Beginning farmers' entry and exit: evidence from county level data

PurposeThis paper identifies factors that affect entry and exit of beginning, young and women farmers and ranchers.Design/methodology/approachThe empirical framework is fixed effects regression analysis that uses county level data to evaluate how barriers to entry, access to and use of credit, local economic environment, and climate affect entry and exit of Beginning Farmers and Ranchers (BFRs). The dataset is assembled from several sources matching the Census of Agriculture years for the period of 1997–2017.FindingsResults show that new farmers are more likely to enter in counties with more and smaller farms and with lower farm productivity, indicating that BFRs have the potential to improve the overall productivity in such counties if able to grow and succeed. The results also indicate that the high capital intensity nature of farming is an effective barrier to entry. BFRs are more likely to do better in counties where agriculture is more important to the economy and with more off-farm work opportunities. The net entry is positively associated with higher input/output price index and the use of insurance but is unaffected by government payments and farm and off-farm income. The authors observe substitutability between farming and alternative self-employment for more entrepreneurial young people. Net entry increases with availability of non-real-estate loans but decreases with real estate credit. Thus, for BFRs to acquire the assets needed to reach optimal scale, access to credit remains essential.Originality/valueThe authors are not aware of other work that estimates how barriers to entry and other economic factors including access to credit affect entry and exit of BFRs of various ages and young and women farmers using the Census of Agriculture data up to 2017.

The landowner role in beginning farmer/rancher land access: exploring predictors of landowners' views of extra-familial farm transfer to a BFR

PurposeBeginning farmers and ranchers (BFRs) are more likely to access land through an unrelated landowner than through family. Thus, farm and ranch owners who might transfer their land or businesses out of family are potential sources of land access for BFRs and are the most frequent participants in incentive programs to facilitate land transfer to BFRs. To assist in identifying landowners who might transfer out of family, the paper aims to explore similarities and differences between landowners according to their expectations for intra-familial versus extra-familial farm transfer.Design/methodology/approachPairwise and regression analysis of USA Midwestern and Plains landowners' responses to an online survey (n = 322).FindingsLandowners who might transfer out of family were likely to need the proceeds from a land sale to finance their retirement. Landowners' financial needs interacted with their widespread interest in transferring to a BFR such that 97% of owners who expected extra-familial transfer wanted to transfer to a BFR. There were also statistical patterns around the size of owners' landholdings in relation to their transfer plans.Research limitations/implicationsThis exploratory inquiry suggests patterns for future research to examine, especially around landowners' juxtaposition of their retirement income and their interest in transferring to a BFR and how to align these priorities and values.Originality/valueBy exploring the characteristics of landowners who are the most likely to provide land access to BFRs, the authors begin to examine how to target these owners in program outreach. Patterns for further exploration point to landowners' financial needs in relation to their interest in helping a BFR to get started in agriculture.

Unique financing strategies among beginning farmers and ranchers: differences among multigenerational and beginning operations

PurposeBeginning farmers have unique challenges securing credit because they are less likely to have established sales and collateral for secured loans. This article explores US beginning farmers’ financing strategies relative to those of established operations, with a focus on the source of financing and debt structure (short- vs long-term usage). Agricultural operations commonly use nontraditional financing tools and strategies to start, build and/or sustain their businesses. This article provides a comparative overview of financing strategies comparing established operators to operations with only beginning operators, as well as those multigenerational operations with at least one beginning operator.Design/methodology/approachThe study uses 2013–2016 USDA Agricultural Resource Management Survey data to explore how various financing patterns vary across US beginning farmers and ranchers with a particular focus on understanding differences where (1) all operators are beginning, (2) there is a mix of beginning and established operators and (3) all operators are established.FindingsThis article explores how the nature of beginning farmer status, human capital resources and alternative marketing strategies may influence financial management strategies and lead to differential use of nontraditional financing sources for beginning farmers and ranchers.Originality/valueThough exploratory, the authors hope that attention to patterns among US beginning farmers and ranchers of reliance on human capital resources including off-farm income and type of beginning farm operation, nontraditional government support programs and alternative marketing strategies can provide important information as to the role of nontraditional credit in the US farm economy.

REARING AND BREEDING OF HEREFORD CATTLE ON A PEASANT (FARM) ENTERPRISE

Авторами разработан инновационный проект по выращиванию и разведению крупного рогатого скота мясного направления на базе К(Ф)Х Михеевой С. И. и подготовлена конкурсная документация по отбору участников мероприятий по поддержке начинающих фермеров и развитию семейных животноводческих ферм крестьянских (фермерских) хозяйств государственной программы Пензенской области «Развитие агропромышленного комплекса Пензенской области на 2014-2022 годы». На основе результатов проведенного исследования разработана модель развития мясного скотоводства на базе крестьянского (фермерского) хозяйства. Данная модель предусматривает выращивание, доращивание и откорм крупного рогатого скота породы Герефорд. Преимуществами данной породы являются устойчивость и выносливость, простота в разведении, способность передавать положительные качества по наследству, высокие качества мяса. С учетом производственных показателей выращивания скота герефордской породы авторами определены финансовые показатели и экономическая эффективность производства говядины. Чистая прибыль в пятый год проекта составит 2213 тыс. руб., рентабельность затрат и продаж 123 и 55 % соответственно. Организация бизнеса с учетом технологических особенностей отрасли позволит К(Ф)Х Михеевой С. И. получать уровень рентабельности гораздо выше, чем в промышленности, а устойчивый спрос на мясо и мясопродукты гарантирует ее сбыт. The authors developed an innovative project for raising and breeding beef cattle on the basis of the peasant farm enterprise of Mikheeva S. I. and prepared competitive documentation for the selection of participants in measures to support beginning farmers and the development of family livestock farms of peasant farm enterprises under the Penza Region state programme "Development of the Agricultural Sector of the Penza Region in 2014-2022". Based on the results of the study, a model of beef cattle breeding development on the basis of a peasant (farm) enterprise was developed. This model provides for breeding, rearing and fattening of cattle of the Hereford breed. The advantages of this breed are stability and endurance, simplicity in breeding, ability to transfer positive qualities by inheritance, high quality of meat. Taking into account the production indicators of the Hereford cattle breeding, the authors determined the financial indicators and economic efficiency of beef production. Net profit in the fifth year of the project will be 2213 thousand rubles, profitability of costs and sales will be 123 and 55% respectively. Organization of business taking into account technological features of the industry will allow the P(F)E of Mikheeva S. I. to get a level of profitability much higher than in the industry, and stable demand for meat and meat products guarantees its sales.

Do Small and Mid-scale Beginning Farmers and Experienced Farmers Feel the Same About Farm Financial and Profitability Position?

This study examined various levels of feelings that small and mid-scale farmers in Kentucky have towards financial and profitability situations of their farm operations. The study uses mailed and online survey data collected from 129 small and mid-scale farmers in 2017. We used an ordered Probit model to analyze data. Findings indicate that the probabilities for small and mid-scale farmers to feel positively, fairly, and negatively are 36 percent, 55 percent, and 9 percent, respectively. We found that small and mid-scale beginning farmers are significantly less likely to feel positively than experienced farmers. Findings showed that those who are knowledgeable about agricultural marketing and agricultural economics are more likely to feel positive. These findings are useful for policymakers, outreach specialists, and other agencies seeking to improve the financial and profitability position of small and mid-size farms.

Grant Support for the Development of Peasant Farms: The Experience of Sverdlovsk Industrial Region, Problems and Prospects

Purpose: the article provides a comprehensive analysis of the use of grants for peasant / farm enterprises by the state authorities of the region (subject of the Russian Federation) in order to create and develop a private agricultural and agro-industrial sector. The system approach is used as the main methodological base, statistical and correlation analysis is applied. Analyzing the current legislation at the level of the Russian Federation and the Sverdlovsk region, using statistical data and reporting documents as evidence, the authors verify the results of their research, as well as the reporting documents of authorities. As the main element of scientific novelty, the main administrative and financial problems that hinder the development of peasant / farm farms in the region are identified, which gives a practical result - the definition of the main directions of state policy reform in the field of agriculture. Also, the atvors, conducting a correlation analysis, determined the degree of availability of grants for beginning farmers and developing private farms, determined the efficiency of distribution and return of budget funds aimed at the development of agriculture through grant support.

Credit Constraints and Beginning Farmers’ Production in the U.S.: Evidence from Propensity Score Matching with Principal Component Clustering

Beginning Farmers and Ranchers (BFRs) in the U.S. represent a diverse and important subset of family farms. Understanding their financial needs is of paramount importance for supporting the future of American farmers. The focus of this work is on evaluating to what extent credit constraints affect the BFRs’ production. We use propensity score matching to show that credit constraints are associated with significantly lower production levels. To address the highly heterogeneous nature of BFRs, we complement the matching procedure with Principal Components Analysis and clustering to extract more information from the available Agricultural Resource Management Survey data. The results show losses in the total and per acre production values attributed to being credit-constrained, ranging between 14–77% and 24–72%, depending on the matching method, which has important policy implications.

The Yeoman Myth: A Troubling Foundation of the Beginning Farmer Movement

Aging farmer demographics and declining agricultural trends provoke policy makers, farmer advocacy groups, and food system scholars to ask, “Who will do the work of farming in the future?” One response to this concern has been the rise of a “beginning farmer” narrative, where the goal of creating new farmers emerges as a key aspirational food systems reform mechanism. In this vision, young and beginning farmers will seize the transitioning lands from retiring farmers and bring with them an alternative system that is ecologically minded, open to new innovations, and socially oriented. Given the flurry of governmental, nonprofit, and private sector activity spurred by this vision, this article asks, what are the ideological drivers of the beginning farmer construct, and what are the consequences for the goals associated with a just food system transition? Invoking the concept of mythology, this article examines the character of the American beginning farmer narrative. The narrative is shown to appeal to a particular land use vision, one based on ideals of individual land ownership, single proprietor farming, neoliberal logics of change, and whiteness. In a sense, the beginning farmer movement embraces a yeoman mythology, a powerful force underwriting the American dream. The consequence of this embrace has problematic outcomes for the transformative potential of a politically engaged beginning farmer constituency. Embracing alternative imaginaries and mythologies may be a first step in forging a new farmer movement that provides equity across socially disadvantaged farmers and ranchers.

EFFICIENCY OF GRANT SUPPORT TO BEGINNING FARMERS AND FAMILY ANIMAL FARMS (on the example of Krasnoyarsk Kray)

Grant support is the main type of state support for the development of peasant farming in Krasnoyarsk Kray. Since 2012, annually competitions have been held in the Kray for grants to novice farmers and for the development of family livestock farms. An analysis of the dynamics of the grants’ distribution by municipal districts and zones for the period from 2012 to 2017 showed that 34.2% (284) peasant farmers of the total number received grants, which is a high indicator on the scale of the Siberian Federal District. The financing volume in both directions amounted to 846.9 million rubles. As a result, 840 new jobs were created. The analysis of the effectiveness of the use of grants for the period 2012-2017 indicates that the majority of peasant farmers, who received grants, did not fulfill their obligations in full. Thus, the indicator characterizing the economic efficiency of recipients of state support, the increase in agricultural production in the direction of milk production (67 grants) shows highly efficient, the production of vegetables (17 grants) shows efficient, and meat production (134 grants) shows inefficient (negative) use of funds grant support. Therefore, the agriculture of the region for some types of products by 2020 may not reach those predicted values that are determined by the regional state program with existing trends. In connection with this, an adjustment is necessary to redistribute grant support in priority areas and determine the minimum production volumes for each direction of grant issuance in accordance with the prevailing agricultural production in the region. To assess the effectiveness of state support in the field of social responsibility of peasant farming, it is advisable to keep statistics on the creation of new permanent jobs and their preservation over the entire period defined by agreements (contracts).

The Impacts of Economic, Demographic, and Weather Factors on the Exit of Beginning Farmers in the United States

The success of efforts to promote sustainability and growth of Beginning Farmers and Ranchers (BFRs) depends on a set of diverse factors whose individual impacts on the BFR survival in or exit from farming need further clarification. This paper evaluates how a variety of economic and demographic factors, together with weather variability, affect BFRs’ exit from farming using farm-level data from the US Census of Agriculture for the period 1992–2012. The analysis uses insights from the literature on firm exit, recent research on young and beginning farmers, and the literature on climate impacts on agriculture since weather remains a key input to farming and its variability is a major source of risk to less experienced BFRs. The main finding is that flow variables such as profitability and off-farm employment do not affect BFR exit, while reliance on government payments increases the exit probability. Consistent with previous work, the size of operations matters, as BFRs with larger asset ownership, higher sales, and those in livestock production have lower probability of exit. Price variability that affects exit is largely attributable to weather variability, a finding which is consistent with that of previous work. The weather impacts on BFR exit are mostly attributable to droughts, but temperature also has a non-linear and highly seasonal impact.