Question

Which of the following is true?a. Currently, the food and fiber sector accounts for about 12% to 15% of gross domestic product (GDP). b. Off-farm income is important to agricultural producers today. c. Twenty percent of farmers produce 80% of the agricultural output in the food and fiber industry. d. The food and fiber industry is responsible for one out of every ten jobs.

Answer 1

Answer:

b. Off-farm income is important to agricultural producers today.

c. Twenty percent of farmers produce 80% of the agricultural output in the food and fiber industry.

Explanation:

The food and fiber industry is divided into 4 main sectors:

1. suppliers of farm inputs (including services and materials)
2. farmers themselves (producers)
3. processing and manufacturing of farm and fiber products
4. marketing and distribution (wholesalers and retailers)

In the US, the food and fiber industry represents approximately 5.4% of GDP. It employs roughly around 21 million workers (including direct and indirect employment). The food and fiber industry is a net exporter, since it exports more than it imports. Currently, most farming value is concentrated on large farms, where smaller farms generally produce more livestock output while larger farms produce crops.

After WW2, there has been a tendency to substitute labor for capital, and to have more larger farms and less smaller ones.