Unit 1 Introduction to Agribusiness
Materials List:
- PowerPoint
- Handouts
- Notebooks
- Activities have materials listed in the context
Objectives:
· 1.1 The student will be able to define terms relating to an introduction in agribusiness.
· 1.2 The student will be able to describe the meaning and importance of agribusiness.
· 1.3 The student will be able to examine the relationship of agribusiness to free enterprise.
· 1.4 The student will be able to identify and distinguish ways of doing business
Key Terms:
· Agribusiness
· Agribusiness Sector
· Cooperative
· Corporation
· Economic System
· Entrepreneur
· Free enterprise
· Limited Liability Company (LLC)
· Marketing
· Partnership
· Production
· Sole Proprietorship
Reasons to Learn:
· To define terms relating to an introduction in agribusiness.
· To describe the meaning and importance of agribusiness.
· To examine the relationship of agribusiness to free enterprise.
· To identify and distinguish ways of doing business
Questions to Answer:
· What are the terms relating to an introduction in agribusiness?
· What is the meaning and importance of agribusiness?
· What is the relationship of agribusiness to free enterprise?
· What are the ways of doing business?
Answers to Questions:
· What are the terms relating to an introduction in agribusiness?
- Objective 1.1 The student will be able to define terms relating to an introduction in agribusiness.
How do you define agribusiness?”
· Write in your notebook your definition of agribusiness.
· Turn to your neighbor and discuss answers. (Write your neighbors name down in your book)
· Write two things about your neighbor’s definition that you did not think about.
· Words that might have come to might could include: business, manufacturing, related support, industry, production, systems, linkage, consumers, distribution, education, and training.
The definition we will be using states that agribusiness is all of the economic activity of the agricultural industry in producing food and fiber.
1. Agribusiness - all of the economic activity of the agricultural industry in producing food and fiber
2. Agribusiness Sector - a division or area of economic activity within agribusiness, including production, input, and marketing
3. Cooperative - a not-for-profit business association designed to provide goods and/or services for members
4. Corporation- an artificial entity created under state law to conduct business and owned by shareholders who buy stock
5. Economic System - the way goods and services are owned, created, and exchanged
6. Entrepreneur - a person who organizes and operates a business to meet a market need
7. Free enterprise - an economic system in which individuals make decisions, own property, and establish prices based on market forces
8. Input - a resource that is used to produce a product
9. Limited Liability Company (LLC) - an unincorporated partnership that has limited liability for owners
10. Marketing - providing products and services that people want at a time and place they want them
11. Partnership - a type of business owned by two or more individuals
12. Production - creating a product or service that meets a human or business need
13. Sole Proprietorship - a business enterprise owned by one individual
· What is the meaning and importance of agribusiness?
- Objective 1.2 The student will be able to describe the meaning and importance of agribusiness
§ 1.2.1 Discuss the meaning and importance of agribusiness
§ 1.2.2 List and explain the agribusiness sectors, including production, input, and marketing
§ 1.2.4 List career opportunities in agribusiness in the local community.
- How many of you are involved in agriculture everyday? How many of you wear clothes, eat everyday or live in some type of a shelter? Yes, we all do! Because of that fact we are all involved in agriculture on a daily basis, you just may never have realized this before! Agriculture provides the food and fiber for the clothes we wear and the homes we live in. Everyone is affected by agriculture everyday! Keep this in mind that we promote the agriculture industry in everything that we do!
- Distribute blank copy paper and crayons, markers etc. and work through the following instructions with the students.
- Divide your paper into quarters with your writing utensil. In the top left quarter draw something that represents production agriculture to you.
- Students should draw their object.
- Label this section of your paper as ‘Production Agriculture.’ What percentage of the U.S. working population is involved in production agriculture?
- While many students will over exaggerate the numbers directly involved in agriculture. Keep students guessing until they eventually get to less than 2%. Have students write 2% in this quarter to remind them of the number of people in this sector of the profession.
- What happens after agriculture products are produced? Where do the products go from there?
- Get students to discuss that the next step in the production phases is to distribute the product.
- In your second quartile, draw an icon that represents distribution next in top right corner and label it ‘distribution.’
- Discuss the different icons that people drew to represent the distribution sector of the agriculture industry.
- After the agriculture product gets distributed, what happens next? Students should hopefully say that the agriculture products are then processed or manufactured somewhere.
- Agriculture products are further processed. Who can give me an example of this? Draw a representation of processing next in the bottom left corner and label it ‘Agriculture Processing.’
- We are still missing one gigantic sector of the agriculture industry that supports production, distribution and processing of our agriculture products. What are we leaving out that is integral in every other sector? What do producers need to be successful? What do distributors; processors and consumers need to be successful? What do producers need to grow their crops or raise their livestock? Can you imagine what this is?
- Try leading questions if necessary to get students to say that they we are missing a key component called Ag Businesses.
- From an equipment dealer to seed salesman to a mechanic to and a banker to finance equipment purchases, all of these are important Ag Businesses. Draw a representation of an ag business in the last quadrant.
- Is the number of employees in agriculture increasing above 2% yet? Of course it is and we aren’t done yet! Don’t forget distribution happens many times in this chain. We are now going to return to the drawings and list all of the possible agriculture business that impacts these sectors of the agriculture industry. When I say go take 5 minutes and come up with as many agriculture businesses as you can in each sector and write them on your drawing. Any questions? Go.
- When they are finished have them, proceed around the room and have students share what they came up with. Have students record any they don’t have until they are all recorded on their drawings. .
- What percent of the workforce do you think works in agriculture now? 1 out of every 5 workers is employed in an agricultural field. One in five! This is a huge impact! This is exactly what the FFA Creed says when they discuss ‘other agriculture pursuits!’Based upon your knowledge of the sectors of agriculture, do you feel that the production sector any less important than it was 100 years ago?
- While you may get several different responses from students, remind them that without production agriculture, all other sectors, and even our societies, as we know it would cease to exist. Production agriculture is more important today than ever before.
- Using what you know now, partner up and write a clear definition that encompasses all areas of agriculture. You have about 2 minutes to complete this task. This definition should be recorded in your notebooks. Go!
- Make sure everyone has the definition recorded in the notebooks. Since we are focusing on ag business emphasize the majority of agriculture jobs are in the ag business industry.
- We know now that agriculture has a lot of components. If you could be involved in any phase of the agriculture business industry, which would it be?
- To illustrate the point, we are going to focus on the product of agriculture – FOOD! If you had to choose and aspect of food, other than eating, that you might be interested in pursuing as a career, what would it be? Would it be production, management, processing, marketing or even a support area like distribution?
- Let’s take a look at a food item that all of you know and love! The item of food I want you to think about is a Big Mac from McDonald’s. That burger has two all beef patties, special sauce, lettuce, cheese, pickles, onions, and a sesame seed bun. In your group of three identify as many different processes that must occur for each item on a Big Mac to make it from the farm to the consumer. Complete this assignment in two sections. First, brainstorm a list of processes for each item before it gets to the consumer. Second, use your poster paper and markers to draw a visual for one of the items.
- Teacher Says: You have ten minutes to complete this task and one member of your group will need to share an overview of your poster. Any questions? Go. Take this opportunity to remind students of any processes that they have left out.
- After students have completed their posters, have them share with the group. After they are done, have students select which of the sectors they are most interested in.
- Now that you thoroughly understand the phases of the agriculture business, which would you most likely take a part in? Is it production? Distribution? Processing? Another type of agriculture business that supports these industries? Record which one you would like to participate in and list why in your student notebook.
o Write down the answers to the following questions in your notebook.
- What are the four sectors of agriculture?
- Why is agriculture business a good career choice?
- So is it true that people say only 2% of our population is involved in agriculture? Yes or no? Why? Remember – agriculture businesses have huge impacts on the agriculture industry.
- If you want to be involved in agriculture, there is a supporting agriculture business for each phase of the production cycle. Great job today! We are going to have a quick evaluation assessment to test your knowledge of these four sectors of the agriculture industry.
· What is the relationship of agribusiness to free enterprise?
- Objective 1.3 Examine the relationship of agribusiness to free enterprise
§ 1.3.1 List and distinguish kinds of economic systems.
- DEFINING ECONOMICS
Preparation:
- 7 large markers
- 7 large pieces of different colored paper (approximately poster size) taped equal distances apart around the room with the following phrases (all part of the definition of economics) written and hung in the order below (one phrase per piece of paper).
- The papers are folded up from the bottom and taped so the words are not revealed at first.
- “Social science”, “concerned with the way society chooses”, “to employ its limited resources”, “which have alternative uses”, “to produce goods and services”, “for present and future”“consumption”
- Pass out the markers to students and ask students to get in seven equally divided small groups (or have them number off).
- Each group chooses one of the posters and stands by it.
- Ask each group of students to unfold their poster in turn and read it.
- Explain they are each looking at a “part” of the definition of economics.
- Ask them to brainstorm what their word or phrase means and how it relates to what they know about the word “economics.” Ask one student to act as “scribe” and record the group’s ideas on the poster under the word/phrase. Assign a set number of minutes to accomplish this task.
- When the students are done brainstorming explain that when you say “rotate” they should move to the next poster.
- Have them brainstorm again and add any comments to those already written on the poster. (Walk around and monitor to help jump-start groups that appear stumped.)
- After a few minutes announce “rotate” and have the students do another brainstorm. Repeat this process until all groups have been to every poster.
- Next ask the class to gather around the “Social Science” poster.
- Discuss students’ ideas written on the poster. Ask them to explain their ideas.
- Discussion might center on how “hard” sciences, such as physics or chemistry, differ from “soft” sciences, such as sociology or economics. The “hard sciences” tend to deal with the structure and behavior of inanimate objects, while the “soft sciences” involve the observation of the behavior of human beings.
- Write definitions on the board of unfamiliar words they will encounter or that you plan to use and discuss these definitions with students before beginning the lesson.
- Move through the remaining posters, asking students to gather around each poster as it is being discussed. Review students’ topics first and then steer the discussion to the ideas that follow for each word or phrase.
o “concerned with the way society chooses” – Center discussion on the word “chooses.” Explain how economics and the economy do not operate by natural forces, like the weather. There are choices to be made in how the economy operates People make these choices.