Contemporary Agriculture Unit 5 Markets and Economy Agriculture

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Contemporary Agriculture Unit 5

Contemporary Agriculture Unit 5

Markets and Economy Agriculture

Markets and Economy Agriculture

Objectives Explain the spatial organization of large scale commercial agriculture and agribusiness Explain issues

Objectives Explain the spatial organization of large scale commercial agriculture and agribusiness Explain issues related to the changing nature of contemporary agriculture

Students will know that… Large Scale commercial agricultural operations are replacing small family farms

Students will know that… Large Scale commercial agricultural operations are replacing small family farms The transformation of agriculture into largescale agribusiness has resulted in complex commodity chains linking production and consumption of agricultural products

Primary Activities The part of the economy that draws raw materials from the natural

Primary Activities The part of the economy that draws raw materials from the natural environment (extractive sector) Examples Agriculture Fishing Mining

Secondary Activities The part of the economy that transforms raw materials into manufactured goods

Secondary Activities The part of the economy that transforms raw materials into manufactured goods Examples Refining petroleum into gasoline Turning metal into tools Turning metals into automobiles

Tertiary Activities The part of the economy that involves service rather than goods Examples

Tertiary Activities The part of the economy that involves service rather than goods Examples Construction Trade Finance

Other Sectors Some analysts separate specialized services into quaternary and quinary economic activities (quaternary)

Other Sectors Some analysts separate specialized services into quaternary and quinary economic activities (quaternary) - services concerned with information or the exchange of money or goods (quinary)- those tied to research or higher education

Conclusions Because the sectors represent necessary economic activities, most countries today have some people

Conclusions Because the sectors represent necessary economic activities, most countries today have some people employed in all economic sectors Percentages employed in each sector are influences by each country’s level of economic development

United States- less than 2 percent of the workforce is involved in agricultural production.

United States- less than 2 percent of the workforce is involved in agricultural production. Agricultural Labor Total agricultural production is at an all-time high, but the proportion of the labor force in agriculture is at an all-time low. The drive toward economic efficiency has meant that the average size of farms (acres in production) in the United States has been growing, regardless of the kind of agricultural good produced.

Agribusiness Food processing, packing storage, distribution, retailing Tractor manufacturing, fertilizer production, and seed distribution

Agribusiness Food processing, packing storage, distribution, retailing Tractor manufacturing, fertilizer production, and seed distribution This Photo by Unknown Author is licensed under CC BY-SA-NC Most farms are owned by individual families Other aspects of agribusiness are controlled by large corporations General Mills, Kraft Contracts are signed to buy products (crops/animals)

Recent Shifts Impact rural life Land patterns, ownership arrangements, and labor conditions have changed

Recent Shifts Impact rural life Land patterns, ownership arrangements, and labor conditions have changed Latin America – increases in production of export crops (fruits/coffee) occurred at the expense of crop production Subsistence farms have been pushed to marginal lands Asia- production of cereal crops (grains- rice/wheat) increased foreign and domestic markets Small scale and depends on manual labor Africa – total commercialized agriculture has increased Agricultural exports have decreased Small farms that depend on manual labor

Global Food Trade Countries that import food – Japan United Kingdom China Russia Agriculture,

Global Food Trade Countries that import food – Japan United Kingdom China Russia Agriculture, Trade, and Assistance Act of 1954 Sale of grain at low interest rates Grants to needy groups of people US is world’s leading exporter of grain (1/2 of Maize exports)

Global Trade Patterns Agricultural products are moving from the west to the eastern Hemisphere

Global Trade Patterns Agricultural products are moving from the west to the eastern Hemisphere Latin America Brazil Argentina Other regions – North America, SE Asia, and South Pacific Latin America and SE Asia have more rapid increase

Agricultural Supplies – Export Crops African and Asian countries import supplies from other countries

Agricultural Supplies – Export Crops African and Asian countries import supplies from other countries Subsistence farmers lacks the money to buy equipment Some sell manufactured goods Most raise funds for supplies through the sale of crops to developed countries Coffee/Tea, Fruits and Veggies that are out of season – High price paid Export crops allow LDCs to purchase supplies As more land is dedicated to export crops, less land is devoted to domestic consumption

Sustainability Challenges Agriculture

Sustainability Challenges Agriculture

The students will know that… Technological improvements have changed the economies of scale in

The students will know that… Technological improvements have changed the economies of scale in the agricultural sector

Green Revolution 1970 s and 1980 s New higher yield seeds Expanded use of

Green Revolution 1970 s and 1980 s New higher yield seeds Expanded use of fertilizers Dr. Normal Borlaug was program director -> India wheat production doubled in 5 years Farmers must use machinery and fertilizer (nitrogen, phosphorus, and potassium) To maintain the green revolution- governments must allocate funds to subsidize the cost of seeds, fertilizers and machinery This Photo by Unknown Author is licensed under CC BY

Improved Agriculture Productivity Commercial Farmers New seeds Fertilizer Pesticides Mechanical equipment Management practices Example-

Improved Agriculture Productivity Commercial Farmers New seeds Fertilizer Pesticides Mechanical equipment Management practices Example- Dairy Farming in the US Cows have decreased but production is up from 58 to 93 metric tons (78%)

GMOs Genetically modified to survive when herbicides and insecticides are sprayed on fields to

GMOs Genetically modified to survive when herbicides and insecticides are sprayed on fields to kill weeds and insects Round-up Ready seeds 10% of all farmland was devoted to GMOs in 2010 ¾ of the processed foods contain at least one GMO ½ of GMO are from North America US encouraged Africa to use GMOs to increase food production Africa is divided Health problems – antibiotics resist Export problems – labeling Increased dependence on the US –terminator gene

GMO Western Europe resists GMOs ideologically Public concerned with Health and taste This Photo

GMO Western Europe resists GMOs ideologically Public concerned with Health and taste This Photo by Unknown Author is licensed under CC BY Most European countries, China, and India require labeling This Photo by Unknown Author is licensed under CC BY