The Agriculture Economy In 2022 Was Good, But Its Future Will Be Worse
American agriculture is one of the biggest and most important sectors in the American economy. It makes up 20% of America’s economic activity and is responsible for the output of around $8 billion a year, depending on the economy. The agriculture and food business provides 23 million jobs (15% of U.S. employment), $2.6 trillion in wages, $947.9 billion in taxes, and $202.2 billion in exports. The government makes sure that the agriculture economy is kept healthy, and it provides subsidies and insurance for farmers. Since the COVID-19 pandemic, the agriculture economy has been down, and this is due to the input factors that farmers face when creating output. Farmers pay for feed, livestock, seed, fertilizer, pesticides, fuel, oil, electricity, repairs, machine hire, marketing, transportation, labor, net rent, and property taxes. Farmers paid almost 62 percent of their input price on lime and fertilizers. Due to the recession during 2020, farmers paid more for input costs, and output was lowered. This, of course, inflated the price of food for the average American.
Due to the pandemic, the war in Ukraine, and a recession, farmers were not producing as much as they used to. According to Agamerica, farmers spent the most on fertilizer, oil, fuel, and livestock acquisition. This could get a little costly, and the USDA makes sure…
