Homework 10

Case Study: Sunshine Farms: Withering Since NAFTA

1. What factors have created a competitive advantage for farmers in south Florida
over other regions in the US? (3 points)
Florida weather allows for the growing season to last longer than the other places in
the United States. Furthermore, Florida farmers were able to grow products in
December and January when much of the country was experiencing frigid
temperatures. Florida does not have tariffs. The nurseries of South Florida also have
been doing very well with the consistent construction increases in the United States,
and they seeming to be less vulnerable to foreign imports.
2. Why cant the US farmers compete with the Mexican farmers? (4 points)
The reason US farmers cant compete with the Mexican farmers is because, due to
the passage of the North American Free Trade Agreement (NAFTA), a great number
of Florida farms have been closed. Furthermore, due to the reduction of tariffs on
agricultural products, farmers have had difficulty competing with Mexican
producers. Many Mexican farm products are imported into the United States and
sold at a price that is considerably below the cost of domestic products.
3. How were the US farmers able to compete with the Mexican farmers before
NAFTA? (3 points)
Before NAFTA, US farmers were able to compete due to the Florida weathers. Florida
weather allows for the growing season to last longer than the other places in the
United States. Furthermore, Florida farmers were able to grow products in
December and January when much of the country was experiencing frigid
temperatures.
4. Why is it difficult to brand farm products? (3 points)
The reason why it is difficult to brand farm products is because the farm products
are commodities.
5. What should the US farmers in south Florida do to stay in business? (4 points)
They say American farmers should start beginning to brand their products or place a
G row n in the U S A label on them in order to be able to charge a higher price.
Furthermore, a few row crop farmers have successfully made the shift into nurseries
or seem willing to brand their products.