Perspectives for the American farming
According to Food and Agriculture Policy Research Institute (FAPRI), the revenue of American agricultural manufacturers is to fall. Fortunately, inflation of food prices is to reach 2% this year, meaning that it will be lower than the forecast.
It would be difficult to repeat the record 2013 when the total income of America farmers exceeded 130 billion USD. The current forecast expects this figure to shrink by 24% in 2014. Experts believe that the fall results from lower prices of cereals, the rising cost of production and a reduction of government subsidies. Other factors that destabilize the situation in the sector are: uncertainty connected with the situation in Ukraine, and new terms of insuring cereal and cotton plantations.
Not all looks bleak
Thanks to lower prices of fodder, cattle breeders will be able to make up for the losses sustained in the recent years. Those problems were connected with the swine flu epidemic. What is more, the weather forecast is optimistic, which means that most of the areas which could not be cultivated last year will now be used for sowing. The acreage of maize plantation is to fall by c. 4 million acres, but the size of soy and wheat plantations is to grow in the coming years.