1. Warm Up What is the job of the SEC (Security and Exchange Commission)?
How do you calculate net worth?
Opinion: What type of farm would you own if you could own a farm? Why?
1.Police the stock market
2. Assets- Liabilities = New worth

2. Learning Goal: I will learn about the farm production business.
Economics
Standard 12
Learning Goal: I will learn about the farm production business.

3. I. Inelastic Demand
It is unlikely that your family will buy twice as much bread, milk, or lettuce if the prices for those products were lowered by 50%
Large harvests => prices lower => lower income

4. Groceries

5. II. Inelastic Supply Once planted, production is set
Farm prices often follow a boom and bust cycle
Bad weather => prices are high => increase planting w/ good weather => crop surplus => prices fall!

6. Boom and Bust Cycles

7. III. Government Regulation
During WWI farmers increase production to help Europe
1920s = overproduction
1930s = Great Depression (New Deal Programs)
Price floors => surplus
Acreage-Control Programs
Import Restrictions
Department of Agriculture (subsidies)

8. Florence Owens Thompson and her children was taken by Farm Security Administration photographer Dorothea Lange in Nipomo, California, in March of 1936

9. graph

10. Crop Surplus

11. IV. Farming Today
Since 1929 the number of farmers has shrunk by 67%, yet output has increased by 60%
Advances in technology (ex, fertilizers, pesticides…)
Foreign demand increasing (ex. Japan)
Corporate farms
Environmental Concerns (ex. pesticide/pollution)
Less political power

12. International Trade