In summary, a crisis exists in a major part
of the United States agribusiness economy.
Conditions are most severe in business areas
that are directly or indirectly associated with
traditional row crop farm enterprises. Cur-
rent trends in the United States agricultural
trade balance indicate less United States par-
ticipation in world trade in each year except
one since 1981, Table 7. We know that sup-
ply and demand contribute to price deter-
mination. When the supply and demand of
United States agricultural products and re-
sources associated with the industry are
brought more nearly into balance, the agri-
cultural crisis will be over.
Table 7. Agricultural Trade Statistics, 1970-85
Marketing Exports Imports Trade
Year value value balance
.............. million dollars ...............
1970 ................... 6,958 5,686 + 1,272
1971 ................... 7,955 6,128 + 1,827
1972 ................... 8,242 5,936 + 2,306
1973 ...................14,984 7,737 + 7,247
1974 ...................21,559 10,031 +11,528
1975 ...................21,817 9,435 +12,382
1976 ...................22,742 10,497 +12,250
1977 ...................23,974 13,357 +10,617
1978 ...................27,289 13,886 +13,403
1979 ...................31,979 16,186 +15,793
1980 ...................40,481 17,276 +23,205
1981 ...................43,780 17,218 +26,562
1982 ...................39,095 15,489 +23,606
1983 ...................34,776 16,375 +18,401
1984 ...................38,013 18,910 +19,103
1985 (est.) ..........32,000 19,500 +12,500
Source: USDA (b).
REFERENCES
Government Accounting Office (GAO). Report to the Congress of the United States: Financial
Condition of Agriculture, October 10, 1985.
U. S. Department of Agriculture (a). Crop Reporting Board and Statistical Reporting Service.
Farm Production Expenditures, 1983: Preliminary Summary, Washington, D. C.;
June, 1984.
(b). Agricultural Statistics, 1984-, U. S. Government Printing Office, Wash-
ington, D. C., 1984.
(c). Farmers Home Administration, Finance Office, unpublished materials,
form FmHA 389-375-A, national totals; September 30, 1985.
(d). Economic Research Service. Agricultural Outlook-, October, 1985.
(e). Economic Research Service. Economic Indicators of Farm Sector-, ρ.
3; December, 1985.
(f). Economic Research Service. Agricultural Resources: Inputs Outlook
Situation Report-, No. AR-1; February, 1986.
108