business

Before the late 1800’s, there weren’t any standards or laws overseeing the seed trade.  This allowed individuals to take advantage of the unorganized seed market by selling low quality seed to buyers.  In some instances, what was sold wasn’t even seed at all.

Unfortunately, even the most seasoned seed buyers can’t always tell what they will get when purchasing seed.  Will the seed grow?  If it does grow, what will it grow into?  Will these seeds contain a disease that will hurt my other crops?  Will the packet contain other unwanted weeds that will reduce my yield, hurt my animals, or destroy my land?  The worst part is that the outcome of your purchase won’t be known for months after you buy and “try” to grow them.  In the late 1800’s, these questions asked by millions of people around the world led to the rapid development of laboratories tasked with using science to predict seed quality. 

Small town Oroville, California sits on the banks of the Feather River at the foothills of the Sierra Nevada mountains. It was established to supply the thousands of prospectors headed to Bidwell Bar, one of the first gold rush mines in the state. Today, this community of 16,260 people produces much more than just gold dust.

At the edge of town, what started in 1989 as a backyard blacksmith shop by owners Michael Phulps and Sean Pierce has become a 82-employee steel manufacturing company called Metal Works, thanks to a little help from USDA Rural Development. Fourteen years ago, Metal Works received their first Business & Industry loan guarantee to purchase a 20,000 square foot fabrication shop and office building on a little over 18 acres. Since then, they’ve converted their original 9,400 square foot building to a retail steel shop, and added another 20,000 square foot fabrication shop, burn table, and a modern, high-precision drill and beam line. Now, they’ve leveraged a new Rural Development guaranteed loan to refinance, save tens of thousands of dollars annually, and hire 10 new employees as a direct result of those savings.

America's ag promotion groups work to educate consumers, as well as research and promote our nation’s agricultural products. Whether potatoes or pork, mangos or cotton, soybeans or almonds, ag promotion groups help consumers make informed choices and learn about new products.

Although all ag promotion groups do have a similar goal and purpose – to pool their resources to increase demand and long-term economic growth for their  industries – they all accomplish this in different ways, tailoring their efforts to apply strategies that work best for each commodity.

Did you know that corn and soybeans account for 50 percent of the harvested acres in the United States?  Together, these two commodities had $106 billion in sales in 2012—not bad for products that start off as humble seeds.  The U.S. seed industry is valued at more than $7 billion, and accounts for 34 percent of the world’s international seed trade.  Our top seed exports are corn, soybean and sunflower seeds.  And the international seed trade plays an intricate role in what we call the American way of life, providing us the products we know and love.

In today’s global market, limitations in manufacturing capabilities, shifts in climate, or simple geography all impact a country’s ability to satisfy all of its own needs.  This means economies and agriculture systems around the globe are interconnected. Through trade, countries are able to market their resources to boost their economies and ensure access to a stable supply of food and products.

Sometimes big things come in small packages.  At USDA, we provide programs and services to producers of all sizes – and now we’re offering even more to small-scale and local beef producers.  Many small-scale producers are contributing to the growth of the grass-fed beef industry.  And, thanks to a new program tailored to meet their needs, they now have another resource in their marketing toolbox.

The USDA Grass Fed Program for Small and Very Small Producers, administered by USDA’s Agricultural Marketing Service (AMS), is designed as a verification tool for small and very small producers to certify that animals meet the requirements of the grass-fed marketing claim standard and will make them eligible to have their products marketed as “USDA Certified Grass Fed Beef”.

With today’s label-conscious, savvy consumers, producers are relying on verified and certified labels to help distinguish their products in the marketplace.  This new initiative joins our suite of consumer-trusted verification programs for meat, poultry, and eggs.

For over a century, my hometown of Chicago has been a cultural, financial, and agricultural hub.  And as a hub, it has a long history of supporting innovation and opportunity.  From the first cattle drives came the great Chicago Stockyards that supplied meat to the nation.  From the early trading of the Chicago Butter and Egg Board came the Chicago Mercantile Exchange. The city’s richly-woven tapestry of cultural diversity and the success of its food businesses prove Chicago’s value as an ideal business cultivator.

That is why it was so fitting that AMS Deputy Administrator Arthur Neal and I were invited to present at the Good Food Festival & Conference in Chicago on March 14. Hosted by Jim Slama of FamilyFarmed.org, the event is the oldest sustainable and local food trade show in America. Each year it brings together stakeholders including farmers, entrepreneurs, policy makers, and food industry representatives.

Believe it or not, food doesn’t come from the refrigerator or even the kitchen.  It doesn’t even come from the grocery store or the farmer.  All food—whether meat, grain, vegetable or fruit—owes its existence to seeds.  Seeds are the backbone of human existence, providing us with the fundamental necessities needed for life: food, clothing, medicine, and shelter.

To protect the quality of these important, yet often forgotten, natural resources and to promote a robust U.S. seed market (current value of over $7.3 billion), Congress enacted a program over a century ago that would later evolve into what is now known as the Federal Seed Act. The act, administered by USDA’s Agricultural Marketing Service (AMS) in Gastonia, NC, is a law that protects American businesses, farmers, and the general public from misrepresentation when buying seed.

The American brand of agriculture is surging in popularity worldwide. The last four years represent the strongest in history for agricultural trade, with U.S. agricultural exports exceeding $478 billion. This international success is critical to achieving one of USDA’s core missions – fostering economic opportunity and innovation that will continue to help American agriculture grow and thrive in a global economy.

USDA’s Agricultural Marketing Service (AMS) plays a key role in this area by opening new markets for American producers. We enjoy a close working relationship and collaborate on many projects with our colleagues at USDA’s Foreign Agricultural Service (FAS).  Through our export certification and verification programs, we create opportunities for American farmers and businesses to succeed by connecting them with foreign markets.

Food is a great equalizer.  Whether sharing it with loved ones around our holiday table or worrying about how we’re going to fit lunch in to our busy work days--food is something we all have in common.  But we don’t always think about the path it takes to get to our plates or even the store shelves.  And while there are many different ways it gets to us, we’re seeing food hubs play an increasingly important role for everyone along the way--farmer to corner store, chef to school lunch.

Food hubs are innovative business models emerging more and more across the country. They bring farmers and suppliers together, with 81 percent of food hubs focusing on increasing opportunities for local farms and allowing smaller producers to pool their products and fulfill larger contracts. Ninety-one percent of food hubs are near cities, connecting rural farmers to larger suburban and urban communities.  Oftentimes, farmers who work with food hubs offer a wider variety of products and are able to continue selling their goods later into the growing season.  That translated into an average of over $3.7 million in sales in the last year.  And USDA’s efforts have helped expand the number of regional food hubs operating around the country.  There are over 230, a 65 percent increase since 2009.

Buying and selling, supply and demand, wholesale and retail—the market and all of the economic factors surrounding it are complex things to track and understand.  From the smallest farmer to the largest grocery store chain in the nation, all of American agriculture depends on the trends and prices within the marketplace.

At USDA’s Agricultural Marketing Service (AMS), we know the value of information and data.  For almost 100 years we’ve tracked pricing and market trend information in our USDA Market News reports, and now we’ve formed the Agricultural Analytics Division (AAD) to help further meet the informational and statistical needs of farmers and businesses across the country.

The AAD provides a wide range of econometric, statistical, and analytical expertise and services. From production numbers to prices and market trends, to international trade activities and environmental impact—they track it all.