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Unit 1 Introduction to Agricultural and Resource Economics Discover NC Christmas Trees North Carolina 2nd in the nation for Christmas trees 40 000 acres farmed in Christmas trees Most popular is Frasier Firs 15 years to grow a fully grown Christmas tree 850 tree farms Process a Seeds are planted in a Greenhouse or outdoor seedbed 3 years b Outdoor bed container nursery 2 years c Field manage weeds and pests fertilize remain till reaching desired size d Shipped to tree lots while some stay on the farm to be picked Bacon Crisis Background Farmers can still sell the pork they ve made earlier this year to grocers and restaurants until the end of this year Analyst opinion Regulations are localized to California and won t have a Cause Law prohibits sale of the offspring of female pigs raised in a gestation far reaching impact stall Only 1 of offspring fall under this law Effect Price of pork in California will go up and Midwestern producers will have to retrofit their barns to make up for the loss in California pork production Producers are passing on increased costs to consumers Extent of Price Increase ARE Professor Daniel Sumner price increases to occur in California close to January around 5 to 8 in retail prices or 3 per baby pig of mother pigs are already raised cage free Only 8 of the nation s pork comes from pig breeding California consumes 15 of the nation s pork Price Increases on Frozen Products Retailers purchase frozen products like bacon beforehand When retailers run out of pre purchased bacon there will be a shortage as The Argument of Pork Producers pork producers try to change their farms Lot of the pork is either produced by facilities which are already fitted with gestation squares larger than 24 ft Those who aren t are usually family farms without the equipment and funds for Sumner suggests that those who can t make the changes can just sell pork renovations elsewhere North Carolina Agriculture and Agribusiness 103 billion annual contribution to state s economy of our state s overall income Provides jobs to 1 in 6 North Carolinians Challenges and Solutions Challenges unpredictable trade environment uncertain talent pipelines attacks from out of state personal injury attorneys an unprecedented string of devastating storms worldwide pandemic Solutions develop and advocate for policies guard against burdensome regulations on food supply chains Support policies that create predictable and attractive operating environment for food manufacturers and agribusiness A coalition of businesses that work to champion the needs our state s top Ag Allies industry Benefits Participants receive exclusive updates on pressing agribusiness issues Invitations to calls webinars and meetings with state and federal and developments policymakers The opportunity to shape the regulatory landscape through collaboration with our Government Affairs team U S Agricultural Trade at a Glance World s second largest agricultural trader after the European Union Increased significantly over the last 25 years Economic ascension of many emerging economies Foreign and domestic policies that expanded U S access to foreign markets Agricultural trade shift Rising incomes and growing supply capacity of emerging economies Reshaped global supply and demand for agriculture and food products Composition and Destinations of U S Agricultural Exports Have Shifted U S agricultural output growing faster than domestic demand for many products U S farmers and agricultural firms rely on export markets to sustain prices and revenues U S agricultural exports have grown steadily over the past 25 years reaching 196 billion in 2022 up from 62 8 billion in 1997 Product consumption also grew at this time with HVP products dairy products meats fruits and vegetables were consumed more by the increasing population Share of Exports in U S Agricultural and Food Production Has Remained Steady Share of US agricultural production exported indicates sector s dependence on Since 2011 foreign markets 2011 the share of U S agricultural and food production sold in international markets has remained steady at approximately 20 2011 2021 23 of output of non manufactured agricultural products 2011 2021 22 of manufactured agricultural products Agricultural Exports Supported More Than 1 Million Full time Civilian Jobs in 2021 U S agricultural exports support output employment income and purchasing power in both the farm and nonfarm sectors ERS estimates that each dollar of agricultural exports stimulated another 1 07 in business activity 177 3 billion of agricultural exports produced additional 190 5 billion Every 1 billion of U S agricultural exports in 2021 supported approximately 6 939 U S jobs throughout the economy 1 230 000 full time civilian jobs which included 772 000 jobs in the U S Agricultural Imports Expanded Steadily Mostly Driven by Consumer oriented nonfarm sector Products Between 1997 and 2022 total agricultural imports more than quintupled in value reaching 198 billion in 2022 Consumer oriented products dominate the agricultural industry Increase by 7 annually since 1997 Increase of year round products account for import of horticultural products Horticultural products including fruits nuts vegetables and beverages accounted for more than half of U S agricultural imports in 2022 Sugar and tropical products such as coffee cocoa and spices accounted for approximately 15 percent of imports Share of Imports in Consumption Has Increased in Recent Years Past 10 years the share of imports in food and beverage consumption has gone from 13 2 percent in 2011 to 17 4 percent in 2021 Import shares have been increasing for manufactured products Higher unit prices for manufactured imports Manufactured products drove the rise in import share of consumption growth between 2008 and 2012 Since 2013 non manufactured goods have driven the increase Egg prices jumped 49 in the past year more than any other grocery category according to the consumer price index Bird flu is the primary culprit economists said Millions of egg laying hens died in 2022 as a result of the deadliest outbreak of avian flu in U S history Perhaps counterintuitively chicken prices have been declining Chickens raised for meat consumption aren t as affected by bird flu economists said Egg Prices Quiz score 6 32 33 36 40

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NCSU ARE 201 - Introduction to Agricultural and Resource Economics

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