Introduction to Agribusiness
IAFNR Agribusiness Module
What is Agribusiness?
•Definition:• an industry engaged in the producing operations of
a farm, the manufacture and distribution of farm equipment and supplies, and the processing, storage, and distribution of farm commodities
Something of value that is bought or sold
Do you have any examples or ideas?
What is a commodity?
Ag Economics Vs. Agribusiness
• Agricultural Economics and Agribusiness do work hand in hand, but are very different
• Agricultural Economics refers to monetary and physical factors that affect agribusiness and includes:• Community and rural development• International trade• Natural resource and environmental economics• Risk and uncertainty• Analysis of markets and competition
The Big Picture of Agribusiness
Agricultural Industry
Agribusiness Input
Agribusiness Output
Farmers
Feed, Seed, Research, Science,
Education, Farm Equipment…
Marketing, Processed Food,
Beverages, Grocery Stores…
Dairy, Livestock, Crops, Fruits and
Vegetables…
How Agribusiness Affects Us?
• Remember the Life Cycle of a Cheeseburger?
History of Agriculture
Before Agriculture• Early humans traveled all over in search of food. This included
gathering plants and Hunting animals they came in contact with. They are given the name Hunter-Gatherers for this reason.
• Short life expectancy because of risk and poor health• Ability to fish and cook with fire
History of Agriculture
Early Agricultural Development
• Humans eventually learned how to • Plant and harvest crops• Domesticate animals
As time went on Humans improved and perfected farming and Agriculture
How does production agriculture allow people to live in cities?
Think Pair Share
Image Retrieved from: http://www.indiana.edu/~semhome/2013/Image retrieved from: http://www.landreport.com/2011/02/indiana-farmland-skyrockets/
History of Agriculture
The Bronze Age (around 3,000
B.C.)
The Iron Age (1000 B.C.)
The Middle Ages (A.D. 400-1500)
• Bronze tools made farming easier and faster
• Irrigation using rivers• Transportation with
invention of wheel• Increase in population
• Iron Tools• Use of Money and
Trade• Use of Fallow
• Use of Crop Rotation• Harness for plowing
with Horses• Selective breeding of
livestock• Soil conservation
efforts
Know What Happens Next??
Evolution of American AgricultureNear the end of the Middle Ages, the Americas
were discovered and explored!
https://walmartethics.com/Landing.aspx
The Evolution of Farming and Agribusiness of America
Early American Agriculture• Economic growth from exporting and trading of tobacco, rice, and indigo• Invention of more farm implements• Development of organic fertilizer• Use of experimental farms• Experimenting with seeds
http://galleryhip.com/virginia-colony-tobacco-farm.html
The Evolution of Farming and Agribusiness of America
Post American Revolution• Increase population and spread across country• Surveying of land to define property• Invention of the Cotton Gin by Eli Whitney• First one-piece, cast-iron plow invented by Jethro Wood
The Evolution of Farming and Agribusiness of America
• Large movement from farms to cities
• Shift from animal power to mechanical power
• Henry Ford developed the car
• Advances in Livestock breeding
• Seed and Plant genetics by Gregor Mendel
• And much more!
• Agriculture success led to Farm research and development
• U.S. government established the Bureau of Forestry
• Panama Canal opened• Smith-Hughes Act• Cooperative Extension
Service established• SCS, FFA, and 4-H
established
• Advances in areas of production, marketing, and ag mechanics
• New technology increased productivity
• Farmers began to use electric fences
• Chemical fertilizers and pesticides
• Biotechnology
Industrial Revolution
(19th Century)
First Half of 20th Century
Last Half of 20th Century
Near the end of 1800’s the fuel of farm equipment progressed from Manpower to Horsepower
Image retrieved from http://www.nmni.com/uftm/collections/agriculture
The Steam Era (1850-1900)More than 70,000 steam engines were produced for farm use
Image retrieved from: https://www.flickr.com/photos/isuspecialcollections/7456042410/
Farm Tractors
“The Fordson” Image retrieved from: http://www.antiquefarming.com/fordtractor.html
After the steam engine, tractors came into
production using gas fuel. World War I
increased tractor sales in order to export more to Europe. While WWII and the depression decreased sales and left only a few
companies in tractor sales.
Modern Farm Equipment
Image retrieved from: http://www.deere.com/Tractors/
Tractors now operate with hydraulic lifts, power steering, and
turbochargers!
The Success of Agribusiness
“The American Farmer can now supply enough food and fiber for more than 150 people.” (Ricketts,
2009, p. 17)
“US agribusiness supplies each citizen with close to 1,500 pounds of food annually while still producing
exports.” (Ricketts, 2009, p. 18)
Agriculture has come a long way…
References
Merriam-Webster’s Dictionary (2014). Agribusiness. Retrieved from http://www.merriam-webster.com/dictionary/agribusiness
Merriam-Webster’s Dictionary (2014). Commodity. Retrieved from http://www.merriam-webster.com/dictionary/commodity
Ricketts, C., & Ricketts, K. (2009). Agribusiness Fundamentals & Applications. New York: Delmar Cengage Learning.