Legal Definitions - Economic Research Service

The Economic Research Service (ERS) is a federal agency operating within the U.S. Department of Agriculture. Its core mission is to provide objective economic research and analysis on a wide range of topics related to food, farming, natural resources, and rural communities. The ERS collects, interprets, and disseminates data and insights to help policymakers, businesses, and the public understand current trends and future challenges in the agricultural sector, both domestically and internationally.

Here are a few examples illustrating the work of the Economic Research Service:

• Imagine a scenario where a new pest outbreak threatens a major cash crop, like corn, across several U.S. states. The ERS would conduct an analysis to estimate the potential economic losses for farmers, the likely impact on consumer food prices, and the broader implications for agricultural exports. This research would then inform government decisions on emergency funding, pest control strategies, or support programs for affected farmers.

  This example demonstrates the ERS's role in analyzing domestic agricultural developments (a pest outbreak) and providing economic insights to guide policy responses and mitigate financial impacts.

• Consider a situation where a significant drought in a key coffee-producing country, such as Brazil, is expected to severely reduce global coffee bean supplies. The ERS would analyze how this international agricultural development might affect coffee prices for U.S. consumers, the profitability of American coffee importers, and the overall stability of the global coffee market. Their findings could help U.S. businesses and consumers anticipate and prepare for potential price fluctuations.

  This illustrates the ERS's function in monitoring and analyzing international agricultural developments (a foreign drought impacting a global commodity) and their economic consequences for the U.S. market.

• Suppose the U.S. government is debating new environmental policies aimed at encouraging farmers to adopt more sustainable practices, such as reducing water usage or implementing cover cropping. The ERS would conduct studies to assess the economic costs and benefits for farmers who adopt these practices, their potential impact on overall agricultural productivity, and the long-term economic viability of different farming methods. This research helps policymakers understand the economic trade-offs involved in environmental regulations.

  Here, the ERS is involved in analyzing the economic implications of evolving domestic agricultural developments (new sustainable farming practices) to inform policy decisions that balance environmental goals with economic realities for the agricultural sector.