xt7dr785k61k https://exploreuk.uky.edu/dips/xt7dr785k61k/data/mets.xml   Kentucky Agricultural Experiment Station.  journals kaes_circulars_004_563_a English Lexington : The Service, 1913-1958. Contact the Special Collections Research Center for information regarding rights and use of this collection. Kentucky Agricultural Experiment Station Circular (Kentucky Agricultural Experiment Station) n. 563 text Circular (Kentucky Agricultural Experiment Station) n. 563  2014 true xt7dr785k61k section xt7dr785k61k W By D. MILTON SHUFFETT  
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NMI S-I UNIVERSITY OF KENTUCKY
COOPERATIVE EXTENSION SERVICE
AGRICULTURE AND HOME ECONOMICS

 The Importance of Agriculture rm
. rnillr
rn Kentucky r q
deal
By D. MILTON SHUFFETT rr
Departnront of Agricultural Economics » Ag]
Kmzrrvzay Awzcrrrrrrrrrz Ermrmmr swarm _ Ken
toge
Recent declines in farm population sometimes have led to the . for .
erroneous conclusion that agriculture is a declining industry. lt Z $0***
is the volume of output of an industry, however, which should _ S
measure its importance, as well as the number of people em- of 1
ployed. The total output of agriculture in the United States to- tml
day is about 50 percent larger than 20 years ago. This is a phe- mm
nomenal growth as a result of technological improvements which V
have increased yields per acre and production per animal. In and
Kentucky the growth has been less spectacular, but Kentucky’s il"?
volume of agricultural production is about 30 percent above the _
level of two decades ago. These tremendous increases in farm I
' output have been accomplished in the face of a decline of about
25 percent in farm population in the United States since 1940. —
Farm output per man—hour‘ has doubled in this period of years.
Sales of farm products from Kentucky farms in 1958 totaled »
$548 million. This is 3% times the pre—VVorld Will` 11 level, but  I
the increase is due to both inflation and to enlarged physical  .
output. The importance of this more than one-half billion dollars  
to the economy of Kentucky can best be understood by con-
sidering the other business activities which it stimulates.
For farmers to have a cash income they must buy farm sup-
plies such as feed, seed, machinery, lumber, and the like. Tho
total production expenses of Kentucky farmers in 1958 amounted *
to about $379 million. This business supports a large number  
of manufacturers, dealers, and industrial workers throughout
the United States.
An even more important effect of agriculture upon the econ- I
orny of Kentucky is that of processing, storing, distributing, and —
transporting farm products after they leave the farm. Tobacco { tm,]
warehouses, stockyards, milk pasteurizing and bottling plants.  —  
slaughter houses, tobacco redriers, and the like all depend upon (rh
farm products for their business. The volume of such busineS# R15
2 .0

 B for Kentucky farm products in 1958 amounted to about $880 KENTUCKY FARM PRODUCTION EXPENSES IN T958
million. TOTALE;$§:gE;R?g%CTl0N 1. Farm production costs
These businesses, which are not strictly farming but which (MILLION DbLLARS) were $379 million in 1958.
D deal with farm supplies and farm products, sometimes are called 2. Production cxpens cs
"Agribusiness.” When measuring the economic importance of =¤¤]*<>¤¤t¢‘<>¤t tW0·tl1l1`1`<>l>¤l>lY l>€·
` . · . · · . · e ·—' ~· - · lcntas
· , R. are illusti ated in the followm charts. _ °"'“° ‘“‘“* ‘“t‘“l*l’°‘“ *
`ijntuckllt g T°*°l Pg§$;°;x?H_E*P°"’°$· agricultural technology devel-
3 0V€ tlt  . I `°" .· i l ;.· fa· 'ir l ·comcs
S in form VALUE OF FARM PRODUCTS SOLD, KENTUCKY, 1953 V {mgmt, 138%/ mm T0 nmfarm Iandlmhn ;:E;w11;§w;;'1]hggu 5, in
° other production expenses. ‘ ‘ * '
c Of about _ CASH RECEIPTS FROM _
FARM MAm L...,.i..EEL lE1"it3%‘§,T ` °   FARMERS. 1958
~ .   '; lue added in nrocess-
>8 totaled 9 . , _ _ vALuz ADDED ro THE rkooucrs I- \ 1 1
l l l t DSCIOP? accounted {01 $250 SOLD BY KENTUCKY FARMERSI l958 ing and distributing products
eVe , ,3ll · million Ol 45 percent of the (MiLLlON DOLLARS) wld IW Kmtucky I·8u.mc,l.S In
l PhYS1C*ll » Ether Tooocco fowl Cash l`€`°€ll°fS from farm` H)58 amounted to approxi-
Qon dollars ` 'ggs l92 mg Inatelv $880 million}
$1 by CDD A 3 Tobacco the ma' · o · 4 ° -‘   ·—
» ‘ · = r lOl _, Many types ol busrntsscs
too Om Lv 8 K source of farm income in _ _ tnnploying thousands ol peo-
torm sup-  I cmreund °'4`7°s°° K<>¤t¤¢l<>¤ R¢¤<>¤Rt¢ , 1
I the eC01l· $548 Million inn).
llllllllg, illltl D T? I I fb d 1 d d b .l_ l’,IlsIlIIIIr·sse~ ilt**lll‘Lldllll“"lLll “—"· lllll
, _ . ietota votnne o usiness associate witi processing an istri uting Ken- I .· .     .·  Ia, I 8,,
' TOl)(1C(() tllcky ftlflll Dl‘0(lUCtS 2lI](l Wltl] K€Htl1Cl(y ftl.I'1]] Sllpply ])l11"Cl17lSCS is 1lUt H€C€SSt`lI`lly Total Vqlug Added, ill] ltuhlul lull l lu T:} V llvwlr  
II-Ig Plants. mcomc to Kentucky pcoplc. Many Kcntncky farm commodities arc transported to 8880 MIIIIo,, \i]]l1~t1TiLl1'l‘lt"t‘ as nits. pi Iplrnr-  
.· other areas for processing and supplies purchased by farmers are manufactured in I
pelld up01l V other areas. However, agricultural products from other states are shipped to Ken- —-—— _ I- I . . I .18.)] , II; I_.I. an ,. . s ~.-lim. II I
_h business ` ll‘°l¤1_<>f $1,807
(MILLION DOLLARS) million in business in 1958.
2. Cash receipts from farm
marketings of $548 million
represented about 30 percent `
pcm F°""S:f:s°"°l of the total volume of busi-
P'°°“°"°" 548 ness related to agriculture. _, _,
Expenses V 1 —
379 8. Farm production ex-  
penses amounted to $379 mil-  
_ lion in 1958—nearly 69 per- " A 4
Processing und Distrlbulion Cent Of the Value Of farm ‘  Vi
seo _ , ale
products sold. .., V-_. .
4. Kentucky farm products `····;r`£,
serve as raw materials for
nearly $900 million in busi-
  rft. tl 1-. . rl. .
Total Business Related to ?L5S _ I er my UWC te r` ·
Agriculture, $1,807 Million ‘u`m$· it
'l`he facts given above point out that with the relative decline {
in the farm population and the growth of total agricultural pro-  
duction. a large expansion in business related to agriculture has _ V  
been n·qun·r—d to provitle farmers with supplies and to process  
and distribute farm commodities to consumers.  
ltecent population studies indicate that the total population  
of this country may be as high as 225 million persons by 1975.  
The farm population will likely continue to decline as technology .
develops and farmers seek to obtain more cilicient means and .
units of production. To meet increased needs, total agricultural
production will need to expand in future years. Recent U. S. De- ,_€Xi,,gm,,_ Kentucky l
purtrnent ol Agriculture estimates indicate the need for agricul- gggegggge I§>;f§Ij;%;’“‘{§I§i*§;;_;{g,*jYéE;*%*;;ju¤;g$¤;‘H§Ig:l¤ g>;»¤g·;ii@Sé <é<;;;g¤I3>;pj1¤&E°;g‘;f;i
tural pl.0(h`(,tS Inu), Cxpund   as lunch as   percent by   gfgrgéliiltgirghdcrgplpnegesénib14·Fan . ecb, Director, Issued in furtherance of I. e ~ V
Issued G—59—5M; rev. 7-60-lim
NIVER!
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