Two
significant trends occurring in the agricultural
sector during the past century involved the increased
use of machines and government price supports.
These factors combined to encourage operators
to increase the size of their farms and gain efficiencies.
The purchase of farm inputs, such
as machinery, required an increasing amount of
capital and fewer individuals were willing or
able to take on the debt necessary to farm. Large
cash outlays for farm equipment increased specialization,
and operators began producing larger quantities
of a limited number of products. As a result, fewer farms were needed to meet
the demand for agricultural products and a pronounced
structural change in the agricultural sector
took place. The market value of agricultural
production became concentrated on fewer and
fewer farms. Total farm and ranch acreage increased
steadily during the first half of the 20th century,
due in large part to development in the Great
Plains and Far West where land policy encouraged
continued conversion of large tracts of arid government
lands to agricultural uses. Acreage declined later
in the century, when increased production was
achieved through efficiency rather than through
additional acreage. |