AGRICULTURE IN THE U.S.

BIG ‐ DIVERSE – FOUR REGIONS

2,000,000 FARMERS, 1% OF POPULATION900,000 TILL 60% ACREAGE

80% Domestic – 20% Exports

SINCE 1950 – 170% INCREASE IN PRODUCTIVITY

26% LESS LAND – 22,000,000 LESS FARMERS

DELAWARE

SMALL STATE, but 40% of land mass is in Ag500,000 acres – 2,500 farmers

800 till 65% of acreage/40% irrigated

Corn, Soybeans, PoultryStrong Vegetable Industry

Within 10 hours of 1/3 of US Population or 110 million people

Farming in the U.S. is a Family Enterprise

Innovation & Technology• At the end of World War II, in 1945, 

there were 25 million dairy cows in the U.S.  Today, there are 9 million, producing 60% more milk than 1945.

The national average of 183 bushels produced on each acre in 2015 was 

over 20 percent larger than the average yield in 2002 – and plant 

breeding experts estimate yields may jump 40 percent before 2020 and, perhaps, hit a national average of 

300 bushels per acre by 2030.

What does a State Ag Secretary Do?

1. Advocate for Agriculture2. Regulatory Responsibilities3. Market Development and Innovation

12 states elect their Ag Secretary/38 are appointed by state Governor

In the U.S. ‐ 3 major public sector support for Agriculture:

1. USDA2. State Departments of Agriculture3. Land Grant Universities

Issues in Delaware

1. Water Quality/Nutrient Management2. Farmland Preservation/Generational 

Transfer3. GMO Labeling (US issue as well)4. Minimum wage laws5. Avian Influenza Surveillance

Major Crop Acreage – U.S.

Acres HectaresCorn (Maize) 97,000,000  39,000,000    Soybeans 76,000,000 30,400,000Wheat 49,000,000                19,600,000Cotton 9,378,000                    3,751,200

ALL Vegetables         & Fruit 5,463,000 2,185,200*

The U.S. Farm Bill• Since 1933 – 17 “Farm Bills”

– Safety Net for economic viability of Farmers:  Income Support for farmers . . . .   Also, Trade is emerging as a key part of the safety net

– Safety Net to provide food for poor people and school lunch nutrition programs.  Food Stamps or SNAP (Supplemental Nutrition Assistance Program (Since 1960s)  

• This created the urban:rural coalition– Conservation

• Major Farm Safety Net (Income Support) Management Goals: – Influence Supply (primarily 1933‐1950, still exists but evolving to risk 

management)– Increase Demand (1950‐now)– Risk Management ‐‐‐ Crop Insurance

• 1990s to today

Farm Bill – Safety Net

• Components of “Titles”• Nutrition• Crop Insurance• Conservation• Commodity Support• Other

– Research– Renewable Energy– Miscellaneous

Policies 1,203,549

Acres 298,204,110

Liability $ 102,096,955,365

Total Premium $ 9,714,408,068

Subsidy $ 6,054,375,282 62%*

•Overall average subsidy as percentage of total premium across 2015 U.S. crops, coverage levels, and policies.•Subsidy paid to insurance companies to reduce subsidy cost to farmers

U.S Crop Insurance Summary ‐2015

Government Income Support and its Share ofGross Cash Farm Income

U.S. Farm “Factoids”

Food or Fuel??• Corn (Maize)  97,000,000 

acres– 40% of production goes to 

animal feed– 40% of production goes to 

ethanol

• Observation:  When the Midwest Corn Belt has a good year – meet demand for both

Organic Situation• 1% of US acreage is organic

• 4.5% of food sales are organic

• 80% of households make at least one organic purchase/year

• Primarily fruits and Vegetables

• Delaware – Organically Raised Chicken

U.S. Grocery Stores – 40,000 stores, $700 billion sales/yrConsumer Interests

CostConvenienceTaste, but moving to –Health & Wellness

1.5 visits/week$100 ‐ $120/week

Emerging Value Concerns

Locally producedEnvironmentally SensitiveAnimals Humanely TreatedOrganicIs it GMO?

The Megatrends

Food andAgriculture

Shift in economic and trade flows

Demographic and consumption

changes

Rapid urbanisation

Climate change and resource scarcity

Technology consumption

and breakthroughs

Source: PwC 

Thank you for your commitment to Agriculture!

The farming, agriculture and food industry needs you –It needs you to be prepared for a wide array of issues, challenges, opportunities and successes! 

To feed 9.3 billion people

By 2050…Global agriculturalproduction needs to grow up to 70%

PROFITABLE FARMS ARE CRITICAL TO MEETING THESE NEEDS!!!

The U.S. Land Grant University System

1. Teaching2. Research3. Cooperative Extension – Perhaps Unique – Bring the University to the People

A University, sometimes two, in each state

Outreach through Extension to each of 3,000 counties in the United States

University of Delaware

My Grandchildren

Will they have the same access to food and food choices that my generation has enjoyed?

The decisions we make individually and collectively will decide their future!!

Thank you!  Ed Kee, Sec. of Agriculture ‐ Delaware

“Future Gaelic Foot Ball Players! – theMcKenzie Boys!”