Issues Facing Beginning Farmers and Ranchers

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Issues Facing Beginning Farmers and Ranchers

• July 9, 2007
• Michael Duffy
• Director, Iowa State Beginning Farmer Center

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Access to Land Resource

• Increasing land values limit ability to purchase

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Access to Land Resource

• Increasing land values limit ability to purchase
• Increasing rents and changing rent options limit
  ability to access land

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Access to Land Resource

• Increasing land values limit ability to purchase
• Increasing rents and changing rent options limit
  ability to access land
• Competition for land as existing farmers try to
  expand

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Existing Farm Transition Possibilities

• Changing demographics of farmland owners

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Existing Farm Transition Possibilities

• Changing demographics of farmland owners
• Retiring farmers planning or lack of planning

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Farm Technology

• Tight margin farming that requires a large volume
  to generate an adequate income
• Preferential pricing for large volumes of
  commodities

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Issues Facing Beginning Farmers and Ranchers

• Ineffective entry strategies
• Inability to acquire initial capital investment
• Identifying viable farm entry enterprises
• Obtaining appropriate financial, managerial, and
  production skills
• Effective risk management tools

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Issues Facing Beginning Farmers and Ranchers

• Lack of supplemental employment opportunities
• Difficulties transitioning farm from one
  generation to the next
• Lack of qualified help in formulating exit
  strategies
• Unwilling to give up managerial responsibility
  and unwilling to transfer ownership of assets.

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Income Opportunities

• Slow food/local food movements are opening
  options and alternatives for beginning farmers
  and ranchers.
• Farmers markets are providing new outlets and
  the opportunity to sell a story
• Food safety concerns
• Internet opening many new avenues
• Alternative production and crops
• - insurance
• - risk

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Final Thoughts

• There are some significant issues facing
  beginning farmers and ranchers over the next few
  years. Some of these are structural and some are
  related to the current situation
• Beginning farmers and ranchers face a different
  situation than in the past but this adds a lot of
  options.
• Credit will be helpful but it will not guarantee
  success. The beginning farmer and rancher will
  have to work based on their goals and the
  resources available.

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THANK YOU