Specialty Crop Research

Specialty Crop Growers Face Rising Costs and Need for More Demand

Hailey SmithEconomy, Industry News, Specialty Crops, USDA

Specialty Crop Research
Specialty Crop Research-USDA

The House Agriculture Committee recently examined ways to increase demand for U.S.-grown products in domestic and international markets. Alex Taylor, chief global policy officer for the International Fresh Produce Association, told lawmakers that specialty crop producers need stronger demand as they face rising costs and tighter margins.

Rising Costs Pressure Specialty Crop Growers

Taylor said growers have been dealing with multiple economic challenges at the same time, including higher expenses for production inputs, labor and regulatory compliance.

“American specialty crop growers have faced a convergence of economic pressures over the past several years,” Taylor said.

She noted that farm returns have not kept pace with those rising costs, creating additional pressure for producers trying to remain competitive.

The challenges can be especially significant for specialty crop operations because many fruits and vegetables require substantial labor and have limited flexibility when it comes to absorbing higher production expenses.

“These challenges are amplified for specialty crops, which are uniquely labor-intensive and often have limited ability to absorb input cost increases because of their perishable nature,” Taylor said.

Demand Remains a Key Focus

Taylor’s comments came during a broader discussion about opportunities to strengthen demand for American agricultural products. Expanding markets both at home and abroad could provide additional opportunities for specialty crop producers while helping address some of the economic pressures facing the sector.

For growers producing perishable commodities, reliable market access and strong consumer demand are particularly important. Unlike products that can be stored for extended periods, fresh fruits and vegetables often need to move quickly from the farm to consumers.

The hearing highlighted the importance of addressing both production costs and market opportunities as policymakers consider ways to support the U.S. specialty crop industry.

Listen to the accompanying audio report for more on the discussion surrounding demand and opportunities for American-grown specialty crops.