United States Citizenship and EconomicsUnited States Citizenship and Economics

Debra SpielmakerUtah Agriculture in the Classroom

Utah State University

www.agclassroom.org/ut

United States Citizenship and EconomicsUnited States Citizenship and EconomicsStandard 5 & 6Standard 5 & 6

• Students will understand basic Students will understand basic economic principles and how they economic principles and how they influence everyday life.influence everyday life.

• Students will understand the Students will understand the relationship between the United relationship between the United States and the international system.States and the international system.

United States Citizenship and EconomicsUnited States Citizenship and Economics

• Why is the U.S Government so involved with the agricultural industry?

• How important are agricultural exports and imports?

• If China can afford to buy more, and we have surpluses, why don’t we sell more to them?

How are you connected to agriculture?How are you connected to agriculture?

• FoodFood

• Clothing Clothing

• ShelterShelter

• More…agriculture More…agriculture effects your quality effects your quality of life!of life!

An Acre is About the Size of a…An Acre is About the Size of a…

Football FieldFootball Field

What does an acre of land produce?What does an acre of land produce?

• 819 pounds of Cotton819 pounds of Cotton

• 2,340 pounds of Wheat2,340 pounds of Wheat

• 11,400 pounds of Sweet Corn11,400 pounds of Sweet Corn

• 39,000 pounds of Potatoes39,000 pounds of Potatoes

• 26,000 pounds of Oranges26,000 pounds of Oranges

• 35,000 pounds of Lettuce35,000 pounds of Lettuce

• 44,500 pounds of Strawberries44,500 pounds of Strawberries

Who pays the least for food?Who pays the least for food?

Of the 10 percent of disposable income

Americans spend on food, an average

of 5.8 percent is spent on food eaten at

home and 4.1 percent is spent on food

eaten away from home.

What’s on America’s dinner table?What’s on America’s dinner table?

Milk21 gallons

Poultry84.5 pounds

Rice20.7 pounds

Cheese31.25 pounds

Eggs252

Fats & Oils89.4 pounds

Red Meats118.4 pounds

Fresh Fruits127.1 pounds

Flour & Cereal Products191.5 pounds

How many days do we work to pay for food? How many days do we work to pay for food?

Recreation, Clothing & Accessories

Number of people fed annually by one farmerNumber of people fed annually by one farmer

“Achilles heel of current green revolution methods: dependence on fossil fuels” Michael Pollan

98% of American farms are still family farms!98% of American farms are still family farms!

Non-family corporations

2%

Individual or family-owned farms, family partnerships or family-owned corporations

98%

86% of U.S. farm products sold are from family farms!86% of U.S. farm products sold are from family farms!

Non-family corporations

14%

Individual or family-owned farms, family partnerships or family-owned corporations

86%

How many farms and farmers?How many farms and farmers?

Are farmers reducing cropland erosion?Are farmers reducing cropland erosion?

4.0

3.6

3.1

2.82.7 2.

6

Today2002

1997

1992

1987

1982

What is USDA’s budget?What is USDA’s budget?

In 2007: $88.8 billion

Food And Nutrition Programs

$51.4

Food Safety and Marketing & Inspection $2.5

Conservation Programs $5.1

Research, Education & Economics $2.6

Forest Service $5.4

Foreign Ag Service $2.4

Rural Development $3.0

Farm Programs $12.4

Risk Management $4.0

(in billions)

Fiscal Year 2008

The Federal Budget The Federal Budget

1960 - 1960 - $92 billion$92 billion

1970 - 1970 - $196 billion$196 billion

1980 - 1980 - $591 billion$591 billion

1990 - 1990 - $1,253 billion$1,253 billion

2000 - 2000 - $1,789 billion$1,789 billion

Today - Today - $2,900 billion $2,900 billion (2.9 trillion)(2.9 trillion)

What is a billion?What is a billion?

If you had 1 million dollars and had to spend $1,000 dollars every day, your money would run out in 1000 days. If you had 1 billion dollars and had to spend $1,000 every day, your money would run out for 2,740 years.

Where does your food dollar go?Where does your food dollar go?3.5¢ Depreciation

4.5¢ Rent

2.5¢ Interest

1.5¢ Repairs

3.5¢ Business Taxes

3¢ Other Costs

4¢ Advertising

4.5¢ Profits

3.5¢ Energy

4¢ Transportation

8¢ Packaging

38.5¢ Off Farm Labor

What are the farmer’s expenses?What are the farmer’s expenses?

Off-Farm81¢

Who imports U.S. farm products?Who imports U.S. farm products?

What is the U.S. share of world production?What is the U.S. share of world production?

What do we trade on the world market?What do we trade on the world market?U.S. Ag Exports = $69 billion

What do we trade on the world market?What do we trade on the world market?U.S. Ag Imports = $64 billion

Global Grocery BagsGlobal Grocery Bags

• Supply and DemandSupply and Demand

• Needs vs. WantsNeeds vs. Wants

• What’s fair…is it always equal?What’s fair…is it always equal?– Good Additional ResourcesGood Additional Resources

• National Geographic – Earth Pulse National Geographic – Earth Pulse http://www.nationalgeographic.com/earthpulse/

• PBS Biotechnology – Science and PBS Biotechnology – Science and Economics: Should We Grow GM Economics: Should We Grow GM Crops? Crops? http://www.pbs.org/wgbh/harvest/

• Grain Embargo of 1980 Grain Embargo of 1980 http://www.time.com/time/magazine/0,9263,7601800121,00.html

National GeographicNational Geographic

• Growing Fuel (October Growing Fuel (October 2007)2007)

• Where Food Begins Where Food Begins (September 2008)(September 2008)

• The End of Plenty (June The End of Plenty (June 2009)2009)

– http://ngm.nationalgeographic.com/2009/06/cheap-food/bourne-text/1

The polarizing of agricultural issues: The polarizing of agricultural issues:

On one side you have apathy (food is abundant, safe, and cheap so why care?). On the other side, conventional/industrial agricultural practices are being called into question through best sellers like, “Animal, Vegetable, Mineral” “Omnivores Dilemma” and in “Defense of Food.”

People who aren’t apathetic are VERY concerned about our environment and would like to see more sustainable agriculture that closes the loop of energy on the farm and reduces or minimizes petroleum based inputs.

Oh, and people don’t like to change, see starving people, and economies destroyed…

So what’s the solution?So what’s the solution?

Sound science, not just production science but environmental science, and then educate people.

Changes? Economic Change?

United States Citizenship and EconomicsUnited States Citizenship and EconomicsStandard 5 & 6Standard 5 & 6

• Students will understand basic Students will understand basic economic principles and how they economic principles and how they influence everyday life.influence everyday life.

• Students will understand the Students will understand the relationship between the United relationship between the United States and the international system.States and the international system.

United States Citizenship and EconomicsUnited States Citizenship and Economics

• Why is the U.S Government so involved with the agricultural industry?

• How important are agricultural exports and imports?

• If China can afford to buy more, and we have surpluses, why don’t we sell more to them?