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Abstract

Agriculture has played a major role in the development of the U.S. economy. Substantial product flows occur between production agriculture and the rest of the food and fiber system. These interrelationships with the rest of the food and fiber system increase as more services are performed on the commodities that leave the farm gate and as more inputs are purchased. The value added to the flow of farm products as they move through the food and fiber system accounts for 20 percent of GNP and requires the services of 22 percent of the labor force. An increase in the final demand for food and fiber products has a considerable impact on the economy. One billion dollars of additional exports in 1979, for instance, would have generated nearly $2 billion in economic activity and required the services of 35,000 workers in the food and fiber system.

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