Many people think of agriculture as the farmers and producers who produce the crops or raise livestock. However, there are many more persons involved in agriculture than farmers. These groups make up the allied industries.

On average, for every dollar we spend on food in the U.S., only $0.20 pays the farmer; the remaining $0.80 pays for value-added processes such as labor, packaging, transportation, and advertising.

When a farm is struck by disaster, the impact is much greater than the losses to farmers and producers alone. Based on the distribution of the expenditure on food, it is estimated that for every dollar lost in disasters by a farmer, the allied industries lose an additional four dollars, on average.

Therefore when disaster strikes agriculture we all bear the costs. Many of us as consumers bear some of the disaster losses in the form of higher priced food (if disasters are large enough to significantly reduce food supply)and potentially higher taxes or premiums as government programs and insurance company claims are utilized to assist producers in their disaster recovery. Throughout this course you will learn how producers can act to minimize these losses and effects.