Challenges and Opportunities in U.s. Agriculture

U. S. agriculture fared better during the Great Recession than many other sectors and remains a bright spot in the U. S. economy. Despite an extensive and severe drought in 2012, net farm income is forecast to total $112.8 billion, only 4.3 percent below the previous year?s record of $117.9 billion (USDA 2013a). Strong demand for agricultural products and below average crop yields pushed up crops prices, and along with significant crop insurance indemnity payments, helped to make the 2012 income figure the second-highest since 1974 after adjusting for inflation. The strength of the U. S. agricultural sector is due in part to the demand for American agricultural exports. The value of agricultural exports has steadily risen and now accounts for a projected 31 percent of gross farm cash income. Exports reached a near record level of $135.8 billion in 2012 and are projected to reach $142 billion in 2013 (USDA 2012a). Increasing demand from abroad created by rising incomes and a growing middle class will present opportunities for U. S. agriculture. The world population is expected to reach more than 9.2 billion by 2050, with growth coming primarily in developing countries, most of which are net importers of food products. The convergence of population growth and rapid urbanization, especially in developing regions of the world, will likely result in growing demand for food as well as changing dietary patterns.