On the Distinctiveness of Farmers of the Middle: Missouri Farm Poll, 2006

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On the Distinctiveness of
Farmers of the Middle:
A Preliminary Report on the
Missouri Farm Poll, 2006
Harvey James, Agricultural Economics
Mary Hendrickson, Rural Sociology
University of Missouri
What’s New in Sustainable Agriculture
February 26, 2007
1
Funded by USDA grant number 2005-35618-15672
2
Some background

Most U.S. farms are family
farms, which the USDA
defines as “proprietorships,
partnerships, or family
corporations that do not
have hired managers”.


http://www.freeporthistoricalsociety.org/pgillfarm.htm
In 2003, 98.3% of US farms were “family farms.”
Most farms have annual sales <$250,000


91.2% of US farms
96.2% of Missouri farms (2002)
3
On the other hand …


Nearly 75% of the value of all US farm
production comes from non-family farms and
large-scale family farms, or farms with sales
of $250,000 or more.
In Missouri, slightly more than
50% of the value of year 2002
sales came from farms
with sales in excess of
$250,000.
4
On the other hand …


Nearly 75% of the value of all US farm
production comes from non-family farms and
large-scale family farms, or farms with sales
of $250,000 or more.
In Missouri, slightly more than
50% of the value of year 2002
sales came from farms
with sales in excess of
$250,000.
5
Agriculture is not static


Industrialization, specialization,
globalization
Concentration/consolidation



Shift from small scale and labor intensive farming
to large-scale operations that rely on machinery
and technology and the intensive use of land,
chemicals and energy.
Reduction in the total number of farms and
families in farming and the concurrent increase in
farm size.
There is more to the story …
6
Percent Change in U.S. and Missouri
Farms by Sales Category, 1997 to 2002
20.00
15.00
Percent
10.00
5.00
0.00
-5.00
$10-$49
$50-$99
$100-$249
$250-$499
$500-$999
$1000+
-10.00
-15.00
-20.00
Sales in 2005, in thousands
US Farms
Missouri Farms
7
What is a “farmer of the
middle”?

Generally farms with gross annual sales between
$100,000 and $250,000, although technically “not
scale determined” but rather “scale related”


Any farm falling “between the vertically integrated,
commodity markets and the direct markets,” but farms
between $100-$250K vulnerable
USDA’s “Farming-occupation
farms, Medium-sales farms”
designation
http://www.kelderfarm.com/
8
Source: Kirschenmann et al, Why Worry About the Agriculture of the Middle, http://www.agofthemiddle.org, 2003; USDA ERS 2005 Family Farm Report
Why worry?

Emerging dualistic system where …



Small farms focus on producing differentiated products
catering directly to consumer markets
Large farms focus on the global commodity markets
“if present trends continue,
[middles] farms … will likely
disappear in the next decade.”
9
Source: Kirschenmann et al, Why Worry About the Agriculture of the Middle, http://www.agofthemiddle.org, 2003
Why worry?

“Farmers of the Middle” are different,
but in an important way:


American Gothic, Grant Wood, 1930

They provide “social and environmental
benefits”
“good land stewardship is a high priority”
 Land stays in family
 Ecological knowledge is handed down
generation to generation
Farmers expected to take care of land,
animals, environment, community, and
provide for food security
10
Source: Kirschenmann et al, Why Worry About the Agriculture of the Middle, http://www.agofthemiddle.org, 2003
Research questions

There is a perception and even expectation
that “farmers of the middle” are different in
ways important and unique to agriculture and
society.


Are “farms of the middle” different
from small and large farms?
If so, how? Do these farms reflect
our perceptions of them as good
stewards?
11
Description of study





Surveyed 3,000 Missouri farmers early 2006 from
population of all farmers with total farm sales at least
$10,000 in 2005 (population is 41% of all MO farms)
Stratified random sample (by farm sales) to allow
comparison across groups
Heads-up postcard, two mailings
2941 surveys deliverable, 692 returned (23.5%)
This report looks at agricultural producers only (519
in current sample), thus excluding landowners, etc
12
Distribution of sample
70
Percent
60
50
40
30
20
10
0
$10-$49
$50-$99
$100-$249 $250-$499 $500-$999
$1000+
Sales, in thousands
MO Farm Survey
Statewide Average
13
A hint of things to come …

We asked farmers to indicate
on a scale from 1 to 10 …



How satisfied they are with their
life
How much free choice and control
they have over their life
How concerned they are about
their financial security
The Farmer in the Field, Vincent Van Gogh
14
Average (scale 1 to 10)
A hint of things to come …
10
9
8
7
6
5
4
$10-$49
$50-$99
$100-$249 $250-$499 $500-$999
$1000+
Sales, in thousands
Satisfied
ANOVA
Satisfied F-stat= 1.11, p=0.3533
Control F-stat= 1.92, p=0.0897
Concerned F-stat= 2.18, p=0.0551
Control
Concerned
15
Descriptive characteristics
Small
Middle
Large
Size, in sales
$10,000$99,999
$100,000$249,999
$250,000+
Number
260
123
136
519
Average acres
379
958
2036
961
Average years
farming
31
30
32
31
Percent with >50%
(>75%) farming
income
33 (12)
82 (57)
88 (73)
59 (39)
Beef, hay
Beef, soybeans,
hay, corn
Soybeans,
corn, wheat,
hay, beef
Most common
products (>50%
indicated)
Full Sample
Beef, hay,
soybeans,
16
corn
Diversity of farming operations
50
Percent
40
30
20
10
0
1
2
3
4
5
6
7
8
Number of Farming Products
Small
Middle
Large
17
Do farmers identify the same issues
as most important?
Animal welfare and treatment of farm animals
Biotechnology and the genetic modification of
food and crops
Environmental pollution and degradation
Food safety and security
Farm structure and economic, social features
of agriculture
Globalization and international trade
Government farm policies, including
agricultural subsidies
Other
18
Do farmers identify the same issues
as most important?
Animal welfare and treatment of farm animals
Biotechnology and the genetic modification of
food and crops
Environmental pollution and degradation
Food safety and security
Small farms (45%)
Farm structure and economic, social features
of agriculture
Middle farms (50%)
Globalization and international trade
Government farm policies, including
agricultural subsidies
Other
Large farms (54%)
19
Do farmers identify the same issues
as most important?
Small
Middle
Large
Animal welfare and treatment of farm animals
15%
12%
2%
Biotechnology and the genetic modification of
food and crops
14%
11%
24%
Environmental pollution and degradation
15%
15%
9%
Food safety and security
45%
35%
27%
Farm structure and economic, social features
of agriculture
33%
50%
36%
Globalization and international trade
29%
31%
37%
Government farm policies, including
agricultural subsidies
35%
37%
54%
Other
5%
9%
4%
20
Some differences in attitudes
regarding stewardship
Farmers have a responsibility to conserve their
land, even if it hurts them financially
70
60
50
Percent

40
30
20
10
0
Small
Middle
Strongly agree
Large
Agree
21
Some differences in attitudes
regarding stewardship
A farmer who uses little or no artificial pesticides or
herbicides is more responsible than a farmer who
uses these chemicals extensively.
70
60
50
Percent

40
30
20
10
0
Small
Middle
Strongly agree
Large
Agree
22
Some differences in attitudes
regarding stewardship
A farmer who allows animals to forage in an open
pasture is more responsible than a farmer who
confines animals to buildings or cages.
70
60
50
Percent

40
30
20
10
0
Small
Middle
Strongly agree
Large
Agree
23
Some differences in attitudes
and outlook

Should protecting the environment or economic
growth and job creation be given top priority?
100%
80%
60%
40%
20%
0%
Small
Environment over growth and jobs
Middle
Large
Growth and jobs over environment
DK
24
Some differences in attitudes
and outlook

Should we emphasize new technology or tradition?
100%
80%
60%
40%
20%
0%
Small
Technology over tradition
Middle
Large
Tradition over technology
DK
25
Some differences in attitudes
and outlook

Does humanity have a bleak or bright future?
100%
80%
60%
40%
20%
0%
Small
Middle
Bleak future
Bright future
Large
DK
26
Thoughts on GMOs
The genetic modification of food and crops is good
for farmers.
Percent

90
80
70
60
50
40
30
20
10
0
Small
Middle
Strongly agree
Large
Agree
27
Thoughts on GMOs
The genetic modification of food and crops is good
for agribusiness firms.
Percent

90
80
70
60
50
40
30
20
10
0
Small
Middle
Strongly agree
Large
Agree
28
Thoughts on GMOs
The federal government should require that foods
containing GM ingredients have labels showing GM
content.
Percent

90
80
70
60
50
40
30
20
10
0
Small
Middle
Strongly agree
Large
Agree
29
Perceptions of quality of life
During the past 5 years,
the farmer’s life …

During the next 5 years,
the farmer’s life will …
80
80
60
60
Percent
Percent

40
20
40
20
0
0
Small
Became much better
Middle
Became somew hat better
Large
Remained the same
Small
Become much better
Middle
Become somew hat better
Large
Remain the same
30
Perceptions of quality of life
During the past 5 years,
economic conditions for
MO farmers …

During the next 5 years,
economic conditions for
MO farmers will …
80
80
60
60
Percent
Percent

40
40
20
20
0
0
Small
Became much better
Middle
Became somew hat better
Large
Remained the same
Small
Become much better
Middle
Become somew hat better
Large
Remain the same
31
Ethical attitudes
Most farmers are ethical in their business
dealings with others.
80
70
60
Percent

50
40
30
20
10
0
Small
Middle
Strongly agree
Large
Agree
32
Ethical attitudes
Most people in business are ethical in their
dealings with farmers.
80
70
60
Percent

50
40
30
20
10
0
Small
Middle
Strongly agree
Large
Agree
33
Farmer ethics

How do the ethical proclivities of farmers of the
middle compare with farmers of small and large
scale farms?
Farmer reading his farm paper, 1998 print from original negative,
National Archives
34
Farmer ethics
Acceptable to Unacceptable
7
Business Ethics
GMO Practices
Environment
Animal Welfare
Society
6
5
4
3
p= 0.112 p=0.040
p=0.367
p=0.243
p=0.055
p=0.087
p=0.282
p=0.284
p=0.744
p=0.195
in
ns
pi
in*
ud
f ra
gra
s*
en
cro
ali
Q
r*
bo
igh
ne
al
ve
ing
dd
rom
tbi
ef
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ag
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ing
roo
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thh
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lls
n
i
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De
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es
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ci d
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cid
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Ap
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O
r
ff e
GM
bu
ing
MO
gg
gG
Ba
ing
in
av
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ga
l
ga
h
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p-values for statistically significant all-group ANOVA
th
No
En
,
ow
ille
gl
ing
xin
Hir
Mi
* indicates Middle group is statistically different at 5%
level in two-tailed difference of means test with either
small or large group.
p=0.066
35
Small
Middle
Large
Dependent Variable:
How unacceptable these ethical scenarios are
Harmful
(N=388)
Unlawful
(N=410)
Bad form
(N=373)
Frequency
ns
–
–
Impossible rules
–
ns
ns
Satisfied life
ns
ns
ns
Control over life
+
+
ns
Satisfied finances
ns
ns
–
Concerned finances
ns
ns
+
Diversification
ns
ns
+
Age category
+
+
ns
Church attendance
ns
+
ns
Male
–
ns
–
Variable
Note: Something “improves farmer ethics” (i.e., causes farmers to consider the ethical problem less
acceptable) if the sign of the coefficient is positive.
36
Bottom line



Based on initial descriptive statistics,
we can conclude that in some
respects “farmers of the middle” are
different from other farmers.
However, we cannot conclude that
they have particularly strong, unique
or noteworthy attitudes or inclinations
with respect to environmental, social
or animal stewardship.
If anything we suspect there is a relative degree of anxiety
among farmers of the middle, probably resulting from
structural and economic conditions in agriculture.
37
What does this mean to you?



Do these findings reflect what you see happening in
agriculture in Missouri?
Is it appropriate for us to believe that “farmers of the
middle” ought to take a greater interest in ecological
stewardship, community well-being or animal welfare?
Such farmers are already facing
significant economic pressures resulting
from industrialization, globalization, and
the like. Do our perceptions that
“farmers of the middle” are unique and
special add to the pressures they feel?
38
What does this mean to
Missouri?


What kind of policies will help farmers in Missouri given these
research findings?
How can farmers, farm organizations and communities across
Missouri best use these findings?
39
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