By RICK SIEGELAssociated PressWASHINGTON (AP) Agriculture officials say the U.S. Department of Agriculture is bracing for a $1,2 trillion gap in the agriculture sector this year.
Agricultural production is expected to be the biggest source of the shortfall, as a record number of people are taking up farming as a way to make ends meet.
The department has said it expects to report a $9.7 billion shortfall for this year, which will amount to nearly $1 trillion more than the $8.3 billion shortfall it reported in the previous fiscal year.
The $1 billion shortfall will also be $300 million below the $1 million figure the agency estimated in its fiscal 2017 financial report, which was released Friday.
It is also $400 million lower than the agency had estimated in February, when it reported a $2.4 trillion deficit.
The U.N. Food and Agriculture Organization has estimated the food deficit will rise to $2 trillion by 2022.
It expects the U’s agriculture sector to generate $1 to $1 2 trillion in gross domestic product by the end of the decade.
Agro-chemicals, agro-grocery, agricultural biotechnology, food processing and related industries account for about 40 percent of total food spending.
The report said agriculture will be the largest single source of food-related revenue in 2022.
The biggest increase in agricultural output over the past decade has been in beef, dairy and pork production.
The biggest decline in agricultural production was in poultry, which is expected in 2022 to be down about $200 million.
The food-and-supply-chain sectors account for 40 percent to 50 percent of the U.
“Agriculture accounts for nearly half of U. S. GDP,” the report said.
“It accounts for about a quarter of the overall federal deficit.”
The agriculture sector will generate about $3.5 trillion in total revenue by 2022, which the report estimates will be about $1 or $2 above its previous estimate.
The federal deficit is expected by the USDA to be $2 billion to $3 billion by 2022.
“We’re in an environment that is increasingly volatile,” Agriculture Secretary Tom Vilsack said Friday.
“The pace of change is not a concern, but the magnitude of the impact on the economy is.
So we’ve got to prepare to absorb that volatility.”
The USDA says the food-production and distribution sector will bring in about $2 to $4 trillion in revenue in 2024, or about $750 to $800 per person.
The government will report $8 billion in farm-related income this year and $839 billion in 2022, the report showed.
The agriculture industry has been the biggest recipient of stimulus money over the last few years, but it is expected that much of that money will be used for a number of programs.
The USDA estimates that about $100 billion in stimulus spending will be spent on agriculture in 2022 and that about 1.2 million jobs will be created in the U in 2022 alone.
Vilsack has said he will continue to pursue a “rebalancing” of the federal budget, but he said he’s also focused on cutting wasteful spending.
Agribusier David Kamin, chairman of the American Farm Bureau Federation, said the U can be proud that we are in a time when farm subsidies have fallen so far in the past several years.
But it is important to recognize that this is the year when the federal government has had to take unprecedented measures to protect the agricultural sector, he said.
“We are going to have to make some tough choices in this environment, and I think the USDA will make tough choices as well,” Kamin said.
The USDA estimates agriculture will account for $2-3 trillion in sales in 2024.
The agency expects to collect $3 trillion from exports in 2024 and $1-1.5 billion from imports in 2024-25.