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About ERS

A Competitive Agricultural System

Overview

Food and agricultural systems operate in a highly competitive global context, and the United States is a major player in these international markets—the U.S. share of the global market for agricultural goods averages just under 20 percent. Since U.S. farms produce far beyond domestic demand for many crops, maintaining a competitive agricultural system is critical to ensuring the economic viability of U.S. agriculture. At the same time, U.S. agriculture is a diverse economic sector. Differences in commodity type, farm size, operator and household characteristics, and even goals for farming affect the competitiveness of individual operations and ultimately of the sector as a whole.

In recent years, changes in the rules of trade, shifts in domestic policy, and new developments in technology have altered the competitive landscape of global agriculture and the challenges facing American farmers. ERS research focuses on these and other economic issues affecting the U.S. food and agriculture sector's competitiveness, including factors related to performance, structure, risk and uncertainty, marketing, and market and nonmarket trade barriers. More overview...

Related Briefing Rooms

Features

USDA Agricultural Projections to 2017 (February 2008) contains longrun projections covering supply, demand, prices, and other economic variables for major U.S. crop and livestock sectors.

Converging Patterns in Global Food Consumption and Food Delivery Systems (February 2008) reports that across countries and income levels worldwide, consumers are choosing to spend their additional income on some combination of increased quality, convenience, and variety of foods. Food delivery systems and consumption patterns in middle-income countries like China and Thailand are converging, or "catching up" to countries with higher income levels. Income growth has been a primary force behind converging global consumption patterns, but globalization of the food industry is also contributing. For the full report, see Convergence in Global Food Demand and Delivery (March 2008).

The Japanese Market for Oranges (March 2008) reviews the trade, production, and consumption of oranges in Japan, which is one of the largest markets for U.S. orange exports. Consumption and trade peaked in the mid-1990s. The report uses recent research findings about demographic and economic changes that might explain why consumption has fallen off in the past 15 years.

Recommended Readings

The Changing Economics of U.S. Hog Production (December 2007) documents the increasing size and specialization of U.S. hog operations during the last 15 years. Large operations that specialize in a single production phase and produce under contract have replaced traditional farrow-to-finish operations. These structural changes have coincided with substantial gains in efficiency and lower production costs, most of which are attributed to increases in scale of production and technological innovation. For an Amber Waves article on this topic, see Technology, Larger Farm Size Increased Productivity on U.S. Hog Farms (April 2008).

Ethanol Expansion in the United States: How Will the Agricultural Sector Adjust? (May 2007) examines effects of the expansion in U.S. ethanol production. Market impacts extend well beyond corn, the primary feedstock for ethanol in the United States, to supply and demand for other crops, such as soybeans and cotton, as well as to U.S. livestock industries. As a consequence of these commodity market impacts, farm income, government payments, and food prices also change. See narrated slideshow for an overview; see related Amber Waves feature U.S. Ethanol Expansion Driving Changes Throughout the Agricultural Sector (September 2007).

Commodity Backgrounders addresses considerations in domestic agricultural policy deliberations, including market conditions, policy proposals, trade agreements, and the interactions between policy and markets for selected commodities.

See all recommended readings...

Recommended Data Products

Agricultural Outlook Statistical Indicators, formerly provided in Agricultural Outlook magazine, provide data on individual commodities, the general economy, agricultural trade, farm income and expenses, farm prices, food prices and expenditures, and other statistical indicators of the food and agriculture system.

Procurement and Contracting by Organic Handlers provides information on procurement practices and use of contracts by certified organic handlers (packers, shippers, manufacturers, processors, brokers, and distributors). Procurement information includes basic firm characteristics, their purchasing habits, and their relationship with suppliers. Contracting information includes the use of written and verbal contracts with their suppliers.

Farm Business and Household Survey Data: Customized Data Summaries from ARMS (the Agricultural Resource Management Survey) is a web-based data delivery tool that provides information on farming practices, commodity production costs and returns, the economics of the farm business, the structure of American farming, and the characteristics of the American farm household. This tool provides centralized access to all ARMS data, including those previously provided in the Farm Financial Management and Crop Production Practices data products.

Commodity and Food Elasticities Database allows queriable searches of income, expenditure, and own- and cross-price elasticities for specific commodities and countries, which can be ranked and sorted. The elasticities are mainly from U.S. research on consumer demand published in working papers, dissertations, and peer-reviewed journals. The greatest number of demand studies are for vegetables, fruits, meat, and grocery products in the United States and China.

See all recommended data products...

Newsletters

ERS develops newsletters, many of which are issued monthly, highlighting timely developments in U.S. and global markets. Commodity-based newsletters include: cotton and wool, feed grains, oil crops, wheat, rice, fruit and tree nuts, vegetables and melons, sugar and sweeteners, and livestock, dairy, and poultry. We also issue the Outlook for U.S. Agricultural Trade and Agricultural Income and Finance. See the 2008 calendar of releases.

Related Links

USDA agencies and other government organizations of interest in the area of agricultural competitiveness.

See all related links...

For more information, contact: Barry Krissoff or Lewrene Glaser

Web administration: webadmin@ers.usda.gov

Updated date: April 7, 2008