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Land Values
In 2000, the average value of agricultural land and buildings was $1,050 per acre, 52 times greater than the average of $20 per acre in 1900. Land values climbed through most of the century, and saw only a few periods of decline. We saw declines in the 1920's from agricultural surpluses and in the 1930's from the Great Depression.
The 1970's showed the largest percentage increase in agricultural land values jumping from $197 to an average value of $737 by 1980, a yearly average increase of more than 10 percent. The climb in land values was primarily due to strong farm prices, expanding trade, high inflation, and speculation that land values would continue to rise. However, in the mid-1980's, farm prices dropped due to surpluses, inflation slowed, and demand for agricultural land decreased. These factors caused the second large decline of agricultural land values during the century. This sharp drop caused a great deal of hardship in the agricultural community. However it began to climb again in 1987. |
Agricultural Prices
Toward the end of the 20th century farmers and ranchers were increasingly caught in a cost-price squeeze that required them to become savvy marketers as well as producers of agricultural commodities.
Commodity prices spiked upward during both World Wars and plunged during the Great Depression. Prices again shot upward during the early 1970's, spurred on by sharply increased world demand. However, when viewed over the entire century, prices farmers receive for their production have gone down when compared to the costs associated with producing agricultural commodities. These comparisons do not reflect the rate at which technology changed the cost of producing commodities over time. |
Market Based
A typical farm or ranch at the beginning of the century produced a wider variety of commodities than those operating at the end of the century. Farm operators and the country’s population were much more self-sufficient 100 years ago. Farms and ranches are now much more specialized, with a small number of operators producing the majority of agricultural products consumed today.
At the beginning of the 20th century about 50 percent or more of all farms were involved in the production of vegetables, Irish potatoes, fruit-producing trees, and feed for livestock and draft animals. Much of this produce was consumed on the farm, traded, or sold locally. Similarly, when reviewing livestock found on farms and ranches, it is apparent that chickens, horses, milk cows, and hogs were present on the majority of farms a century ago. Today, a comparatively small proportion of farms maintain these animals. The consumer’s market basket has also changed dramatically over the past 100 years. Early in the century, home-grown fruits, vegetables, oats, and wheat were considered staples. Later on, families increasingly purchased and stocked their shelves with canned, frozen, and instant food products. This trend reversed itself slightly later in the century as health-conscious consumers began to include more fresh food in their diets. However, most of what is consumed today continues to move from the farm gate to the processor, and then to the grocery store. The country’s population, as a whole, became wealthier and increased its demand for food products over most of the century. Late in the century, however, the country reached a point of economic comfort where increases in income no longer raised domestic demand for food products. As a result, U.S. farmers and ranchers began to rely more heavily on export markets to sell their excess production and have truly become food producers to the world. |
Conclusion
We hope this brief glimpse at a few of the significant agricultural
events of the 20th century has been informative and interesting. Over
the past 100 years, the U.S. agricultural sector has become one of the
most productive in the world, and citizens of this country have become
accustomed to a safe and relatively inexpensive supply of food.
Despite the sharp decline in the number of citizens involved in production agriculture over the past century, there is a recognition that families involved in farming and the diversity of farm operators are important to the cultural identity of our country. The farming and ranching lifestyle is still believed to be an important and virtuous endeavor, worthy of our continued support. Evidence of this can be seen in the popularity of farmers' markets, where consumers can get back in touch with those producers who are the source of the food they consume. |
What revolutionary changes are in store for agriculture in the foreseeable future? We will likely see continued specialization and growth in the areas of sustainable agriculture, organic farming, niche farming, and direct marketing. The promise for genetic engineering to lower costs, improve production, and reduce the impact of farming on the environment still must be realized. A trend toward biobased energy products, as an alternative to those made from petroleum, could have a profound impact on the future role of agriculture in this country. The increasing use of technology, such as computers and global positioning systems, in the production and marketing of commodities also provides a glimpse of what is to come.
Information for this webquest can be found at http://www.nass.usda.gov/Publications/Trends_in_U.S._Agriculture/index.asp |