Agriculture and the Environment

AGR 203

Agriculture• In many countries, agriculture is the

most important industry

Agriculture• Land is a very valuable,

___________________ resource

• Land is often the most important store of wealth

Agriculture•What is agriculture?

•__________: one of the most visible components of agriculture

•Production of food and fiber; food and non-food products

•Plants/Crops•Animals/Livestock

Agriculture•What is agriculture?

•Some key non-food agricultural products

•Timber/wood and paper

•_________________/wool and cotton

•Leather

•Many industrial products derived from crops and livestock

Agriculture•What is agriculture?

•Farm _______/supply industry

•Seeds•Fertilizers•Chemicals•Machinery•Real estate•Credit

Agriculture•What is agriculture?

•________________•Transportation•Storage•Processing

Agriculture•What is agriculture?

•_________________•Changing the form of the raw products to meet the needs and desires of consumers

Agriculture•What is agriculture?

•_______________•Moving the products to the consumer for “at home” or “away from home” consumption

Agriculture• So…..

• What is it?

Agriculture Defined• Agriculture is the sum total of all

operations involved in the • _________________ and distribution of farm

supplies; production operations on the farm; • the _______________, processing and

distribution of farm commodities and the items made from them.

• It is the _________________ commercial industry in the U.S. (and the world).

Agriculture Defined…

• More simply, agriculture is the production, processing and distribution of _______ and _______ for the benefit of mankind.

Why Study World Agriculture/Environment?

• Agricultural products are an important source of _____________ thus important to societal/cultural development—especially in countries where a large percentage of the population are farmers.

• Agriculture in the Fertile Crescent developed around 9,000 B.C.

• Agriculture is the very foundation of civilization. Without agriculture, people are disorganized “hunters and gatherers.”

• The rise of agriculture in the form of food production and animal husbandry made it possible to store food _________________ and feed non-farming specialists.

Why Study World Agriculture/Environment?

Fertile Crescent Development• Five key crops

• Wheat—high energy/calories• Barley—high energy/calories• Peas—high protein• Lentils—high protein• Flax—source of linen/cloth

• Three minor crops• Chickpeas; Grapes; Olives

Fertile Crescent Development• Four animals—provide meat,

milk, wool, leather, transport, power

• Sheep

• Goats

• Camels

• Pigs

Fertile Crescent Development• The Fertile Crescent's first farmers

assembled a balanced package for intensive food production that filled humanity's __________ __________: • Nutrition (carbohydrate, protein, fat), • Clothing, • ________________,• _____________.

• Asia’s Fertile Crescent The Cradle of Civilization

Downloaded from www.sciencemag.org on January 11, 2008

Why Study U.S. Agriculture/Environment?

• Agriculture accounts for significant share of U.S. employment• 14.3% of 2002 employment in farm and farm-related

jobs.

• ________ - composition by sector in the U.S. agriculture: 0.9% industry: 20.4% services: 78.6% (2006 est.)

• Value of US agriculture products sold by farmers: $200,646,355,000

• ~53% Livestock; ~47% Crops

http://www.ers.usda.gov/Data/FarmandRelatedEmployment/ViewData.asp?GeoAreaPick=STAUS_United+States

Why Study U.S. Agriculture/Environment?

• Agriculture brings money into the US

• Value of agricultural _________:$70.948 billion (in 2006)

• Agricultural __________$65.325 billion (in 2006)

• $5,623 billion : Agriculture trade balance • helps reduce the national trade deficit

($billion)

Agricultural Exports

Agricultural Imports

Agricultural ________________________

2000 51,246 38,974 12,272

2001 53,659 39,366 14,293

2002 53,115 41,909 11,205

2003 59,561 47,376 12,185

2004 61,383 53,977 7,407

2005 62,958 59,282 3,677

2006 70,948 65,325 5,623

Both Ag Exports and Ag imports increased. However, Ag Trade Balance has declined over the years.

Top 10 US Ag Commodity Exports (Fiscal Year 2005) in $million

8,843.4

6,944.7

5,866.8

5,606.1

4,924.0

4,080.8

3,872.1

3,011.4

2,417.6

2,201.6

0 2,000 4,000 6,000 8,000 10,000

Soybeans and products

Feed grains and products

Wheat and products

Vegetables and preparations

Live animals and meat

Fruit and preparations

Cotton and linters

Poultry and products

Tree nuts

Feeds and fodders

The Importance of Agriculture to the Global Economy

• GDP in many developing countries comes primarily from ____ sources• Some countries indicate over 80% of GDP is ag

based with corresponding high percentage of population engaged in agriculture

• Economic progress in agriculture releases ________ for other sectors of the economy—move from ______________________ to commercial agriculture is a critical step in the development of a country’s economy

South East-Pacific Asiahttp://www.agnet.org/library/stats/2002/20.html

Percentage of Income Spent on Food

5

15

25

35

45

55

65

75 People living in developing countries spend most of their income on food, whereas, in developed countries, people spend small percent of their income on food.

Percent of Income Spent on Food in USAIn the US, consumers are spending less and less of their income on food expenditures. For example, in 2004, on average, an American consumer spent 9.5% of their annual income on food, leaving 90.5% of their income for other expenditures,

Africa has the most undernourished population.

Status of American Agriculture•Generates approximately 21 million jobs (all sectors)•1 American farmer feeds 212 other people besides self•US food expenditures are among the lowest in world

•Less than 10% of disposable income

What a dollar spent on food paid for in 2004

Farm Value:

$155.5 billion

20¢

Marketing Bill: $633.4 billion

80¢

Consumer Expenditures: $788.9 billionFor every dollar a consumer spends on food, small percentage goes to farmers.

Remaining is pent on marketing activities. ______________________ is the

percentage of dollar spent on food that goes to _________________ activities,

including labor, advertising and taxes.

U.S. Consumers' Food Dollar3%

3%4%

4%

4%

5%

5%

5%

6%

10%

49%

2%Repairs

Other

Net interest

Taxes

Fuels and electricity

Depreciation

Advertising

Intercity rail and trucktransportationNet rent

Corporate profits beforetaxesPackaging materials

Labor

FOOD EXPENDITURES

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

450,000

500,000

year

millio

n $

AT HOME AWAY FROM HOME

Both food at home and away from home expenditures increased over the years. In 2003, food expenditures away from home ______________ at home food expenditures.

Status of American Agriculture• Ag production

• Due to efficiency of US producers we have abundant food which is• ___________• Wholesome• Inexpensive

• Approx. 1.5% of US population are considered “farmers”

Status of American Agriculture• USA leads world in agricultural

production• 1st in _____________

• 1st in __________

Almonds

Blueberries

Cow Milk, Whole, Fresh

Cranberries

Grapefruit and Pomelos

Green Corn (Maize)

Indigenous Cattle Meat

Indigenous Chicken Meat

Indigenous Turkey Meat

Maize

Nuts

Sorghum

Soybeans

Strawberries

String Beans

Number 1 U.S. Commodities in the World

Status of American Agriculture• USA leads world in agricultural

production• 2nd in cotton

• 3rd in wheat

• 4th in beef

Status of American Agriculture• Agriculture plays a role in national

security• Food Aid

• Commercial Trade

• Research/Education assistance

http://www.fas.usda.gov/images/food-collage.jpg

Main causes for food crises in Africa

Status of American Agriculture• United States Department of Agriculture

• The “______________________________”• Established 1865: President Abraham

Lincoln

http://www.usda.gov/wps/portal/usdahome

USDA Agencies• Agricultural Marketing Service (AMS): AMS facilitates the strategic marketing of

agricultural products in domestic and international markets while ensuring fair trading practices and promoting a competitive and efficient marketplace. AMS constantly works to develop new marketing services to increase customer satisfaction.

• Agricultural Research Service (ARS): ARS is USDA's principal in-house research agency. ARS leads America towards a better future through agricultural research and information.

• Animal and Plant Health Inspection Service (APHIS): APHIS provides leadership in ensuring the health and care of animals and plants. The agency improves agricultural productivity and competitiveness and contributes to the national economy and the public health.

• Center for Nutrition Policy and Promotion (CNPP) : CNPP works to improve the health and well-being of Americans by developing and promoting dietary guidance that links scientific research to the nutrition needs of consumers.

• Cooperative State Research, Education and Extension Service (CSREES): In partnership with land-grant universities, and other public and private organizations, CSREES provides the focus to advance a global system of extramural research, extension, and higher education in the food and agricultural sciences.

• Economic Research Service (ERS): ERS is USDA's principal social science research agency. Each year, ERS communicates research results and socioeconomic indicators via briefings, analyses for policymakers and their staffs, market analysis updates, and major reports.

• Farm Service Agency (FSA): The Farm Service Agency implements agricultural policy, administers credit and loan programs, and manages conservation, commodity, disaster and farm marketing programs through a national network of offices.

• Food and Nutrition Service (FNS): FNS increases food security and reduces hunger in partnership with cooperating organizations by providing children and low-income people access to food, a healthy diet, and nutrition education in a manner that supports American agriculture and inspires public confidence.

• Food Safety and Inspection Service (FSIS): FSIS enhances public health and well-being by protecting the public from foodborne illness and ensuring that the nation's meat, poultry and egg products are safe, wholesome, and correctly packaged.

• Foreign Agricultural Service (FAS): FAS works to improve foreign market access for U.S. products. This USDA agency operates programs designed to build new markets and improve the competitive position of U.S. agriculture in the global marketplace.

• Forest Service (FS): FS sustains the health, diversity and productivity of the Nation's forests and grasslands to meet the needs of present and future generations.

• Grain Inspection, Packers and Stockyards Administration (GIPSA): GIPSA facilitates the marketing of livestock, poultry, meat, cereals, oilseeds, and related agricultural products. It also promotes fair and competitive trading practices for the overall benefit of consumers and American agriculture. GIPSA ensures open and competitive markets for livestock, poultry, and meat by investigating and monitoring industry trade practices.

• National Agricultural Library (NAL): NAL ensures and enhances access to agricultural information for a better quality of life.

• National Agricultural Statistics Service (NASS): NASS serves the basic agricultural and rural data needs of the country by providing objective, important and accurate statistical information and services to farmers, ranchers, agribusinesses and public officials. This data is vital to monitoring the ever-changing agricultural sector and carrying out farm policy.

• Natural Resources Conservation Service (NRCS): NRCS provides leadership in a partnership effort to help people conserve, maintain and improve our natural resources and environment.

• Risk Management Agency (RMA): RMA helps to ensure that farmers have the financial tools necessary to manage their agricultural risks. RMA provides coverage through the Federal Crop Insurance Corporation, which promotes national welfare by improving the economic stability of agriculture.

• Rural Development (RD): RD helps rural areas to develop and grow by offering Federal assistance that improves quality of life. RD targets communities in need and then empowers them with financial and technical resources.

Illinois Agriculture• Employs approximately 13% of the

workforce

• 73,000 farms—almost all are family operations

• Utilizing 77% of the total land area in the state (27,310,000 acres)

• 90% of the land in IL could be used for _________________ agriculture

Illinois Farm/farmer Averages2002 Values

• 55.1 years old

• value of assets: $1,199,210

• value of products sold $117,589

• expenses $85,227

• net $32,362

Illinois Farmer—2002 Values

• 64% said farming was their principal occupation

• Average farm size: 374 acres

• Average price of 1 acre of farm land: $2,425 (but has been increasing markedly since 2002)

Agriculture Production in Illinois and State Rank (2004)

• Corn: 2,088,000,000 bu (2nd)

• Soybeans: 499,950,000 bu (1st)

• Hogs and pigs marketed: 8,753,000 head (4th)

http://www.agstats.state.il.us/annual/2005/toc.htm#fieldcrops

Agriculture Production in Illinois and State Rank (2004)

• Cattle and calves marketed: 516,000 head (4th)

• Sheep and lambs marketed: 47,000(24th)

• Milk production: 1,967,000,000 lbs (20th)

Number of Farms in Illinois

60

80

100

120

140

160

180

200

220

thou

sand

Average Farm Size in Illinois

150

200

250

300

350

1950

1952

1954

1956

1958

1960

1962

1964

1966

1968

1970

1972

1974

1976

1978

1980

1982

1984

1986

1988

1990

1992

1994

1996

1998

2000

2002

2004

acre

s