Michael Duffy Associate Director of ISU Leopold Center

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Presentation transcript:

Michael Duffy Associate Director of ISU Leopold Center Trends in Agriculture Michael Duffy Associate Director of ISU Leopold Center

Trends in Production Decreasing farm numbers and changing distribution Narrowing profit margins Increased dependence on government Increasing age of farmers Changing sources of income Increased concentration

Narrowing Profit Margins

Increased reliance on government payments

Increasing age of farmers

Changing sources of income

Trends in Processing and Retail Disappearing middle Increasing concentration

Top Five Grocery Retailers in the United States* 1997 Kroger Co Safeway American Stores Albertson’s Ahold USA CR5=24% 2000 Kroger Co. Wal-Mart Albertson’s Safeway Ahold USA CR5=42% * Source: Heffernan, William

Trends in Consumer Behavior and Spending Where food is consumed How much is spent for farm production

Trends in Agriculture Agriculture has changed and will continue to do so Increased awareness of environmental and other problems associated with current farming systems are leading to a rethinking of our current approach Changing consumer preferences and lifestyles off new options and alternatives for production agriculture Increased awareness of our dependence on imported energy is opening new opportunities for agriculture to lead the way in a biobased society We can not go backwards. We have to go forward recognizing that things will continually change but that we do have some control over the direction of the change.