Production agriculture is what we commonly call farming. Traditional farming includes the commodities such as wheat, corn and cotton, but it also includes the wide variety of fresh fruit, vegetables, nuts and hay. Most of these products have a current price and a futures price set daily by a worldwide bidding process, but some are negotiated between seller and buyer as needed.
Producers at the production level (farmers) that grow commodities such as wheat and corn, seldom give much thought to competition and marketing. Because there is an established price that reflects world demand individual marketing programs have limited usefulness. Commodities producers focus their concerns with weather, insects, production operations and price.
It may be a bit simplistic, but we consider anything beyond the production stage as value-added agriculture. This would include storage, shipping, cleaning, packaging, processing, wholesaling, retailing or anything else that ads value. This can also be called Ag processing and/or agribusiness. Feeding hay, silage and grain to livestock to produce meat is technically a value-adding process although most producers probably wouldn’t think of it that way.
Agriculture Support Products and Services
Crops are not grown and processed without a host of support activities that augment the process of bringing the finished products to the consumers. The list is much too long and varied to define. These supporting activities are also lumped into the broad term of agribusiness. Herbicide manufacturers, custom spray services, and companies that produce shipping boxes all add value to the agriculture products before they get to the family table.