Agribusiness: –
Our nation’s food security lies in the strength and sustainment of the Agribusiness Industry. Famine and hunger contribute to political instability within and between sovereign borders and negatively impact global world order. The United States should beware of exogenous events and focus on maintaining the strength of the industry by: 1) responding to water scarcity and the threats that may accompany the growing value of water, 2) addressing the ability to maintain a reliable labor force for farming, 3) developing adaptive strategies that address the effects of climate change and 4) ensuring the domestic population is protected from food insecurity.
Food insecurity threatens global peace and creates social unrest. Recently, national security analysts have attributed the Arab Spring and the Egyptian uprising directly to food security crises. Today’s regional crises are projected to be exacerbated in the near future as conservative estimates predict the global population will increase by over 30% by the year 2050. Compounding this growth are the impacts of climate change on key enablers of agribusiness.
The United States agribusiness industry contributes to the domestic economy by providing food, fiber, medicine, and biofuel to address global demand. While China relies heavily on U.S. exports to sustain their population, the U.S. enjoys food sovereignty and exports food products as well as feed for livestock. Over the next few decades, as the global population swells and the climate changes, the U.S. will continue to shape the industry by leveraging the strength of innovation as demonstrated in sustainable agriculture, free trade agreements, and ongoing efforts to increase production and nutrition while reducing waste.
This paper provides an assessment of the industry’s financial vitality, its productivity and fiscal outlook, and the challenges that should be addressed to ensure the industry’s success. It also offers policy recommendations to ensure America’s continued food security and independence. Although the issue of trade is not addressed independently, it is interwoven throughout the study topics. In the first quarter of 2017, every agribusiness expert and stakeholder that was interviewed identified international trade as a major concern. The industry was particularly wary of our country’s strained relationship with Mexico and its potential negative impact on the North American Free Trade Agreement (NAFTA). Once it became clear that President Trump’s intent was to renegotiate NAFTA rather than repeal it, the concern gave way to sincere optimism. The agricultural trade surplus that this nation has enjoyed since 1960 is likely to continue through the foreseeable future and the policy recommendations included in this study are intended to ensure the continuation of this national success.
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