View source for USDA (United States Department of Agriculture)

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#REDIRECT [[United States Department of Agriculture]]

{{short description|U.S. federal executive department responsible for policy on farming, food, forestry, and rural communities.}}
{{Infobox organization
| name = United States Department of Agriculture
| image = USDA Seal.svg
| image_size = 200px
| alt = Seal of the USDA
| caption = The Seal of the United States Department of Agriculture
| formation = February 2, 1862
| type = Executive Department
| headquarters = Jamie L. Whitten Building, Washington, D.C., United States
| headquarters_region = Washington, D.C.
| key_people = [[Tom Vilsack]], Secretary of Agriculture
| employees = 150,000 (approx.)
| budget = $156.6 billion (2023)
| website = https://www.usda.gov/
}}

'''The United States Department of Agriculture (USDA)''' is the U.S. federal executive department responsible for policy on farming, food, forestry, and rural communities. Founded on February 2, 1862, as the Department of Agriculture, it was established with the mission of helping farmers and promoting agricultural development. Over the years, its scope has expanded significantly to encompass a wide range of functions related to the nation's food supply, natural resources, and rural economies.  The USDA plays a critical role in ensuring food safety, supporting agricultural research, providing financial assistance to farmers, and conserving natural resources.

== History ==

The creation of the USDA was largely driven by the vision of Abraham Lincoln and his Secretary of Agriculture, Norman Judd.  Prior to 1862, agricultural affairs were handled within the Patent Office.  Lincoln recognized the growing importance of agriculture to the nation’s economy and believed that a dedicated department was needed to foster its progress. The initial focus was on collecting and distributing agricultural statistics, experimenting with new crops and farming techniques, and promoting American agricultural products abroad.

The late 19th and early 20th centuries saw the USDA expand its role in response to changing agricultural landscapes and societal needs. The establishment of agricultural experiment stations through the [[Hatch Act]] of 1887 and the expansion of agricultural extension services through the [[Smith-Lever Act]] of 1914 were pivotal moments, bringing scientific knowledge directly to farmers.  The USDA also played a key role in combating agricultural pests and diseases, enacting legislation like the [[Federal Insecticide, Fungicide, and Rodenticide Act]] to regulate pesticides.

The Great Depression dramatically increased the USDA’s involvement in agricultural stabilization.  The [[Agricultural Adjustment Act]] of 1933, part of President Franklin D. Roosevelt’s New Deal, aimed to raise farm income by controlling agricultural production. This led to controversial practices like paying farmers to destroy crops and livestock, but it fundamentally altered the relationship between the government and agriculture.

Post-World War II, the USDA continued to evolve, incorporating programs related to food assistance, rural development, and environmental conservation.  The [[National School Lunch Program]], established in 1946, became a cornerstone of child nutrition.  In recent decades, the USDA has increasingly focused on issues like sustainable agriculture, organic farming, and food security.  The 2008 Farm Bill and subsequent legislation reflect these priorities, with increased funding for programs promoting local food systems and conservation practices.

== Organization and Agencies ==

The USDA is comprised of numerous agencies and offices, each with specific responsibilities. Some of the most prominent include:

* '''Agricultural Research Service (ARS):''' The chief intramural research agency of the USDA, conducting research on a wide range of agricultural topics, from plant genetics to animal health. Its research informs policy, enhances food production, and addresses challenges like climate change.
* '''Animal and Plant Health Inspection Service (APHIS):''' Responsible for protecting U.S. agriculture from pests and diseases. This includes regulating the import and export of plants and animals, controlling invasive species, and responding to outbreaks of animal diseases like avian influenza.
* '''Food and Nutrition Service (FNS):''' Administers a range of food assistance programs, including the Supplemental Nutrition Assistance Program (SNAP, formerly food stamps), the National School Lunch Program, and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).
* '''Food Safety and Inspection Service (FSIS):''' Responsible for ensuring the safety of the nation’s meat, poultry, and egg products. This involves inspecting processing plants, enforcing food safety regulations, and conducting investigations of foodborne illness outbreaks.
* '''Forest Service (FS):''' Manages and protects the nation’s 193 million acres of national forests and grasslands. The Forest Service also provides technical assistance to state and private landowners.
* '''National Agricultural Statistics Service (NASS):''' Collects and disseminates data on agricultural production, including crop yields, livestock inventories, and farm income.  This data is crucial for informed decision-making by farmers, policymakers, and the agricultural industry.
* '''Natural Resources Conservation Service (NRCS):''' Provides technical and financial assistance to landowners and communities to conserve natural resources, including soil, water, and wildlife.
* '''Rural Development (RD):''' Supports economic development and improves the quality of life in rural communities through programs related to housing, infrastructure, and business development.
* '''Farm Service Agency (FSA):''' Administers farm credit and disaster assistance programs, provides price support payments, and manages commodity programs.

== Key Functions and Programs ==

The USDA’s functions are broad and encompass many aspects of the food and agriculture system. Some key functions and programs include:

* '''Food Safety and Security:''' Ensuring a safe, affordable, and abundant food supply is a primary responsibility. This involves regulating food production, processing, and distribution, as well as responding to foodborne illness outbreaks.  The USDA utilizes systems like Hazard Analysis and Critical Control Points (HACCP) to monitor food safety.
* '''Agricultural Research:''' Investing in agricultural research is crucial for improving productivity, developing new technologies, and addressing challenges like climate change and pest resistance.  ARS conducts research on a wide range of topics, including crop breeding, animal genetics, and sustainable farming practices.  [[Genetic engineering]] is a prominent area of research.
* '''Farm Support and Assistance:''' Providing financial assistance to farmers is a long-standing tradition. Programs like crop insurance, disaster assistance, and price support payments help farmers manage risk and maintain profitability.  Understanding [[market volatility]] is crucial for farmers utilizing these programs.
* '''Rural Development:''' Supporting economic development in rural communities is essential for creating jobs and improving quality of life. Programs related to housing, infrastructure, and business development help to revitalize rural areas.  [[Infrastructure investment]] plays a key role in rural development.
* '''Conservation and Environmental Stewardship:''' Protecting natural resources is an increasingly important focus. Programs promoting conservation practices, such as no-till farming, cover cropping, and wetland restoration, help to preserve soil, water, and wildlife.  [[Sustainable agriculture]] principles are central to these efforts.
* '''International Trade:''' The USDA plays a role in promoting U.S. agricultural exports and negotiating trade agreements. Expanding access to foreign markets is vital for maintaining the competitiveness of American agriculture.  Analyzing [[global trade trends]] is a key function.
* '''Nutrition Assistance:'''  Providing access to nutritious food for low-income Americans is a critical function. Programs like SNAP, WIC, and the National School Lunch Program help to combat hunger and improve health outcomes.

== Challenges and Controversies ==

The USDA has faced numerous challenges and controversies throughout its history. Some notable issues include:

* '''Farm Subsidies:'''  The distribution of farm subsidies has been criticized for favoring large-scale producers and distorting markets.  Debates over [[agricultural policy]] and subsidy reform continue. Analyzing [[price elasticity of demand]] for agricultural products is key to understanding the effects of subsidies.
* '''Food Safety Concerns:'''  Foodborne illness outbreaks and concerns about the safety of meat and poultry products have led to calls for stricter regulations and improved inspection procedures.  Implementing advanced [[traceability systems]] is a key strategy.
* '''Environmental Impacts of Agriculture:'''  Agricultural practices can have significant environmental impacts, including soil erosion, water pollution, and greenhouse gas emissions.  Promoting sustainable agriculture and conservation practices is essential for mitigating these impacts.  Utilizing [[environmental impact assessments]] is crucial.
* '''Concentration in the Food Industry:'''  Increasing consolidation in the food industry has raised concerns about market power and reduced competition.  Analyzing [[market concentration ratios]] is relevant here.
* '''Organic Farming Regulations:'''  The USDA’s National Organic Program (NOP) has been subject to scrutiny over the standards for organic certification and enforcement.  Understanding [[supply chain management]] for organic products is important.
* '''Climate Change:''' The agricultural sector is both affected by and contributes to climate change.  Developing climate-smart agricultural practices is a major challenge. Applying [[climate risk analysis]] is becoming increasingly important.
* '''GMO Labeling:''' The debate over labeling genetically modified organisms (GMOs) has been contentious, with proponents arguing for consumer right-to-know and opponents citing potential costs and consumer confusion. Understanding [[consumer behavior]] related to GMOs is vital.  Analyzing [[risk perception]] around GMOs is also important.
* '''Trade Wars:''' Disruptions in international trade, such as those experienced during recent trade wars, can significantly impact U.S. agriculture.  Monitoring [[exchange rate fluctuations]] is crucial.  Analyzing the [[balance of trade]] for agricultural commodities is also key.
* '''Supply Chain Disruptions:''' Global events, like pandemics, can disrupt agricultural supply chains, leading to shortages and price increases. Implementing [[robustness analysis]] of supply chains is vital.  Exploring [[alternative sourcing strategies]] is also important.
* '''Labor Shortages:'''  The agricultural sector often faces labor shortages, particularly during peak seasons.  Analyzing [[labor market dynamics]] is crucial.  Investigating [[automation strategies]] can help mitigate shortages.



== Impact on Financial Markets and Trading ==

The USDA’s reports and data releases have a significant impact on financial markets, particularly commodity markets.  Key reports to watch include:

* '''World Agricultural Supply and Demand Estimates (WASDE):''' Provides projections of global and U.S. supply and demand for major agricultural commodities.  This report often triggers price movements in markets for corn, soybeans, wheat, and other crops.  Using [[technical indicators]] like moving averages can help traders interpret these moves.
* '''Crop Progress Report:'''  Provides weekly updates on the progress of crop development, including planting, emergence, and condition.  This report can influence expectations about future yields and prices.  Monitoring [[seasonal trends]] in crop development is important.
* '''Livestock Slaughter Report:'''  Provides data on livestock slaughter numbers, which can impact meat prices.  Analyzing [[correlation analysis]] between slaughter numbers and meat prices can be helpful.
* '''Agricultural Prices Report:'''  Provides data on prices received by farmers for various agricultural commodities.

Traders use this information to make informed decisions about buying and selling agricultural commodities, futures contracts, and related financial instruments.  Understanding [[fundamental analysis]] and its application to agricultural markets is crucial. Utilizing [[Elliott Wave Theory]] can provide insights into price patterns. Employing [[Fibonacci retracements]] can identify potential support and resistance levels.  Applying [[Bollinger Bands]] can assess volatility.  Using the [[Relative Strength Index (RSI)]] can identify overbought and oversold conditions.  Monitoring [[MACD (Moving Average Convergence Divergence)]] can signal potential trend changes.  Analyzing [[volume weighted average price (VWAP)]] can confirm trends.  Applying [[Ichimoku Cloud]] can provide a comprehensive view of support and resistance.  Utilizing [[Parabolic SAR]] can identify potential reversal points.  Monitoring [[Average True Range (ATR)]] can measure volatility.  Analyzing [[stochastic oscillator]] can identify overbought and oversold conditions.  Applying [[Donchian Channels]] can identify breakouts and breakdowns.  Using [[Chaikin Money Flow (CMF)]] can measure buying and selling pressure.  Analyzing [[On Balance Volume (OBV)]] can confirm trends.  Applying [[Accumulation/Distribution Line]] can identify buying and selling activity.  Monitoring [[Commodity Channel Index (CCI)]] can identify cyclical trends.  Utilizing [[Williams %R]] can identify overbought and oversold conditions.  Analyzing [[Keltner Channels]] can assess volatility and identify potential breakouts.  Applying [[Heikin-Ashi]] can smooth price data and identify trends.  Monitoring [[Renko charts]] can filter out noise and identify trends.  Analyzing [[Point and Figure charts]] can identify support and resistance levels.  Utilizing [[Candlestick patterns]] can identify potential reversal points.  Applying [[Harmonic patterns]] can identify potential trading opportunities.  Understanding [[intermarket analysis]] can provide broader context.  Employing [[regression analysis]] can forecast future prices.  Monitoring [[sentiment analysis]] can gauge market mood.




== See Also ==

* [[Food and Drug Administration (FDA)]]
* [[Environmental Protection Agency (EPA)]]
* [[Farm Bill]]
* [[Agricultural economics]]
* [[Sustainable agriculture]]
* [[Food security]]
* [[Agricultural policy]]
* [[Organic farming]]
* [[Commodity futures]]
* [[Agricultural marketing]]

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[[Category:United States government departments]]