Problems Facing American Farmers Today
When most people think of farms, they envision small, family-run operations with livestock in an open pen and crops that are manually harvested every fall. Farms like this are becoming rarer due to various factors. While just 2 percent of Americans are farmers, as of 2011, their problems affect you as well as all Americans because they produce the meat, poultry and eggs you consume. The quaint family farm is not the reality of the modern American farmer.
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International Competition
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Until the early 1990s, the United States was a world leader in agricultural exports, and American farmers largely dominated the food market domestically. In the 1960s, the U.S. controlled 80 percent of the worldwide market share of soy; by 2000, that number had dropped to 35 percent, while Argentina's market share and Brazil's market share had exploded to nearly 50 percent. Other crops show a similar pattern, such as the corn market, while the North American Free Trade Agreement has opened the livestock and meat markets to strong competition from Canada and Mexico.
Political Influence and Deregulation
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While a farm bill sounds like it should be designed to benefit American farmers, the 1996 U.S. Farm Bill deregulated the market and contributed to the collapse of farm prices. Meanwhile, global food corporations saw a drastic increase in profits even as farmers struggled to maintain their business. The 2008 version of the bill attempted to repair some of the damage, offering financial support to local farms and funding for upstart farms and ranches.
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Financial Crisis
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The 2008 economic collapse in the United States devastated small businesses and industries across the nation. The banking crisis led to the consolidation of banks, which resulted in fewer small banks in farming communities and the closing of bank branches as customers switched to centralized online banking. The nature of the farming industry and competition from agribusiness corporations and international food producers have made it difficult for American farmers to turn a significant profit from their trade. As a result, many rely on loans and lines of credit to survive during hard times. The changes to the banking industry resulted in a shorter supply of credit to farmers and directly contributed to the rise in farming bankruptcies.
Environmental Issues
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As environmentalists push for conservation and sustainable industry, America's farmers have come under scrutiny for the impact farming has on natural resources and the environment. Practices associated with farming can lead to water pollution by way of animal matter, chemicals and pesticides used on crops. Methane and ammonia emitted by livestock affect air quality and contribute to climate change. Environmental lobbyists instruct farmers to find more efficient ways of farming, but changing practices and redesigning farms are expensive. The 2008 Farm Bill offered financial incentives to farmers who worked to reduce their farm's environmental impact, but the transition to sustainable, environmentally friendly farming remains expensive and reduces the farmer's return on investment.
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References
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