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The Three Major Challenges Faced by the Modern Agribusiness Industry

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The world of agriculture business is incredibly rewarding as it provides food and income for millions of people worldwide. But like any other industry, farming is a complex and unpredictable business. To survive, farmers need to meet the changing needs of the world and the increasing expectations of consumers, regulators, retailers, and processors.

From soil erosion, climate change, and changing consumer tastes, these challenges affect every farmer’s ability to build a profitable agricultural business. But as the demand for U.S. farming products increase, we have to recognize and act on these challenges to support the agribusiness industry.

If you own a farm or plan to enter the agricultural sector, you have to be aware of the major challenges faced by many farmers. To learn more about farming concerns, below is a discussion of the three major issues in the agricultural business.

Environmental issues

Over the years, the effects of climate change have directly affected every farmer’s ability to grow crops. From rising temperatures, extreme weather events, to changes in local weather, all lead to unpredictable farming seasons. As a result, crop productivity weakens, leading to the loss of great profits for many farmers.

Changes in growing seasons limit the availability of water, allowing pests and fungi to thrive in the farmlands. According to pest control companies such as Diamond Exterminators, summer can mean more opportunities for insects to breed. When left untreated, these herbivorous insects can destroy a farmer’s entire crop production.

In a report by Columbia University Earth Institute, agriculture is the most vulnerable sector to climate risk. Although agriculture takes a small part of the U.S. economy, the adverse effects of climate change can greatly affect dozens of local states. This includes Midwest states that highly depend on agriculture.

Aside from climate risks, soil degradation is another issue that has troubled U.S. farmers. Many have blamed the practice of monoculture as the reason why the soil in the U.S. is not as fertile as it once was. Monoculture is the act of planting the same kind of crops in the same field, year in year out.

In other states, the declining biodiversity has affected the pollination of crops, while soil erosion has reduced the available agricultural land. As a result, farmers are under pressure to use fewer agricultural inputs and save more water. Without quality soil and the right terrain, farmers will have a hard time producing quality crops.

Considering the adverse effects of nature on agriculture, farmers will have to look for climate-smart practices to adapt to these changes.

farmers harvesting their crops

Growing population

Another pressing issue for the agriculture sector is the growing world population. According to experts, the world population might reach 9.9 billion by 2050. If the world population keeps increasing, the food demand will be so high that farmers will no longer meet the growing food demand. As a result, more people will go hungry.

The demand for more food supplies doesn’t mean every farmer will enjoy bigger business opportunities in the next few years. Farmers have been struggling because of poor yield, lack of resources, financial support, and qualified labor. What’s more, the expectations of consumers are placing too much pressure on farmers to provide a successful harvest.

The lack of farming resources will be a critical issue for many farmers. If consumers continue to demand higher standards on food producers, this can lead to higher expenses for the agribusiness sector.

One way or another, the agriculture industry needs to develop economical farming practices to make sure everyone will have access to nutritious food whenever they need it.

Economic and political factors

Political influence and economic outlook are two of the biggest factors affecting the agricultural industry. The entire agricultural sector, which includes the farmers, depends heavily on the federal government for the survival and success of their agricultural business.

The government plays a huge role in placing restrictions on agricultural practices in terms of how farmers plant, grow, transport, and sold their crops. At the same time, they also decide on the amount of economic assistance farmers should receive.

Every year, the federal government spends over $25 billion on agricultural subsidies. These include the research and technology allotted for the agricultural industry. But every time the government presents a new budget and decides on the fair price for crops and commodities, farmers are bracing themselves for possible budget cuts to their industry. If this happens, it will be difficult for farmers to estimate the availability of farm resources.

If you want to enter the agriculture business, you have to prepare yourself for all the challenges that the industry may throw at you. Agriculture can initially seem to be plagued with issues, but keep in mind that agriculture companies and experts are looking for ways to overcome these problems successfully. A great tip is to be innovative and seek advice for farming solutions.

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