With the current economic slump affecting almost every industry, it is inevitable
that the Agricultural Industry would be severely affected in several ways. Overall, the
Agricultural Industry has been hit hard with current economic slump that we are in. The
agricultural and food industry includes the following categories: regulation, research and
development, manufacturing, agriculture, food processing, marketing, wholesale and
distribution, and retail (FSA, 2008). It is defined by the Economic Research Service of
the USDA as the following: “The U.S. food marketing system links farms to consumers
via food manufacturing, wholesaling, and retailing (food stores and foodservice
facilities). The cost of marketing services, including transportation, processing, and
distribution of farm products, account for a substantial portion of food prices, with the
farm value component accounting for the remainder.” (Martinez, 2007) An average of
nearly $3.2 billion dollars was collected in food sales alone in 2004.
The Agricultural Industry has been up and down for years, and hit a downfall in 2000
because of minor economic changes dealing with foods and goods being transported from
oversees. The Agricultural Industry took about 3 years to equal and surpass their previous
record highs after that. (BTS) Years later after reaching stability, the economy goes into a
slump again, and a worse situation occurs in the Agricultural Industry. Prices of gas were
recently at record highs, along with the price of oil at record highs. Not to mention that
economists have estimated that these highs are not going down anytime soon, and should
increase this summer to $4 or more. As an aviation specialist stated in an article from the
Times, “The global Agricultural Industry is facing a recession far more severe than the
slowdown of the airline industry that was endured after the terrorist attacks of 2001”.
(TimesOnline) I am sure the Agricultural Industry would agree with that statement.