ECONOMIC AND SOCIAL ISSUES


Synopsis

The economic consequences of alternative methods of producing, processing, and marketing food and fiber have a well-recognized, accepted, and continued importance in the involved industries. But the methods to quantitatively assess these aspects of the total system are less developed. Consumers are recognized as the ultimate customer in research, and methods to enhance the total socioeconomic impact of using natural resources to produce food and fiber are clearly pivotal. The distinct needs of growing culturally diverse populations, including the elderly, offer challenges and opportunities for change in the total agricultural and forestry system. There is growing commitment from governments to enhance the quality of life and economic viability of rural families and communities. The challenges of maintaining an effective international competitive position for the multiple components of the U.S. food and agriculture system are greater today than ever, especially as the impacts of new policies and decisions on trade emerge.

Research in this area will develop a science-based capacity to analyze the impacts of demographic change and its impacts on the food and agriculture system. It will provide better insight into the needs and demands of consumers and their concerns about the socio-environmental costs of producing the food and fiber they consume. New methods to assess the benefits and the risks of new technology development will be provided.

This research will enhance the quality of research investment decisions at all levels. New models will be developed that provide decision-makers options for both domestic and foreign policy. The socioeconomic components of broader decision models for both policy and management will bring the necessary balance to biological and physical production models.

The overall research effort will meet the new goals of (1) empowering people to enhance their productivity and well-being, (2) strengthening rural communities and enhancing their economic viability, and (3) improving the system's ability for producing, processing, and marketing food and fiber to meet citizens needs and effectively compete in the international marketplace.

Southern Synopsis

  • The South has a disproportionate share of rural population and rural poverty. In addition, ethnic, cultural, and economic conditions in the rural South make issues of family well-being and rural job creation important to the region.

  • Economic and social science research is needed to address the vulnerability of Southern natural resources to environmental degradation and the sensitivity of Southern farming to environmental and regulatory policies.

  • GATT and NAFTA offer special challenges to the South since the region s commodities are closely tied to global pricing and trade.

  • Consistent quality in Southern agricultural products will enhance competitiveness in inter-national and domestic markets.

Base Program Dynamics

In the 1980s, public attention to agriculture increasingly focused on the economic, social, environmental, and human consequences of food and fiber production, processing, distribution, and use. The farm crisis early in the decade directed attention to the changing structure of agriculture, the role of off-farm employment in rural communities, and the economic and emotional stress facing farm families. These concerns were reflected in the multidisciplinary rural social science research, which drew upon economics, sociology, and family sciences. The research tended to focus on individuals, farms, and households as the unit of analysis. With the end of the farm crisis, research on rural people and places declined, although its legacy is evident in new multidisciplinary alliances, complex methodologies, and policy decisions.

In response to rapidly changing technology and expanding global markets in agriculture during the 1980s, research on social and economic issues concentrated on marketing and trade development. This was a significant move away from earlier research addressing the production inputs or the postharvest issues of distribution and pricing.

Beginning in 1990, federal special grants to support agricultural policy studies have led to renewed interest in rural people and communities, growing complexity of farm systems, and increasing regulatory requirements. These analyses are delivered by multidisciplinary teams of researchers organized to provide quick response to questions and independent perspectives on issues. This research incorporates advances in social and economic modeling, systems theory, and data management.


ENHANCE AGRICULTURAL AND RURAL ECONOMIES

Cross-Cutting Relationships

Impact
Research that provides alternative policies for coping with a changing marketplace supports effective policy decisions that enhance the well-being of consumers, families, and the economy. Analysis of domestic and international markets is essential for increased trade and sustained farm incomes in an environment of reduced federal spending for agriculture. Better understanding of the linkages among the general, regional, state, local, and farm economies provides the foundation for formulating policies to enhance economic growth and to stimulate rural community development.

As new technology emerges, research in this initiative will develop and use new methods to assess its economic, social, and environmental costs and benefits, including its impact on national and international production patterns.

Southern Relevance
  • Policies and programs exist that impact the many sectors of Southern agriculture, which are heavily dependent on export markets and federal commodity support.

  • Policies are needed to ensure sustainable use of Southern natural resources with technological and regulatory changes are needed.

  • Research in these areas will increase the competitiveness of Southern commodities, improve the use of agricultural resources, and improve understanding of alternative farm policy options and the benefits and problems associated with new technologies.

Objectives


ENHANCE RURAL COMMUNITY DEVELOPMENT

Cross-Cutting Relationships

Impact
More than 1/4 of all Americans live in rural communities and the number is increasing. The definition of rural America is diverse and changing. Towns of 50,000 populations or less which surround metropolitan areas are preferred residences by many people for the community atmosphere which supports family life. Economies of these communities are often service-based. Many other rural communities once sustained by production agriculture and related main street service industries are not at risk economically.

If rural America is to be a productive contributor to the U.S. economy, as well as a preferred home to many of our citizens, we must better understand the factors which constitute a viable community.

Southern Relevance
  • The Southern Region has the largest rural population with the most diverse demographic characteristics.

  • Global competition greatly affects rural jobs in the South. The region has the greatest concentration of persistent rural poverty.

  • Southern rural communities continue to change with the increased focus on production agriculture as a business enterprise.

  • Economic and social science research will help develop new strategies for rural development, evaluate the consequences of alternative rural policy proposals, improve rural leadership, and provide policy-makers with a better understanding of the forces driving rural economic change.

Objectives


EMPOWER PEOPLE FOR ECONOMIC AND SOCIAL VIABILITY

Cross-Cutting Relationships

Impact
The effective functioning of the American people is a primary factor in determining the efficiency of our markets and the general condition of our society. Americans must confront increased economic and social uncertainties as they strive to enhance their productivity, well-being, and contribution to society. They must also interact with more complex products, services, and market practices in their daily lives. The ability to function effectively within this environment will determine the extent to which individuals minimize risk and attain economic independence and a satisfactory quality of life. Those unable to cope due to educational deficiencies and poverty create a drain on revenues and rob the nation of its productive capacity. This research will generate information needed for decision-making, resulting in more effective economic and social policy to resolve societal problems, especially as it regards rural families and communities.

Southern Relevance
  • Demographic and economic change in the rural South has intensified the need for research that helps people make decisions and take actions to improve their quality of life.

  • Empowering people and businesses to make more effective decisions is especially critical for the South, which has areas of rural decline, concentrations of persistent rural poor, and changing population dynamics.

Objectives


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Updated 7-31-96