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 macroeconomics in the ag & food economy > macroeconomics & u.s. agriculture

Amber Waves, February 2004
Amber Waves presents the broad scope of ERS' research and analysis. The magazine covers the economics of agriculture, food and nutrition, the food industry, trade, rural America, and farm-related environmental topics. Available on the Internet and in print, Amber Waves is issued in print five times a year (February, April, June, September, and November). The Internet edition, or "e-zine," includes links to web-only resources.
2/2/2004 1:00:00 PM 49.95/year

Macroeconomic Factors Behind the Fall in Farm Interest Rates
Interest rates on agricultural loans are determined by factors primarily outside of the agriculture sector in national and international credit markets. This report discusses the macroeconomic factors behind the fall in agricultural interest rates in 2001 and the farm interest rate outlook for 2002. The author found that the sharp easing in monetary policy and lower business credit demand were primarily responsible for the fall in interest rates. The fall in interest rates was also aided in the second half of 2001 by a rise in the consumer savings rate, a moderate fall in short-term inflationary expectations, and a loosening of foreign monetary policies.
ERSAIS78-01 14 pp 3/15/2002 23.00

The Food and Fiber System: Contributing to the U.S. and World Economies
Even though farming accounts for only about 1 percent of the total national workforce, it is at the core of the food and fiber system. The system is one of the largest sectors in the U.S. economy, and is comprised of industries related to farming, including feed, seed, fertilizer, machinery, food processing, manufacturing, and exporting. The interrelationships among the sectors of the food and fiber system and the U.S. and world economies are many and complex. As a result, U.S. and world policies and economic factors--such as interest and inflation rates--play a critical role in everything from the cost and availability of farm credit to the demand for farm products at home and abroad. The farm crisis of the 1980's illustrates how specific economic events can impact the food and fiber system. In addition, long-term changes in the system have occurred in response to shifts in consumer incomes, demographics, lifestyles, and perceptions of health and diet.
ERSAIB742 28 pp 7/1/1998 23.00

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