Commodities

N.C. agriculture economy poised to address multiple challenges


Agriculture represents one-sixth of the North Carolina economy, employing nearly 780,000 people. The state ranks ninth among all states in agricultural production.

With these foundational strengths, North Carolina agribusinesses, farmers and ag technology companies are well-equipped to navigate a variety of challenges, according to speakers at the recent Ag Allies Conference sponsored by the NC Chamber.

Bart Fischer, research associate professor at co-director of the Agricultural and Food Policy Center and Texas A&M University, spelled out the headwinds for the ag economy in North Carolina and nationally: Depressed crop prices, high labor and input costs, natural disasters and policy uncertainty, to name a few.

“We’re all familiar with the cost-price squeeze in agriculture,” he said. “Our cost of production and output prices are constantly competing against each other, driving profits to zero. There’s just a tremendous amount of pressure in the countryside, particularly as it relates to row crops.”

USDA presence increasing

Stephen Vaden, USDA deputy secretary, told attendees that the strength of North Carolina’s agricultural economy is a driving force behind U.S. farm production.

Paul Ulanch at Ag Allies
NCBiotech’s Paul Ulanch at the Ag Allies conference in Raleigh.

“You are a leader, not just in this region of the country, but in the entire country, when it comes to agriculture,” he said. “We’ve taken note of that at USDA.

“We’ve also taken note of the natural disasters that, unfortunately, you have had to weather over the past couple of years,” he said, citing $138 million the department has provided this year in North Carolina under its Emergency Commodity Assistance Program.

The state’s lower cost of living compared with the Washington, D.C., area led USDA to choose Raleigh as one of its five new employment hubs, Vaden said. 

The department announced in July that it was looking to reduce costs and locate more operations outside Washington and into areas closer to farmers and other stakeholders. The other hubs will be Indianapolis, Kansas City, Mo., Salt Lake City and Fort Collins, Colo.

“Raleigh is going to be one of our five hubs that will represent the future of USDA,” Vaden said. “And the positions that we are intending to move here are positions that are not just functionary positions. They are positions that will indeed have a say so in agricultural policy nationwide.”

Opportunities in agtech

While farm production represents the backbone of any agricultural economy, it’s not the entire picture. North Carolina is home to 180 agtech companies, both established and new.

Paul Ulanch, senior director for focused initiatives at the North Carolina Biotechnology Center, told attendees that agtech startups include those in software, artificial intelligence and other technologies. Meanwhile, established companies in crop protection have found North Carolina to be a good home for innovation and expansion, he said.

“This is really a broad range of different types of innovation, all taking place to solve problems in agriculture right here,” he said.

Ulanch said the state’s agricultural interests are getting a boost from Ag Leads, an initiative designed to bring stakeholders together to ensure the state remains competitive in agriculture. Ag Leads partners include the Golden LEAF Foundation, the NC Chamber Foundation and NC Farm Bureau.

“We feel this is going to accelerate both the opportunities for farmers to access innovation as well as accelerate the innovators getting their products into the hands of farmers,” he said.





Source link

Leave a Response