We examine some of the challenges facing New York's agriculture industry and outline some innovative responses. We distinguish between two types of agriculture: commodities and value-added consumer foods. We show that commodities are a small fraction of the agriculture industry in New York State and are not a growing market segment, while value-added goods are the primary products of New York farms and represent a market segment that is growing significantly. We then briefly discuss important strategies that agricultural producers are using to remain competitive, including the adoption of technology, an increased emphasis on exporting, the use of formal price contracts, and the vertical integration of business processes. These strategies and the expected continued growth in value-added sales support a positive outlook for many of New York's farms.
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