The Significance of the Global Market to the United States’ Agriculture Industry

May was the World Trade Month. This was the time that was set aside to appreciate the benefits of international trade. The USDA would say that all months are Trade Months since there are very few sectors that gain a lot from trade than the American agriculture industry. When the US farmers are financially stable, they are not only able to benefit themselves and their families. The money that they get enables them to pay their employees, farm service suppliers, local equipment retailers, and they are also able to support the rural communities where they stay and trade.

 

In 2015, the farms in the United States produced a gross output of more than $425 billion and the bought inputs that were worth $225 billion. The income that they generated had a great impact on the rural and national economy. Statistics also indicate that 21 million full and part-time jobs, which translate to about 11 percent of US jobs, came from the agriculture and food industries in 2015. The market prices of crops and livestock products significantly influence the income of the farmers. It is necessary to expand exports as a way of increasing the demand for the farm and food products.

 

The total exports that were made from the agriculture industry in 2016 amounted to about $135 billion. It estimated that about 20 percent of the United States’ agriculture produce is exported. The percentage also varies depending on the products. The export rate stands at 70 percent for cotton and tree nuts, 50 percent for rice, wheat, and soybeans, while meat and dairy products stand at 20 percent.

 

In would be wise for the Trump administration to make excellent trade agreements during the remaining half 2017 since the country’s agriculture industry is substantially supported by exports. It should help the U.S. agriculture exporters by making deals that slash tariffs, create new markets for the products, and eliminate different challenges that traders face. America’s agriculture producers would not have attained success without the international markets.

 

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