What is Agriculture?
Agriculture is the science, art and practice of tilling the earth to
produce crops and rearing animals. It can also refer to the preparation
and marketing of the resulting products, but this is more in reference
to Agribusiness or Agricultural Marketing.
Agriculture can be
described as farming. Farmers produce, process, market and use food,
fibers, and their byproducts by raising plant crops (fruits and
vegetables) and animals (such as cows and pigs). This is where we get
our foods and meats and dairy products. Its a partnership between man and the land in an effort to produce crops and livestock.
What is Agriculture Industry?
The agriculture industry involves
anything that is grown or raised for human use. This includes produce,
livestock, flowers, lumber and harvesting plants to sell. The agricultural
industry is one of the oldest in the world, dating back thousands of years.
Farmers aren't the only
participants in the agriculture industry, although they are the most well
known. Also included are areas that contribute to agriculture, such as
biotechnology firms and veterinarians. Florists and nurseries, both of which
grow plants to sell, either as plants or as flowers in bouquets, are also a
part of the agricultural industry. Wineries may also be considered a part of
the agriculture business.
The first time that humans traded
one agricultural good, such as a pile of corn, for another product marked the
beginning of the agriculture industry. The start of civilization, as opposed to
previous nomadic ways, happened with the start of agriculture. Instead of
having to hunt and gather food, early humans learned to grow their own food.
Before long, communities were beginning to form and people could trade their
surplus food for what they were missing. The agriculture industry was already
proving to be profitable.
Most of what is produced in the
agriculture industry is considered to be in the primary sector, meaning that
the original product is straight from nature, and hasn't been changed or
processed in any way. Some agricultural products that are processed, such as
trees being turned into finished lumber, are considered to be a part of the
secondary sector.
The agriculture industry has seen
a lot of changes in the past 100 years. Agriculturalists can now grow more
crops in a smaller amount of space. Although this has made farming cheaper,
there have been questions about the ethics involved in raising livestock in
tight spaces. Biotechnology has also changed agriculture, by improving soil
fertilization, developing larger and hardier crops, and improving the nutrients
in harvested food.
Agribusiness is used to describe
any company that operates within the agriculture industry. This includes not
only farms, but the companies that build, sell, and repair the farm equipment,
the inspectors that make sure the farm is up to code, and entire milk industry,
from the drive that picks up the fresh milk through the driver that delivers
the processed milk to the grocery stores, for example. When the agricultural
industry is looked at in terms of agribusiness, it is possible to see just how
widespread agriculture is, even in modern times.
What Is Agribusiness?
In short, agribusiness is the
business of farming. However, the word is a loaded term, especially among
critics of corporate farming. For people who view large-scale commercial
farming negatively, agribusiness is the antithesis of traditional small-scale
family farms. For people involved in it, of course, the word is simply a
convenient shorthand for saying that one is in the business of agriculture.
Agribusiness includes the
production, processing, and supply of agricultural goods that range from
lettuce to corn syrup. Companies may focus on things like cut flowers, fresh
vegetables, or byproducts of farming such as fuels derived from farm waste.
Agribusiness also encompasses farming equipment, machinery, chemicals,
suppliers, and personnel. Several large companies control the bulk of the share
of business, especially in the United States; this has been a cause for
criticism among people who are concerned about monopolies and price fixing.
Several things characterize
agribusiness, differentiating it very distinctively from family farming. The
first is the scale, which is typically quite large. The second is considerable
vertical and horizontal integration. For example, a company might own a
facility that processes frozen vegetables, along with a controlling share in
farms which produce these vegetables and companies which provide personnel to
harvest and transport them. Agribusiness is also distinguished by being run
like a true business, with administrators rather than farmers at the helm of
companies in the agriculture business.
This highly efficient and
streamlined organization allows agribusiness to keep food costs low. This is an
important priority for many consumers and governments, who also appreciate its
standardization, which is in theory supposed to limit the possibility of food
borne contamination and other issues with the food supply.
The rise of agribusiness began in
the 20th century, when citizens of countries in the developed world began
flocking to their cities, leaving a shrinking population of farmers struggling
to meet the demand for food. Over time, agricultural companies arose, using
their size and business experience as leverage to create a highly efficient
system of farming and transporting agricultural goods. One major criticism of
agribusiness is that it has been too successful, driving down price points and
forcing small farms out of business as they cannot compete with big firms.
Critics have also expressed
concerns about a heavy focus on chemicals to control problems which arise on
farms. Pesticides, herbicides, and a variety of pharmaceuticals are all often a
big part of agribusiness, for example. It also distances people from the source
of their food, as any glance at the produce section at a major market will
confirm; rather than meeting food producers, people can purchase grapes from
Chile, peppers from Africa, and rice from China.
What is Agribusiness Industry?
The agribusiness industry is a
catch-all term used to describe every part of the modern food production
system, from seed growers to supermarkets. This industry is divided into a
multitude of subgroups, each with its own individual business practices and
goals. Often, agribusiness industry is used to describe a specific agribusiness
practice called corporate farming. A corporate farm is a company-owned farm
used to grow crops at profit. The environmental impact and profit-oriented
views of corporate farms have caused a significant amount of controversy at
times.
When viewed as a collective, the
joint goal of the agribusiness industry is to feed people and animals; in
reality, the system is much more complex. Unlike some industries, the processes
that create and sell food are rarely straightforward. Material is purchased for
production, but yield won’t happen for months or years. The timeframe and land
scale used are much greater than most other manufacturing systems.
At the beginning of the
agribusiness industry chain, there are production industries that create the
things used for farming such as seeds, fertilizers and pesticides. Next come
the farming groups themselves, which take the produced goods and use them to
create completely different goods. This is in contrast to a normal supply chain
operation, since many of the initial inputs are essentially destroyed in the
growing process. Lastly, the produced food goes on to further production
locations, where it is made into packaged food or goes directly to retail in
supermarkets. In addition to all this, there are hundreds of other industries
that are directly or indirectly involved in the process.
Corporate farming began in the
mid-20th century. A corporate farm is owned by a corporation and ran as a
business. Many food production companies create corporate farms as a means of
vertical integration. Since their business relies on a steady supply of food
material, they create farms to oversee the production and delivery of said
food. To continue this process, they often have their own trucking and
packaging companies, keeping as many of the processes in-house as possible.
When used to describe corporate
farming, ‘agribusiness industry’ is often used as a negative remark. It attempts
to create a line that differentiates a corporate system from a family-owned or
small-scale farm. In many cases, the distinction created through this term is
more useful as propaganda rather than an actual view on reality, as nearly all
farms work for some form of profit, regardless of their scale or ownership
What is Agribusiness Management?
Individuals who pursue a career
in agribusiness management often have a passion for or desire to work as a
leader in the agricultural industry. There are many types of management jobs to
choose from related to production, finance, marketing, and farm or ranch
management. It’s a field where economics, business, and agriculture merge, and
individuals often study and gain experience in all three in order to be
successful. Agribusiness management jobs are available in both the public and
private sectors, such as government agencies and large corporations. Some
individuals decide to go into business for themselves, such as to operate a
family farm.
Agribusiness management programs
are offered at many major universities and colleges, as well as community
colleges and private institutions. Students can earn an associate’s degree or
bachelor’s degree, and a few of the careers that students are prepared for
include farm manager, commodity trader, and wholesale buyer. Some students study
agribusiness management in order to manage their own farm or ranch more
successfully. Other students seek corporate careers with major agricultural
companies or decide to work for smaller farm operations. The coursework at most
schools often includes marketing and advertisement, agricultural merchandise,
and finance and management.
Some agribusiness jobs do not
directly deal with farm operations. There are options for those who want a
career in agribusiness management but don’t want to work directly with running
a farm. For example, an individual can launch a career as a manager in a
company that manufactures farming equipment and machinery. Working in retail of
the final products produced by farmers is another opportunity for individuals
who prefer a career that indirectly relates to farm operations. Food packaging
is yet another option for a career in agribusiness management that some
individuals are attracted to that removes them from hands-on farm and ranch
management.
The job outlook for agribusiness
managers is growing, as there are few qualified individuals for the many jobs
that are available. There is often an ongoing need in marketing agricultural
products as compared to other areas, and working as a marketer is often a good
entry level into the industry. For example, marketing managers often help to
identify and develop businesses for farmers or corporations that own farms and
want to wholesale or retail food or other products. Individuals in those
positions must often be skilled at managing people and have an understanding of
the business and economics of agribusiness.
