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Economic Overview

U.S. agriculture is a complex system that simultaneously produces unprecedented bounty and unparalleled social concerns. Can the unique institution of the American family farm survive the economic realities of the 21st century? Can the United States continue to have the most abundant and the safest food system in the world? These questions and the unfolding answers will have impacts that will be felt for generations to come. What we know for certain is that:

Agricultural production in the United States is a business that requires very high capital investments in land, facilities, and machines and most often produces undifferentiated products (commodities) of generally low unit value. Thin profit margins have forced producers to seek efficiencies in all aspects of production. There are efficiencies of scale that favor large producers who can make the most effective use of large, expensive machines. In crops such as corn and soybeans, and in poultry and animal production commercially viability is usually based on producing "in volume."

This page is sponsored by EPA's Ag Center. Ag Center logo

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