Agricultural
Economics

Top Oklahoma Commodities by Value
- Oklahoma has 85,000 farms and ranches. The average size of
a farm in Oklahoma is 400 acres, but there are many 5,000-acre
farms and ranches and some that are much smaller. About 73
percent of the state's 45 million acres of land is used for
farming and ranching.
- Besides climate and soil type, the kind of agriculture found
in Oklahoma depends on the availability of markets, storage
and transportation. Two interstate highways cross our state,
providing a means of transporting some of our agricultural
products. The Port of Catoosa near Tulsa connects Oklahoma
with the Mississippi River, which carries agricultural products
across the nation and to the Gulf of Mexico. From there they
can be shipped all around the world.
- On average, 24 cents
of every dollar you spend at the grocery store goes to the farmer
who produced it. The other 76 cents covers marketing, processing,
wholesaling, distributing and retailing expenses.
- People living in the US pay a smaller percentage of their
incomes for food than anyone else in the world.
- It takes the average American 40 days out of the year to pay
for all the food he/she eats in a year.
- The price of food is affected by a variety of reasons, including
the distance it traveled, the weather, the amount available
on the market, how much people are willing to pay, and governmental
relations
(trade agreements).
- Some products are sold according to weight, some according
to volume and some by the piece.
- The food we buy in the grocery store travels an average 1,300
miles from the farm to our tables.
- Most farmers and ranchers sell their products to collection
points, such as grain or produce terminals or stockyards. The
terminal or stockyard sells to processing companies, which
process and package the products we buy at the grocery store.
From the final processor, finished food products are moved
by truck or rail to warehouses, which usually are located near
a city. Most modern warehouses have storage areas for frozen
and refrigerated food and are equipped to control temperature
and humidity.
- Warehouses can assemble full truckloads of products originating
from many different suppliers for shipment to one large retailer
or to many smaller outlets in a given region. This process
reduces transportation costs when compared to shipping a small
quantity of one item directly from the producer to the retailer.
If the retail outlet is large enough to accept complete truckloads
directly from the manufacturer, direct shipments from the factory
are sometimes made.
- Processors of perishable foods (dairies, ice cream manufactureres,
wholesale bread bakeries, meat packers) usually maintain their
own fleets of trucks for carrying fresh products directly to
their retail customers.
- Fresh produce is distributed through terminal markets, wholesalers
or food cooperatives. A terminal market is a central market,
generally located in a major city, where several brokers, wholesalers,
distributors and/or jobbers are grouped together. Produce from
several production regions is assembled and shipped to grocery
stores, restaurants and chain store warehouses. The market
may be owned by the state, city or provate companies. Terminal
markets for Oklahoma are in Dallas, Kansas City, Denver and
Houston.
- A wholesaler is an individual or business firm which buys
large quantities of produce from a grower or another dealer
for resale and distribution. The wholesaler may sell to a retail
store, an institutional buyer or to another wholesaler. Wholesalers
differ from brokers because they take delivery and assume ownership
of the produce.
- A broker is an individual or firm which acts as an agent
for the buyer or seller in negotiating a contract. The broker
does not assume title of the produce but facilitates agreements
between buyers and sellers. In Oklahoma, watermelon growers
sometimes rely upon brokers to find buyers for their melons.
- Cooperative and private packing facilities are organized
by growers or other individuals to construct marketing facilities
to achieve marketing efficiency through greater total volume.
Cooperatives are often organized where there is a concentration
of small to mid-sized growers of one or several related crops
in one area.
- Clarence Saunders opened the first self-service grocery store
in Memphis, Tennessee, in 1916. Goods were sold in packages
and were organized into departments.
- Sylvan Goldman and his brother were some of the first grocers
to open self-service grocery stores in Oklahoma. Goldman is
known as the inventor of the shopping cart.
- A supermarket is a large, self-service food store, usually
selling more than $2 million worth of products a year from
at least 20,000 square feet of floore area. Today there are
more than 150,000 supermarkets in the US, offering over 26,000
different foods. Most supermarkets carry between 9,000 and
12,000 items.
- The automated twist tie machine was invented in 1961 by Earl
Burford of Maysville, Oklahoma, and was first used at the Rainbow
Bakery in Oklahoma City.
- Milling was an important industry in the early years of statehood.
In 1910 the flour milling industry was by far the most productive.
There were 295 plants and 842 workers. Total sales were $19
million of the state's $53 million industrial output.
- Commercial river navigation on the Arkansas River in Oklahoma
got its start in 1824. The Florence was the first steamboat
to navigate the river to Fort Gibson. Steamships carried people
and agricultural commodities from 22 landings along the Arkansas
in Indian Territory into the commerce of the Mississippi River
Valley and on to New Orleans.
- The McClellan-Kerr Arkansas River Navigation System provides
an important transportation link for agriculture. The system
is 445 miles long with 18 locks and dams. It creates
a staircase on the Arkansas
from the Mississippi River to the Port of Catoosa
near Tulsa. From 1971 to 1990 an average of 7.6 million tons
of commerce was carried on the system. Cargo includes chemical
fertilizers, wheat, soybeans and other agricultural products.
- International trade is defined as the exchange of goods and
service across international boundaries or territories. This
trade represents a significant share of the Gross Domestic
Product (GDP) for most countries.
- The US exports agricultural products to countries that can't
grow crops and livestock as efficiently as American farmers
or can't grow them at all, due to lack of space, viable soil
or climate restrictions. The US also imports products from
countries that produce different, less expensive or better
quality goods.
- In domestic trade, goods may move freely from one part of
the nation to another. In international trade governments often
place artificial barriers against the gree movement of goods
from one country to another. Several organizations, policies,
and/or agreements maintain and control fair trading between
the US and other countries.
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Agricultural
Economics Lessons
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Oklahoma Ag in the Classroom

Oklahoma Ag in the Classroom is a program of the Oklahoma Cooperative
Extension Service, the Oklahoma Department of Agriculture, Food and
Forestry and the Oklahoma State Department of Education.
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