The
2013 Economic Report of the President, published of late past times the President's Council of Economic Advisers, devotes a chapter to bringing readers upward to speed on"The Challenges too Opportunities of U.S. Agriculture." Here are some of the original points that jumped out at me:
Over much of the 20th century, the number of farms was falling, the size of farms was growing, rhe rural portion of the population was falling, too the portion of gross domestic product from farming was falling--although all of these trends accept leveled off inwards the concluding decade or so.
When it comes agreement farm incomes, the cardinal indicate is to recognize that at that spot are dissimilar types of farmers, similar whether the original income come upward from farming or from exterior activities. The study explains:
"Fifty years ago, average identify income for the farm population was around one-half that of the full general population. Today, however, farm households tend to travel meliorate off than other American households; inwards 2011, median income for farm households was nearly xiii per centum higher than the U.S. median identify income ... The departure inwards income betwixt farm households too the nonfarm households is due inwards role to the wide Department of Agriculture (USDA) Definition of what constitutes a farm, which includes farms where the principal operator is retired or has a original business other than farming (“residence farms”). Households operating rural residence farms earn to a greater extent than than the U.S. median identify income fifty-fifty though their internet cash income from farming is negative. Households operating intermediate farms (farms where the principal operator is non retired too reports farming every bit his or her original occupation) accept on average positive internet cash income from their farming operations, but most identify income comes from sources other than farming. The sources of income for farm households are increasingly diversified, which way that many of them are less vulnerable to the fluctuations of farm income. In 2011, households operating commercial farms had median identify incomes 2 too a one-half times the overall U.S. median identify income, amongst most of their income from farming. ... By 2000, 93 per centum of farm households had income from off-farm sources, including off-farm wages, salaries, concern income, investments, too Social Security. Off-farm travel has played a cardinal role inwards raising farm identify income. In 2011, solely 46 per centum of principal operators of farms reported that farming was their original occupation."
Farming remains 1 of the most useful industries for generating brilliant too understandable classroom examples of technological change. Again, some examples from the report:
"While farm identify incomes accept larn to a greater extent than diversified, farm operations accept larn increasingly specialized: In 1900, a farm produced an average of nearly v commodities; past times 2000, the average had fallen to only over one. This alter reflects non solely the production too marketing efficiencies gained past times concentration on fewer commodities, but besides the effects of farm toll and
income policies that accept reduced the opportunity of depending on returns from solely 1 crop or only a few crops....
"In 1950, the average dairy moo-cow produced nearly 5,300 pounds of milk. Today the average moo-cow produces nearly 22,000 pounds of milk, cheers to improvements inwards moo-cow genetics, feed formula, too administration practices. Over that fourth dimension period, the number of dairy cows inwards America has fallen past times to a greater extent than than half, yet U.S. milk production has nearly doubled. ...
"Livestock operations accept undergone dramatic changes inwards the concluding thirty years. Farmers straight off utilisation data technology scientific discipline to accommodate feed mixes too climate controls automatically to come across the precise needs of animals inwards confined feeding operations. Integrated squealer operations, for example, sharply reduced the sum of feed, capital, too project needed to create hogs every bit novel technologies too organizational forms swept the industry. As a result, alive squealer prices were nearly a tertiary lower than they would accept been without the productivity growth that occurred betwixt 1992 too 2004, too retail pork prices were nine per centum lower. ..."
"From 1948 to 2009, farm productivity nearly tripled, growing at a charge per unit of measurement of 1.6 per centum a year. In the early on role of that period, increased productivity, measured every bit output per unit of measurement of combined inputs, combined amongst increased utilisation of equipment too chemic inputs to crusade the growth inwards agricultural output. Between 1980 too 2009, equipment stocks cruel along amongst continued declines inwards project too country inputs; chemic utilisation continued to rise, but at a much slower rate. Despite reduced input use, agricultural output grew past times 1.5 per centum a twelvemonth inwards 1980–2009, amongst increasing productivity accounting for almost all of the growth."
Americans decease along to pass to a greater extent than on food.
Finally,the average historic menstruation of farmers has been rising; for example, farmers nether historic menstruation 35 contribute solely 6% of the total value of agricultural production. Clearly, this raises some issues nearly who the farmers of the hereafter are probable to travel (citations omitted):
"The average historic menstruation of U.S. farmers too ranchers has been increasing over time. In 1978, 16.4 per centum of principal farm operators were over historic menstruation 65. By 2007, thirty per centum of all farms were operated past times producers over 65. In comparison, solely 8 per centum of self-employed workers inwards nonagricultural industries inwards 2007 were that old. One argue the farming sector is relatively older is that farmers are living longer too frequently reside on their farms. Many established farmers never retire. Additionally, one-third of offset farmers are over historic menstruation 55, indicating that many farmers motion into agriculture solely later retiring from a dissimilar career. More than twenty per centum of farm operators study that they are retired. Another 32 per centum of all farms are operated past times farmers aged 55 to 64 years. Farmers aged 55 too older concern human relationship for to a greater extent than than one-half of the total value of production. Farmers nether 35 contribute solely half dozen per centum of the total value of production. This demographic transition has implications for the hereafter of the U.S. agricultural sector.