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Category: Economic Growth

USDA goes to Washington… State

Risk Management Agency Associate Administrator Tim Gannon with farmers

Risk Management Agency Associate Administrator Tim Gannon speaks with farmers at a public forum May 25 in Prosser, Wash. Photo courtesy: Jo Lynne Seufer, RMA

We take our responsibility to America’s farmers and ranchers very seriously at the Risk Management Agency (RMA), and we value our time spent with them and other stakeholders getting feedback on our programs and policies that are so vital to America’s food supply.

I welcome these face-to-face opportunities, and last week was fortunate to spend a few days in Washington state that culminated in a public forum to discuss the enhancements we’ve been making to the Federal crop insurance system. Read more »

US Ag Exports Create Big Opportunity Around the World

Agriculture Secretary Tom Vilsack and Deputy Under Secretary for Farm and Foreign Agricultural Services (FFAS) Alexis Taylor discuss the Trans-Pacific Partnership (TPP) implementation and export opportunities with Japanese Minister for Agriculture, Forestry and Fisheries, Hiroshi Moriyama in Tokyo, Japan on Nov. 20, 2015

Agriculture Secretary Tom Vilsack and Deputy Under Secretary for Farm and Foreign Agricultural Services (FFAS) Alexis Taylor discuss the Trans-Pacific Partnership (TPP) implementation and export opportunities with Japanese Minister for Agriculture, Forestry and Fisheries, Hiroshi Moriyama in Tokyo, Japan on Nov. 20, 2015

When I reflect on USDA’s international work over the past seven years, I don’t just see a great record of accomplishments, I see the building of a strong foundation that positions rural Americans to compete, grow and thrive in the years ahead.

Today, we’re launching the sixth chapter of USDA Results, which tells the story of our efforts, and our impact, alongside our partners over the last seven years to open new export markets, improve trade and capacity building, and empower future trading partners striving to build their own economies. Read more »

What Explains the Recent Rise in Rural Child Poverty?

Two young boys enjoying lunch near their home in Knox County, Ky

Young children at lunch in Kentucky. Rising income inequality in rural areas over the past decade has coincided with an increase in child poverty, according to a recent report by USDA’s Economic Research Service. USDA photo

During the 1950s and 1960s, the adage “a rising tide lifts all boats” broadly applied to the U.S. economy. As average income grew, the share of the population living in poverty fell rapidly. In the 1970s and 1980s, however, this relationship changed: average income continued to rise, but poverty increased. This means that incomes actually fell for many families in the lower portion of the income distribution. In other words, income inequality increased, and this translated into higher poverty despite a growing economy.

Recent work by USDA’s Economic Research Service (ERS) shows that this dynamic persists, and helps explain trends in poverty among children in rural areas. According to official estimates, the share of rural children living in poverty grew between 2003 and 2007 even as the national economy expanded. Between 2007 and 2010, this share continued to increase, as might be expected given the profound economic recession of 2007-09. But the rural child poverty rate continued to rise through 2012, peaking at 26.7 percent, its highest level since at least 1968 — despite the resumption of economic growth at the national level. The rate finally began to decline between 2012 and 2014, but the 2014 level was well above that of 2003. Read more »

Income Inequality: A Growing Threat to Eliminating Rural Child Poverty

Two young boys enjoying lunch near their home in Knox County, Ky

Two young boys enjoy lunch near their home in Knox County, KY.

Rural child poverty fell by 3 percentage points from 2012 to 2014. Over the past seven years, USDA and the Obama Administration have taken action to address the root causes and reduce the devastating effects of rural child poverty.  As a record streak of private sector job creation has cut nationwide unemployment in half, to 5 percent, average incomes for rural and urban families alike climbed nearly 6 percent in the last two years of data, returning to 2003 levels.  While we have made important progress in increasing incomes and reducing the rural child poverty rate, it remains unacceptable that 1.5 million children in rural America – 23.7 percent of all rural youth – live in poverty. Read more »

See You on May 6th for Opening Day of USDA Farmers Market

USDA Farmers Market poster

USDA Farmers Market poster (Click to enlarge)

Get excited—we sure are! Friday, May 6, is the opening of the 21st season of the USDA Farmers Market in Washington, D.C.  This means USDA employees and others who work nearby, residents of the city’s Ward 2, and tourists visiting the National Mall can once again shop at the USDA Farmers Market at 12th Street and Independence Avenue, S.W., starting next Friday, May 6, at 9 a.m.

We’re thrilled to have more farmers and growers participating than ever before. Farmers and growers participating for the first time include Chocolates and Tomatoes Farm and Spiral Path Farm, both of which are certified organic farms that offer community supported agriculture (CSA) pick up; EcoFriendly Foods, which has packaged and ready-to-eat meat and poultry products from animals raised without steroids, antibiotics, and hormones; King Mushrooms, which offers fresh varieties of oyster, button, and other mushrooms; and Stonyman Gourmet Farmer, which has small-batch, handmade cheeses and farmhouse foods. Read more »

Farms that Sell Directly to Consumers May Stay in Business Longer

Produce on display at farmers’ market in Washington DC

Produce on display at farmers’ market in Washington DC. Economic Research Service’s Amber Waves magazine reports that farmers who market goods directly to consumers are more likely to remain in business. USDA photo

Opportunities to buy food directly from farmers, in urban and rural areas, have increased considerably in recent years. The number of farms that sold food at roadside stands, farmers’ markets, pick-your-own farms, onfarm stores, and community-supported agricultural arrangements increased 24 percent between 2002 and 2012. Economists at the Economic Research Service (ERS) have found that farmers who market goods directly to consumers are more likely to remain in business than those who market only through traditional channels.

Farmers face many business risks, including fluctuations in prices and yields.  ERS looked at Census of Agriculture data showing that 61 percent of farms with direct-to-consumer (DTC) sales in 2007 were in business under the same operator in 2012, compared with 55 percent of farms without DTC sales. In a comparison of farms across four size categories (defined by annual sales in 2007), farmers with DTC sales had a higher survival rate in each category. The difference in survival rates ranged from 10 percentage points among the smallest farms to about 6 percentage points among the largest. Read more »