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Tag: what is farm consolidation

what is farm consolidation

what is farm consolidation插图

Farm consolidation means theacquisition of an additional farm parcel or parcels to be operated as one farm operation. Farm consolidation is permitted for both contiguous and non-contiguous farm parcel consolidations.? Lot creation for infrastructure is permitted where easements or rights-of-way cannot accommodate the infrastructure.?

Is consolidation in agriculture happening?

Consolidation in agriculture doesn’t stop with the current chemical/seed mergers and buyouts. Farms are consolidating as well. That’s what big data shows, gathered from farmers who participate in the Farmer Business Network.

Can farm consolidation and clustering increase productivity and competitiveness of farmers?

“Farm consolidation and clustering can significantly increase the productivity and competitiveness of Filipino farmers and fishers, including agripreneurs, as they will achieve economies of scale,” said Agriculture Secretary William Dar.

What does big data tell us about small farm consolidation?

Farms are consolidating as well. That’s what big data shows, gathered from farmers who participate in the Farmer Business Network. In a recently released report, the FBN offers a glimpse into their aggregated data, along with sharing the voice of farmers-gleaned from dozens of interviews.

Is consolidation a threat to farmers in the fertilizer industry?

The data shows that chemical, fertilizer and equipment markets are dominated by a small number of companies. If trends continue, this could be a problem because the largest companies tend to have the highest prices, which makes seed and chemical company consolidation a threat to farmers.

How does farm consolidation affect land productivity?

As farm consolidation accelerates and average farm size increases, it puts negative pressure on land productivity as it becomes harder for farmers to get the best yields across every field they plant.

What caused margins to narrow to nothing in 2014 and 2015?

The rising costs and falling commodity prices have caused margins to narrow to nothing in 2014 and 2015, with some regions experiencing negative per acre incomes in 2016.

Does consolidation stop in agriculture?

Consolidation in agriculture doesn’t stop with the current chemical/seed mergers and buyouts. Farms are consolidating as well. That’s what big data shows, gathered from farmers who participate in the Farmer Business Network.

Is the number of farms decreasing?

One thing that is clear is that most farms continue to be family owned. However, the average age of the principal operator is high. The data shows that 66 percent of the farms were over 55 as of 2012. This means that that there will be a major turnover in farm ownership driven by the average age of farmers. Many farmers lack a transition plan or family member ready to take over the farming operation.

Is national seed brand more competitive?

National chemical brands, on the other hand, are actually less competitive among big farms.

Do commodity crops keep up with inflation?

Information collected also showed that commodity crop have continued to struggle with prices that have failed to keep up with inflation since 1980. However, input costs, like those associated with crop protection chemicals, and other production expenses continue to rise despite declining crop prices, with extreme price differences existing for identical products.

What Do the Patterns Tell Us About the Drivers of Consolidation?

Consolidation shows distinct patterns. It occurred in most crop and livestock sectors, but not in grazing and pastureland and not in the beef cow-calf sector. Consolidation proceeded steadily in crops, and more episodically in livestock, but was not concentrated in any single period.

How does cropland consolidation occur?

Consolidation can occur through shifts in ownership, as operators of large farms purchase land from retiring operators of midsize farms.

How much GCFI did farmers have in 2015?

In contrast, farms with at least $1 million in GCFI accounted for 51 percent of all production in 2015, compared to 31 percent in 1991.

How many acres of cropland were there in 1987?

In 1987, more than half (57 percent) of all U.S. cropland was operated by midsize farms that had between 100 and 999 acres of cropland, while 15 percent was operated by large farms with at least 2,000 acres. Over the next 25 years, cropland shifted away from midsize and toward larger operations. By 2012, farms with 100-999 acres held 36 percent …

What percentage of farmland is cropland?

Cropland accounted for 43 percent of all U.S. farmland in 2012, while pasture and rangeland accounted for another 45 percent. While cropland consolidated into larger farms between 1987 and 2012, pasture and rangeland did not, but instead shifted away from the largest farms and ranches and toward smaller operations.

What is GCFI in agriculture?

We measure sales with gross cash farm income (GCFI), which represents all revenues flowing to a farm business from commodity sales, contract fees realized by raising crops or livestock for someone else, government payments, and “farm-related” income (such as land rentals, custom services provided to others, or insurance indemnities). Because GCFI can be affected by inflation in prices irrespective of any change in production, we adjust for inflation and report GCFI in 2015 dollars. We use USDA’s annual Agricultural Resource Management Survey (ARMS) for sales data, and can therefore extend the analysis through 2015.

How many cows were in the midpoint in 1987?

Some shifts have been dramatic. For example, the midpoint milk cow herd in 1987 was at 80 cows—half of U.S. milk cows were in herds of at least 80 cows, and half were in herds with no more than 80. By 2012, the midpoint had increased more than tenfold, to 900 cows.

What is the midpoint of acreage?

At the midpoint, half of all harvested acres of a crop are on larger operations and half are on smaller. In 1987, for example, the midpoint acreage for corn was 200 acres—that is, half of all harvested corn acres were on farms that harvested at least 200 acres of corn, and half were on farms that harvested no more than 200 acres. The corn midpoint increased steadily, and by 2017 had reached 685 acres.

How many acres of corn were harvested in 1987?

In 1987, for example, the midpoint acreage for corn was 200 acres—that is, half of all harvested corn acres were on farms that harvested at least 200 acres of corn, and half were on farms that harvested no more than 200 acres. The corn midpoint increased steadily, and by 2017 had reached 685 acres. Embed this chart.

What was the consolidation of cropland?

The consolidation of cropland into larger farms was persistent over time and widespread across most crops and most States. Major consolidation in livestock production continued to affect dairy, hog, and egg production; in contrast, the cow-calf sector, along with associated pasture and rangeland, showed little consolidation. …

How many cows were in the midpoint in 1987?

Some shifts have been dramatic. For example, the midpoint for U.S. milk cow herds in 1987 was 80 cows. By 2012, the midpoint herd size had increased more than tenfold to 900 cows—and it increased again to 1,300 cows by 2017. Similar dramatic transformations continued to occur in egg layers and hogs.

What livestock sectors are undergoing consolidation?

Other livestock sectors, such as broilers and cattle feeding, showed substantial but more gradual consolidation. Between 1987 and 2017, the midpoint flock and herd size in each sector more than doubled. However, the pace of change was considerably slower than in egg layers, hogs, and dairy—sectors that underwent far-reaching transformations, with dramatic changes in farm size tied to fundamental changes in farm organization, labor use, equipment, and marketing arrangement. Broilers and cattle feeding underwent such transformations in the 1960s and 1970s, with more recent consolidation focused on a gradual continuing shift to larger broiler operations with more and larger houses onsite, and to larger cattle feedlots.

When did pasture and rangeland shift?

As cropland shifted to larger operations between 1987 and 2017, pasture and rangeland moved the other way, shifting away from the largest farms and ranches toward smaller operations. Farms and ranches with 10,000 acres or more of pasture and rangeland held 43 percent of all such acreage in 2017, down from 51 percent in 1987, …

How many acres are in cropland?

Over the last three decades, cropland has shifted from midsize (between 100 and 999 acres) to large operations with 2,000 or more acres in crops. In 1987, 57 percent of cropland acres were operated by midsize farms, while large farms operated 15 percent of all cropland. By 2017, the share of cropland operated by midsize farms had fallen to 33 percent, while the share operated by large farms had grown to 41 percent of all cropland. That shift occurred steadily over time, with the share of acreage operated by large farms increasing in every census from 1987 to 2017, including an increase from 36 percent of acres in 2012 to 41 percent of acres in 2017.

Why did farmers expand their farms?

Farm expansion was primarily a product of scale economies, mostly related to the impact of mechanization and technological change in agriculture and in the national economy. Increasingly during the twentieth century, farmers had to compete with the booming manufacturing sector for workers. Laborsaving technologies, particularly tractors, were adopted mostly because farmers were unable to secure a sufficient labor supply at an affordable cost. However, machinery was most cost-effective when fully used. A new tractor or hay baler could be more easily paid for if the farmer had more land on which to use it. Thus, machinery purchased to solve a labor supply problem put upward pressure on farm size, as farmers sought to maximize their return on investment.

How did the Great Plains affect agriculture?

The pressure to expand was exacerbated by drought and depression during the 1930s. As crop yields and prices fell and as some marginal cropland was abandoned, farmers in the most drought-stricken areas either had to expand their operations to maintain adequate income or drop out of farming. In the western and southern Great Plains states, farm numbers plummeted between 1935 and 1959. New Mexico lost more than 60 percent of its farms in that twenty-four-year period; Oklahoma and Texas lost 55 percent; Colorado and Wyoming lost more than 45 percent. Farm consolidation was not confined to these states. Farmers dependent on livestock production were especially hard hit. In some counties in the Nebraska Sandhills and in southwestern Kansas average farm size had more than doubled by 1950, and farm numbers had decreased accordingly.

How did expansionary pressures affect farmers?

Farmers in the more humid eastern reaches of the Plains were less affected by expansionary pressures because they were able to counter the "cost-price squeeze" by intensifying their operations. In humid, crop-producing areas the adoption of tractors during the 1930s and 1940s freed up land that had been used to feed horses. Increased use of fertilizer and improved seed varieties raised total production without adding more acres to the farm. These options, largely unavailable to livestock producers who dominated the drier sections of the Plains, resulted in only modest changes in farm numbers and size in the eastern third of the Dakotas and Nebraska, and northeastern Kansas. Average farm size increased less than 20 percent in many eastern counties before 1950.

Why were farmers in the more humid eastern reaches of the Plains less affected by expansionary pressures?

Farmers in the more humid eastern reaches of the Plains were less affected by expansionary pressures because they were able to counter the "cost-price squeeze" by intensifying their operations.

What is farm consolidation?

Farm consolidation was mostly a product of the expansion of some family-owned operations and the demise of others. In the last thirty years of the twentieth century some high-profile corporate farming operations were established in the Great Plains. Most were associated with cattle feedlots, confinement hog production, or center-pivot irrigation. However, the role of nonfarm corporations in agriculture is considerably less important in the Great Plains than elsewhere in North America: corporate farming in the Plains is mostly conducted by family corporations.

What happened to ranching in the 1950s?

Meanwhile, with the recovery from the 1950s drought, ranchers had some opportunities to intensify use of marginal lands, and technological change did not produce the same pressures to expand operations as was the case in the Corn Belt counties. After 1959, farm expansion was quite modest in western and southern Plains counties, and in some areas, farm size actually decreased and farm numbers increased.

What was the effect of the Depression on farmers?

In Oklahoma and Texas, the Depression put almost unbearable pressure on tenant farmers. Farm numbers in these two states dropped by 23 percent between 1935 and 1945, but the number of tenant farmers was cut almost in half. Whereas 58 percent of all farms were operated by tenants in 1935, only 38 percent were tenant-operated in 1945. A few of those tenants became owners, but most were squeezed out of agriculture altogether.