PESTLE ANALYSISThe United States of America is the world’s third most populous country and fourth largest by area after Canada, Russia and China. The country has an ethnically diverse population with the largest economy in the world. The country saw a decline in its growth after the 9/11 attacks and the recession that occurred in 2009.
However, there has been a certain progress in its economy with more investments and progress since then. (Pestle Analysis, 2014)Political/ SocialPolitical factors affect agriculture sector both directly and indirectly. Direct political factors include factors which influence the property rights, where running the agriculture system can be affected.
Indirect political factors usually arise from within the market itself. It includes subsidies from the government, conservation measures and the investment made by the government in its infrastructure development. (Archer, 2008)The growing obesity in the American soil, seeks attention by the policymakers and this can lead to policies which are directed towards growing more healthier products at the agricultural farms. Food industry and organizations on products also hold a great deal of impact on the current policy. Food and agriculture policy, food industry influence on dietary guidelines are among other political factors that affect agriculture sector in the US. Farm bill commodity programs influences the farm’s decision on what crop to plant.
The current farm bill is discouraging of farmers to try new crops. (Archer, 2008)Social factors include meeting the needs of the population with regards to nutrition, wants of the well-off consumers and those of the low-income families. Producing a healthy, nutrient filled, and tasty food is the demand of today’s population. Another trend in the US is the demand for a more organic, local produce. Food safety concerns are high and agriculture industry needs to use safer techniques and pesticides etc.
while producing agricultural products. (Archer, 2008)EconomicThe agriculture industry plays crucial role for the US economy. Besides supporting the food and energy security, it also helps in providing jobs to people in the country. Exports are a major part for its success. Population and growth in the developing countries would continue to work in the favor of the agriculture industry of US.
The United States has a prosperous agriculture industry and it would continue to grow in the future. In 2012 alone, the cash receipts made from farm industry exceeded more than 300 billion dollars. Wheat, cotton, soybeans and coarse grains are among the major products that are sold in bulk both in US and outside.
Agriculture industry is known for brining its exports. The exports in 2016 were approximately 129 billion dollars and are expected to rise to 142 billion by this year. (statistca, 2018) (JEC agriculture report, 2013)Small towns and rural areas are the major beneficiaries of a well-off agriculture economy. Supporting other manufacturing farm tool industries by purchases is good for the economy. Production of farm products at a higher level also helps the food processing industries and other biofuel refineries. The increase in the sale of locally grown organic products is another factor has improved the economy of the farm industry.
(JEC agriculture report, 2013) Technological The use of technology in the agriculture industry in US will go through a revolution in the coming future. Use of big data and other smart technologies are among the many technological changes that would improve the production in the agricultural sector. Drones that have been used by other sectors usually security, military operations and photography can be used by the farms to collect data and information. Sensors with their continuous measuring of the moisture and water content of the soil would be used to efficiently use resources like water and fertilizer. Use of robotic bees and other robotic harvesting technologies will be used by the farmers if it makes economic sense. With the rise in the cost of labor in US, these could work as a solution in the long run.
US agricultural remains competitive in terms of incorporating new technologies to the global world. (Worldview, 2015)EnvironmentalInput efficiency of agriculture and the per unit output production of food have an inverse relation with the environmental impact of food. By the use of efficiency to increase the agricultural input, environmental benefits can be ensured. The benefits of improving the efficiency of input system in hold environmental benefits, so if special attention is paid towards this, it can result in a good environment.
Impact caused on environment by food is at large compared to that of production of agriculture. An example of ruminant meat is that it impacts thrice or ten times more than the of food that’s based in plants. (Michael Clark, 2017)