1. Chapter 1 Introduction to Agribusiness

2. Intro Not just Cows, Plows, and Sows – Agriscience – Agribusiness – Production Agriculturalists

3. What is Agribusiness? Merriam Webster John Davis and Ray Goldberg Ewell Roy Missouri Dept of Ag ADAFF

4. “Links” in the Chain Raw Materials Value added products - tertiary Supply of Inputs Wholesale and Retail Educational, Financial, Technical Services

5. In short: Agribusiness encompasses all activities “from the paddock to the consumer” Various businesses involved in food and fiber production, including farming, seed supply, agrichemicals, farm machinery, wholesale and distribution, processing, marketing and retail sales.

6. Result Modern agribusiness is a dynamic and growing industrial complex that provides Americans with the highest-quality, lowest cost food supply in the world.

7. Is farming an Agribusiness? Decision Making Planning Problem Solving

8. What does a farmer do? Manages – Interest – Taxes – Equipment – Fertilizers – Wages – Fuel – Electricity – Other

9. Agribusiness vs Agricultural Economics American Agricultural Economics Association – “Agricultural economics is the study of the economic forces that affect the food and fiber industry.”

10. Specifics Community and rural development Food safety and nutrition International trade Natural resource and environmental Production economics Risk and uncertainty Consumer behavior and household economics Analysis of markets and competition Agribusiness economics and management

11. The Big Picture Inputs to production agriculturalists Outputs taken by agribusiness companies Services needed – Transportation – Refrigeration – Storage – Credit – Finance – Insurance

12. Where TN Ranks http://www.nass.usda.gov/Statistics_by_State /Tennessee/index.asp http://www.nass.usda.gov/Statistics_by_State /Tennessee/index.asp  Top Animal Commodity: Beef Cattle (9 th Nationally )  Top Plant Commodity: Soybeans (18 th Nationally )  Average Farm Size: 135/acres (44 th Nationally )  Number of Farms:76,000 (9 th Nationally)  Average Price Farmland$3500/acre

13. Increased Demand and Production Broiler Industry Why located in South? Why increased? Desire to enter?

14. Daily Agribusiness Think of your favorite food or a food that you eat often or can obtain with ease. Write some of the resources needed to create this food. What commodities are needed for production?

15. From “paddock to consumer” Land Labor Seeds Fertilizer Chemicals Machinery Credit Transportation Marketing Processing plants Engineering Technology Q&A Shipping Warehouses

16. Before Agribusiness Hunters Gatherers Self Reliance Nature will Provide – Insects – Wild vegetables Early death Great advances – Fire – Fishing

17. Early Agriculture Raising Crops – Initially didn’t wait – Lessened area traveled – Harvesting methods Sticks Sickle Domestication – Animals for human use Dogs were one of first Companionship Protection

18. Improvements The Bronze Age (3000 BC) – Added metal to wooden implements – Agriculture became way of life – Easier and faster – Irrigation – Wheel – Population from 3 mil- 100 million The Iron Age (1000 BC) – More production – Trade – Hand tools – Plows – Money developed – Fallow land

19. Middle Ages AD 400-1500 Roman Empire Crop Rotation Harness Selective Breeding Conservation – Nutrients – Water Oxen Horses New breeds Columbus discovered America

20. Evolution American Indians South American Indians Tobacco Rice Indigo Organic Fertilizer George Washington Thomas Jefferson

21. Post American Revolution Increased population Surveying Cotton Gin 1793 Vaccines Jethro Wood Interchangeable parts

22. Agricultural Revolution Leaving the farm Mechanical Power 56 vs 2 Ford Crop Rotation Livestock breeding Seed drill Reaper Threshing machine John Deere Barbed Wire Gas tractor Gregor Mendel Most important industry

23. Early 1900 Marketing High prices R&D George Washington Carver Federal Government – Bureau of Forestry – Panama Canal – Smith-Hughes Act – Extension Service – Federal Land Banks

24. Post WWI Troops return home Lower prices Dust Bowl Crash 1929 SCS 1935 FFA 1928 $$$ Research and Education Antibiotics DHIA Wind breaks

25. WWII Higher prices Advanced methods – Production – Marketing – Mechanics AI Electric fences Disc plows Fertilizers and Pesticides Futures Computers

26. More recently 1970 Agbusiness Enterprises Improved and refined Climate specific Per-acre yield Livestock handling Feed efficiency Records Biotechnology – Gene splicing – Cloning – Gene mapping

27. Development of Equipment 1784-1787 Cotton Gin and Cast Iron Plow 1807 Louisiana Purchase 1825 First Cotton Planter 1831 Reaper 1837 John Deere Steel Plow 1850-1880 4 mil farms 536 mil acres 1850-1890 Steam Era 1869 First Steam Traction Engine 1911 500 + Engine companies 1889 Charter Gas Engine Co 1892 John Froehlich Waterloo 1906 Tractor first coined

28. Tractor Progression Used to pull 1918 PTO 1924 tri-cycle-type 1931 Diesel Crawler 1932 pneumatic tires 1941 LP Gas 1960s-70s – Diesel – Horsepower – 4X4 – Cabs

29. Animal vs Tractor Animal – Increased inputs 25% acreage consumption Land to house – Lower outputs 100 acres of corn – 141 days field work Tractor – Early disadvantage Bulky Expensive Hard to drive – Advantage Did not eat crop Work of 1000 people

30. Success of American Agribusiness 150+ people fed %$ spent on food 1500 lbs annually Exports Federal restrictions

31. Economics Science of allocating scarce resources among different and competeing choices and utilizing those resources to best satisfy humans wants and needs Land Labor Capital Management