Economic Report of the President

proportion of the existing farms produced most of the Nation's foodand fiber. In 1940, when there were more than six million farms, thelargest 2 percent accounted for about 25 percent of all sales. By 1980less than half as many large farms accounted for nearly 40 percent ofall sales.EXPANDING AGRICULTURAL EXPORTSPerhaps the most significant change in American agriculture duringthe seventies, however, was the huge expansion in exports. Grain exportstripled in volume, while the dollar value of all agricultural exportsincreased nearly sixfold. But this growth in value and volumecame with increased volatility in prices and production.The present competitive advantage of U.S. agriculture is impressive.In the 1960s, exports represented 14 percent of total farm cashreceipts; in 1980, cash receipts from exports represented nearly 30percent of the total (Table 12). To accommodate the increase inexport volume, the amount of land devoted to the production ofcrops for export nearly doubled. Transport systems and storage facilitieshave been pushed to their limits at times. Nonetheless, agriculturalexports have not increased their share of total U.S. exports.Since the end of World War II, agriculture's share of total exportshas remained at approximately 20 percent.TABLE 12.— The role of agricultural exports, 1930-80[Calendar years]1980 2 40,50019.3Agricultural exportsPeriodValue(millions ofAs percent ofdollars) 1 all exports1930-3978530.61940-491950-59 ...2,2943,59322.522.31960-691970-79 ..5,86419,66821.620.5197619771978197922,99723,63629,38434,74520.319.920.819.51 F.a.s. (free alongside ship) value.2 Estimates.Sources: Department of Agriculture and Council of Economic Advisers.As percent offarm cashreceiptsThe increased importance of exports, coupled with the disappearanceof surplus grain stocks and nearly full use of the cropland base,has exposed U.S. farmers and consumers to an unaccustomed degreeof instability in commodity prices. Part of this instability comes aboutbecause of unpredictable world weather, but much of it has been theresult of our own policies and those of our trading partners.10.510.711.413.922.124.124.225.426.229.1117