urban farming gives the economy a boost

The St. Louis area has experienced economic decline, mostly because the manufacturing industry, which previously dominated the city’s economy, has declined and the rate of settlement in the area has decreased. However, the city is a destination for refugees, especially those from Bosnia. The International Institute of St. Louis is a nonprofit organization that has boosted the local economy by giving these people (refugees/immigrants) the opportunity to farm exotic crops in plots of land set aside for urban farming. The farmers receive good money for their crops, and the system helps the immigrants, which increases settlement, which helps the economy.

It seems that agriculture has become obsolete in the US, and I know that this is a misconception, but it is obviously not the leading economic activity now like it was in the past. This is probably largely due to competition from foreign imports. In addition, many Americans would be unwilling to farm, especially considering that we have shifted away from agriculture both economically and culturally. However, the article I read quoted a Bosnian refugee who said that farming was all he knew; many immigrants are used to labor, and provide a unique service to the economy as a result.

The manufacturing industry in St. Louis has declined, resulting in a decline for the whole city. The International Institute’s effort to bring in a new exotic crop to the local economy generates a whole new market, especially since the immigrants are able to satisfy every aspect of the market’s factors of production. These immigrants have the ability to be entrepreneurs because they offer a unique good and a unique resource- their labor. They also have no opportunity cost to do so because they have free time outside of their 8 hour work day. In addition, the urban farming is successful because it provides the unique opportunity of benefitting from both agriculture and urban life at the same time. The workers can both obtain city jobs with regular wages and get additional income from the farm produce, which has generated demand in the city. The people of St. Louis have developed a taste for the exotic crops, and local restaurants pay good money for them.

By opening up this new market, a domino effect of good for the economy has resulted. Employment increases, supply/demand is generated, and the city’s income has increased 4-7%. It just goes to show the good that can come from an innovative nonprofit initiative.