losing the family farm callie rogers jordan holmes ashley bunch
TRANSCRIPT
Losing the Family FarmLosing the Family Farm
Callie Rogers Callie Rogers
Jordan HolmesJordan Holmes
Ashley BunchAshley Bunch
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
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
Losing the FarmLosing the Farm
Rate of self-Rate of self-employment in employment in agriculture agriculture decreasingdecreasing
Losing the FarmLosing the Farm
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 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
Why the Trend?Why the Trend?
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
Why the Trend?Why the Trend?
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
Why the Trend?Why the Trend?
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
Why the Trend?Why the Trend?
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
•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
Why the Trend?Why the Trend?
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
Why the Trend?Why the Trend?
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 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
The Importance of the The Importance of the Family FarmFamily Farm
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
The Importance of the The Importance of the Family FarmFamily Farm
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
The Importance of the The Importance of the Family FarmFamily Farm
““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
The Importance of the The Importance of the Family FarmFamily Farm
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
The Importance of the The Importance of the Family FarmFamily Farm
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
The Importance of the The Importance of the Family FarmFamily Farm
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 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
What is Being Done?What is Being Done?
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
What is Being Done?What is Being Done?
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
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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>.
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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.
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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>.