The Size and Importance of Agribusiness

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The Size and Importance of Agribusiness

• Chapter 2
• Fall 2007 Alanna L. Neely

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Land

• The major resource in modern farming
• Especially interested in how much is available
  and how it is being used.
• The U.S. has 2.3 billion acres
  
• 21 used for crops
• 25 used for livestock
• 30 for producing forest products
• Remaining 26 used for non-ag

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• Farm numbers have declined since the 1920s but
  at different rates.
• Currently, about 2.1 million farms are producing
  the total food supply for Americans and numerous
  foreign countries.
• Although farm numbers are ___________, the
  average size of farms is __________.

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• The Average American farm is _________ acres.
• What does this mean?
• _________________________________________________
  __________________________________________________
  __________________________________________________
  _________________

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• _________ predict that the trend toward fewer
  farms will continue, but the _________ will occur
  in small and medium sized farms.

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• Presently
• 169,000 farms contain 1,000 acres or more
• 200,000 farms contain 500 to 1,000 acres
• Over 700,000 farms have less than 10 acres
  
• Approx. 183,000 farms have less than 10 acres

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Lets look at the impact of production agriculture
on the US Economy.To do this we must measure
the value of __________ and ___________ that
America produces in a year.

• Gross Domestic Product
• GDP

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The Ag industry accounts for 17 of the GDP
and provides more than 20 of ALL jobs in the
country

• Lets take a look at Fig. 2-1 (pg19) in the text.

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All of these different products produced are
referred to as _________. These are projects on
a farm, such as the production of any crop or
livestock

• Fig. 2-2 gives examples

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• The production agriculturists share of each
  dollar spent for food by the consumer is about
  _______
• This means that approx. 70 cents of every dollar
  the consumer spends for food products goes to pay
  the cost of transportation, processing, other
  marketing services, and profits after the
  products leave the producers hands.

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EFFICIENCYWhy is this so important?

• American Agriculture is known for its __________
  ____________.
• With less than .3 of the worlds production
  agriculturists, the US produces a major
  percentage of the worlds _______ ________ _______.

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• See Fig. 2-3 pg.21
• How do we measure efficiency?
• Why is it so important?

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• American Agriculturists are recognized
  throughout the world for their ability to
  continually ________ _________ while ________
  remain relatively __________.
• Today. 1hr farm labor 16x the food and fiber
  it did 60yrs ago.

14

• Agriculture is the largest industry in the United
  States.
• Agribusiness is the single most important
  contributor to the worlds economy.
• Agribusiness worldwide represents approx. ¼ of
  the total world economic production and provides
  employment for HALF the population on Earth.

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• The agribusiness input sector plays a major role
  in the production of food and fiber.
• List some inputs..
• Improvements in these inputs have been the main
  reason for the outstanding efficiency of
  production agriculturists.

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Yearly expenditures for agriculture include

• 10.1 billion for fuel, lubricants, maintenance
• 3.9 billion for seed
• 18.4 billion for feed
• 10.5 billion for livestock
• 8.8 billion for fertilizer lime
• 10.3 billion for hired labor
• 21.7 billion for depreciation

17
Production agriculturists spent over 22 billion
more in 1992 than in 1987

• What do you think this trend will do in the
  future?
• Why?

18
The agribusiness output sector includes all
agribusiness and induviduals that handle
agricultural products from the farm to the final
consumer.

• List some outputs
• Transporting
• Storing
• Warehousing
• Grading

• Sorting
• Processing
• Assembling
• Packing
• Selling etc.

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Agribusiness and Foreign Trade

• The 5 major farm commodities sold in the world
  markets are
• Wheat wheat products
• Feed grains feed grain products
• Soybeans soybean products
• Live animals, meat, and meat products
• Vegetables
• Totaling 46.7 billion

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• Almost every country in the world purchases some
  agricultural product form the U.S.
• We are not only major exporters in the world
  market place, we are also major importers of
  agricultural products

21

• Most agricultural imports come from Latin
  America, Asia, and Europe.
• However, U.S. imports come from every continent
  except __________.
• Although imports are greater than ever, the US
  ________ _________ was 18.9 billion in the
  mid-90s.
• Exported
• - Imported
• ______________
• Trade surplus

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• 25,000- 30,000 jobs are created in the US for
  each billion dollars of Ag exports.
• In many states, as much as one-half of farm
  income comes form ag exports
• Exports account for approx. 1/3 of U.S. ag
  production.

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Agribusiness and Energy

• The agricultural industry is both a producer and
  user of energy.
• The total ag industry consumes 10 to 20 of the
  nations energy.
• Agriculture is becoming a larger producer of
  energy.
• Lets take a look at pg 28 29

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Agribusiness and the Enviroment

• The environment is becoming more important to the
  business of agriculture.
• For most of this century resources and
  environment have taken a back seat to _________
  and _________.
• Why did we start showing concern for the
  enviroment?

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National Resource Conservation Agency

• The NRCS has stated its objective as follows
• the use of each acre of agricultural land
  within its capabilities and the treatment of each
  acre of agricultural land in accordance with its
  need for protection and improvement.

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• List some traditional soil and water conservation
  practices that protect the environment and
  describe the purpose of each.