Beginning Farmers and the Next
Generation of Agriculturalists
Mike Duffy
Director, ISUE,
Beginning Farmer Center
March 27, 2007
Outline
• Overview of the situation
• Factors for ANR to consider
• Program opportunities
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
Percent of Iowa Farmers Over 65 and Under 35 Years Old
25%
20%
15%
10%
5%
0%
1959
1964
1969
1974
1978
< 35
1982
1987
> 65
1992
1997
2002
-30%
-40%
Farms
Sales
$5
$2
$1
-20%
00
50
00
$5
$4
$2
$2
$1
.5
to
to
$9
$4
$3
$2
>
$9
99
$4
99
M
99
99
99
99
99
99
99
99
$1
,9
,9
,9
9,
9
9,
9
9,
9
4,
9
$2
49
to
to
to
to
9,
9
9
9
,9
9
,9
9
$9
$4
9
0
,4
9
,0
0
$2
$1
to
to
to
to
0
0
5
0
0
$5
$2
to
$1
-10%
$1
<
Percent Change in Iowa Farms and Sales by Sales Class,
1997-2002
70%
60%
50%
40%
30%
20%
10%
0%
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
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
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
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
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)
Opportunities
3. Production besides traditional
commodities, eg., fruits, vegetables,
alternative livestock
4. Supplement farm income with other
income sources
5. Save money and wait to farm later
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
Opportunities
• Alternative production opportunities for
specific attributes
• Local food movement
• Food security concerns
• Alternative marketing strategies with
internet and other outlets
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
Challenges
• Multiple generations
- farming and non-farming heirs
- treating everyone fairly
- communication
- conflict resolution
- different goals; stages of life
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
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
Programming
• Content will need to be geared
towards the audience and topic; noncommodity 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
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
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
Available Resources
• Federal
Farm Service Agency
www.fsa.usda.gov/FSA
USDA Small farms program
• Nonprofits
National farm transition network
Practical Farmers of Iowa
Available Resources
• State
Iowa Agriculture Development Authority
www.iada.state.ia.us
Iowa Department of Ag. and Land
Stewardship;
www.agriculture.state.ia.us/
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/agdm
Ag. Marketing Research Center
www.agmrc.org/agmrc
BFC Contact Information
Iowa State Beginning Farmer Center
1-877-BFC-1999
bfc@iastate.edu
www.extension.iastate.edu/bfc