Agriculture Reference
In-Depth Information
or more in sales (i.e., 10.0 percent for corn, 11.4 percent for wheat, and 8.6 percent for soy-
beans) are well below those for other commodities.
But times may be rapidly changing for these farms as well. In 1996, the U.S. Congress
passed the Freedom to Farm Act. This act was supposed to remove subsidies for grain farm-
ers, ease regulations, and promote exports. In point of fact, it has led to a rapid restructuring
of the farm sector. 5 Advanced biotechnologies are accelerating productivity. Farmers today
are receiving near record low prices for basic commodities, due to overproduction. And the
lack of alternative markets is forcing tens of thousands of Midwest farmers out of business.
After the current shakeout runs its course, the farms that remain will be much larger in size,
in terms of both acreage and volume of sales.
Changing Geography of Production
The changing geography of agricultural production is evident in tables 3.3 and 3.4. In 1910
eight of the top ten agricultural states were in the Midwest. Only New York, which produced
fruits, vegetables, and dairy products for the booming East Coast cities, and Texas, which
was a leading beef and vegetable producer, fell outside of the Midwest. The development of
an extensive ground transportation network over the next thirty years made the movement of
fresh and processed fruits and vegetables both convenient and economical. By 1997, six of
the top ten states were in the Midwest. These states produced most of the bulk commodities
that fuel the agricultural economy. The other four states were in the South. And California,
which was not a leading agricultural state in 1910, had jumped to the top of the list. Modern
transportation, a near year-round growing season, and federally subsidized water combined
to make California the nation's agricultural powerhouse. In 1997, California farms accounted
for 11.7 percent of all agricultural sales in the United States. 6
Table 3.3. Top Ten States Ranked by Agricultural Sales: 1910, 1950, 1997
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