How did expanding agricultural production impact the economy


How did agriculture affect the economy?

What is agriculture’s share of the overall U.S. economy? Agriculture, food, and related industries contributed $1.055 trillion to the U.S. gross domestic product (GDP) in 2020, a 5.0-percent share. The output of America’s farms contributed $134.7 billion of this sum—about 0.6 percent of GDP.

What was the effect of the increase in agricultural production?

The results indicate that increasing agricultural productivity leads to positive economic benefits. However, productivity improvements would lead to reduction in agricultural employment, which in turn may affect the real income of households in agricultural provinces in the short run.

How can agriculture improve the economy?

Agricultural development can stimulate economic development outside of the agricultural sector, and lead to higher job and growth creation. Increased productivity of agriculture raises farm incomes, increases food supply, reduces food prices, and provides greater employment opportunities in both rural and urban areas.

What is the importance of agricultural production?

It includes the preparation of plant and animal products for people to use and their distribution to markets. Agriculture provides most of the world’s food and fabrics. Cotton, wool, and leather are all agricultural products. Agriculture also provides wood for construction and paper products.

Why did agricultural production improve?

The substantial increase in total agricultural production can be attributed to the advent of new technologies, innovations, and process improvements in the farm sector.

How important is agriculture in economic development?

Agriculture plays a major role in economic growth and development. As the provider of food it is a cornerstone of human existence. As a furnisher of industrial raw materials it is an important contributor to economic activity in other sectors of the economy.

Why agriculture is considered as the backbone of the economy?

Agriculture makes its contribution to economic development in following ways: By providing food and raw material to non-agricultural sectors of the economy, by creating demand for goods produced in non-agricultural sectors, by the rural people on the strength of the purchasing power, earned by them on selling the …

What are the factors that contributed to the success of American agriculture?

Large capital investments and increasing use of highly trained labor also have contributed to the success of American agriculture. It is not unusual to see today’s farmers driving tractors with air-conditioned cabs hitched to very expensive, fast-moving plows, tillers, and harvesters.

Why did farmers become important to the American economy?

Early in the nation’s life, farmers were seen as exemplifying economic virtues such as hard work, initiative, and self-sufficiency. Moreover, many Americans — particularly immigrants who may have never held any land and did not have ownership over their own labor or products — found that owning a farm was a ticket into the American economic system. Even people who moved out of farming often used land as a commodity that could easily be bought and sold, opening another avenue for profit.

Why are American farmers so successful?

American farmers owe their ability to produce large yields to a number of factors. For one thing, they work under extremely favorable natural conditions. The American Midwest has some of the richest soil in the world. Rainfall is modest to abundant over most areas of the country; rivers and underground water permit extensive irrigation where it is not.

What is the role of the American farmer?

The American Farmer’s Role in the US Economy. The American farmer has generally been quite successful at producing food. Indeed, sometimes his success has created his biggest problem: the agricultural sector has suffered periodic bouts of overproduction that have depressed prices.

What were the problems of the 1930s?

In the 1930s, for instance, overproduction, bad weather, and the Great Depression combined to present what seemed like insurmountable odds to many American farmers. The government responded with sweeping agricultural reforms — most notably, a system of price supports.

Is farming important in 2020?

From the nation‘s earliest days, farming has held a crucial place in the American economy and culture. Farmers play an important role in any society, of course, since they feed people. But farming has been particularly valued in the United States.

Do farmers have to repeal laws?

Farmers have not repealed some of the fundamental laws of nature, however. They still must contend with forces beyond their control — most notably the weather. Despite its generally benign weather, North America also experiences frequent floods and droughts. Changes in the weather give agriculture its own economic cycles, often unrelated to the general economy.

How to quantify structural changes in agricultural trade network?

To quantify the structural changes in the agricultural trade network, we developed an index based on the relationship between importing and exporting regions as captured in their covariance matrix. We represent the spectrum of the eigenvalues of this covariance matrix as the elements, sij of a diagonal 14 × 14 matrix, where we have modelled 14 importing and exporting regions in our simulations. It is natural to interpret a rapidly converging spectrum as indicative of a trade network dominated by just a few importers and exporters while a flat spectrum of eigenvalues implies a network with many more equal actors. We capture this difference by the Shannon entropy of the eigenvalue spectrum and define the structural trade index as S. A smaller value of S represents a centralised network structure, where export/import flows are dominated by just few regions; larger values of S indicate a more distributed trading structure, where export/import flows are more uniformly distributed between all regions.

What is import export matrix?

The N×N import-export matrix P encapsulat es structural information about the global trade network , in this study N = 14 regions. Each entry pij in P represents the value of exports from region ri to region rj. Equally, each entry pji represents the value of imports by region rj from region ri. Hence the i ’th row of matrix P can be interpreted as an N-dimensional vector of regions to which region i exports with the components of the vector equal to the quantity of exports received from region ri. Conversely, column j of P can be interpreted as an N-dimensional vector of regions from which region j imports with the components of the vector equal to the quantity of imports received from region ri. If the trade network is regarded as a set of N×N edges or links, then the import-export matrix can be interpreted as the adjacency matrix of a directed graph with edges weighted by the trade in each direction between pairs of regions. Conventionally, we normalise the pij values by the total volume of the global trade so that,

What are the commodities that will be traded in 2050?

We simulated patterns of global trade for 2050 for the four studied commodities: wheat, rice, coarse grains and oilseeds; under RCP4.5 and RCP8.5 (See Fig. 2 ). The circular plots in Fig. 2 are scaled according to the total global trade of the commodities analysed in our model ensemble for the year 2015 and averaged volume of trade for the period 2050–2059 for the two greenhouse gas emissions scenarios. For the reference, GTEM-C estimates that the value of total agricultural trade in the USA was 144 US$ in 2015 (measured in 2007 US$), this number closely matches data from the United States Department of Agriculture that reported a value of 136.7 US$ for 2015 (United States Department of Agriculture, 2015a, 2015b ).

Is agriculture stable under RCP4.5?

The global agricultural trade structure remains stable under RCP4.5, as climate affects agricultural production to a lesser degree than under RCP8.5, where agriculture is heavily impacted with a shortfall in production of key commodities.

What is the impact of agricultural expansion on biodiversity?

Agricultural expansion is a major driver of deforestation and other ecological destruction, decimating habitats and biodiversity. Oil palm displaces lowland forests in Indonesia while soy production damages the Cerrado and Atlantic Forests of Brazil and Paraguay. Loss of forests and unsustainable farming practices lead to extreme erosion. During the past 150 years, half of all agricultural topsoil has been lost.

How does agriculture affect the environment?

While agricultural operations provide unique opportunities to conserve biodiversity, they also can threaten wild species and spaces. From habitat loss to pollution, agriculture contributes to many of the environmental challenges that WWF actively addresses.

How much water does agriculture use?

The agricultural sector consumes about 69 percent of the planet’s fresh water. Without creative conservation measures in place, agricultural production consumes excessive water and degrades water quality. This adversely impacts freshwater systems throughout the world.

What is the largest industry in the world?

Agriculture is the world’s largest industry. It employs more than one billion people and generates over $1.3 trillion dollars worth of food annually. Pasture and cropland occupy around 50 percent of the Earth’s habitable land and provide habitat and food for a multitude of species.

How does farming affect the atmosphere?

Many farming practices—such as burning fields and using gasoline-powered machinery—are significant contributors to the buildup of greenhouse gases in the atmosphere. The Food and Agriculture Organization of the United Nations (FAO) contends that the livestock sector alone is responsible for 18% of all greenhouse gas production. Additionally, clearing land for agricultural production is a major contributor to climate change, as the carbon stored in intact forests is released when they are cut or burned.

Why is sustainable resource management important?

The need for sustainable resource management is increasingly urgent. Demand for agricultural commodities is rising rapidly as the world’s population grows. Agriculture’s deep connections to the world economy, human societies and biodiversity make it one of the most important frontiers for conservation around the globe.

What were the negative effects of the agricultural revolution?

Another negative that came from the Agricultural Revolution was the necessary conditions needed for efficient farming, such as; adequate farm buildings, access of roads, drainage of wetlands, transport facilities for marketing, and sources of finance for farmers.These were negative effects seen across Europe by many who joined in the Revolution.

How did the agricultural revolution help the Industrial Revolution?

6 The Agricultural Revolution helped bring about the Industrial Revolution through innovations and inventions that altered how the farming process worked. 7 These new processes in turn created a decline in both the intensity of the work and the number of agricultural laborers needed. Because of the decline in need for agricultural workers, many worked industrial jobs, further fueling the Industrial Revolution. 8 At the beginning of the Agricultural Revolution farm hands chose to migrate to the city to work industrial jobs; however, as the decline in need for agricultural workers grew, many were forced to look for work in the industries.

How did the Industrial Revolution happen?

The Industrial Revolution was made possible due to the many changes and innovations in the agriculture industry. Major Contributors such as Jethro Tull and Lord Townshend found innovative ways to utilize the land and animals alongside new agricultural machines from Inventors, Robert Bakewell and James Hargreaves. 19 Processes like Lord Townshend’s crop rotation and Bakewell’s inbreeding methods allowed for increase in food production; further with all the extra crops, inventions such as the ‘Spinning Jenny’ and the Cotton Gin allowed for the replacement of agricultural workers because machines could do more of the work. 20 With a rising population and a large, cheap available work force the Industrial Revolution was made possible. Fewer men were involved in agriculture, which meant that more would find employment in other industries further driving the Industrial Revolution. Though the many inventions and inventors contributed to further drive the Agricultural Revolution, it is also not limited to these factors alone; many other influences helped drive the agricultural revolution, and ultimately the Industrial Revolution.

What were the factors that contributed to the Industrial Revolution?

Though there were many contributing aspects to the Agricultural Revolution,the innovations and inventions were one of the largest factors that helped bring about the Industrial Revolutions. This page will focus specifically on five major inventors whose inventions allowed for more people to move to the city for industrial work. Thus allowing the Industrial revolution to begin.

What were the factors that drove the agricultural revolution?

Innovations and Inventions were the only factor that drove the Agricultural Revolution.

Why was agriculture the largest source of employment?

Though the labor was difficult, agricultural work became the largest source of employment because of the ‘self-supply’ benefit, which is the ability to stock their own food stores through their own work.

Why did farmers work six days a week?

1 2. Before the Industrial Revolution, agriculture workers labored six days a week, from sun up to sun down, just to keep their crops growing. 1 Certain seasons were more demanding than others, specifically the plowing and harvest seasons. 2 Because of the intensity and necessity of agricultural labor, it was the largest employment source in …

Why do agricultural households suffer from declining income from off-farm jobs?

Agricultural households also suffer from declining income from off-farm jobs, as the economic recession in the U.S. ripples through to rural-based businesses and loss of tax revenue puts pressure on rural government employment and social services. Because the U.S. farm sector went into the crisis with record-high exports, prices and farm income, …

How did the 2008-2009 world economic crisis affect agriculture?

Declining incomes around the world as a result of the evolving worldwide recession combined with the short-term appreciation of the dollar result in significant declines in U.S. agricultural exports and sharply lower agricultural prices, farm income and employment,

How did the dollar affect the economy in 2008?

The crisis is also strengthening the dollar against most other foreign currencies, as money throughout the world flows into the U.S. as a safe haven. In 2008, the net inflow of capital to the U.S. totaled about $650 billion. The stronger dollar reduces U.S. agricultural exports by making them more expensive in foreign markets than output by competitors. This analysis suggests that as a consequence of the slowing global economy and the appreciation of the dollar, U.S. agricultural exports could fall from $117 billion in 2008 to $96 billion in 2009.

How much did farm income increase in 2013?

With a weaker dollar, projected net farm income will increase by 19% to $106 billion in 2013 and to $118 billion in 2017, while agricultural exports will rise to $120 billion in 2013 and $134 billion in 2017.

What was the net farm income in 2007?

In 2007 and 2008, U.S. net farm income equaled $87 billion and $89 billion, respectively, with each year establishing a new nominal record. Even when adjusted for inflation, these amounts reflect the highest net farm incomes since the early 1970s.

How much was the U.S. farm income in 2008?

agriculture than for many other sectors of the U.S. economy. In 2007 and 2008, U.S. net farm income equaled $87 billion and $89 billion, respectively, …

Will the decline in farm income in 2009 affect land values?

The projected decline in farm income in 2009 is not expected to have much effect on national agricultural land values. Land value trends that emerged in 2008 could continue in states that showed the largest declines in rural housing values and abate in states that enjoyed double-digit increases in land values due to strong crop receipts.

How did Increasing Output Worldwide affect the prices of farm products?

Increasing output worldwide pushed down the prices of farm products, making it more difficult for farmers to make ends meet.

Why did the population decline in California?

Urban populations in California declined as people moved to the centers of agricultural production.

Why did men experience the most hardship on the Great Plains?

F. John Wesley Powell warned that the western region’s arid land would require large-scale irrigation projects and cooperative, communal farming to prosper. T.

What created a true national market for U.S. goods?

Railroads created a true national market for U.S. goods.

Did the advance of white settlement delay the advance of the settlement?

only temporarily de layed the advance of white settlement

How did the South expand its economy?

With all these factors amping up production and distribution, the South was poised to expand its cotton-based economy. With more land needed for cultivation, the number of plantations expanded in the South and moved west into new territory. Production exploded: Between 1801 and 1835 alone, the U.S. cotton exports grew from 100,000 bales to more than a million, comprising half of all U.S. exports. The upshot: As cotton became the backbone of the Southern economy, slavery drove impressive profits.

How did the slave economy affect the South?

By the start of the war, the South was producing 75 percent of the world’s cotton and creating more millionaires per capita in the Mississippi River valley than anywhere in the nation. Enslaved workers represented Southern planters’ most significant investment —and the bulk …

Why was the cotton gin invented?

There was an irony in all this. Many people believed the cotton gin would reduce the need for enslaved people because the machine could supplant human labor. But in reality, the increased processing capacity accelerated demand. The more cotton processed, the more that could be exported to the mills of Great Britain and New England. And the invention of the cotton gin coincided with other developments that opened up large-scale global trade: Cargo ships were built bigger, better and easier to navigate. Powerful navies protected them against piracy. And newly invented steam engines powered these ships, as well as looms and weaving machines, which increased the capacity to produce cotton cloth.

What was the impact of the Abolitionist movement on the South?

The Abolitionist movement, which called for an elimination of the institution of slavery, gained influence in Congress. Tariff taxes were passed to help Northern businesses fend off foreign competition but hurt Southern consumers. By the 1850s, many Southerners believed a peaceful secession from the Union was the only path forward.

What did the slaves leave the fields with?

Enslaved workers leaving the fields with baskets of cotton. (Credit: Bettmann Archives/Getty Images)

What was the economic engine of the Southern states?

With cash crops of tobacco, cotton and sugar cane, America’s southern states became the economic engine of the burgeoning nation. Their fuel of choice? Human slavery.

What were the cash crops that were grown in the southern colonies?

With ideal climate and available land, property owners in the southern colonies began establishing plantation farms for cash crops like rice, tobacco and sugar cane —enterprises that required increasing amounts of labor.


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