with support tools to better manage, execute and maximize their input in the industry. Here’s hoping US agriculture and farming industries can look forward to an abundant and sustainable future.
