The U.S. and Georgia Agricultural Systems Profits and Contributing Factors Informative News Article 12-4-21
Athens, GA–– In 2020, the overall revenue for the U.S. in the agriculturally-related economic sector contributed a grand $1.109 trillion to the U.S. GDP. surpassing that of previous years by a fair sum. In 2020, the agricultural industry was hit immensely by the pandemic, seeing a 20%-30% overall decrease in agricultural product prices. Despite this blowback to the industry after seeing some quick falls in prices in the year 2019, the economy was bracing for a collapse of food prices in the U.S. However, this was not the case, as proven in 2020. In early 2020, companies were being pummeled by the immense decrease in prices, being held bound by long and unsteady supply chains, and failing to receive adequate support to uplift the industry’s mini-collapse. Agricultural giants, producers, and even small farmers would commence realizing the impending crisis in the agricultural industry/sector. The international community, and the U.S. themselves, soon realized the mistake they had committed by not uplifting the industry and assisting in its recuperation. The nations, respectively, commenced to issue agricultural subsidies/grants, passing into law pro-agricultural laws on top of the already existing prior laws (AIA-18, Farm Bill 18-23), and directing federal/state resources into the industry whilst retracting investments into pre-COVID underdeveloped industries. Following the support of their own governments in maintaining the industry afloat and healthy, companies would soon commence directing operations of their own into the industry. Small farmers/businesses, government-reliant agricultural contractors, and indebted contemporary companies would have just commenced recuperation, agricultural giants would commence making their own moves to secure profits.
Agricultural profiteering would soon be undergone by agricultural giants, though not illegal, but sure unfair. The actions of these companies are relevant to the circumstances, but not representative of their industry’s health. Major companies started to pour money into food security, which could further reflect on consumers and gain further sales, despite the regularly overvalued prices on their products. Their initial investments proved successful in 2020, achieving a 1% increase in revenue for the company, a lot when considering Cargill’s overall value. Their investments proved even more successful into the still COVID-ridden year 2021, where their profits skyrocketed by
a whopping 17%. Most major companies also did the same as Cargill and also accumulated profits in 2020 and 2021. Small businesses and farmers also eventually did see profits as well, but not to the amount accumulated by major agribusinesses. The U.S. government, specifically the USDA, still has to procure monetary support for the market in order to offset price fluctuations and keep the market stable. Georgia also saw a slight increase in the efficiency of its agricultural operations from 2020-2021 as Georgia agricultural year forecasts foresaw. But, still, the common Georgia and U.S. farmer continues to face struggles in modern agriculture as technology advances and are left behind by more efficient and technologically advanced producers. Government grants are unable to keep those farmers up to par with the competition of big business. Georgia farmers do not see a stable future for their agricultural operations and are waiting to be reassured that their operations will and continue to see ample revenue in years to come. The USDA’s and EPA’s recent regulatory changes in concern to food security and agricultural systems have also strained the common farmer. These changes have not impacted big business, with big business already having foreseen the regulatory changes to come from these bureaucratic agencies, able to immediately do something about it, unlike common farmers with low available expenditures. Overall, the U.S. and Georgia have seen minor growth from the year 2020 into the year 2021 substantially, the industry continues to grow via the actions of major companies’ risk management abilities with price rates and normal farmers’ products falling in market value stimulated by the government. Though the line of support is thin, it is strong, as the nation is desperate to save and grow the industry well into the future.