Changes in food and agriculture production are being driven by thirteen factors.
The purchasing and selling of farm equipment is sometimes regarded as a sign of the state of the agricultural economy as a whole, and this kind of information might reveal trends in the sector. Using this information and further research, the Futures Council for the Association of Equipment Manufacturers (AEM) created a report outlining the 13 agricultural trends that are anticipated to have a significant impact on the agriculture industry and the future methods of producing food. At the National Grain and Feed Association (NGFA) meeting in La Quinta, California, Curt Blades, senior vice president for industry sectors and product leadership at AEM, recently discussed these developments.
“While we don’t have to agree with them, we definitely need to be paying attention to them,” Mr. Blades stated, pointing out that some of the trends will significantly affect the grain and feed business while others were more closely related to it but nonetheless significant to take into account.
Increase output while reducing environmental effect.
“By 2050, there will be 2.2 billion more people on the planet, but there is also growing pressure to reduce our environmental impact,” Mr. Blades stated. He highlighted the development of genetics, deliberate stewardship, and precision agriculture as essential means of increasing productivity without burdening the environment.
Water usage optimization
“There is undoubtedly a water crisis in the world, including the United States,” Mr. Blades stated, noting that the agricultural sector is frequently held primarily responsible for these problems.
“We still need to improve the way we monitor and irrigate,” he remarked.
A rise in the demand for protein worldwide
Although there has been significant market momentum behind conversations about lab-grown meat and plant-based products, Mr. Blades stated there was no sign that the need for animal protein would decline. Indeed, he continued, the projection was for it to quadruple by 2050.
“It will appear somewhat different,” he said, noting that other goods will still be crucial in meeting the demand for protein. However, no research indicates that animal protein is predicted to continue rising for the foreseeable future, in spite of all the other headlines you’re likely to read.
A shorter food supply chain
“Growing your lettuce near where you eat it just makes a whole lot more sense because, otherwise, you’re just shipping water,” Mr. Blades stated, acknowledging the profound changes that vertical farming initiatives and greenhouse growing systems have brought about in the agricultural industry, particularly in the leafy green vegetable sector. He added that the marijuana industry’s production successes have taught numerous lessons.
“There are a lot of interesting things we can learn (from the underground marijuana industry) that can absolutely translate into the food supply chain being dramatically different tomorrow than it is today,” he said. “That technology is easily transferable into fruits and vegetables, probably not so much row crops.”
Changes in production geography
Climate change and genetic advancements have made it possible for crops to thrive in formerly unfavorable regions for many reasons, but these changes are also giving farmers new opportunities to diversify their agricultural production.
“The grain industry needs to get ready for this geographic shift in crop production because it’s a simple fact that the Corn Belt is moving further and further north,” Mr. Blades stated.
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Farmers respond to emission regulations by adjusting
According to Mr. Blades, there is a lot of pressure on the agriculture sector to lower its carbon footprint. This pressure could result in targeted expenditures in vehicles and equipment upgrades to more environmentally friendly models, which could have an adverse effect on profitability.
Decarbonization initiatives generate neighboring economies.
According to Mr. Blades, the US Department of Agriculture is actively looking for ways to help single-family farms create multiple revenue streams by fostering the growth of related industries, particularly in carbon markets where farmers can produce and sell carbon credits to buyers in the private sector.
He stated, “We just have to be prepared for it. We don’t know how it’s going to end, but we certainly know there are going to be industries adjacent to the grain industry that will have dramatic impact on what’s happening in our world today.”