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!”