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A Portfolio Of Threats To American Agriculture

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  • Steven C. Blank

Abstract

This article outlines some of the biggest economic issues threatening the long-term survival of American farming and ranching. In general, the threats are derived from the intersection of global and local scales of decision making. International economic development, personal finance decisions, and political, social, and environmental issues are all part of the portfolio of threats. At the top of the list of threats is the bottom line. Profit margins are being squeezed, causing producers to diversify out of agriculture to earn sufficient returns to enable them to remain in agriculture as long as possible. American policy is expected to allow agriculture to continue shrinking because (1) the sector is losing its comparative advantage, and (2) it may become a deadweight loss to the economy. Copyright 2002 Western Economic Association International.

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Bibliographic Info

Article provided by Western Economic Association International in its journal Contemporary Economic Policy.

Volume (Year): 20 (2002)
Issue (Month): 4 (October)
Pages: 381-393

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Handle: RePEc:bla:coecpo:v:20:y:2002:i:4:p:381-393

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  1. Thomas W. Hertel & Zhi Wang & Wusheng Yu, 1998. "Understanding the Determinants of Structural Change in World Food Markets," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1051-1061.
  2. Swenson, Deborah L, 2000. "Firm Outsourcing Decisions: Evidence from U.S. Foreign Trade Zones," Economic Inquiry, Western Economic Association International, vol. 38(2), pages 175-89, April.
  3. John M. Antle, 1999. "The New Economics of Agriculture," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(5), pages 993-1010.
  4. Ayal Kimhi, 2000. "Is Part-Time Farming Really a Step in the Way Out of Agricultural?," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 38-48.
  5. Daniel Pick & Utpal Vasavada, 1998. "Exchange Rate Effects on the Relationship between FDI and Trade in the U.S. Food Processing Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1073-1079.
  6. Munisamy Gopinath & Daniel Pick & Utpal Vasavada, 1999. "The Economics of Foreign Direct Investment and Trade with an Application to the U.S. Food Processing Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 81(2), pages 442-452.
  7. Steve McCorriston & Ian M. Sheldon, 1998. "Cross-Border Acquisitions and Foreign Direct Investment in the U.S. Food Industry," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 80(5), pages 1066-1072.
  8. Oliver Mahul, 2000. "The Output Decision of a Risk-Neutral Producer under Risk of Liquidation," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 82(1), pages 49-58.
  9. David Bigman, 1996. "Safety-First Criteria and Their Measures of Risk," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 78(1), pages 225-235.
  10. Mark W. Rosegrant & Mercedita A. Sombilla, 1997. "Critical Issues Suggested by Trends in Food, Population, and the Environment to the Year 2020," American Journal of Agricultural Economics, Agricultural and Applied Economics Association, vol. 79(5), pages 1467-1470.
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Cited by:
  1. Kuo-Liang Chang & George Langelett & Andrew Waugh, 2011. "Health, Health Insurance, and Decision to Exit from Farming," Journal of Family and Economic Issues, Springer, vol. 32(2), pages 356-372, June.
  2. Larsen, Ryan A. & Leatham, David J. & Mjelde, James W. & Wolfley, Jared L., 2008. "Geographical Diversification: An Application of Copula Based CVaR," Proceedings:2008 Agricultural and Rural Finance Markets in Transition, September 25-26, 2008, Kansas City, Missouri 119533, Regional Research Committee NC-1014: Agricultural and Rural Finance Markets in Transition.

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