farm definition; what’s it mean and why is it important? michael duffy iowa state university aaea...
TRANSCRIPT
![Page 1: Farm Definition; What’s it Mean and Why is it Important? Michael Duffy Iowa State University AAEA Annual Meetings Orlando, FL 2008](https://reader036.vdocuments.net/reader036/viewer/2022062409/5697bfb61a28abf838c9e2e5/html5/thumbnails/1.jpg)
Farm Definition; What’s it Mean and Why is it Important?
Michael DuffyIowa State University
AAEA Annual MeetingsOrlando, FL
2008
![Page 2: Farm Definition; What’s it Mean and Why is it Important? Michael Duffy Iowa State University AAEA Annual Meetings Orlando, FL 2008](https://reader036.vdocuments.net/reader036/viewer/2022062409/5697bfb61a28abf838c9e2e5/html5/thumbnails/2.jpg)
Farm Definition
• For Census of Agriculture;“a farm is any place from which
$1,000 or more of agricultural products were produced and sold, or normally would have been sold, during the census year.”
• This definition was first used for the 1974 Census
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2002 Census
• The 2002 Census continued this definition but there was expanded coverage
• The goal of the expanded coverage was to capture the underreported farms, especially small farms.
• NASS was very successful in meeting their goal
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Percent Change in 1997 Estimates by Sales Class
0%
10%
20%
30%
40%
50%
60%
>$1,
000
$1 to
$2,
499
$25t
o $4
,999
$5 to
$9,
999
10 to
$20
,000
20 to
$25
,000
25 to
$39
,999
40 to
$49
,999
50 to
$99
,999
100
to $
249,
999
250
to $
499,
999
500
to $
999,
999
> $1
M
![Page 5: Farm Definition; What’s it Mean and Why is it Important? Michael Duffy Iowa State University AAEA Annual Meetings Orlando, FL 2008](https://reader036.vdocuments.net/reader036/viewer/2022062409/5697bfb61a28abf838c9e2e5/html5/thumbnails/5.jpg)
Background
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Percent US Farms and Sales by Sales Class 2002
0%
10%
20%
30%
40%
50%
>$1K
1 to
$2,
499
$2.5
to $
4,99
9
$5 to
$9,
999
10 to
$19
,999
20 to
$24
,999
25 to
$39
,999
40 to
$ 4
9,99
9
50 to
$99
,999
100
to $
249,
999
250
to $
499,
999
500
to $
999,
999
> $1M
Farms Sales
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Percent Change in US Farms and Sales by Sales Class, 1997 to 2002
-20%
-10%
0%
10%
20%
30%
40%
>$1K
1 to
$2,
499
$2.5
to $
4,99
9
$5 to
$9,
999
10 to
$19
,999
20 to
$24
,999
25 to
$39
,999
49 to
$ 4
9,99
9
50 to
$99
,999
100
to $
249,
999
250
to $
499,
999
500
to $
999,
999
> $1M
Farms Sales
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The Smallest Farms
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Percent of Operators in Each Age Group
0%
2%
4%
6%
8%
10%
12%
14%
16%
18%
20%
Under 25 25-34 35-44 45-49 50-54 55-59 60-64 65-69 Over 70
All Farms >$1,000
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Years Operator has been on Current Farm
0%
10%
20%
30%
40%
50%
60%
70%
80%
2 years or less 3 or 4 years 5 to 9 years 10 years or more
All Farms Under $1000
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Farms in Programs or Receiving Payments for All Farms and those with Sales Under $1000
0%
10%
20%
30%
40%
50%
60%
Government Payments CRP WRP Federal or Crop Insurance Programs
All Farms >$1K
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Percent of Operators Working Off Farm
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
None 1 to 49 days 50 to 99 days 100 to 199 days 200 days or more
All Farms >$1,000
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Gender of Principal Operator
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Male Female
All Farms Under $1000
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Tenure of All Farms and those Under $1000 in Sales
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
Full owners Part owners Tenants
All Farms Under $1000
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Percent of Operators in Sales Class by Primary Occupation
0%
10%
20%
30%
40%
50%
60%
70%
Farming Other
All Farms <$1000
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Percent of Operators total Household Income from Farming
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
<25% 25-49% 50-74% 75-99% 100%
All Farms <$1000
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Operators Under $1,000 as a Percent of Total Operators, 2002
0%
5%
10%
15%
20%
25%
30%
35%
Male Female
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Changes in Female Farm Operators as a Percent of Total Operators
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
1992 1997 2002
% Female $1K as % of Females
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Percent of Farms with Sales Under $1000 in the State
W Y
W V
W I
W A
VT
VA
U T
TX
TN
SD
SC
R I
PA
O R
O K
O H
N Y
N V
N M
N J
N H
N E
N D
N C
M T
M S
M O
M N
M I
M E
M D
M A
LA
KYKS
INIL
ID
IA
H I
G A
FL
D E
C T
C OC A
AZAR
AL
AK
21.9%
37.6%
31.3%
29.0%
25.9%
24.0%
36.8%
28.2%
28.4%
18.2%
43.8%
24.1%
30.4%
27.6%
24.1%
24.3%
26.4%
25.4%
36.4%
29.5%
37.2%
16.2%
28.2%
25.1%
28.6%
39.0%
22.1%
29.4%
32.7%
37.0%
29.8%
28.4%
29.0%
21.3%25.6%
25.7%22.7%
33.4%
21.7%
12.2%
34.7%
27.3%
13.6%
31.3%
30.1%20.8%
34.8%20.5%
29.5%
20.9%
12% - 24%
24% - 30%
30% - 35%
35% - 44%
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So Why Worry?
• “The census of agriculture is the leading source of facts and statistics about the Nation’s agriculture”
• The data is used by a variety of sources and for a variety of purposes, including:– “…formulate farm and rural policies..”– “Allocate local and national funds for
farm programs…”
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So Why Worry?• It causes misinformation to be
disseminated regarding the sector, the information is there but people won’t take the time to verify ‘facts’
• It masks the changes that are occurring, such as consolidation and it provides an erroneous message with respect to the entry of women and minorities in ag.
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So Why Worry?• Current method provides a distorted view
of the production ag. sector.– Over past decade net farm income was 20% of
gross farm income. If averages hold and using
gross for sales this would mean the small class had less than $200 in net farm income
- In 2002 only 47% of the farms with sales less than $1,000 said they intended to do so. 39% did not and 15% didn’t answer.
- With point farms, the total number of farms decreased 3%, without them there was a 13% decrease
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Solutions
• Dual census• Increase the cutoff based on
inflation since 1974• Change approach entirely• Leave it as it is
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