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New business models
Another characteristic of the new agricultural industry is new business models. Agriculture was built on a commitment to independence—farmers who made independent decisions about what to do and what not to do. Now, we're increasingly changing the business model to an interdependent one through contract production, qualified suppliers and food supply chains. Of all the changes in agriculture, these new ways of doing business are probably the most controversial because they challenge the fundamental value of independence—of choosing what we do and with whom we do business.
Performance assessments
We're also changing the way we measure success and determine what is both individually and socially acceptable. Previously, farmers competed primarily on a cost basis—being the low-cost producer. In modern agriculture, farmers not only have to compete on cost, but on quality and speed as well. Modern farmers also are more environmentally responsive and committed to their communities. They understand that being a successful farmer is more than just the bottom line on a profit-and-loss statement.
What is farming today and tomorrow? It's biological manufacturing of specific-attribute raw materials for the nutrition, industrial and pharmaceutical markets.
How do we do it? We use processes and procedures that permit traceability from genetics to the end-use market, whether it's food or other products.
How do we compete? By being better, faster and cheaper.
Related link:
Department of Agricultural Economics
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