losing the family farm callie rogers jordan holmes ashley bunch

Losing the Family FarmLosing the Family Farm

Callie Rogers Callie Rogers

Jordan HolmesJordan Holmes

Ashley BunchAshley Bunch

Family FarmFamily Farm Industrial FarmIndustrial Farm

What is a Family FarmWhat is a Family Farm

2.4% of population2.4% of population Family owns most of landFamily owns most of land Majority of labor is from familyMajority of labor is from family Open Market SystemOpen Market System Typically managed within the familyTypically managed within the family

The FactsThe Facts

Losing the FarmLosing the Farm

Number of farms Number of farms decreasing while decreasing while acreage increasingacreage increasing Decline from 7 million Decline from 7 million

farms to 2 million over farms to 2 million over 70 years70 years

750, 000 farms lost 750, 000 farms lost since 1981since 1981 Translates to 1 million Translates to 1 million

lost jobslost jobs


Rate of self-Rate of self-employment in employment in agriculture agriculture decreasingdecreasing


GNP rose 40 fold, Private Domestic GNP rose 40 fold, Private Domestic Product fell from 35% to 5.8%Product fell from 35% to 5.8%

2 ½% of nations total farms account for 2 ½% of nations total farms account for 40% of crop market40% of crop market

Farmers comprise 2% of work forceFarmers comprise 2% of work force 21% of workforce in the 1930s21% of workforce in the 1930s

Over half of family farms have an off farm Over half of family farms have an off farm incomeincome

Why This is Why This is HappeningHappening

Why the Trend?Why the Trend?

Financial IncentivesFinancial Incentives Farm program Farm program

benefits favor larger benefits favor larger farmsfarms

Tax RulesTax Rules Lack of access to Lack of access to

marketsmarkets


LegislationLegislation 1985 “Economic Emergency” Loans 1985 “Economic Emergency” Loans

Due to farm debt crisisDue to farm debt crisis Loaned to big investorsLoaned to big investors Many not collectedMany not collected

1987 Proposal to cut Agricultural Spending1987 Proposal to cut Agricultural Spending 1990 Farm Bill1990 Farm Bill

Raise land requirements for paymentRaise land requirements for payment


Unable to attract new investorsUnable to attract new investors Average age of farmer risen to 54Average age of farmer risen to 54 Initial costs around $200,000Initial costs around $200,000 Inflation of land priceInflation of land price Equipment costsEquipment costs

Costs on the RiseCosts on the Rise


Industrialization Industrialization Vertically IntegratedVertically Integrated

Corporations involved in more than one step of Corporations involved in more than one step of productionproduction

Cargill, ConAgraCargill, ConAgra

Trend toward “bigness” Trend toward “bigness” Large field equipment usedLarge field equipment used Large acreageLarge acreage


Income offset by inflationIncome offset by inflation Nominal net income growth is extremely low Nominal net income growth is extremely low

when inflation is adjustedwhen inflation is adjusted In 1983, nominal net income of farmers was In 1983, nominal net income of farmers was

equal to that of the Great Depressionequal to that of the Great Depression

Effects of inflationEffects of inflation

http://agecon.tamu.edu/faculty/capps/30

•In 1980 a farmer received $.37 of every consumer dollar spent on food

•Today a farmer receives $.20 of every consumer dollar spent on food

http://agecon.tamu.edu/faculty/capps/30


New GenerationNew Generation Selling off of family farmSelling off of family farm Trend to move from rural area to cityTrend to move from rural area to city


Family Farmer MentalityFamily Farmer Mentality ““Non-instinct for self preservation”Non-instinct for self preservation” Concentration on individual farms rather Concentration on individual farms rather

than industry as a wholethan industry as a whole Tax concessionsTax concessions

The Importance of The Importance of the Family Farmthe Family Farm

The Importance of the The Importance of the Family FarmFamily Farm

Job OpportunitiesJob Opportunities Large corporations create 9.44 jobs, Large corporations create 9.44 jobs,

displace 27.97displace 27.97

Productivity between large and small Productivity between large and small farms comparablefarms comparable

Possible Conservation opportunityPossible Conservation opportunity Thought that family farmers might preserve Thought that family farmers might preserve

land for future generationsland for future generations


Importance to Rural CommunitiesImportance to Rural Communities EconomicEconomic

Buy supplies from local vendorsBuy supplies from local vendors Sell to local marketSell to local market Large number of communities depend on farmingLarge number of communities depend on farming

Majority of counties in Dakotas, Iowa, Minnesota, Majority of counties in Dakotas, Iowa, Minnesota, Nebraska and Kansas (277 counties) depend on Nebraska and Kansas (277 counties) depend on farmingfarming

Decrease in farming has led to increased povertyDecrease in farming has led to increased poverty

Reduction in the middle classReduction in the middle class


Importance to Rural Communities Importance to Rural Communities Social ConditionsSocial Conditions

Better quality of life Better quality of life Decrease in crimeDecrease in crime Better education Better education Stronger Emphasis on familyStronger Emphasis on family


““Small family farms are at least as efficient Small family farms are at least as efficient as larger operations. In fact, there is as larger operations. In fact, there is evidence of diseconomies of scale as evidence of diseconomies of scale as farm size increase.”farm size increase.”

--Willis Peterson, University of Minnesota --Willis Peterson, University of Minnesota analystanalyst

Productivity of Large vs. Small FarmsProductivity of Large vs. Small Farms

The Importance of the The Importance of the Family FarmsFamily Farms

Methods for Better Methods for Better Productivity on Small Productivity on Small FarmsFarms Crop DiversificationCrop Diversification Border CroppingBorder Cropping

Major crop in fieldsMajor crop in fields Minor crop on bordersMinor crop on borders

SequentialSequential Short duration crops Short duration crops

grown in between treesgrown in between trees Crop RotationCrop Rotation

Vary use of the landVary use of the land

The Importance of the The Importance of the Family FarmFamily Farm Methods used on Methods used on

large farmslarge farms MonocultureMonoculture

Same crop grown all Same crop grown all seasonsseasons


Problems of monoculture systemsProblems of monoculture systems Empty “niche” spacesEmpty “niche” spaces

Prone to weed infestationProne to weed infestation Prone to soil erosionProne to soil erosion InefficientInefficient


Productivity of Large vs. Small FarmsProductivity of Large vs. Small Farms Total Output vs. YieldTotal Output vs. Yield

Why the productivity of large and small farms are Why the productivity of large and small farms are comparablecomparable

Yield per unit area of one crop greater in Yield per unit area of one crop greater in large farmslarge farms

Total yield per unit area usually greater in Total yield per unit area usually greater in small farmssmall farms

Yield Per Unit AreaYield Per Unit Area

http://soilfertility.unl.edu/Materials%20to%20include/2002%20Understanding%20and%20managing%20corn%20yield%20potential-Dobermann.pdf

Median FarmMedian FarmSize Category Size Category

(Acres)(Acres)

Average Gross OutputAverage Gross Output($/Acre)($/Acre)

Average Net OutputAverage Net Output($/Acre)($/Acre)

44 74247424 14001400

2727 10501050 139139

5858 552552 8282

8282 396396 6060

116116 322322 5353

158158 299299 5555

198198 269269 5353

238238 274274 5656

359359 270270 5454

694694 249249 5151

13641364 191191 3939

67096709 6363 1212

Source: U.S. Agricultural Census, vol. 1, part 51, pp. 89-96, 1992.

Total OutputTotal Output


Specialty ProductsSpecialty Products Gives small farmers Gives small farmers

advantageadvantage High quality produceHigh quality produce Rare products Rare products Out of season Out of season

produceproduce

Fenugreek

Dill

Elderberries

What is Being What is Being Done?Done?

What is Being Done?What is Being Done?

Need for Government supportNeed for Government support Direct payment amounts to half of net farm Direct payment amounts to half of net farm

incomeincome Enforce anti-trust laws to increase Enforce anti-trust laws to increase

competitivenesscompetitiveness Increase of trade barriersIncrease of trade barriers Income safety netsIncome safety nets


National Family Farm CoalitionNational Family Farm Coalition Coalition of Rural FarmersCoalition of Rural Farmers 33 states33 states Work to preserve family farm Work to preserve family farm Proposal in 2001 to “restore and maintain Proposal in 2001 to “restore and maintain

profitability on America’s family farms and profitability on America’s family farms and ranches” to congress ranches” to congress

National Farmer’s UnionNational Farmer’s Union


Efforts to increase productivityEfforts to increase productivity Better educationBetter education

30% of family farmers now have college 30% of family farmers now have college educationeducation

Improved technologyImproved technology GPS (Global Positioning System) GPS (Global Positioning System)

Projections for the FutureProjections for the Future

If current trends continue, America’s Family If current trends continue, America’s Family Farms will vanishFarms will vanish 25% decrease over 13 years25% decrease over 13 years

In order to reverse trends, government In order to reverse trends, government action must be takenaction must be taken

Without proper action, the agricultural Without proper action, the agricultural market will be dominated by a few large market will be dominated by a few large corporate farmscorporate farms

BibliographyBibliography

Farm Web. Farm Web. ICRP Discussion Points: Family Farms vs. Hog FactoriesICRP Discussion Points: Family Farms vs. Hog Factories. 1997. . 1997. 31 Mar. 2004 < http://www.farmweb.org/b/icrppoints.htm>.31 Mar. 2004 < http://www.farmweb.org/b/icrppoints.htm>.

Hassebrook, Chuck. “Saving the Family Farm; Family Farming is in the Public Hassebrook, Chuck. “Saving the Family Farm; Family Farming is in the Public Interest and if We are to Save it, We Must Act Now” Interest and if We are to Save it, We Must Act Now” Forum for Applied Forum for Applied Research and PolicyResearch and Policy. Sept. 1, 1999. W.K. Kellogg Foundation. 28 Mar. . Sept. 1, 1999. W.K. Kellogg Foundation. 28 Mar. 2004 2004 <www.wkkf.org/pubs/foodrur/saving_the_family_farm.pdf>. <www.wkkf.org/pubs/foodrur/saving_the_family_farm.pdf>.

Humphrey, Shirley and Eric Mussen. Humphrey, Shirley and Eric Mussen. Small Farm HandbookSmall Farm Handbook. Oakland: U of . Oakland: U of California, 1994. California, 1994.

Rosset, Peter M. “The Multiple Functions and Benefits of Small Farm Rosset, Peter M. “The Multiple Functions and Benefits of Small Farm Agriculture” Agriculture” Global Trade NegotiationsGlobal Trade Negotiations Sept. 1999. Food First. 31 Sept. 1999. Food First. 31 Mar. Mar. 2004 <http://www.foodfirst.org/pubs/policybs/pb4.html>. 2004 <http://www.foodfirst.org/pubs/policybs/pb4.html>.

BibliographyBibliographySize, Structure, and the Changing Face of American AgricultureSize, Structure, and the Changing Face of American Agriculture. Ed. . Ed. Arne Hallam. Boulder: Westview Press, 1993 Arne Hallam. Boulder: Westview Press, 1993

Tweeten, Luther, et al. Tweeten, Luther, et al. Structure of Agriculture and Information Needs Structure of Agriculture and Information Needs Regarding Small FarmsRegarding Small Farms. Washington: National Rural Center, . Washington: National Rural Center, 1980.1980.

United States Department of Agriculture. United States Department of Agriculture. A Time to ActA Time to Act. Jan. 1998. 31 . Jan. 1998. 31 Mar. 2004 < http://www.reeusda.gov/smallfarm/report.htm>.Mar. 2004 < http://www.reeusda.gov/smallfarm/report.htm>.

University of Missouri Extension. University of Missouri Extension. Does the Family Farm Really Matter?Does the Family Farm Really Matter? October October 1993. 28 Mar. 2004 1993. 28 Mar. 2004 <www.muextension.missouri.edu/explore/agguides/agecon/g008<www.muextension.missouri.edu/explore/agguides/agecon/g00820.htm>.20.htm>.

losing the family farm callie rogers jordan holmes ashley bunch

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