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 Ou ag gh ro u m* ing roo old en thh Wi gh lls n i we as in cre nd De f ou es * ci d s r rb i ne i he d a t win ing on c in Us ing es ns cid t ri sti No pe ing ply Ap s* ed se O r ff e GM bu ing MO gg gG Ba ing in av g ga l ga h hig 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