Download - Agriculture and Agribusiness
Chapter One
Explain agribusiness
Describe the “big picture” of agribusiness
Explain daily effects of agribusiness
Discuss farming and agriculture before agribusiness
Discuss beginning of American agribusinesses
Describe historical development of farm machinery and equipment
Describe Steam Era
Discuss historical development of internal combustion engine
Discuss historical development of farm tractors
An industry engaged in:
the producing operations of a farm
the manufacture and distribution of farm equipment
and supplies
the processing, storage, and distribution of farm commodities
Can be narrowly interpreted
Not just large businesses within agriculture industry
John Davis and Ray Goldberg define it as:
all operations involved in the manufacture and distribution of farm suppliesproduction operations on the farmstorage, processing, and distribution of the resulting commodities and items
Primary production of raw materials
Tertiary transformation of commodities into value
Supply of inputs to primary and tertiary sectors
Wholesale and retail provision
Provision of educational, financial, and technical services to all sectors
Includes all activities “from the paddock to the consumer”
ProductionProcessingRetail Distribution
Provides Americans with the highest-quality, lowest-cost food supply in the world
Farming is “production” agriculture
Definitely a business!
Farmers manage: interest taxes repair / replacement of equipment fertilizers wages fuel electricity
Farmers must be effective managers to succeed
Study of economic forces that affect the food and fiber industry
Refers to monetary and physical factors that affect the profitability of an agribusiness
Specific areas of study in ag economics are:
Community and rural development Food safety and nutrition International trade Natural resource and environmental economics Production Economics Risk and Uncertainty Consumer behavior and household economics
Agribusiness companies provide input supplies to the production agriculturalist (farmer)
The production agriculturalist produces food and fiber (cotton, wool, etc.)
Output is processed, marketed, and distributed by agribusiness companies
Tennessee Co-op provides various input supplies to farmers (feed, fence, etc.)
Production agriculturalists use these items to produce
food and fiber products
Tractor Supply Company markets and sells these products to the public
Agribusiness Manufacturers furnish production agriculturalists with the supplies and
equipment needed to produce, store and transport their crops
Government Agencies inspect and grade agricultural products for quality and
safety
Trade and Commodity Organizations educate, promote, advertise, coordinate, and lobby for
their agricultural products
Millions of people are employed in agribusiness throughout the world
People across the globe also depend on agribusiness for their food, clothing, and shelter
Figure 1-3 (page 7)
What is involved in assembling a cheeseburger?
Figure 1-4 (page 8)
Agribusiness is essential to our daily lives
Agribusiness is crucial to the economy
People have searched for ways to feed themselves since prehistoric time
If people did not eat one day, they would hardly have enough energy to find food the next day
Nearly all their waking time was spent searching for food by hunting or gathering nuts and other naturally grown foods
3000 B.C.Wooden implements were made sharper and
more durable by using metalAllowed people to cultivate larger areas of land
fasterCaused agriculture to spread throughout the
world and become a way of life
Bronze Age developments:Bronze tools and plowsNile River used to irrigate cropsWheel was discoveredPopulation rose from 3 million to nearly 100 million people
1000 B.C.Use of iron allowed for massive crop
productionTrade among people resulted from the surplus
of goods
Iron Age developments:Iron hand tools and plowsDevelopment of moneyLeaving land fallow became a common practice
A.D. 400-1500Fall of the Roman Empire slowed the growth of
agriculture
Middle Age Developments:Crop rotationNew harness for plowingSelective breeding of livestockFences
American agriculture now began to develop because Columbus discovered the “New World”
Developments during this time led to the way we farm todayPractice of putting dead fish into the ground along
with corn seed led to the development of organic fertilizer
Rice, was first grown in the United States
George Washington created one of the first experimental farms
Thomas Jefferson experimented with seeds and livestock, invented farm implements, and was active in establishing a local agricultural society
More people moved to US
People went west and developed new ways to produce food
New developments included:Surveying of landInvention of cotton gin by Eli Whitney in 1793Discovery of vaccines by Edward Jenner Invention of first one-piece, cast-iron plow in 1819 by Jethro WoodInterchangeable parts for equipment
1840s and 1850sSpurred the growth of production
agriculture and agribusinessMovement from farms to factories in citiesShift from animal power to man powerTo produce ONE acre of wheat…
56 hours of manpower before 1830Less than 2 hours today
Steam engine
Railroads
Sewing machine
Powered loom for weaving
Automobile by Henry Ford
Crop rotation promoted by Charles Townsend
Livestock breeding advances by Robert
Bakewell
Seed drill by Jethro Tull
Mechanical reaper by Cyrus McCormick
Stationary grain threshing machine
Better one-piece steel plow by John Deere
Barbed wire
Gasoline-powered tractor in 1892
Seed and plant genetic development by
Gregor Mendel
Farming had become most important industry
Many improvements for American farmers:
New machinesBetter transportationMarketing OptionsHigh farm pricesFarming research
Bureau of Forestry established by U.S. government
Vaccine developed for hog cholera
Panama Canal opened for shipping
Cooperative Extension Service created
Federal Land Banks were established to give farmers
credit
Hybrid plant seed developed
Smith-Hughes Act established vocational agriculture in
high schools
Development of new products by agricultural scientists
such as George Washington Carver
Farmers could not sell as much overseas
Farm prices dropped
Many farmers went bankrupt
“Dust Bowl” devastated mid-western farms
Entire country lost money
Stock market crashed in 1929
Great Depression resulted
Soil Conservation Service (SCS) established in 1935 to prevent catastrophes like the Dust Bowl
FFA (Future Farmers of America) began in 1928
Higher crop yields due to better management practices
Better agricultural research and education conducted
Antibiotics used to treat animals
DHIA (Dairy Herd Improvement Association) organized to monitor dairy herds
Great Depression endedFarm prices increasedAdvanced farming methods established:
Artificial inseminationElectric fencesDisc plowsChemical fertilizers and pesticidesFutures trading ComputersGene splicingCloningGene mapping
Farm machinery dealershipsCommodity (futures) brokersArtificial breeding servicesResearch consulting firmsAgricultural chemical companiesVeterinary supply companiesLivestock supply companiesAnimal feed companiesBiotechnology firmsExport companies
Cotton gin (1784)
Cast iron plow (1787)
Cotton planter (1825)
Corn planter (1828)
Steel plow (1837)
Tractor (1892)
1850 – 294 million acres used for farming1880 – 536 million acres used for farming
1800 – 90% of population lived on farms1900 – 50% of population lived on farms
Farmers became self-sufficientFarmers increased productivity and profitUsed additional earnings to purchase equipmentMade transition from manpower to horsepower
1850-1900
Over 70,000 steam engines produced
Provided alternate mobile source of power
Various fuels used in early engines:Gun powderTurpentineCoal Dust Kerosene
Early tractors called “gasoline” tractors, BUT their major source of fuel was kerosene
Tractors had one tank for gasoline and one for kerosene
Farmers started with gasoline and switched to kerosene because it was more efficient
1899 – more than 100 firms making engines1911 – more than 500 companies in operation
Engines continued to be a popular source of power through the 1940s
Many small engines being restored by private collectors
First gas-powered tractor built in 1892 by
John Froelich
Forerunner of the Waterloo Boy
Modern John Deere line of tractors
Originally called “gasoline traction engines”
Term tractor first coined in 1906 by a
salesman for the Hart-Parr Tractor Company
World War I Effects:1910 – 15 companies sold 4,000 tractors1920 – 166 companies sold 200,000 tractors
Great Depression Effects:1921 - 186 companies sold only 68,000 tractors1925 – 58 companies survived
After the Depression:20 companies sold more than 1 million tractors90% of sales came from 9 companies
International Harvester John Deere J.I. Case Massey-Harris Oliver Minneapolis Moline Allis Chalmers Cleveland Tractor Company Caterpillar Tractor Company
PTO (Power Take-Off Unit)1918International HarvesterAllowed operator to control mounted and
drawn equipment with the engine of the tractorPneumatic Rubber – Tired Tractor
1932Allis ChalmersCompleted basic design of a light versatile
tractor that could handle most farm jobsThese advancements finalized the transition
from horses and mules to tractors with internal combustion engines
Decreased demand for animal feeda large portion of the land that had been used
to produce animal feed was shifted to the production of food
Reduced labor time and costProducing 100 acres of corn:
141 days with animal power51 days with tractor power
Caterpillar Tractor Company1931developed a diesel-powered, crawler-type farm
tractordiesel engine had a major impact
Minneapolis Moline Company1941Liquefied Petroleum (LP) gas tractorsmade it possible for farmers to use clean-
burning, low-cost butane and propane for fuels
Hydraulic lifts Torque amplification Hydrostatic transmissionPower steeringTurbochargersHeated and air-conditioned cabs
One farmer today can do the work of 1,000 workers without machine power
No wonder one farmer feeds more than 131 people!
Shift to diesel as major fuelMore than 80% of tractors now use diesel
Increase in horsepowerMost tractors have hp rating of 200 or more
Shift to 4-wheel drive powerAbility to use more power efficientlyBetter traction and flotation with less soil
compaction Increased safetyStandard on large tractor modelsOptional on medium and small models
One farmer provides for 150 peopleAmericans only spend 9% of income on food 1500 pounds of food supplied for each US
citizenNumerous exports produced as wellPromotes world peace and securityRestrictions from government on exports
Could today’s farmers meet the world’s need for food, clothing, and shelter if restrictions were lifted?