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Farms Are Gigantic Now. Even The “Family-Owned” Ones
By Lydia DePillis , Published: August 11 at 8:45 pm Picture your idea of a “family farm.” American Gothic ? Little House on the Prairie ? Maybe an idyllic 19th century life of cute cows and mowing hay? Yeah, everybody knows those don’t exist anymore, swept away by the forces of globalization and massive industrialized agribusiness. In one way that’s completely true–and in two other ways, it’s completely false, according to a new report out from the U.S. Department of Agriculture’s Economic Research Service. Let’s take the true part. Farms have gotten bigger, on average, when measured by the average number of acres under cultivation. The increase has been driven by several factors, including the development of high-tech equipment, seeds, and pesticides that made farming less labor intensive, increasing the returns to scale. Also, the rise of contracts means that farmers could lock in prices for their crops ahead of the harvest, allowing them to invest in that new technology (which may also have been accelerated by farm subsidies and the early-1990s disappearance of quotas that limited production). Farming got much more specialized, focusing on tremendous production of one commodity, rather than growing all kinds of veggies and livestock: But here’s the first untrue thing: Even while the average size of farms is going up, there are more small farms than ever, especially in small states with farmland preservation programs like Massachusetts and Rhode Island. Community-supported agriculture, plus the local and organic food movement, are starting to show up in the numbers. It’s the mid-sized farm, between 100 and 500 acres, that’s disappearing. And here’s the second thing that’s wrong about our understanding of the disappearance of family farms: 96.4 percent of the crop-producing farms in the U.S. are owned by families, and they represent 87 percent of all the agricultural value generated (non-family owned farms are defined as “those operated by cooperatives, by hired managers on behalf of non-operator owners, by large corporations with diverse ownership, and by small groups of unrelated people”). That hasn’t changed since about 1996. Part of the reason is that some mega-corporations have moved from direct ownership of cropland into a coordinating role, sourcing product from family-owned pieces of land that they’ve sold off. Also, families are just as capable of operating modern agricultural technology as agribusinesses are, as Chrystia Freeland described last year in the Atlantic. And finally, deep understanding of an area’s soil conditions and weather patterns– not to mention the local political landscape –are still valuable to productivity, which advantages families that pass such knowledge on through generations. That may not be the case forever. Ever-increasing size and specialization means that farms become riskier enterprises, able to be wiped out by a commodity price dip or unpredictable pathogen, which large corporations are better quipped to handle. And overseas, in places like Russia and Brazil, giant farms are developing monitoring techniques that could eventually make that local knowledge totally obsolete. In the mean time, though, just remember that when you say “family farm,” you might actually mean “small and relatively diversified farm,” though advocates for such operations might try to get you to think otherwise. Continue reading
Iowa Farmers Spent Nearly $27 Billion On Ag Production In 2012: USDA
Aug 13, 2013 | by Christopher Doering Iowa farmers spent $26.84 billion on agricultural production in 2012, an increase of 11 percent from a year earlier, as agricultural producers battled through the worst drought in decades, the U.S. Agriculture Department said in a report. USDA’s National Agricultural Statistics Service said Iowa, the country’s largest corn, soybean and pork producer, had the biggest expenditures of any state in the Midwest and ranked second nationally to only California, where costs topped $31 billion in 2012. Iowa’s production costs totaled $24.2 billion in 2011. The biggest cost for Iowa farmers was feed, which increased nearly $500 million to $4.43 billion. The 2012 drought, the worst in 50 years, sharply cut crop yields and forced many livestock producers to cull their animals because of high feed costs. Farmers in the state also had $3.01 billion in livestock, poultry and related expenses, $2.55 billion in costs for fertilizer, lime and soil conditioners and $2.01 billion for seeds and plants. Rising farm land prices across the state also forced farmers to pay more to rent land. Rent for Iowa farmers increased to $3.74 billion from $3.45 billion in 2011. Farm land prices in Iowa have more than doubled since2007. Nationally, U.S. farmers spent a record $351.8 billion on agricultural production in 2012, an increase of 10.4 percent from $318.7 billion 2011, according to the USDA report. An average farm had costs of $162,743 compared to $146,653 in 2011. Continue reading
More Chateaux Sales Expected As Tax And Land Prices Increase In France
Wednesday 17 July 2013 by Jane Anson Continue reading




