Agriculture Reference
In-Depth Information
Farm size varies dramatically, even among developed countries (
Table 1.2
). Geography
or limited farmland, climate, crop, or livestock focus, or simply the area needed to maintain
a viable production unit helps explain this variation. This has important implications for
the types of agricultural inputs needed in different parts of the globe. An 8,000 acre
wheat farmer in Australia has much different expectations and needs from equipment and
technology than a Chinese farmer on his or her two-acre plot.
The overall effi ciency of the U.S. food and fi ber sector is illustrated by the proportion of
personal consumption expenditures allocated to food consumed at home. For the average
U.S. consumer, only about 6 percent of their total personal consumption expenditures are for
accounts for almost one-third of an Indian consumer's personal consumption expenditures.
The effi ciency of the U.S. food production and marketing system is really quite remarkable.
Consider this: with 8.4 percent of the world's agricultural land and 4.5 percent of the world's
population, the U.S. food system produces 13 percent of the world's livestock and 14 percent
of the world's crops (FAO). In 2009, the U.S. produced 41 percent of the world's soybeans,
41 percent of the corn, 16 percent of the grain sorghum, and 9 percent of the wheat.
A primary requirement for being a successful agribusiness manager is a solid understand-
ing of this food production and marketing system. Regardless of what specifi c part of
the food system you work in, it is important to understand what happens to food and fi ber
products both before they reach your fi rm, and after they leave your fi rm and head to the
consumer.
Plate 1.1
Traditional Agriculture
Income spent on food by a country's people is heavily infl uenced by the agricultural production
technologies in use. Photo courtesy of USDA Natural Resources Conservation Service
