the u.s. food & fiber industry linkages to the farm business sector spring 2010
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![Page 1: The U.S. Food & Fiber Industry Linkages to the Farm Business Sector Spring 2010](https://reader035.vdocuments.us/reader035/viewer/2022062421/56649d7f5503460f94a62070/html5/thumbnails/1.jpg)
The U.S. Food & Fiber Industry
Linkages to the Farm Business Sector
Spring 2010
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The Farm Business Sector
Farm Business Sector
Farm Business Sector
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General Economic Influences
Farm Business Sector
Farm Business Sector
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General Economic Influences
Farm Business Sector
Farm Business Sector
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Impacts of Macro economic Policy
Interest rates InflationEconomic
growthUnemploymentBudget deficitsNational debtExchange ratesTrade balance
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General Economic Influences
Farm Business Sector
Farm Business Sector
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Impacts of International Trade
Comparative advantage
Trade deficitTrade
agreementsWTO rulings Importance to
agricultureEnergy related
issues
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General Economic Influences
Farm Business Sector
Farm Business Sector
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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
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Food And Fiber System
Farm Business Sector
Farm Business Sector
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Food And Fiber System
Farm Business Sector
Farm Business Sector
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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
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Food And Fiber System
Farm Business Sector
Farm Business Sector
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Food And Fiber System
Farm Business Sector
Farm Business Sector
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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
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Food And Fiber System
Farm Business Sector
Farm Business Sector
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Food And Fiber System
Farm Business Sector
Farm Business Sector
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Impacts of Wholesale and Retail Trade
Interface with consumers
Price setters to consumers
Just in time inventories
Changing structure over time.
Food safetyPackaging
trends
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Unique Policy Influences
Farm Business Sector
Farm Business Sector
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Unique Policy Influences
Farm Business Sector
Farm Business Sector
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Impacts of Farm Policy
Commodity policy sets rules for farm subsidies
Price and income important historically
Storage of surplus production
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Unique Policy Influences
Farm Business Sector
Farm Business Sector
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Unique Policy Influences
Farm Business Sector
Farm Business Sector
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Impacts of Environmental Policy
Conservation programs
Chemical application regulations
Water pollution
Air pollutionGlobal
warming concerns
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Important Market Linkages
Farm Business Sector
Farm Business Sector
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Important Market Linkages
Farm Business Sector
Farm Business Sector
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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
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Important Market Linkages
Farm Business Sector
Farm Business Sector
Farm Business Sector
Farm Business Sector
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Important Market Linkages
Farm Business Sector
Farm Business Sector
Farm Business Sector
Farm Business Sector
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Impacts of Labor Markets
Cost and availability of hired farm labor
Importance of off-farm employment to farm operator families.
Impact on consumption
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Who is this man?
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His first days on the job back in 2006…
He had little to smile about last year…
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What job stress will do to you …
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Let’s Get Started