Agricultural trade is a benefit for many people throughout the world. It helps to address the unique food production shortages found in regions due to droughts, excessive rains or other environmental reasons. But individuals are not the only people who are positively affected by global agricultural trade. Individual crop farmers in Fort Collins, CO, also benefit directly.
Importance of Global Trade in US Agriculture
In the last several decades, US global exports have increased dramatically in order to meet the rising international demand for agricultural crops produced and raised in the country. The increase in agricultural crops that are exported, help feed many people across the world.
How Are Local Farmers Affected?
Local farmers benefit through the rise in agricultural trade. As trade barriers were erased through the establishment of the North American Free Trade Agreement (NAFTA), exports to Canada and Mexico increased as well as exports to other countries. The increased exports have helped local farmers sustain their financial security.
What Risks Do Local Farmers Face?
Local farmers can face severe risks from the growth in global agricultural trading. Global markets can be volatile and unpredictable. Each year it can be difficult for crop producers to plan how many crops need to be planted. If crop producers do not plant enough, then the consumer may have to pay more for food.
How Is Risk Assessed in Global Agricultural Trading?
In order to accurately perform risk management techniques on a global scale, agricultural markets must have both permanent monitorings as well as prospective analysis. Additionally, economic models are used as tools to prepare and negotiate policy decisions.
At Compass Ag Solutions, our goals include helping you to develop comprehensive financial and risk management solutions for your cattle feeding operations. The benefits and risks of agricultural trading are ones we can help you understand better through our services.
