WEEK 1 Flashcards

1
Q

True or False: the value added to the US GDP by agriculture and related industries by FarmGate is approximately 120$ billion (0.6%) of total gdp in a food sector valued at $1.2 trillion

A

False: farm Gate is approx 175$ billion which is 0.7% of total GDP in a food sector valued at $1.2 trillion

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

True or False: farm level employment is 2.3 million jobs which is about 1.8% of the total national workforce

True or false: the largest sector of employment is food services earing and drinking places (if true, what percentage of US employment and how many jobs

A

False: farm level employment is 2.6 million jobs which is about 1.3% of total national workforce

True: 5.9% of US employment is food services, earing and drinking places * and there are about 11.8 million jobs in it

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
2
Q

Describe the farm size and contributions to total production

A

There are small, midsize, large-scale, and non-family farm sizes

so small farms have the highest share of farms (88.1)

but largescale farms have pretty low share (3.4) but the highest share of production at 51.8

takeaway is that larger farms tend to bring more production

non family farms have low share of production and are also low in no.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
3
Q

What are the key (which are also interrelated) factors influencing food production? There are 6 name them all

A
  1. Geography
  2. Farm Size
  3. Input availability and use
  4. Production methods
  5. Technology adoptoon
  6. Farm policy

Grandma finds some interesting pineapples, makes treats fun!

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
4
Q

Geography

True or False: the northeast is not that important for a range of agricultural crops

A

False: the northeast is very important for a range of agricultural crops including:
* wild blueberries (maine)
* tame blueberries
* apples
* cranberries
* cabbage
* spinach
* snap beans
* peaches
* cherries, tart
* bell peppers

etc.

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
5
Q

True or False: retailers have the highest percentage of local food sales

True or false: 23% food sales occur directly to consumers

A

False: intermediate markets and insititutions (processors, wholesalers, schools, hospitals, food hubs, and colleges and universities) have the highest local food sales (39%)

False: 34% occur directly to consumers

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
6
Q

Of the 34% local food sales directly to consumers, what is the biggest and smallest market fot direct to consumer sales?

A

Largest: on site farm stores or stands (15%)

smallest: community supported agriculture programs, online, off site stores or roadside stands (each 2%)

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
7
Q

Farm Size

Which country tends to have large farm sizes and which has low

A

Australia, South America, even North america to an extent have large farm sizes (>200 Ha)

China, East Asia Pacific, some what of south east asia have small farm sizes

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
8
Q

Production methods:

True or False: Organic is one of the most highly regulated food labels in the US

A

True: Synthetic fertilizers, sewage sludge,
irradiation, and GE technologies are
not allowed if a product has been
labelled as USDA Organic
The National Organic Program is
administered by the AMS of the
USDA with compliance and
enforcement responsibilities
 Oversee 80 certifying agents (third
-party certifiers) and 28,000
organic operations in the United
States and in foreign markets

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
9
Q

Input Use in agriculture (with substitution b/w inputs changing overtime

Whart are the different inputs used in agriculture

A
  1. Water
  2. Pesticides
  3. Land
  4. Labor
  5. Machinory/Equipment

so basically land labor machinpru + pesticides and water since this is ag class

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
10
Q

Input use

Water Use in US Agriculture

A

corn for grain has highest irrigated acres harvested

soybeans have been increasing pretty dramatically

cotton has been pretty stagnant along with hay and alfalfa; orchards have gentle increase

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
11
Q

How does climate change affect input use

adaptation vs mitigation vs migration

A

Climate change is affecting both the demand and supply of agricultural crops

it is also affecting the technologies (and as a result the market for inpits) used to produce agricultural crops

adaptation: we are starting to see plant breeding programs** focus on new cultivars that specifically target improvements in resistance to heat stress and drought tolerance **

mitigationincrease in regulations that aim to reduce climate changing activities

migrationproducers moving to adjust

TL;DR: plant breeding programs focus on new cultuvats targetting heat stress and drought tolerance

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
12
Q

Input use

Pesticide use (lbs active ingredient in US agrivulture)

A

pesticides is an umbrella term for fungicides, herbicides (most used), insecticides

corn has greatest pesticide usage (39.5%) soybeans also have a lot, potatoews and cotton fall behind that.

minor use problem emerges because if there is not that many buyers of smaller crops so there is not that much incentive for big biotch and big companies to produce more efficient pesticides

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
13
Q

Labor use

True or False: labor costs as a share of total gross cash farm income for dairy and all farms is lower than that of fruit and tree nut, vegetable and melon, nurseru and greenhouse

A

True: fruit and tree nut; nursery and greenhouse; vegetable and melon have higher labor costs than dairy farms

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
14
Q

Technology use

What are the uses pf technology and what effect do they have on the market?

A
  1. Cost saving (yield improving)
    * decrease in per unit costs
    * overall improvement in efficiency
    * cause a rightward shift in the supply
  2. Quality enhancing (demand)
    * increase in per unit quality
    * rightward shift in the demand
    * may also involve increase in costs (increase in supply)

both have positive spillover effects in the industry

How well did you know this?
1
Not at all
2
3
4
5
Perfectly
15
Q

Technology use

How has technology effected corn grain yield

A

huge improvements in yield from late 1930s and even more from mid 1950s

16
Q

Technology use

how has technology use improved table grape cultivation

A

improved the quality a lot by creating more table grape varieties

17
Q

Farm policy

What are some policy instruments that have been used to support agriculture?

A
  1. Supply Controls (quotas)”
    * output quota
    * marketing quota
    * input quota (but w slippage)
    * import quota (sugar in the us)

Some take on value and are considered to be an asset if they are transferrable

these are all designed to increase prices (and incomes) for producers

note that there is no taxpayer cost, paid for by consumers with quotas or supply control

  1. Price controls/support:
    * price maximum (price ceiling)
    * price minimums (price floor)
  2. Income control

price and income control may have taxpayer costs

18
Q

What is the ARC

A

The Agriculture Improvement Act of 2018 (2018 Farm
Bill) has ARC, PLC, and LDP

**The ARC (Agricultural Risk Coverage) Program is an income
support program that provides payments when actual crop revenue
declines below a specified guaranteed level **

19
Q

What is the PLC

A

The PLC (Price Loss Coverage) Program provides income support
payments when the effective price for a covered commodity falls
below its effective reference price. There are 22 covered crops

20
Q

WHAT IS THE LDP

A

LDP (Loan Deficiency Payment) Program is a price support
program that sets minimum/floor/support prices for growers