Issues Associated with Commercial Agriculture in the United States
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- Linette Robbins
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1 Issues Associated with Commercial Agriculture in the United States
2 Considerations Farmers Have Climate Soil resources Urbanization Markets Production costs Cash flow Regulatory issues Labor pool Farm programs (Farm Service Agency) Diminished voice at local, state, and national levels
3 Managing the Genetic by Environment by Management by Marketing Interaction Genetics (variation across crops and within crops) Environment (water, temperature, extremes in temperature, sunlight, pests, nutrients, others) Management (avoiding, buffering, and optimizing the G x E Interaction) Business (projected income, cost of production, and marketing)
4 Climate Rainfall amount, duration and consistency Temperature (average and extremes) and heat unit accumulation Carbon dioxide, ozone and other gases
5
6 Soil Resources Soil productivity (short and long term) Organic matter and soil structure Fertility levels and plant nutrition Erosion potential (wind and water) Irrigation availability, cost and quality (salinity)
7 Picture to the right shows wind erosion Picture to the left shows water erosion
8 Urbanization Competition between urban communities, small estates and farming operations for essential natural resources (land and water) One society s reliance on another society for food, fiber, water and other valuable products
9 Markets Access Fluctuations Segments of agribusiness Farm programs and subsidies
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11 United States Corn Yield and Price in Relative Units, Presented as percent of maximum price and yield during the period (LR = 49) Loan rate generally set at a value that keeps production viable when prices are low but does not encourage over-production (loan rate is close to breakeven price) Loan rate Price Yield
12 United States Rice Yield and Price in Relative Units, Presented as percent of maximum price and yield during the period (LR = 39) Loan rate generally set at a value that keeps production viable when prices are low but does not encourage over-production (loan rate is close to breakeven price) Loan rate
13 United States Cotton Yield and Price in Relative Units, Presented as percent of maximum price and yield during the period (LR = 69) Loan rate generally set at a value that keeps production viable when prices are low but does not encourage over-production (loan rate is close to breakeven price) Loan rate
14 Production Costs Variable costs Seed Fertilizer Pesticides Energy Fixed costs Equipment (depreciation and interest on investments) Infrastructure costs Buying points, grain elevators, processing facilities, transportation
15 Cash Flow Monetary loans from lending institutions sufficient loans to plant the crop (anticipating profit at the end of the growing season) Leveraging property
16 Regulatory Issues Pesticide use Environmental Protection Agency Food Quality Protection Act Rick/Benefit Analysis Land use issues NRCS, Natural Resource and Conservation Service
17 Labor Pool Amount Availability Quality
18 Diminished Voice Legislation Environmental and land use issues Support of agriculture (USDA, state agencies, land grant universities, Cooperative Extension Service
19 The First Morrill Act (1862) Money was given to each state in order to establish a college States received money from the sale of 30,000 public acres per senator and representative in Congress North Carolina State University is a Land Grant College with a mandate for Teaching, Research, and Extension
20 Smith-Lever Act (1914) This act created the federal Cooperative Extension Service..to aid in diffusing among the people of the United States useful and practical information on subjects relating to agriculture and home economics, and to encourage the application of the same
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22 The Current Land Grant Institution Research mandate Academic or teaching mandate Extension or outreach mandate NC State is often referred to as The People s University The Cooperative Extension Service motto is Empowering People Providing Solutions
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