Iowa Farmer Today
09-08-07
Many opportunities for beginning farmers
By Jeff Ward
Thoughts about beginning farmers can take a couple of directions. One being
negative — it can’t be done — or, there are numerous opportunities for Iowa’s
aspiring beginning farmers.
Over the past six years, I have seen many success stories and continue to
believe there are numerous opportunities for those young people who choose a
career in production agriculture.
I remember in the late-70s when I was coming out of college and considering
returning to the family farm. At that time, my father was adamant there were
better opportunities elsewhere and basically refused to let me return. Obviously,
he thought he was looking out for my best interest, but this attitude was
prevailing at that time and it helps explain the lack of farmers in that age group.
While in college, not more than 5 percent of the graduating students aspired or
returned to the farm. It was “not the thing to do” for various reasons.
Amazingly, at least in my friendship circle, most of that 5 percent is still farming
and have been very successful. Apparently, there were more opportunities than
we were led to believe.
IN THE late-70s, you pretty much grew corn and soybeans, and raised hogs or
cattle. You purchased inputs at retail prices and sold your product at wholesale
prices. There were no ethanol plants, value-added crops, vineyards, etc.
Today, there are many more avenues available for those young people that want
to think outside the box.
We recently closed a Beginning Farmer Loan Program (BFLP) loan where the
beginning farmer will raise turtles for the export meat market and pet stores. This
kind of non-traditional thinking can provide opportunities unavailable to previous
generations of beginning farmers.
Obvious challenges exist for those pursuing a career in production agriculture.
Rising land prices and increasing rental rates continue to challenge not only
beginning farmers, but also established ones.
However, access to agricultural assets is also hindered by those who currently
own the assets.
While the farm population continues to age, those retirement-age producers also
continue to farm.
A RECENT survey by Iowa State University revealed 31 percent of farmers have
no intention to retire.
Unlike the late-70s, my perception is there are now more aspiring beginning
farmers than there are opportunities for them to enter production agriculture.
This prevailing attitude presents challenges to beginning farmers attempting to
secure the assets needed for a viable farming operation.
Currently, the Beginning Farmer Center at Iowa State University is matching
aspiring beginning farmers with older producers, thus creating a transition plan
for the retiring farmer and access to much needed resources for the beginning
farmer. This method of transition allows the asset owner to continue in the
operation, mentor the beginning farmer and begin the transfer of assets in an
orderly cost-effective manner.
In addition, Iowa government and the USDA provide programs to assist aspiring
beginning farmers get their start.
The USDA offers low-interest loan programs to assist with down payments when
beginning farmers are making capital purchases. In addition, conservation and
other program funds have monies targeted specifically targeted to beginning
farmers.
Proposals contained in the conservation and credit titles of the new farm bill also
provide exciting opportunities, if enacted.
On the state level, the Beginning Farmer Loan Program administered by the Iowa
Agricultural Development Authority annually leads the nation in the issuance of
tax exempt bonds to assist beginning farmers make their initial capital purchases.
This program provides a reduced interest rate to qualified beginning farmers.
In addition, a new program begun in 2007 has been extremely successful.
Known as the Beginning Farmer Tax Credit Program, it provides a state income
tax credit to agricultural asset owners which lease their assets to aspiring
beginning farmers.
To date in 2007, more than 200 of these tax-credit applications have been
approved and the program has provided beginning farmers access to agricultural
assets that might otherwise not been available to them.
While the public sector in Iowa has taken an aggressive approach to help
beginning farmers, the private sector is also very proactive.
The Iowa Farm Bureau Federation conducts professional-development
programs, public speaking contests and provides awards to beginning farmers
for outstanding leadership. These programs assure agriculture will be
represented at the table in future years in deciding important issues.
I FEEL it is an exciting time for aspiring beginning farmers in Iowa.
While challenges exist, there are challenges for anyone wishing to start a
business, whether it is a farm or on Main Street.
Numerous resources, from financial to advisory, exist for those desiring to enter
farming and choose to utilize those resources. I would encourage anyone who
desires production agriculture as a career to take advantage of all the resources
available and realize your goal of helping feed the world.
Jeff Ward is executive director of the Iowa Agricultural Development Authority.