Shifting Demographics and Global Ag Trade

This is Tim Hammerich of the Ag Information Network with your Farm of the Future Report.

Over the past century, American agriculture has benefitted from a constantly expanding global market. But what if that trend were to reverse due to restricted trade and lower birth rates? In this potentially de-globalized future, Terrain speciality crop analyst Matt Wool, believes focusing on value-added products and smart export strategies will be required to drive demand and protect farm viability.

Woolf… “ I think really thinking about how our consumer base is gonna change. We're gonna have a much older consumer base as we reach population peak. That's one factor here. Then also I think we're gonna see markets start to compete more on value-added products. We've already seen that a little bit with, you know, if you think about the corn market, they've really leaned into biofuels and, and DDGs, that sort of thing. If you think about the almond market, almonds have been really incredible in their way that they've been able to be in every aisle of the grocery store and really build demand that way from, you know, the oil that's in shampoos to being in cereals to being in snack products, cookies, chocolates, that sort of thing. And then the final thing is to really be strategic about thinking about where exports are going into the future. We're not saying that exports are just gonna disappear entirely. Strategically and really thinking about those countries that have a positive demo story.”

Learn more about this aging population and food demand at terrianag.com.