Downloaded 258 times
Uploaded byDebbie-Ann Hall
Technology and agriculture
This document discusses how technological innovations in agriculture impact supply and prices. It provides examples of major advancements like mechanization, fertilizers, and biotechnology. Technology allows farmers to increase supply by producing more with the same inputs. While demand for food is inelastic, supply becomes more elastic over time. New technologies can initially increase total revenue but eventually farmers must adopt them to remain competitive, trapping them on a "technological treadmill" where profits decline. Emerging biotechnologies may change agricultural marketing systems and create opportunities for new crop types.
More Related Content
Similar to Technology and agriculture
Technology and agriculture
- 1. Technology and Agriculture Economic Impactsof Advancing Technology
- 2. How does technologicalinnovation impact agriculture? Major Technological Advancements in Agriculture Mechanization Chemical Fertilizers Hybridization Biotechnology
- 3. Technology Impactsthe Supply of Agricultural Products Supply Shifters Prices of Related Goods Corn – Soybeans Cattle -- Leather Price of Inputs Technology – Allows a farmer to produce more with a given level of inputs How does technological innovation impact agriculture?
- 4. How does technologicalinnovation impact agriculture? What Does that Supply Shift Look Like? Supply Price Quantity Supply1 Original Price Q Q1
- 5. Supply and DemandElasticities Demand Elasticity for Agricultural Products Inelastic Demand, Why? What does that mean for the producer?Demand for Food (Necessity) Inelastic Price Quantity Demand for Luxury Automobiles Elastic
- 6. Supply and DemandElasticities Supply Elasticity for Agricultural Products Short Run Intermediate Run Long Run Supply - Short Run Price Quantity Supply - Intermediate Run Supply - Long Run
- 7. New Technologies inthe Livestock Industry Artificial Insemination Sexed Semen The ability to choose the sex of the offspring Why Beef Cattle? Why Dairy Cattle?
- 8. New Technologies inthe Livestock Industry Cloning The ability to make an exact duplicate animal with the same genetic makeup DollyDolly?
- 9. The Case forBeef Cattle Supply of Beef Demand for Beef Price of Beef Quantity of Beef Supply1 of Beef Original Price New Price
- 10. What about themarket for Steers? Supply of Steers Demand for Steers Price Steers Quantity Steers New Supply of Steers
- 11. Nutrient Requirements forHeifers and Steers 0 10 20 30 40 50 60 550 1200 ThousandsofMCalariesrequiredtoreachliveweight Steers Heifers
- 12. And the marketfor Heifers? Supply of Heifers Demand for Heifers Price of Heifers Quantity New Supply of Heifers
- 13. Price Differential BetweenSteer and Heifer Calves 0 20 40 60 80 100 120 74 80 86 92 Year $percwt. Heifers Steers
- 14. Price Quantity The Technological TreadmillTheory Supply Demand How does technology affect the total revenue of the farmer over time?
- 15. The Technological TreadmillTheory Supply Demand Price Quantity When supply increases from the technological change, what happens to Total Revenue? Total Revenue = Price * Quantity P Q TR
- 16. The Technological TreadmillTheory Supply Demand Price Quantity S 1 Supply has increased and Total Revenue changes from the tan box to the blue box. New Total Revenue = Price1 * Quantity1 P P1 Q Q1 TR1
- 17. The Technological TreadmillTheory Supply Demand Price Quantity S 1 The red shaded region is a loss in total revenue and the green shaded region is the gain. Since the loss is larger than the gain Total Revenue has gone down. P P1 Q Q1 Loss G A I N
- 18. The Technological TreadmillTheory Supply Demand Price Quantity S 1 Why does this happen? Inelastic demand of agricultural commodities.P P1 Q Q1 Loss G A I N
- 19. Emerging Technologies inProduction Agriculture Over the Last Decade First Generation Technologies Biotechnologies that have made it to market Flavr SavrTM Tomatoes in 1994 Bt Cotton Roundup Ready Soybeans Second Generation Technologies
- 20. Biotechnology and theAgricultural Marketing System How is the marketing system going to handle new products that used to be just commodities? Commodity Value Added Product
- 21. Other Potential ImpactsFrom Biotechnology in Agriculture This impact on the marketing system could create opportunities for other products as well. Non-Traditional Crops Organic Crops Heritage Crops and Livestock