LUBBOCK, TX – Agriculture could surrender valuable markets if producers remain focused only on growing commodities while others capture the value created farther down the food supply chain.
Texas Tech University agricultural economist Darren Hudson says modern agriculture increasingly extends beyond traditional crop and livestock production into technology, food processing, nutrition, product development and human health.
Hudson says the public often still views agriculture through what he describes as a traditional “cows and plows” image, even as producers increasingly rely on GPS, precision systems and other advanced technologies.
The same transformation is occurring after commodities leave the farm. Food innovation, nutraceuticals, food-as-medicine concepts, processing and safety improvements can create additional value between producers and consumers.
Hudson says agriculture needs to participate in those developing markets to protect producer interests and maintain competitiveness. Otherwise, supply chains may evolve in ways that capture additional value without returning enough of it to farmers and ranchers.
Farm-Level Takeaway: Producers may benefit when agriculture participates farther down the supply chain instead of surrendering higher-value markets after commodities leave the farm.