The U. S. Farm And Food System

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The U. S. Farm And Food System
To the dinner plate
From the farm gate
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Agriculture's Role in the U.S. Economy

• It is impossible to understand the economics of
  American agriculture without a knowledge of the
  dimensions of the industry, the
  interrelationships within the industry, and how
  it is interconnected with the total economic
  system.

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Economic Size Classes of Agriculture

Expanding sector
Farms with sales greater than 100,000 annually
Declining sector
Farms with sales between 20,000 and 99,999
annually
Noncommercial sector
Farms with sales less than 20,000 annually
Hobby farms
Tax dodgers
Part-time farms
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Agricultural Production in the U.S.A.

• Fruits, Crops, and Vegetables

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Agricultural Literacy

• Where Livestock Crops Are Grown in the U.S.

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Vertical Coordination in Agriculture

• Producers have found that is to their benefit to
  try to match supply with demand for both inputs
  and outputs

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Vertical Coordination in Agriculture

• Production contracts are commonly used for
  processing vegetables (87.9), fresh vegetables
  (25), potatoes (55), sugar beets (99)
  sugarcane (27.3), seed crops (80), market hogs
  (10.5), eggs (25), broilers (92), and market
  turkeys (60)

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Vertical Coordination in Agriculture

• Vertical integration is used extensively for
  fresh vegetables (40), potatoes (40), fruits
  (31.9),sugarcane (72.7), sheep and lambs (29),
  eggs (70), and market turkeys (28)

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Farmer Cooperatives

• A cooperative is a group of producers who join
  together in a formal organization, capitalized
  and managed by member-patrons, in an effort to
  increase their bargaining power.

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Farmer Cooperatives

• There are two types of cooperatives
• Marketing cooperatives sell products (31 of
  all products sold)
• Farm supply cooperatives purchase inputs (29
  of all inputs purchased)

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The Agribusiness Complex

• U.S. Farm producers are the most efficient
  producers in the world. (When measured by output
  per producer)
• This has been made possible by increased use of
  purchased inputs, incorporation of technology at
  every level of the agribusiness complex, and
  increased specialization of production

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Texas Agriculture

• Texas ranks 1st among the 50 states in production
  of Cotton, hay, beef cattle, cattle on feed,
  sheep, angora goats, watermelons, and spinach
• Texas ranks 2nd in Sorghum, peanuts, black-eyed
  peas, pecans, summer potatoes, and cabbage

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Texas Agriculture

• Texas ranks 3rd in Sorghum silage, grapefruit,
  broccoli, celery, cantaloupes, and honeydews
• 202,000 farms generated 2.4 billion in net
  income

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Texas Agriculture

• Top 5 commodities in sales Cattle calves,
  cotton, greenhouse nursery, dairy products, and
  broilers
• Top 5 commodities in exports Cotton, live
  animals, feed grains, hides skins, and feeds
  fodders
• Top 5 counties in Ag. Sales Deaf smith,
  Castro, Parmer, Hansford, and Dallam

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U. S. International Trade

• The U.S. Is often referred to as the breadbasket
  of the world

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U. S. International Trade

• This is not so much because the U.S. Produces
  more than other countries (the U.S. Leads in
  total production in only a few commodities) but
  rather because leads the world in exports of most
  agricultural commodities. This is because
  domestic production far exceeds domestic
  consumption.

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U. S. International Trade

• The U.S. Exports from 40 to 60 of all feed and
  food grains produced

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