Over the last ten year American farmers have experienced historic highs as well as lows. Nearly 55% decline shown by USDA in the farmer’s net income is the largest since famous farm crisis of 1920s. Upheaval in political environment and growing federal deficit has left American farmers worried. Global as well US rice prices continue to drop drastically along with other commodity staples within the global diet. Protectionism around the world surrounding the industry makes rice as the most policy distorted crops in the world. A number of countries have placed significant imports barriers, to protect the interests of their farmers, create disadvantages for American farmers.
Promising projections going forward
According to finding by a leading American University, there are encouraging projections based on numerous market factors. In terms of market growth in the coming years the total global trade market will increase by another 25 percent over the next 10 years. Many countries of Latin America and Africa, mainly sub- Saharan countries, with their surging GDPs, growing populations and high income growth are consuming more rice, once thought to be a luxury food. But with current prices rice consumption becomes affordable and within reach of most poor people of the world. There are great prospects of increasing US rice exports to Mexican markets too which is seeing increased demand in rice.
If the US administration makes level laying policies for both developed and rest of the world that would be devoid of any Protectionism and allow global competitiveness then there is no reason why U.S. can’t increase its share in the rice exports.