1. Unit 1: Agribusiness in Today’s Agriculture Industry Lesson: AT1
Agriculture Today
Unit 1: Agribusiness in Today’s Agriculture Industry
Lesson: AT1

2. Objectives Lesson Objective:
After completing the lesson on agriculture today, students will demonstrate their ability to apply the concept in real-world situations by obtaining a minimum score of 80% on an Agriculture Careers Tri- fold.
Enabling Objectives:
Describe the concept of utility and identify the five sectors of agriculture and how they fit together within the industry.
Identify five careers available in agribusiness today.
Explain the free enterprise system while examining agribusiness at the local, state, national, and international level.

3. Key Terms
Utility
Free enterprise

4. How do we get from A to B?
How does the product get from the picture on the left to the picture on the right?
Who and/or what is involved in this process?
Why is it important for this process to take place?
How does this process affect our local economy?
How does this process affect our state economy?
How does this process affect the United States economy?
How does this process affect the international economy?

13. Concept of Utility UTILITY Form Utility Place Utility Time Utility
Creation of a product starts at the farm, or production, level
Satisfaction, or utility, grows as the product is changed to a form which meets the needs of the customer
Processing efforts are put into place to add value to the product and increase utility
Place Utility
Consumers want products in a specific form, and with convenient access
Stores where you can buy everything under one roof, food delivery services, etc.
Time Utility
Consumers want products in a timely fashion
UTILITY
Cues are taken from consumers’ utility for a particular product to drive future production, processing, wholesaling, and retailing of that product.

14. Major Sectors Agriculture Industry
Farm level activities
Producing
Changing a product from the raw farm product to a consumable or sellable product
Processing
Organizing the purchase or sale of products by retailers
Wholesaling
Making products available to customers
Retailing
Buying or not buying specific products to meet personal needs
Sends a price signal back through the sectors to cause a production response
Consuming

15. Agriculture Career Clusters
Ag Business & Management Systems
Ag Mechanics & Technology Systems
Plant Science & Horticulture Systems
Food Science Systems
Natural Resources Conservation Systems
Animal Science Systems
Agriculture Career Clusters

16. Free enterprise

17. Free Enterprise Economic system
Regulates itself in a freely competitive market through supply and demand
Minimal government control and regulation

18. Characteristics of American Free Enterprise
Private ownership of the land and capital needed for production
Buildings, machines, and other equipment used to produce goods and services for profits
Potential reward of profit motivates individuals and business firms to risk their private capital
Organization and coordination of economic activity through interaction of buyers and sellers or buyers and producers in the different markets
Interaction guided by needs of the buyers and ability of seller or producer to meet needs
Consumer Sovereignty
Freedom of consumers to spend income in ways that will create the most satisfaction for them
Producers are forced to produce what best satisfies the needs of customers;
If they don’t, their competitors who do meet those needs will receive the profits
Self-interest guides production of goods and services

19. Characteristics of American Free Enterprise
Freedom of the owners of land and capital and the workers that they employ to pursue their own interests in seeking maximum gain from the use of their resources and labor in production
Customers are free to spend their income in ways they believe will yield the greatest satisfaction
Businesses and workers are free to seek the most profit possible from what they product
Minimal government supervision
If competition is present, economic activity will be self-regulated
Competition in the market meets the needs of consumers for inexpensive, well-made goods; government does not limit choices of entrepreneurs
Everyone has the right to invest his or her money in any type of business and compete with others in the marketplace

20. What would it be like?

21. Conclusion
The agriculture industry is a vast free enterprise system encompassing producers, processors, wholesalers, retailers, and consumers working together to create commodities and products to meet local, state, national, and international demands.

22. Exit Card
What did you learn today about the agriculture industry today?
What questions do you still have about the agriculture industry?