beginning farmers and the next generation of agriculturalists mike duffy director, isue, beginning...
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![Page 1: Beginning Farmers and the Next Generation of Agriculturalists Mike Duffy Director, ISUE, Beginning Farmer Center March 27, 2007](https://reader033.vdocuments.site/reader033/viewer/2022050909/56649f1b5503460f94c31471/html5/thumbnails/1.jpg)
Beginning Farmers and the Next Generation of
AgriculturalistsMike Duffy
Director, ISUE, Beginning Farmer Center
March 27, 2007
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Outline
• Overview of the situation• Factors for ANR to consider• Program opportunities
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Background
• Upsurge in interest due to:– Losing farm population in general– Lack of entry into farming– Concern over the loss of population
and decline in rural communities– Improving quality of life
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Percent of Iowa Farmers Over 65 and Under 35 Years Old
0%
5%
10%
15%
20%
25%
1959 1964 1969 1974 1978 1982 1987 1992 1997 2002
< 35 > 65
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Percent Change in Iowa Farms and Sales by Sales Class, 1997-2002
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
70%
< $1
,000
$1 to
$2,
499
$2.5
to $
4,99
9
$5 to
$9,
999
$10
to $
19,9
99
$20
to $
24,9
99
$25
to $
39,9
99
$40
to $
49,9
99
$50
to $
99,9
99
$100
to $
249,
999
$250
to $
499,
999
$500
to $
999,
999
> $1
M
Farms Sales
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Some Comments• Why worry about beginning farmers
- Less labor in farming now so we don’t need as many people- If there is a need for more farmers the market will provide the incentive for them- Most beginning farmers come from rich
families and need our help less than others
- What about the hardware, grocery and other stores that are going out of business
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Economic Impacts
• Beginning farmers are the next generation– Beginning and retaining farmers should be
viewed as economic development for the area; BFC sponsored research shows an additional family will add .44 jobs and an additional $9,400 cash income
– Beginning farmers help keep a community vibrant and diverse; activities in schools, civic affairs, churches, and other activities
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Economic Impacts• Beginning farmers are more likely to try
new things, keeping the rural areas dynamic
• More opportunities for ancillary activities
• Beginning farmers will give retiring farmers more options and alternatives
to simply giving up the land• Provide a work force for other
businesses
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Who are Beginning Farmers?
• Beginning Farmers- returning to a family farm- starting farming on their own- starting with a non-family member- returning to farming after another
career- may be full or part-time
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Opportunities
• At least five choices:1. Volume; farm with tight margins and
make money through volume
2. Widen margins; either through improved cost management or through increasing the value of the output (selling attributes eg, organic, specialty soybeans, high oil corn)
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Opportunities3. Production besides traditional
commodities, eg., fruits, vegetables, alternative livestock
4. Supplement farm income with otherincome sources
5. Save money and wait to farm later
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Opportunities• Multiple generation farming lets you pool
resources; older generation with capital and younger generation with labor; both with different views on management
• Multiple generation farming allows for risk taking and experimenting
• Multiple generation farming gives the new farmers role models and mentors and provides the older farmers with opportunities
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Opportunities
• Alternative production opportunities for specific attributes
• Local food movement• Food security concerns• Alternative marketing strategies
with internet and other outlets
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Challenges• Adequate income for all parties involved
- each family has to decided what is adequate; depends on goals, situation, and other personal factors
- BFC research has shown that farmers who plan to retire expect to receive approximately 25% of their retirement income from the existing farm
- Income can come in many forms and from different sources
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Challenges
• Multiple generations- farming and non-farming heirs- treating everyone fairly- communication- conflict resolution- different goals; stages of life
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Challenges
• Planning (Remember these are not the same thing)– Estate planning– Succession planning– Retirement planning– Transfer planning
• Finding solutions that match the values, goals and resources
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Programming• BFC has number presentations and
material available and we will help with programming whenever you need.
• Need to remember that beginning farmers isn’t always a one size fits all
audience; new ideas and approaches needed
• Time of day for meetings• Mixed age and stage audiences• Recruiting
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Programming
• Content will need to be geared towards the audience and topic; non- commodity presentations
• Some beginning farmers may not have the experience or background we are used to seeing
• Remember to include retiring farmers and programming for them
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Programming
• Beginning farmer programs provide unique opportunities for multi-disciplinary approaches, including not just agricultural skills
• Beginning farmer programming allows us to cross generations with our work
• Beginning farmer programming allows us towork with people who are excited and willing to change and try new things
• Beginning farmer programming challenges us to think outside the box and to keep up
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Iowa State University Extension Beginning Farmer Center
• Established 1994• Provides programming for beginning and
retiring farmers• FarmOn program; matching service for
unrelated parties• Ag Link program; seminar for beginning
farmers and those with whom they will be farming
• Consultations• Seminars• Research• National program coordination
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Available Resources
• FederalFarm Service Agency
www.fsa.usda.gov/FSAUSDA Small farms program
• NonprofitsNational farm transition networkPractical Farmers of Iowa
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Available Resources
• StateIowa Agriculture Development
Authority www.iada.state.ia.us
Iowa Department of Ag. and Land Stewardship;
www.agriculture.state.ia.us/
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Available Resources• ISU resources;
Beginning Farmer Center www.extension.iastate.edu/bfc
Farm Financial Planning Program; www.extension.iastate.edu/
farmanalysis Ag. Decision Maker;
www.extension.iastate.edu/agdmAg. Marketing Research Center
www.agmrc.org/agmrc