Input Sector
What does the Input sector do?
provide supplies, seeds, and machinery to farmers
what does the Production sector do?
Farming, livestock, and forestry stuff
what does the processing/manufacturing sector do?
convert raw goods into consumer products
This term refers to any essential item used to produce goods, such as seeds, fertilizer, or fuel.
inputs
This factor of production includes the physical effort, skills, and knowledge that workers bring to the production process.
Human Capital (or Labor)
This sector takes raw agricultural commodities and changes them into food, fiber, or fuel.
processing and manufacturing sector
This type of input, often derived from natural gas, is crucial for improving crop yields but experienced significant price volatility in 2022.
fertilizer
Natural resources that are used to produce goods, such as timber, sand, or iron ore, fall under this category.
land
This term refers to when one company owns multiple stages of the production chain, such as a meatpacker owning the feedlot
vertical integration
In agriculture, this "non-human" labor input represents the machinery and tools, such as tractors and drones, used in production.
capital
The tools, machinery, factories, and buildings used to produce goods are classified as this factor of production.
Capital
This type of food processing involves the deliberate,Often, physical, biological, or chemical manipulation of produce to extend shelf life.
preservation
Contracts that require farmers to purchase inputs exclusively from one supplier are known by this term.
tied-selling or exclusive contracts
This factor involves the risk-taking, innovation, and management skills required to organize the other three factors.
Entrepreneurship
Modern processing has increased the length and complexity of this, which tracks products from raw material to retail.
the food supply chain