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Economic
Overview
U.S. agriculture is a complex
system that simultaneously produces unprecedented bounty and unparalleled
social concerns. Can the unique institution of the American family farm
survive the economic realities of the 21st century? Can the United States
continue to have the most abundant and the safest food system in the world?
These questions and the unfolding answers will have impacts that will be
felt for generations to come. What we know for certain is that:
- The U.S. farmer is the most productive in the history of the world.
- Food is more affordable in the United States than in any other developed
country in the world.
- There is a definite trend toward fewer farms producing an increasing
share of agricultural products in this country.
- In spite of many challenges, U.S. agriculture is uniquely positioned
to provide for the food and fiber needs of a growing world community.
Agricultural production in the United States is a business that requires
very high capital investments in land, facilities, and machines and most
often produces undifferentiated products (commodities) of generally low
unit value. Thin profit margins have forced producers to seek efficiencies
in all aspects of production. There are efficiencies of scale that favor
large producers who can make the most effective use of large, expensive
machines. In crops such as corn and soybeans, and in poultry and animal
production commercially viability is usually based on producing "in
volume."
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