agribusiness

Andy and Valerie Cole are the husband and wife team who own Andy’s Agway in rural Dayton, Maine. It’s an impressive operation - in no small part because the Coles still run their agricultural business on the fundamental values their family began with over a century ago.

Historically black colleges and universities, particularly the “1890 land-grant universities (LGUs),” have conducted groundbreaking studies to further advance agricultural research in this country, such as eradicating peanut allergens and food borne illnesses.  Now, they’re making significant impacts abroad by strengthening U.S. global outreach in agribusiness.

In summers of 2011 to 2015, Florida A&M University (FAMU) students, in collaboration with University of Maryland Eastern Shore (UMES), took part in an 18-day program in South Africa to improve that country’s agricultural performance in table grape and aquaculture production and educational value chains.  The trip was supported by USDA’s National Institute of Food and Agriculture (NIFA), through its 1890 Capacity Building Program, and the U.S. Agency for International Development (USAID) Farmer-to-Farmer Program.

Rivers, roads and rails—the shortest distance between two points is not always a straight line. Finding the best path forward can be difficult as city traffic gets worse each year, frustrating commuters and thwarting deliveries. Also in the transportation mix are farmers traveling the same roads trying to bring the freshest produce to city markets.  With the $7 billion-per-year market for local and regional food continuing to grow, more and more goods are being transported along local routes.

Developing creative ways to navigate transportation challenges is critical for farmers and consumers alike to meet the increasing demand for local and regional food.  Farmers relying on local and regional food systems may not have the scale or capacity to use established food freight systems. That’s why USDA’s Agricultural Marketing Service (AMS) has taken a fresh look at food distribution issues, especially for the local and regional markets.

A recent trip back home to Louisiana sparked memories of a simpler time when old trucks full of fresh produce rumbled down dusty roads to deliver goods to the local market. The 2012 Census of Agriculture tells us that 50,000 farmers and ranchers nationwide are now selling to local retailers and that 150,000 of them are selling their products directly to consumers. Although these farmers and ranchers are still using this direct approach, the agricultural industry is certainly more dynamic today.  This means that producers need to follow a strategic business model.

The reality is that food can go through a lot of steps to reach the consumer. Before it is served on the table, food travels from the field to the truck to the packing house to the store. My agency, the USDA’s Agricultural Marketing Service (AMS), has many programs that support business entities involved in the food chain, including farmers markets and food hubs. For example, we invest in projects that help farmers and businesses understand emerging trends, create new markets, and stimulate our nation’s rural economies.

Over the course of 2013, we’ve seen yet another banner year for U.S. agricultural exports. Exports of U.S. farm and ranch products reached a record $140.9 billion in 2013 and supported about a million U.S. jobs. In fact, compared to the previous five-year period from 2004-2008, U.S. agricultural exports from 2009-2013 increased by a total of nearly $230 billion.

All told, the past five years represent the strongest five-year period in our nation’s history for agricultural exports.

The U.S. Department of Agriculture has focused on two key factors in recent years to help make this success possible. First, an unprecedented effort by USDA and our Federal partners to expand and grow markets around the world. Second, a commitment to make sure our farmers and ranchers have the tools to grow more, even in the face of uncertainty.

By Dan Berman, Senior Advisor to the Administrator, USDA’s Foreign Agricultural Service