A little over a year ago The Wall Street Journal (31 Jan 2005) reported that the U.S. would become a net food importer on a more or less permanent basis by the end of 2005. To me, this is an immense challenge to our food security, but also marks a great opportunity for the U.S. to rebuild its food markets. I'm interested in how others see it.So - energy, food, water. Three basic necessities, and the US is an importer of all three. How long can this last?
Trade data for December have not been released yet. When they are, we'll know if the Journal's prediction is true. Still, one look at USDA Economic Research Service (ERS) numbers shows the trend is upon us.
The U.S. enjoyed an agricultural trade balance of $12 billion four years ago. By November 2005, we barely had a surplus, after a slide of $5 billion in one year. It seems to be a matter of when, not if.
Friday, February 10, 2006
How can this be possible?